Employer's Obligation To Maintain Benefits Upon Termination

When it comes to maintaining a terminated employee's benefits, it is not always clear what an employer's obligations are. While there are many factors that impact this obligation, the below summarizes some basic principles to consider.

Statutory Notice Period:

Under section 60 of the Ontario Employment Standards Act, 2000, S.O. 2000, c. 41, employers must continue to make whatever benefit plan contributions that are required to maintain the employee's benefits under the plan until the end of the statutory notice period to which the employee is entitled under sections 57 or 58.

In principle, this is because the employer is required to make the employee whole throughout the notice period, as if the employee was still working.