Mitch Frazer cautions employers to give ample notice when changing drug plans

Partner Mitch Frazer spoke with Benefits Canada in an article about the legal risks involved with drug plan design changes, saying an employee could make a claim for constructive dismissal if they see significant fluctuations in their total compensation.

The article explains the potential repercussions employers and plan sponsors should be wary of when altering drug plans because, if not handled correctly, simple complaints and frustration amongst employees may escalate to full-blown lawsuits.

Mitch told the publication that although most employees cannot afford prolonged legal battles, if the terms of employment have changed so much the agreed-upon job no doesn’t exist anymore, the employer may be liable for severance.As a precaution, he advises giving plenty of notice of the change.

“You’re supposed to match up the notice you give to each employee with the notice you’d give if you were to terminate them,” Mitch said.

To avoid an “administrative nightmare,” Mitch suggests giving two years notice to everyone, if possible.

Mitch, along with the rest of our team, provide further expertise pensions and employment and employee benefits on the relevant practice pages.