Test Bank Chapter 12 Global Employee Benefits at a Glance

Chapter 12

Global Employee Benefits at a Glance

  True / False Questions

1. NAFTA regulates labor conditions in North America. (North America)

2. Canadian employment laws for the province of Quebec are separate from the rest of the country. (Canada)

3. Canada has one state pension plan for all its residents. (Canada)

4. Mexican law requires that all workers must join mandatory individual account system, which is slowly replacing the social insurance system. (Mexico)

5. In Brazil, the legal principal of continuity applies only to written employment contracts. (Brazil)

6. The labor side of NAFTA is the North American Agreement on Labor Cooperation, or NAALC. (North America)

7. Argentina offers no vacation days for employees with less than 2 years seniority. (Argentina)

8. The European Union is similar to the US in that the concept of "employment at will" exists with regard to employment issues. (Europe)

9. "Just cause dismissal" and mandatory profit sharing are common features of employment relationships in France. (France)

10. In France, the burden of health care is with the employee. (France)

11. German law has separate health insurance criteria for blue and white collar workers. (Germany)

12. The Employment Relations Act of 1999 is the statute that governs employment relationships in the UK. (United Kingdom)

13. The human development index, or HDI, is a comparative measure of life expectancy, literacy, and standard of living measured by the International Monetary Fund. (South America)

14. In France, the legal minimum retirement age is increasing to 65 in 2017. (France

15. In United Kingdom, the retirement age will gradually rise from age 65 to age 68 from 2020 to 2046. (United Kingdom)

16. In Australia, paid maternity and paid paternity leave maximum are 18 weeks. (Australia)

17. One of the member countries to NAFTA is Brazil. (North America)

18. After seven years of negotiations, the final terms of the Trans-Pacific Partnership, or TPP, was set in 2016. (Asia)

19. In Japan, family care leave for three months is allowed and employers are required to pay wages during this time. (Japan)

20. The People's Republic of China Labor Law was established within the domain of the traditional "iron rice bowl" system of employment. (The People's Republic of China)

21. China has a unique paid time off policy called "home leave" for visiting parents and family in the rural areas. (The People's Republic of China)

22. The People’s Republic of China is a constitutional monarchy. (The People’s Republic of China)

23. As of 2016, China had the largest economy in Asia, followed by India and Japan. (Asia)

24. Japanese employers do not grant military leave. (Japan)

25. The People’s Republic of China has an economy which is shifting away from a market-oriented one to a centrally planned system. (The People’s Republic of China)

26. Old age provisions in rural areas of China consist mainly of family support, as well as community and state financial support. (The People’s Republic of China)

27. In India, health care and benefits are provided by the federal government. (India)

28. Under Japan’s Directive Principle of State Policy, statutes affect various aspects of the employment relationship, such as working conditions and participation in management. (India)

29. South African law grants "family responsibility leave" to employees who have worked for at least 4 months. (South Africa)

30. French law provides more flexible rules for management level employees. (France)

31. A country’s gross domestic product, or GDP, only reflects goods produced within the country and does not include services. (Quantifying Elements of Employee Benefits Outside the United States)

32. GDP per capita generally indicates the standard of living within a country with the larger the per capita GDP, the better the standard of living. (Quantifying Elements of Employee Benefits Outside the United States)

33. The per capita expenditure on health care is defined as the sum of employee and employer contributions into health-care benefit plans. (Quantifying Elements of Employee Benefits Outside the United States)

34. A trade bloc is a group of countries that agree to reduce trade barriers between themselves, often by lowering tariffs and sometimes restricting non-participating countries from engaging in trade relationships. (North America)

35. Trade bloc agreements only concern trade and do not include worker provisions. (North America)

36. NAFTA is reported as having been good for Mexico, which experienced a fall in poverty rates and a rise in real income as a result of the trade agreement. (North America)

37. Mexico is a constitutional monarchy that is also a parliamentary democracy and a federation consisting of 10 provinces and 3 territories. (Canada)

38. Employment relationships in Mexico fall under the Federal Labor Law, which clearly defines the terms worker and employer. (Mexico)

39. Australia is a republic and its economy is fueled by high export prices for raw materials and agricultural products. (Australia)

40. In the People's Republic of China employment relationship is now defined by individual contracts. (The People's Republic of China)

Multiple Choice Questions
 

41. Which one of the following is not an important concept or measure when referencing employee benefits in all countries? (Quantifying Elements of Employee Benefits Outside the United States)
A. gross domestic product (GDP)
B. GDP per capita
C. human development index (HDI)
D. per capita expenditure on health care

42. In Canada, the amount of vacation pay is equal to what percentage of the employee's pay for the preceding year per week of vacation. (Canada)
A. 2%
B. 3%
C. 5%
D. 5.5%

43(Mexico)
A. Workers are entitled to paid time off during public holidays
B. Females are entitled to 6 weeks of maternity leave with full pay
C. Employees are entitled to 6 vacation days
D. Workers get double pay for working on a mandatory holiday. Which one of the following is not true of paid time off benefits in Mexico? 

