healthcare benefits for Federally Regulated Employees
Federally Regulated Employees work in a wide variety of industries including government; postal services; railway companies such as Canada Post Corp and Via Rail Canada; banking institutions; airlines and airports; energy providers; broadcasters and telecommunications firms. Because they often work in places that are directly or indirectly under the supervision of the federal government, these employees must be subject to specific rules regarding their termination and severance packages.
The Federally Regulated Employee severance pay telecommunication employee receives upon termination may cover expenses that might arise during the transitional period between jobs, such as job search costs or the continuation of health insurance coverage. These severance packages also help to foster positive employer-employee relationships, and provide a strong message that the company cares about its employees well beyond their tenure with the organization.
In addition to the standard termination benefits provided by law, some employers will offer additional benefits such as a cash out or life insurance policies. These benefits, however, raise unique issues that must be analyzed and resolved under strict legal standards due to explicit statutory provisions in the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA).
Does severance pay end healthcare benefits for Federally Regulated Employees?
For example, a claim of discrimination may be raised if an employer provides severance benefits based on years of service such that an older employee gets a lower benefit than a younger employee even though they both have equal years of service. The defense is that the lower level of benefits is explicitly required by the plan and the employer cannot vary the amounts paid to different employees on a discriminatory basis.
Depending on the circumstances, a telecommunication employee severance pay may also include an unreduced pension. In order to qualify for the pension, an employee must have at least 12 months of continuous Federal service prior to their date of separation. Continuous service is defined as one or more civilian Federal positions held under a qualifying appointment, or by an unpaid nonqualifying temporary appointment that precedes the current qualifying appointment.
In some cases, severance packages may be enhanced by the fact that an employer must comply with the Canadian Labour Code (CLC). The CLC includes provisions on termination that require federally regulated employers to provide certain notice, statement, reimbursement and entitlements to their staff when they are dismissed or terminated. These new requirements are intended to bring the CLC in line with provincial employment standards laws such as Ontario’s Employment Standards Act, which already contains a graduated system for notice and pay in lieu of termination.
Employers that fail to meet these new minimum requirements could face charges by the Canada Labor Program, which investigates and enforces violations of the federal workplace laws. This could include orders to pay outstanding severance payments. If you are concerned that your severance package has been compromised, contact an experienced employment lawyer to discuss your situation. They can explain the law, review your situation and determine if you may be eligible for additional compensation.
