employee benefits
Definition
Employee benefits are the extras you provide to workers beyond their regular paycheck, such as health insurance, paid vacation, retirement plans, and sick leave. Some benefits are required by law, like Social Security contributions and workers' compensation insurance, while others are optional perks you choose to offer to attract and keep good employees.
Example
If you offer your employees health insurance and two weeks of paid vacation each year, those are employee benefits that become part of the total compensation package you are legally and professionally expected to honor.
Watch Out
Once you promise or consistently provide a benefit, employees may have legal grounds to claim it as part of their compensation, so be careful about what you commit to in writing or even through regular practice.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.