benefits while on leave

[Chris Vaage]

#108893

Forum: Community

hi there, we currently pay 50/50 split for benefits between the ee and er with the exception of LTD at 100% paid by the ee. if an employee takes a leave unpaid, such as maternity, illness, or , other can the employer stipluate the employee is then 100% resposnsible for all benefit premiums if they choose to continue their benefits while on leave? Are there exceptions to this if someone is on LTD? Currently we ask employees to pay 100% of their premiums if they take a leave unpaid. this is in alberta.

thank you!

[Haley O’Halloran]

#108897

In Alberta, I would distinguish between an ordinary unpaid leave, a job-protected maternity or parental leave, and a medical leave associated with an illness or disability. Although employers are generally not required to pay wages or benefits during an unpaid leave unless an agreement or other legal obligation requires it, that does not necessarily mean they can require employees to assume 100% of benefit premiums in every situation.

For a general unpaid leave, the employer’s ability to require the employee to pay the full cost of continued benefits will depend on the benefit plan terms, employment agreement, applicable policies, and any other legal obligations. If the employee wishes to maintain coverage and the insurer permits it, the employer may be able to require payment of the full premium as a condition of continuing coverage, provided the arrangement is lawful and clearly communicated. However, I would not apply a blanket rule without checking the specific type of leave and applicable exceptions.

Important exceptions and special cases
Maternity and parental leave: Alberta’s Employment Standards rules do not generally require employers to pay benefits during maternity or parental leave unless required by an agreement or another legal obligation. However, pregnancy-related medical absences may need to be treated differently from the parental portion of the leave. Human rights obligations concerning pregnancy and sex discrimination can affect how benefit costs are handled, particularly where an employee is absent for pregnancy-related health reasons. The employer should not automatically apply a rule requiring the employee to pay the full premium for every part of a maternity leave without checking these obligations.

Illness or disability leave, including LTD: This requires particular care. If an employee is receiving long-term disability benefits, the insurer’s policy may contain provisions for continued coverage or waiver of premiums. Since your organization currently requires employees to pay 100% of LTD premiums while actively employed, check the policy’s terms regarding premium waivers, eligibility, and coverage during an approved disability claim. Also review whether the employer continues contributing to health, dental, life insurance, or other benefits during the disability leave. An employee receiving LTD benefits should not automatically be treated the same as an employee taking an unrelated personal leave.

Recommended approach for your organization
I would review your current benefits policy and insurer’s contract before continuing to apply the 100% employee-paid rule across all unpaid leaves.

In particular, establish separate procedures for:
– Ordinary voluntary unpaid leave: Employees may be required to pay the full premiums to maintain coverage, subject to plan terms and applicable law.
– Health-related leave during pregnancy: Maintain the same benefit access and premium treatment provided to employees on comparable sick or medical leave. Alberta Human Rights Commission guidance specifically cautions against requiring pregnant employees to pay 100% of premiums when employees on other sick leaves are not required to do so.
– Medical or disability leave, including LTD: Confirm the employer’s contribution obligations, accommodation requirements, and any premium-waiver provisions in the insurer’s policy before determining the employee’s share.
– Voluntary maternity or parental leave: Apply your ordinary voluntary-leave policy consistently, while distinguishing it from any medically required portion of the absence.

In short, you may be able to require employees to cover 100% of premiums during some unpaid leaves, but a blanket rule is risky, particularly for pregnancy-related medical absences and disability-related leaves. I recommend having Alberta employment counsel and your benefits provider confirm the applicable rules and plan provisions before updating your policy.

I hope this helps!
-HRInsider Staff

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