Is is a legal and/or a moral obligation of an employer to notify an employee that the employer changed the employees benefits. Here is the senerio; the employer sits down with the key employee over lunch and says that he is going to pu
rchase a disablity policy with a benefit of $2000 per month for the employee as part of their compensation. The employee acepts and ask to see the policy but years pass and never gets the policy. The employee actually forgets that the the benefit is suppose to be $2000 and since the employer never presented him with anything in writing there is nothing to review. Many years later the employee does become disabled and applies for the disablity and recieves a disability payment. During the disablity the insurance carrier contacts the employee and in a phone conversation mentions that the intial policy was for $2000 benefit but was changed 3 months after the policy was taken out by the employer. The reason stated was to "significantly reduce premium cost." The employer never notified the employee nor even gave the employee the opportunity to even pay the difference in premium.
Since then the employer fired the employee while the employer was recieving medical treatment and was unable to return to work full time stating undue hardship. The employee has no desire to return now for moral and professional reasons.
Would you do business with a company that treats its employees in this way? Do you believe the employer has a moral obligation to notify the employee of the change of benefits? Do you believe that the employer has a legal responsiblity to correct this?
