Bill 176 2002

An Act to provide for some
continuation of benefit plans
of employees after the end
of their employment

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. The Employment Standards Act, 2000 is amended by adding the following section:

Continuation of plans after end of employment

44.1 (1) If an employee's employment with an employer ends and the employment has lasted for a total period of at least 52 weeks immediately before the end of the employment, the employee may, within two weeks following the end of the employment or whatever other time period is prescribed, file a notice with the employer.

Effect of lay-off

(2) An employee's employment shall not be considered to have ended if the employer lays the employee off without specifying a recall date unless the period of the lay-off exceeds that of a temporary lay-off within the meaning of subsection 56 (2).

Week of lay-off

(3) For the purpose of subsection (2), an employee shall be considered as laid off for a week in the circumstances described in subsection 56 (3).

Continuation of benefit plans

(4) An employer who receives a notice under subsection (1), shall continue, for a period of 26 weeks following the end of the employment or whatever shorter period the employer and the employee agree to, to provide, offer or arrange for the benefit plans that it provided, offered or arranged for the employee during the period of employment.

Terms of benefit plans

(5) Subject to subsection (6), the terms of the benefit plans continued under subsection (4) shall be the same as those of the plans as they existed before the end of the employment, unless the employee agrees otherwise.

Payment

(6) The employee is responsible for the full cost of all benefit plans that are continued under subsection (4) for the employee for the period following the end of the employment.

Non-compliance by employer

(7) An employer who does not comply with subsection (4) is liable to pay damages to the employee for whatever loss the employee incurs as a result of the employer's non-compliance.

2. Subsection 141 (2) of the Act is amended by striking out "and" at the end of clause (d) and by adding the following clauses:

(f) specifying circumstances under which an employee is not entitled to file a notice under subsection 44.1 (1);

(g) specifying circumstances under which an employee is considered to have ended or not to have ended employment with an employer for the purposes of section 44.1.

Commencement

3. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

4. The short title of this Act is the Family Health Benefits Act, 2002.

EXPLANATORY NOTE

The Bill amends the Employment Standards Act, 2000 to provide that when the employment of a person who has been employed at least 12 months with an employer ends, the person is entitled to have the employer continue to provide, offer or arrange for the benefit plans that it provided, offered or arranged for the employee during the period of employment. The period of continuation lasts for six months following the end of employment or whatever shorter period the parties agree to. The employee is responsible for the full cost of all benefit plans that are continued.