In this fast paced world, where the competition grows on a daily basis, finding a job that suits your requirements and can hone your skills has now become tougher. Moreover, most organizations feel that there is never a shortage of manpower, and so an added pressure to perform 24/7, is always felt by employees. However, what can you as an employee do to protect your own future, in a world where pink slips are now commonplace; and if you are an employer what can you do to protect your organization from a bad reputation?
That is where an Employment Insurance steps in. To an employee, taking an employment insurance means that you will pay a small premium every month for as long as you have a steady job, so that in case you find that you are without a job, you would be able to reap more unemployment benefits.
It is simply a way to insure your current income for your future needs. There are some things that need to be kept in mind if you wish to apply for employment insurance :
- The application for this insurance can be done online.
- It is also important to have a ‘Record of Employment’ from your employer with you, as that will serve as a proof of employment.
- If you are an immigrant, showing details of your visa status and work permit is important. Furthermore, more certificates such as a birth certificate, passport etc may be asked if the application is done in person.
- It is also a must to have a working bank account, and to show details of the same as the money will be credited directly to this account.
After applying for the insurance, a benefit statement, with an access code and date for the first report will be sent. Having an access code does not yet means that your claim has already been decided on. This will however, help in completing the rest of the formalities. Once the entire process is over, you would be entitled to the benefits within a few days or within a month. However, do remember that the insurance can be applied for only in case you have lost your job due to a retrenchment or company downsizing or the like. If you have lost your job because of your own account, this insurance cannot be applied for. Also, to receive the benefits you should have worked at the place for atleast a year and have to be without work for atleast a week. On the other hand, the kind of premiums you would get and the kind of benefits you would be entitled to would also differ from one place to another. Overall, however, it is beneficial to apply for the same especially if you are in a job that is not very secure. You would atleast have the benefits even after unemployment, of an employed person.
There is an insurance, which protects business people too. Business owners are also always at a risk of being accused of something that probably did not happen. So, an Employment Practiced Liability Insurance gives protection to business set ups, against claims that the legal rights of employees have been violated in some way. It offers protection against lawsuits that could be filed by employees on the grounds of sexual harassment, failure to give a promotion or to employ somebody, discrimination of sex, race, age etc. This kind of policy would be very helpful for large business operations with a huge manpower.
There are at the same time some points which need to be remembered :
The cost of such insurance depends on the type and size of your company, staff employed, risk factors, any history of lawsuits filed by employees etc. This policy would reimburse expenses that incur when the company is fighting a case in court even if the case is won or lost. If you have an organisation which does not take all employees on its pay roll, but has contract, temporary and seasonal staff, it would be advisable to go for the best coverage possible; one that covers all kinds of employment. Also, if such a situation arises, the employer would be able to take proper action, only during the time frame of that policy.
There may be proper genuine cases of some kind of harassment at work or maybe an uncomfortable situation that arises between two or more employees. However, at the same time, employees are also well aware that filing a lawsuit of any kind against the firm one works in, would not only bring a lot of publicity but also possible a huge settlement. This has however led to measures such as having policies against discrimination of any kind, ensuring that the employees work in harmony, training managers to enforce policies at work, and so on. Making sure that suggestions and complaints from employees are heard and measures taken to work on them, is very important. T has been found that civil disputed are the heart of many lawsuits that are filed on a daily basis. There is also a provision that allows an employer to apply for a per claim basis, which means that for every lawsuit filed during that period, there would be only one deductible which needs to be paid for the entire claim.
Ensuring that you protect yourself either if you are an employee or an employer is a must, as that will only bring greater returns to you in many ways. In this world where nothing stays permanent, taking such a policy would greatly reduce risks of the worst sort.