Organizational Policy Update Inquire

[Conner Lantz]

#81216

Hello, I’m reaching out to you to enquire about the rules in updating/changing an organizational policy. Our company is planning to update our organizational policy with regards to employee benefits during legislated leaves (maternity/parental/sick etc.) to specify that the employees will be responsible to satisfy their portion of the health benefit premium during prolonged absence. We are not sure if the new policy can be applied to those of our “on leave” employees who went on their leaves when the old policy was in effect. I would appreciate any suggestion. Best regards

[Conner Lantz]

#81215

Not sure my response went thru, so I’m resending it:
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Normally, I would say that applying a leave-related policy change like this to an employee AFTER he/she’s started leave in accordance with the original policy is highly problematic and a potential breach of contract. However, requiring employees to continue participating in benefit plans during leave (and continuing to make employer contributions on his/her behalf) is not only permitted but mandated under the Ontario ESA (Section 51(1)) unless the employee elects in writing not to do so. Accordingly, the rule would apply regardless of what your leave policy says or doesn’t say.
I’m going to run this past our payroll expert for a second, more informed opinion but I personally think you’re OK. However, I would suggest vetting your leave policies to ensure they’re in line with ESA requirements. To be continued. . . Glenn

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