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Continue and extend benefits for terminated employees

The Statutory requirements

In Canada, when employees are terminated without cause, each province has an employment standards act or code that dictates the employer's statutory requirements for a terminated employee. These regulations require an employer to continue the current terms of employment, such as pay wages and salary, and maintain the employee's group benefits until the end of the statutory notice period.

The required termination notice period will range from one to eight weeks, depending on the length of service of the employee and depending on the province. The employee either remains employed during the notice period or is let go immediately with pay (in lieu of notice). In either case, benefits are continued for the full period.

For groups with HRIS integration files, the integration files include the Last day worked date for terminated employees. This date is populated to include the legislative notice period, so benefits are automatically continued until that date.

Benefit extensions

You may want to extend benefits beyond the legally required period for some employees. For these requests, you are required to complete and submit a form to the insurance carrier, such as the "Request for Continuation of Benefits for Terminated Employees” form. The insurance carrier assesses the request and automatically approves requests that fall within their standard extension guidelines. Any extension requests outside their standard guidelines, such as extension requests beyond 12 months, will be referred to their underwriting department for approval.

For most insurance carriers the following benefits can be extended within the standard time period:

  • Basic Life Insurance (without Waiver of Premium)

  • Optional Life Insurance (without Waiver of Premium)

  • Dependent Life Insurance (without Waiver of Premium)

  • Accidental Death & Dismemberment (AD&D) (without Waiver of Premium)

  • Extended Healthcare (EHC) (including Emergency Travel Assistance)

  • Critical Illness

  • Dental benefits

Disability benefits usually aren’t extended past the legislative notice period.

Approved benefit extensions beyond the legislative notice period

Insurance carriers don't inform League of approved benefit extensions, so it is up to HR Admins to inform League of the approved benefits and end dates.

For groups with HRIS integration

HR Admins must provide the newly approved benefit extensions for employees through the HRIS integration, in the “benefit end date” field. League can then ensure the employees’ new benefit end dates are correct in their League Wallets.

For all other groups

HR Admins must contact League Member Support with the approved benefit extension dates for their employees. League will manually update each employee’s benefit termination dates in the League Admin portal.

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