Reference no: EM132748683

Carter Cleaning Centres has traditionally provided only legislatively required benefits for its employees. These include unemployment insurance, the Canada Pension Plan, and workers' compensation. The principals of the firm-Jack, Jennifer, and their families-have private extended care, health benefits, and life insurance.

• Jennifer can see several potential problems with the company's policies regarding benefits and services. One is turnover. She wants to study whether similar companies' experiences with providing health and life insurance benefits enable these firms to reduce employee turnover and perhaps pay lower wages. Jennifer is also concerned that her company has no formal vacation or paid days off or sick leave policies.

• Informally, at least, it is understood that employees get one week of paid vacation after one year of service, but in the past the policy regarding paid vacations for days such as New Year's Day, Family Day, and Thanksgiving Day has been very inconsistent. Sometimes, employees who had been on the job only two or three weeks were paid fully for a holiday, while at other times employees who had been on the job for six months or more had been paid for only half a day. Jennifer also wonders whether it would be advisable to establish some type of daycare centre for the employees' children. Many of them have no place to go during the day (they are preschoolers) or have no place to go after school; she wonders whether a daycare benefit would be in the best interests of the company.

Problem 1) Draft a policy statement regarding vacations, sick leave, and statutory holidays to be used at Carter Cleaning Centres.