Employee fringe benefits and employer-provided benefits in the form include different kinds of non-cash compensation offered to employees as well as their regular wages or salaries. In certain cases where an individual trades wages for any other type of advantage, this is usually called a “wage replacement” or “wage replacement agreement”. Such agreements may be used to replace the wages that would normally be earned by the employee, and sometimes the entire amount of salary may be replaced by a single payment. Most often the replacement amount is slightly higher than the employee’s regular wage, but not always.
Another use for these agreements is to avoid paying taxes on the fringe benefits paid to the employee. Depending on the circumstances of the agreement, there may not be an additional tax due. The tax may only apply if the value of the benefit does not exceed the value of the employee’s regular wages.
It is important to remember that even if the employer does not offer any type of fringe benefits, such agreements are still subject to employment law. These agreements may affect the rights of an employee as well. For example, these agreements may entitle the employee to a specified period of unpaid leave once the employment agreement has termination becomes effective. Similarly, they may entitle the employee to certain amounts of bonus money if the company meets certain performance standards. In most cases, these benefits would not be available to employees if they were employed by another company that does not have the same agreement.
If you are an employee who has taken advantage of a fringe benefits policy of an employer, you should discuss these issues with your employer at the earliest opportunity. Your employer will need to give you a legal definition of fringe benefits and what they include. Unless you agree with their definition, there is no valid reason why you should be forced to repay them. In order to protect yourself, you should make sure that you understand what these policies mean before you agree to them.
Also, be aware of any changes in these benefits policy. Most companies make it mandatory for all their employees to take these fringe benefits if they join the company. However, this can also change at any point of time. If you feel that you are being forced to take these benefits, you can always quit the company and go for another job.
You should know your rights under the company’s existing fringe benefits policy. For this, you should consult an attorney who specializes in the area. An attorney can protect your legal rights against employer misbehavior.