Question

Ned just attended an orientation session for new employees. The employee benefits director spoke for an hour about the various employee benefits the company offered and the provisions of these benefits. During the presentation, the employee benefits director discussed (1) probationary periods, (2) eligibility periods (open enrollment), and (3) elimination (waiting) periods. Ned is confused about these terms and has asked you to explain the meaning and importance of each “period.” How would you describe these “periods” to Ned?

Answer 1

Probationary periods is the time period that employees are exempt from certain contract terms, most importantly the notice period (in case of resignation)

Also, in probation period appraisal may be held, Leaves may not be allowed

and they can terminate, if they find unfit for the position

please note the above rules may vary from companies

it helps the employer to understand the cabability of the employee

Eligibility periods (open enrollment)

if the company has group insurance policy or heath insurance policy or any other benefit to enroll

In order to add an employee with benefits,they keep a open period that stipulated time for enrollment

This not only for insurance it may include other benefit too eg: travel benefit, tax benefit and other aspects

This helps employer to make orientation with their time plan.

The Elimination period is the time between the onset of a disability, and the time you are eligible for benefits in some cases.

Suppose if your ill the company can relax you for certain time period with paid (eg 14 day elimination period)

this help employer to retain the employee

Also depends on the policies of the company