What to tell employees about benefits in a layoff.
Employees leaving want to know what happens to their coverage, and employees staying want to know what is not changing. Clear benefits communication reduces confusion and risk. It should be accurate, timely and written in plain language that does not require legal training to follow.
Six parts of a layoff benefits message.
What to Say First
The coverage end date and what happens next, in plain words.
Continuation Coverage Basics
What COBRA is, what it costs and how to elect it.
Dates and Deadlines
The dates departing employees must act by.
Answering Employee Questions
A single place to ask and a quick answer.
Reassuring Remaining Staff
Say what is not changing and when you will tell them more.
Notices for Departing Employees
The notices that must accompany communication.
Writing the message in plain language.
The first sentence matters. Departing employees want to know when their coverage ends and what they can do next, so say that first: the last day of coverage, that continuation coverage is available, and how to learn the price. Details can follow on a separate page.
For those who remain, say what is not changing and when you will say more. Provide a single place to send questions, and make sure the answers are consistent with the formal notices. Avoid legal terms where plain ones work, and have counsel review the final text before it goes out.
Questions about talking to departing employees.
Plain answers for HR, finance and deal teams.
What Should Departing Employees Be Told About Benefits?
When coverage ends, how to continue it, what it costs, the deadlines and who to contact.
What Should Remaining Employees Be Told?
What is not changing, when any change takes effect and where to ask. Silence is read as bad news.
Should We Do It in Person or in Writing?
Both: a conversation for the message, and a written summary for the details.
How Soon After the Announcement?
Within days. Delay leaves a gap that rumors fill.
Who Delivers It?
HR with the manager, with benefits details reviewed by us.
What If Employees Are Upset?
Keep to facts, listen and offer a contact for follow-up.
Do We Need to Give COBRA Information at the Meeting?
Give the basics. The formal notice follows within set timelines. See timelines.
What Is Our Legal Exposure If We Communicate Poorly?
Errors in notices carry penalties, and confusing messages cause disputes. Review with counsel.
How Do We Support Departing Employees?
Clear information, a point of contact and help with open claims.
Can You Help Prepare the Employee Conversation?
Tell us the dates and we will draft the benefits materials. There is no cost and no obligation.
Should we tell employees the COBRA cost in advance?
It helps. Departing employees will ask, so give the monthly cost, which is the full premium plus a small administrative charge, as soon as it is known.
Who should deliver the message?
Ideally a manager supported by HR, with a written version that matches. People remember who tells them, and consistency prevents confusion.
Ready? Upload your renewal, or talk it through with someone first. No cost, no obligation.
General information about layoff benefits communication, not legal or tax advice. Plan-specific questions belong with your counsel and tax advisor, and we will bring them in.
Related reading on layoff communication.
Layoff Benefits Explained
The page this belongs to.
Section Hub for Transactions
The full section.
Communication Planning Services
How we explain benefits to employees.
Preparing the conversation? Start with the facts.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →