If you work with Mainstay Insurance Brokerage Inc, then you know that we structure all benefit plans as “contractually mandatory” enrolment. This means all eligible full-time permanent employees MUST be enrolled on the benefit plan. We do this to protect our client partners and put the risk onto insurers rather than vice-versa.
Even with this contractual format, employees sometimes ask to opt out during periods like maternity leave when they are asked to continue their contributions. I have had great success in getting the industry to make changes to protect women returning from mat. leave (more on that HERE) if they chose to opt-out, but it is still from perfect, so suggest maintaining coverage every time. Failing to stay enrolled can leave both the employer and employee (and dependants) in a very risky position. Call us before considering this in any situation.
The article below, provides more info on these situations. Please note that w “waive” due to spousal coverage is NOT the same as someone opting out of the plan, and is allowed if there is spousal coverage in place.
Can Canadian Employers Require Employees to Join a Group Benefit Plan?