Reference no: EM132867762

Carter Deli Restaurant has traditionally provided only legislatively required benefits for its employees. These include participation in the state's unemployment compensation program, Social Security, and worker's compensation (which is provided through the same insurance carrier that insures the company for such hazards as theft and fire). The principals of the firm - Jack, Jennifer and their families - have individual family-supplied health and life insurance. At the present time, Jennifer can see several potential problems with the company's policies regarding benefits and services.

• First, she wants to do a study to determine whether similar companies' experiences with providing health and life insurance benefits suggest they enable these firms to reduce employee turnover and perhaps pay lower wages. Jennifer is also concerned with the fact that at the present time the company has no formal policy regarding vacations or paid days off or sick leave. Informally, at least, it is understood that employees get one week vacation after one year's work, but in the past the policy regarding paid vacation for days such as New Year's 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 one of these holidays, while at other times employees who had been with the firm for six months or more had been paid for only half a day. Jennifer knows that this policy must be made more consistent. She also wonders whether it would be advisable to establish some type of day care center for the employees' children. She knows that many of the employees' children either have no place to go during the day (they are pre-schoolers) or have no place to go after school, and she wonders whether a benefit such as day care would be in the best interests of the company.

Answer the following questions:

Question 1. Draw up a policy statement regarding vacations, sick leave, and paid-days off for Carter Deli Restaurant. Cite at least 2 references for this question.

Question 2. List at least two advantages and two disadvantages (you can always find more) to Carter Deli Restaurant of providing its employees with health, hospitalization and life insurance programs. Cite at least 2 references for this question.

Question 3. Describe the steps Jennifer should go through to determine whether a day care center would be advisable for the company?