It’s no surprise the modern workplace rarely use paper documents anymore, but most fail to realize there are still some important materials that employees need in writing (i.e. employee handbooks, employee benefits). With most employers relying mainly on technology to manage the workplace it’s no wonder mistakes can occur and companies usually end up paying a huge price for it.
A lot of companies have login portals for employees that have access to information, such as, schedules and company policies, but, not all the information is transparent, but mainly a summary. So, how can employers get into trouble over this?
Let’s take a look at this example regarding benefits:
A lady worked for a huge financial corporation and listed her brother as her beneficiary. Over the period of two years she paid for her life insurance policy through her employer, well, after two years of working she became disabled and had to stop working. Then a couple more years later she ended up passing away. But because her policy ended due to her not working her beneficiary was denied what was owed.
Seems straight forward right? Wrong!
This information about her life insurance ending was technology based, the lady never received a hand copy of company policy, therefore, was deprived the knowledge that her life insurance plan would be terminated once she stopped working. Not to mention, if she supplied proof of her disability, she would be able to continue her life insurance policy anyway, but she didn’t know this either. In the end, the courts ruled in her favor.
As you can see, an employer must take every step possible to prevent complications and confusion. Technology shouldn’t take the place of everything. Remaining in compliance with employment laws is tricky. Just keep in mind supplying important information in document forms is still a crucial strategy for preventing lawsuits.
Do you still use paper copies to ensure your employees have valuable clarity when it comes to their benefits?