Q. Show Coverage benefits of Fringe?
Coverage of benefits: it has been recognized that certain benefits must be supplied by the organization for its employees, regardless of whether it wants to be or not. With few expectations, the hiring of any employee requires the organization to pay social security premiums, workman's compensation etc. Similarly, the payment of these costs by the organization provides the employee with financial protection at retirement, termination, or as a result of injury, and it also provides to the workers dependents in case of the employee death. The national association of manufactures has indicated the following classification of the Fringe benefits:
1. Premium payments: for the period of a time worker has worked, for example, payment on daily or weekly basis, holidays, overtime pay, shift differentials, the cost of living bonus, bonus in lieu of vacation.
2. Payment for the special duties: such as working on grievance redresses procedures and labour contract negotiations.
3. Payment for health and security benefits: these include retirement plans, social security payments, savings plans, profit sharing plans, life insurance, medical, surgical and hospital insurance, accident and sickness insurance, supplemental employment benefits, payments under the workman's compensation Act, disability insurance, old age and survivor insurance, and unemployment compensation.
4. Payment for time not worked: which includes payment for the sick leave and for time during which an employee is under medical care, payment for holidays, vacations, witness time, voting time, excused absence, lunch periods, rest periods, work up time, reporting pay, severance pay, payment for call in time, call back time, dressing time, portal to portal time and wet time.
5. Payment for the employee services: including cafeteria subsides, union credit, house financing, parking space operations etc.
6. Other expenditure: such as that incurred on making Christmas gifts or offering Christmas bonus, on educational employee uniforms, work clothes, safety equipments or allowance, laundry allowance, supper money or meal allowance.