Providing terminated employees with a hard copy of their termination benefits can be as advantageous to the employer as it is to the employee. Many modern businesses post their corporate policies on their internal websites, but a terminated employee commonly loses their access to this portal. Providing a hard copy of your company’s separation policies can ensure that the employee is aware of vital filing deadlines for benefits and can relieve the corporate Human Resources department from being inundated with questions from terminated employees.
What Information Should I Include in a Termination Policy?
Terminated employees are generally concerned about the continuation or expiration of their corporate benefits, such as health care, profit sharing, 401k accounts, and retirement benefits. These concerns need to be addressed as soon as possible so that the terminated employee meets important filing deadlines along the way. Missing deadlines can be costly and result in a denial or forfeiture of benefits and services. A solid termination package will include information on:
- Dates of coverage and expiration for medical and health care benefits
- Policies on accrued vacation and sick pay
- Projected date of final paycheck
- Stock options and deadlines for filing
- Rights and deadlines pertaining to the conversion of group life insurance policies to individual policies
- Flexible Spending Account (FSA) balances and expiration dates
- Expected dates for distribution of non-qualified deferred compensation payments
- 401k and pension distribution information
- COBRA benefits and expiration dates
- Tax and W2 documents for year-end reporting purposes
Confirming Contact Information
There are many reasons why a former employer may need to contact a terminated employee in the future. Income tax statements, retirement and
401K benefit distribution, as well as health care and life insurance policies often follow terminated employees beyond their time with the employer. It is vital to confirm email addresses and phone numbers of terminated employees before separation. Employers must also inform former employees of any changes in their corporate structure, location, or contact information to ensure the former employee can contact the corporation when needed.
Employers are wise to meet with their Human Resources personnel to update their termination policies on a regular basis. Employment law policies and regulations are in a constant state of revision, so employer obligations to terminated employees can change over time. Keeping ahead of these changes and ensuring that terminated employees have the information and resources available to them upon their separation from the company is vital to a successful transition. Non-compliance with mandated separation and termination policies can create a host of legal implications for employers.
Philadelphia Employment Lawyers at Sidney L. Gold & Associates, P.C. Help Employers Comply with Separation and Termination Regulations
If you have employment concerns, the Philadelphia employment lawyers at Sidney L. Gold & Associates, P.C. provide legal counsel to help businesses develop sound termination packages. Call us at 215-569-1999 or contact us online to schedule a free consultation today. Located in Philadelphia and Pennsauken, New Jersey, we serve clients throughout Wilkes-Barre, Scranton, northeast Philadelphia, Bucks County, Chester County, Delaware County, Montgomery County, and South Jersey.