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Running Head: EMPLOYEE BENEFITS

Employee Benefits

[Name of the Writer]

[Name of the Institution]



Table of ContentsIntroduction ..................................................................................................................................... 1

Employee Benefits .......................................................................................................................... 1

Benefit Basics ................................................................................................................................. 1

Family and Medical Leave Act ....................................................................................................... 2

Reasons for giving Employee Benefits ........................................................................................... 2

Narrow scope amendments by IASB to IAS-19 (Employee Benefits) ........................................... 3

References ....................................................................................................................................... 4



Introduction

In the paper, definition of “Employee Benefits” will be discussed. The examples and scenarios

that are related to the employee benefits will be explained in detail and the role of these benefits

will be elaborated. Employee benefits can be defined as a package offered to a candidate in

exchange of his service. It is every employee’s right to ask from the organization regarding their

employee benefits as many small business firms expects that their firm is too small to offer

benefits. But it is important to notice that without the boost one cannot incline the morale of its

employee. The benefits are they key for long term prosperity of the organization.

Employee Benefits

Employee benefits are related to a philosophy called “Penny Wise Philosophy” which is

responsible for a business to prosper. Employees feel that there are specific benefits deserving

employees must have. This thought was given by Mr. Silverstein, Founder of a small firm whose

business was advisory services. One of the researches predicts that employees are more satisfied

when their benefits are fulfilled and they tend to be more productive.

Benefit Basics

The law for employee rights requires employers to provide employee benefits to employees. The

following are the basic benefits mandated by law for every employee deserves includes

unemployment, overtime, minimum wage rate, FMLA (Family & Medical Leave Act), disability

& labor compensation. Nowadays many firms provide paid or unpaid holidays or time-off

compensations. It’s not necessary that the employer facilitates every employee with health &



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retirement plans, free vision or dental plans, insurance plans, paid holidays or even sick leaves.

But noticeably,

Family and Medical Leave Act

The benefit grants workers to take off for 12 weeks (unpaid) for child birth or adoption of a child

or serious health injury or disease caused to the employee or his immediate family. After the

completion of vacation the employee must be in the same job.

Reasons for giving Employee Benefits

Employee benefits are very essential both for the employee and employer. Some of the reasons for

providing employee benefits are mentioned below:

Organization’s Appeal: An employee is attracted to join a particular organization whose

employer has been offering numerous employee benefits. This created and enhances the appeal

to join and serve for the company. For a company, they acquire dedicated, skilled and

experienced employees that would strengthen company’s base.

Turnover Rate: By awarding employee benefits an organization is able to minimize their

turnover rate. Employees will be more serious and dedicated towards their job and this would

progress the firm’s processes.

Boosted Morale: By granting benefits, employees urge to serve better and this also boost up their

morale and they are more loyal to the company.



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Healthy Workers: If the organizations give benefits like medical aids for dental or health of

employees, the workers live a better and healthier life. Also this would not affect the worker’s

productivity.

Job Performance: By offering benefits, employees feel that an organization cares about them and

in result they give a better job performance.

Narrow scope amendments by IASB to IAS-19 (Employee Benefits)

IASB (International Accounting Standards Board) has proposed narrow-scope amendments to

IAS 19 in relation with Employee Benefits. This is entitled for some specific employee benefits

like employee contributions. These amendments are implied to employee contributions to

defined employee benefit plans. The core objective of the narrow scope amendments is to make

the accounting of contributions easier which is free from the number of served years. These

contributions are calculated in accordance with fixed salary percentage. This issue came from the

submissions made to IFRS Interpretations Committee which has recommended the IASB to

amend the benefit plans.



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References

BusinessBee, (2013). Top 5 Reasons to Offer Employee Benefits - BusinessBee. [online]

Available at: http://www.businessbee.com/resources/operations/workforce-

management/top-5-reasons-to-offer-employee-benefits/ [Accessed 3 Dec. 2014].

Doyle, (2014). Learn Which Job Benefits Bosses Are Required to Give You. [online] About.

Available at:

http://jobsearch.about.com/od/employeebenefits/a/typesofemployeebenefits.htm

[Accessed 3 Dec. 2014].

Entrepreneur, (2014). The Basics of Employee Benefits. [online] Available at:

http://www.entrepreneur.com/article/80158 [Accessed 3 Dec. 2014].

Ifrs.org, (2014). IFRS - IASB publishes narrow-scope amendments to IAS 19 Employee

Benefits. [online] Available at: http://www.ifrs.org/Alerts/ProjectUpdate/Pages/IASB-

publishes-narrow-scope-amendments-to-IAS-19-Employee-Benefits-November-

2013.aspx [Accessed 3 Dec. 2014].

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