When getting a new job, people always look forward to good salaries and lots of benefits. The benefits come regarding insurance covers. People seldom look forward to termination unless it’s a contract. Even when it’s a contract, there are always instances of contract renewal. The outplacementbureau are required to give the new notice periods whenever there is such a change. During termination, one thing that employers and employees need to be familiar with is notice period.
Statutory notice period
Statutory notice period refers to the minimum notice period as stipulated by law. The period depends on the length of service of the worker. For an employee who has been employed for more than two months but less than two years, the notice has to be one week. For one who has worked for more than two years, the notice will be two weeks. The period will, however, change if the employee was in service for more than six years. In this case, each year will be given a one week during the notice period.
Contractual notice period
Contractual notice period depends on the terms set out between the employer and the employee. The terms are not constrained by statutory laws but rather agreed upon. For instance, an employer must give an employee a statutory notice of one week. Nonetheless, the employer and the employee might have an agreement with a months’ notice in case of termination.
Health insurance in the notice period
Many people have health insurance which is company provided. Others, on the other hand, have private health insurance. When it comes to termination the medical insurance, will depend on with your insurance option. The company provided insurance may be terminated immediately if your contract expires with the notice period. Long term employees are eligible for health insurance up to the last day of employment. In the notice period, an employee who has worked for a long time will still have a right to medical insurance.
In most states, termination without cause comes with a price. Other than paying wages other benefits to the employee must be met without fail. Most employers will recognize statutory obligations for general benefits like health care and fail to insure other benefits. This is however not the way it should be. The insurer works according to terms of the employer and the employer makes sure employees get their benefits whether actively employed or not. Life insurance, travel insurance, and other benefits still stand up to the last day of termination.
Termination can be a good or bad depending on the cause. For employees, the fear of dismissal comes in because of benefits. Most employees upon getting a notice are never sure of whether they are eligible for benefits or not. Knowing the statutory laws is, therefore, vital.