Without employees, companies could hardly function let alone meet requirements. Hence, companies compensate their efforts by giving benefits and entitled severance pay.
Benefits are things of value other than salary given in return for a good job performance. Employee benefits basically include, but are not limited to, the following:
Benefits are not mandatorily given unless provided by federal or state law. Moreover, the range and options of benefits vary and are changing rapidly because they are increasingly expensive for companies to provide.
Unemployment benefits and worker's compensation are some benefits mandated by federal law.
Unemployment benefits are federally required. This kind of benefit is given to eligible workers who are unemployed through no fault of their own.
The beneficiary must meet State requirements for time worked or wages within a "based period".
Under this program, the benefits depend on the percentage of an individual's earnings over a certain period of time. In most states, the benefits could be paid for a maximum of 26 weeks. In case of high unemployment rate, an employee may avail of additional weeks of benefits.
An unemployed is advised to contact the State Unemployment Insurance Agency to avail of this benefit.
Worker's compensation is another benefit that is imposed by federal law. It is given to employees who are injured on the job.
Under this system, workers are compensated only when injury or illness has been incurred in the course of employment. Unless otherwise provided, it is considered as an exclusive remedy for employees who have been injured while on their job.
Typically, worker's compensation is required by the state for every employee. However, state law may exempt small companies or owners from implementing it.
The benefits that an employee may receive could either be tangible or intangible. The previous discussion refers to tangible benefits. Intangible benefits are less direct, for instance, a nice, comfortable office, sufficient supplies, likelihood for promotion, etc.
Employee benefits may also be company-paid and employee-paid. Most benefits such as vacation pay, holiday pay, etc are company-paid. Some benefits like medical insurance are often paid in part by employees because of its high cost.
Some employers offer benefits through cafeteria plans. These plans are usually funded by both the employer and the employee.
Regardless of form and kind, benefits are helpful to employees. It inspires and motivates them to work harder.
For employees who believe they have been deprived of benefits, they may contact an employment lawyer to assert their rights.