The vast majority of employers provide their employees with a benefits package in one form or other, with the likes of annual leave, pensions and public transport season ticket loans among the most popular perks offered. Although few employees will give much thought to it – because it’s not necessarily that pertinent – benefits can be split into one of three categories.
Short-term employee benefits are given to the employee within 12 months of them providing a service to the employer. That service might be delivering their standard job, or delivering it to a certain level of performance, for example. Short term benefits include leave pay, time off in lieu and bonuses.
Long-term employee benefits, as you might expect, are those that are due after 12 months of an employee providing a service to their employer. They can include anniversary payment, share schemes based on years served and long-term bonuses.
Termination employee benefits are awarded to employees only after they have stopped working for an employer. Although this may initially seem counterintuitive, they include a number of common benefits, such as pensions, lump sum pay-outs and post-employment life insurance and medical care.