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Extended Sick Leave Benefit
Benefits & Compensation
Extended Sick Leave Benefit
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
My company has an earned extended sick-leave benefit that carries over each year to specific limits -- 8 weeks but soon to be extending it to 10 weeks. In simple terms, it can be used after 1 continuo
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Forums » Topic Forums » Benefits & Compensation » Extended Sick Leave Benefit
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Extended Sick Leave Benefit
posted at 3/24/2009 5:42 AM EDT
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Posts: 28
First: 2/21/2007 Last: 6/9/2011 |
My company has an earned extended sick-leave benefit that carries over each year to specific limits -- 8 weeks but soon to be extending it to 10 weeks. In simple terms, it can be used after 1 continuous week of the same condition or hospitalization. They are not paid for this on termination.
We've always paid this out at full salary when someone has needed to use it, though few people have. We would like to start paying it out at 75% of salary if the employee uses this time beyond a month -- so any extended sick-leave lasting longer than a month and utilizing the benefit would be paid 75% of salary. But if someone uses this benefit for a shorter period for the same condition – less than a month -- salary would be paid at full salary. My question is does anyone see any problem with changing our policy like this? Possible legal or other? |
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Extended Sick Leave Benefit
posted at 3/24/2009 5:58 AM EDT
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
I don't see much of a problem with changing it so long as you're doing it for all employees. I'd certainly review any employment documentation with an attorney to ensure that there isn't some kind of contractual language that would prevent you from making the change.
Paying out at 75% is somewhat generous considering that LTD/STD insurance usually pays out at 66%. Which does beg the question of why not simply source STD/LTD insurance rather than doing this inhouse - you may find that implementing an STD/LTD program might be a more cost effective means of providing the same coverage as well as providing case management for lengthy illnesses. (PS: I'm not an insurance salesman) |
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Extended Sick Leave Benefit
posted at 5/27/2009 10:54 AM EDT
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Posts: 1783
First: 11/11/2003 Last: 5/13/2010 |
Have you costed out what your employer would save by making this change, in total dollars and as a percentage of paid time off?
The proposed benefit reduction will surely cause a lot of upset. If the savings are minimal, it may not be worth the angst, especially if you've made other changes that employees view as take-aways. |
Forums » Topic Forums » Benefits & Compensation » Extended Sick Leave Benefit
