Pay for time not worked

Supplementary pay benefits:

Benefits for time not worked such as unemployment insurance vacation and holiday pay and sick pay.

Pay for time not worked also called supplemental pay benefits is one of the most costly benefits because of the large amount of time off that many employees receive. Common time off with pay periods include holidays, vacations, jury duty, funeral leave, military duty, personal days sick leave, sabbatical leave, maternity leave and unemployment insurance payments for laid off or terminated employees.

Unemployment Insurance

Provides benefits if a person is unable to work through some fault other than his or her own.

All states have unemployment insurance or compensation laws. These provide benefits if a person is unable to work through no fault of his or her own. The benefits derive from a tax on employees that can range from 0.1 to 5% of taxable payroll in most sates. An employer’s unemployment tax rate reflects its rate of employee terminations. States have their own unemployment laws, but they all follow federal guidelines.

Firms aren’t required to just let everyone they dismiss receive unemployment benefits – only those released through no fault of their own. Thus, strictly speaking a worker fired for chronic lateness can’t legitimately claim benefits. But many managers take a lackadaisical attitude toward protecting their employers against unwarranted claims. Employers therefore spend thousands of dollars per year on unemployment taxes that would not be necessary if they protected themselves.

Following the checklist in Table can help protect the employer is given below:

Do you:

1) Keep documented history of lateness absence and warning notices.
2) Warn chronically late employees before discharging them.
3) Have policy that three days’ absence without in is reason for automatic discharge
4) Request doctor’s note on return to work after absence
5) Make written approval for personal leave mandatory.
6) Stipulate date for return to work from leave
7) Obtain a signed resignation statement
8) Mail job abandonment letter if employee fails to return on time.
9) Require new employees to stipulate in writing their availability to work overtime, night shifts, etc.
10) Set probationary periods to evaluate new employees.
11) Conduct follow up interviews one to two months after hire
12) Document all instances of poor performance recording when and how employees did not meet job requirements.
13) Require supervisors to document the steps taken to remedy the situation.
14) Require supervisors to document employee’s refusal of advice and direction.
15) Make sure al policies and rules of conduct are understood by all employees
16) Require all employees to sign a statements acknowledging acceptance of firm’s policies and rules.
17) File the protest against a former employee’s unemployment claim on time (usually within 10 days).
18) Use proper terminology on claim form and attach documented evidence regarding separation.
19) Attend hearings and appeal unwarranted claims.
20) Check every chain against the individual’s personnel file.
21) Routinely conduct exit interviews to produce information for protesting unemployment claims
22) Hold periodic workshops with supervisors to review procedures and support effort to reduce turnover.
23) Deify turnover problems as they occur by

a) location
b) department
c) Classification of employees.

Determine whether you could answer yes to questions such as Do you have a rule that three absences without calling is reason for automatic discharge? Doing so should enable you to better demonstrate that a dismissal was a result of the person’s inadequate performance rather than lack of work or some other cause beyond his or her control.

The number of paid employee’s vacation days varies considerably from employer to employer. In United States the average is about 10adys per year. However, even for the same employer long term employees traditionally get more vacation days. Thus, based on the US Bureau of Labor statistics March 2006 survey typical US Company’s policy might call for:

1) Eight to 9 days after 1 year of service
2) Eleven days after 3 years of services.
3) Thirteen days after 5 years of service
4) Sixteen to 19 days thereafter.

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