Benefits of Employer’s Compensation Plan

Benefits of Employer’s Compensation Plan

The Determining Factors That Led to the Conclusion

One of the determining factors that led to the conclusion was the protections provided by the Employee Retirement Income Security Act to participants in private sector retirement plans made voluntarily through established standards of responsibility, conduct, and obligation for employee benefit plans’ fiduciaries. According to Kagan (2022), the Employee Retirement Income Security Act regulates sponsors and administrators to ensure that they offer all information regarding an employee benefit plan to the employees and comply with their fiduciary duties. The second determining factor was the available alternative action that could have been taken to address the breach of duty.

Newman (2022) argues that breach of contract can be addressed through special performance, compensatory damages, injunction, liquidated damages, rescission, and nominal damages. Compensatory damages include consequential and expected damages (Davies, 2021). In the case, the stockholders argued that their proposed alternatives would not have harmed the BP Stock Fund, could have been implemented without violating any laws, and should have met the defendants’ fiduciary obligation based on the Employee Retirement Income Security Act requirements. However, the court found these arguments insufficient in supporting the alternatives. The court also considered the types of pension plans the company offered. The plans included owning the company’s stock through the BP Stock Fund and the B.P. stock, an investment plan.

The Impact of the Role of Benefits as a Compensation Strategy on Human Resources Manager’s Practice

The role of benefits in employee compensation impacts my human resource manager’s role in employee motivation. According to Shields & North-Samardzic (2015), benefits motivate employees and increase job satisfaction by creating a sense of belonging and making employees feel valued. Therefore, I need to understand the laws regulating employee benefits in the organization and the types of employee benefits that can enhance employee performance and address issues such as turnover. Benefits are divided into monetary and non-monetary benefits (Walsh, 2019). Therefore, the role of benefits in employee compensation impacts my H.R. practice in aligning the benefits with the organization’s culture and performance management budgets.

References

Davies, P. S. (2021).Compensatory damages. JC Smith’s The Law of Contract, 401–437. https://doi.org/10.1093/he/9780198853503.003.0027

Kagan, J. (2022). What is the Employee Retirement Income Security Act (ERISA)? Investopedia. Retrieved September 26, 2022, from https://www.investopedia.com/terms/e/erisa.asp#:~:text=The%20main%20purpose%20of%20ERISA%20is%20to%20protect%20the%20interests,as%20well%20as%20plan%20beneficiaries.

Newman, A. M. (2022). 6 common remedies for breach of contract in business. Miller Law. Retrieved September 26, 2022, from https://millerlawpc.com/6-remedies-breach-of-contract/

Shields, J., & North-Samardzic, A. (2015). Employee benefits. Managing Employee Performance and Reward, 218–235. https://doi.org/10.1017/cbo9781139197120.013

Walsh, D. J. (2019). Employment Law for Human Resource Practice (3rd Ed.). Cengage.

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This week’s assignment forum focuses on the fringe benefits provided by an employer’s compensation plan. This is the fifth assignment forum related to your course project.

Your Unit 5 assignment forum is based on the Whitley vs B.P., P.L.C. case study in Chapter 12 of your textbook. The case involved a denial of benefits. At issue was the legality of a stock-drop suit directly in light of the Supreme Court’s recently stated requirements for such cases. The appellate court found the stockholders’ amended complaint insufficient, and the district court erred in granting the stockholders’ motion to amend. You will explore the facts leading up to a decision in this case and evaluate the importance of this ruling to human resources practice and your role as a human resources practitioner.

Instructions:

 As the Human Resource Manager, you must provide benefits as part of a holistic compensation strategy.

Read the Whitley vs B.P., P.L.C. case study found in Chapter 12 of your textbook readings this week.

Based on your review of the case study, address the following:

1. The appellate court found the stockholders’ amended complaint insufficient, and the district court erred in granting the stockholders’ motion to amend. Discuss the determining factors that led to this conclusion. In responding to this topic, be sure to address any types of pension plans the court referenced in their
2. Benefits such as pension plans and healthcare plans are commonly leveraged to attract and retain top talent. Evaluate how the role of benefits as a compensation strategy impacts your practice as a Human Resources.
3. Review at least one classmate’s post after posting your submission to the assignment forum. Use the RISE peer feedback model to provide your classmates with constructive feedback that they may consider when finalizing this portion of the project later in the semester.

In crafting your responses to these questions, support your statements with evidence from the text, the Whitley v. B.P., P.L.C. case study, and additional readings presented in the unit.