Employers must talk to their company lawyer/human resources department to create a precedent on how to treat all employees during leave of absence situations.
There are three ways to proceed when an employee needs a leave of absence:
- Terminate the employee from the group plan
- Keep the employee on the plan and continue to pay your portion of the premium
- Keep the employee on the plan and them the employee pay for the whole premium
We are not legally allowed to recommend any of these methods, therefore you should consult Labor Standards or a human resources expert.
All companies who are insured with the Chambers of Commerce group Plan receive Business Assistance Service. This gives each employer 6 hours per year towards human resource advice, legal advice, and tax advice from a team of professionals at no extra cost.
To access the Business Assistance Program, please call 1-877-922-8646
Continuation of Benefits
- To continue benefits while on maternity leave, premiums must be paid continuously throughout the employee's time away
- There would be no interruption on health and dental coverage, however the disability benefits (WI, LTD, CI) would not be effective during maternity leave
- Please notify us within 50 days of the child's birth in order for the child to be added to the plan without penalty
- If the employee chooses to opt out of the benefits, we will reinstate the employee for the first day of the month following her return to full-time work. We need to be advised of this within 60 days of returning, and the employee must return after 12 months.
Leave of Absence or Lay-Off:
- Benefits under the Chambers Plan typically terminate when an employee stops working. Should firms grant a leave of absence or temporary lay-off, the employer can continue to offer the benefits held by the individual on a premium paying basis (with the exception of disability benefits, WI, LTD, CI)
- For insurance to continue we must be notified before the leave begins, provided with scheduled date of return, and premiums must continue to be paid
- This continuation of insurance cannot exceed 6 months if the employee is on a leave of absence or lay-off
- If coverage is not continued during the lay-off or leave, coverage can be reinstated without evidence of insurability, provided the employee returns within 6 months of the termination date
- Please note that you must notify our office within 31 days of the employee's return.