Additional Benefits
The PBS standard staff handbook provides that any such benefits will be either contractual (i.e. part of the remuneration package) or discretionary and subject to withdrawal at any time. The latter benefits are probably best dealt with by letter rather than in the contract of employment (see Instruction Sheet with standard contract of employment)
Whether additional benefits are contractual or discretionary may well depend on the employment market and the relative bargaining positions of the employer and employee. If the employer has to include certain additional benefits in the “remuneration package” to acquire the services of particular workers or to retain key personnel then those benefits will have to be contractual however much the employer might prefer them to be discretionary and capable of withdrawal at any time.
On the other hand many so called “perks” are no longer the benefit to the employee that they once were and the employer would be wise to take professional advice before completing any agreement with employees. There might well be more of an incentive for the smaller business to emphasise the “happy work environment” and “prospects” as the business grows rather than try to compete with benefits that the larger organisation can afford.
It has been held by the Courts that there is an obligation on employers to ensure that all employees are made aware of the benefits to which they may be entitled.
Additional benefits can be many and varied. They include:
- Company car
- Profit sharing scheme
- Employee share ownership schemes
- Staff discounts
- Private medical insurance (including abroad on Company business)
- Permanent health insurance
- Death in service insurance
- Health screening
- Professional subscriptions
- House purchase loans
- Personal loans e.g. for season tickets etc
- Further education or training in different skills etc
- Tools, clothing and equipment
- Long service awards
- Incentive schemes
- Telephone rental
- Subsidised meals
- Child care facilities
- Re-location costs
Precedents to implement appropriate benefits can be obtained from PBS.
All PBS information sheets are designed to provide the detail you need to implement best business and employment practices. They are not a detailed commentary on the current law and where advice is needed in a specific case you should contact PBS for expert consultation.
additional benefits