What is a SUB plan?
A Registered SUB (Supplemental Unemployment Benefit) plan is
option for employers that benefits both employers and employees
alike. It allows employers to continue to support employees while
the burden of the bulk of their income is carried by Employment
Insurance (EI). Registered SUB Plans can be implemented for
temporary stoppage of work, training, or illness, injury or
quarantine.
Benefits for employers
- A SUB Plan It allows for a longer
layoff (Up to 35 weeks within a 52-week period). If layoff exceeds
the 35 weeks, termination pay would be required.
- Reduces employee turn over, employees
who are still receiving an income, are less likely to seek other
employment.
