Understanding the Meaning and Function of Fringe Benefits in the Workplace

Employee fringe benefits and provisions in form include various kinds of non-wage compensation also provided to employees as part of their regular salaries or wages. Such cases, where an individual exchanges regular wages for any other type of benefit is known as a ” salary swap “or ” salary package “arrangement.” In most of the cases, the individuals who are receiving the benefits are entitled to receive more than the regular amount of wages. It is the employers’ obligation to inform the employees about these benefits so that they can exercise their right to receive an enhanced amount of payment. This also helps them to protect against unemployment especially in the case of people who usually change jobs frequently.

fringe benefits

The employee should therefore take care to be aware of the rights available to him as well as his entitlements under the employment law. The employee must know and be informed of his rights to additional compensation in case he is injured while at work or suffers from a disease while on duty. The employers too have a legal duty to tell their employees about the benefits to which they are entitled. This should be done in a manner which does not embarrass the employer in anyway.

When employees join a company they generally receive all the fringe benefits offered by the company for free. But there are circumstances where some employees may have to pay for the benefits. The company should only pay for those benefits which are absolutely necessary such as medical assistance for personal injuries, mental health benefits, etc. These benefits should not be withheld from the employee just because he has asked for financial help for something other than getting sick. He should also not be made to undergo treatment for a condition unless it is necessary for his recovery.

Sometimes, some companies make their workers complete a survey before they start getting benefits. This is a survey which helps the employer to evaluate how well the employee is performing his work. The results of this survey can then be used for the purpose of determining the earnings of the employee. The survey, however, cannot be used to measure how productive the employee is. Other factors such as the type of work done by the employee and his efficiency must be considered for determining the salary.

Fringe benefits may sometimes be given to workers who belong to trade unions or who are registered with the state labor commission. They too have the right to ask for such benefits. The benefits awarded should not be based on the amount of salary earned. This could create an injustice among employees. But if the benefits are granted on the basis of the annual earnings of the employee, then this would be much fairer.

Some employers also give fringe benefits to employees who belong to professional associations of which the company is a member. Sometimes, the fees charged by these organizations for services like printing and postage may also be considered as fringe benefits. The main aim of such employers is to promote their services and products among their employees. Thus, such perks could help increase the productivity of employees while helping them earn more.

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