44(Brazil)
A. Comprehensive benefits are provided to all workers
B. There is a unified healthcare system
C. Medical services are provided directly to patients
D. The social security system went into effect only in 2001. Which one of the following is not true of protection benefits in Brazil? 

45. In Argentina, more than 20 years of seniority entitles workers to how many days
of paid vacations? (Argentina)
A. 25
B. 30
C. 35
D. 40

46. What is the minimum amount of paid leave guaranteed to workers under French law after one year of employment? (France) 
A. 2 weeks
B. 3 weeks
C. 4 weeks
D. 5 weeks

47(Germany)
A. The German Social Security system is analogous to the one in the US
B. Employees have three different sources of pensions
C. Blue collar workers contribute 75% of the premiums for health insurance
D. Highly paid employees can opt out of state insurance plans. Which one of the following is not true of protection benefits in Germany? 

48. Typically, the number of paid holidays in Canada ranges from 6 to __. (Canada)
A. 7
B. 10
C. 14
D. 18

49. Which one of the following is not a plan that workers can use in the UK to supplement their state provided pensions? (United Kingdom)
A. State Second Pension
B. National Insurance Contributions
C. Personal Pension
D. Stakeholder Pension

50. In Japan, legal provisions grant workers how many paid holidays each year? (Japan)
A. 8
B.5
C. 3 
D. 0

51. How many days of maternity leave is paid for by social security in Brazil? (Brazil) A. 45
B. 60
C. 90
D. 120

52. State governments arrange for the provision of medical care on behalf of the Employees’ State Insurance Corporation is which country? (India)
A. Canada
B. India
C. Brazil
D. The People’s Republic of China

53. How many days of maternity leave are women entitled to in China? (The People's Republic of China)
A. 60
B. 90
C. 100
D. 120

54. In this country, ‘unfair labor practice’ is used as a term applying to individual employment contracts, as opposed to collective contracts found in the U.S. (South Africa)
A. India
B. Australia
C. South Africa
D. Japan 

55(Japan)
A. Flat rate benefit for all residents
B. National health insurance program
C. National pension program
D. No coverage for citizens residing abroad. Which one of the following is not true of the protection benefits in Japan? 

56. In this country, employment contracts are affected by awards or industrial agreements that detail working condition and various employee benefits, including paid time off, training, etc. (Australia)
A. Japan
B. The People’s Republic of China
C. Australia
D. South Africa

57. What is the maximum limit for rollover duration from the previous calendar year for paid leave in India? (India)
A. 15 days
B. 20 days
C. 30 days
D. 45 days

58. In Australia, mandatory pension requires voluntary employee contributions which are tax deductible up to a maximum of what amount? (Australia)
A. A$3,000
B. A$4,000
C. A$5,000
D. A$6,000

59. What is the recommended range of paid time off in PRC? (The People's Republic of China)
A. 2 - 5 days
B. 7 - 14 days
C. 10 - 15 days
D. 15 - 20 days

60. Which of the following is not an African country making current economic progress? (Africa)
A. Ghana
B. Nigeria
C. Kenya
D. Ethiopia 

Essay Questions
 

61. Briefly compare the paid time off policies in Canada and Mexico. (North America)

Main Points
Canada
● Canadian employment law holds that employees are entitled to several paid holidays, several of which varies by province

● Typically, the number of paid holidays ranges from 6 to 10 per year
● Employees are also entitled to two weeks’ paid vacation time, along with a sum of money as vacation pay.

● Employees are permitted to take job-protected, paid maternity leave up to 17 weeks and paid parental leave up to 35 weeks.

● The amount of vacation pay is equal to 2% of employee's pay for the preceding year per week of vacation.
● Compassionate care leave provides up to 26 weeks of paid leave to care for a seriously ill family member.

• There are no laws granting time off for military service.
• Employers must pay workers a vacation premium equal to 25 percent of salary earned during scheduled vacation days.
• In Brazil, medical services are provided directly to patients in rural and urban areas through the Unified Health System.
• Services include general, specialist, maternity, and dental care; hospitalization; medicines (some cost-sharing is required); and necessary transportation.
• In Argentina, employee health insurance is mandated by statute, and the cost of health insurance is financed by a six percent employer contribution of the gross payroll.
• Benefits include medical, hospital, dental, and palliative care; rehabilitation; prostheses; and transportation.
• Pharmaceutical products for chronic diseases are either free or require a 30 percent copayment; 60 percent for other diseases.
• In Japan, workers are entitled to 10 days of leave after six months, and after 1.5 years of continuous employment, workers earn an additional day for each year of service up to a maximum of 20 days.
• Currently, there are no legal provisions granting employees paid time off to celebrate holidays in Japan.
• Maternity leave is granted if requested within six weeks of giving birth with a post-birth leave of eight weeks is mandatory with contracts determining the rate of pay.
• Employees must be granted child care leave upon request for the duration of one year.
• Family care leave for three months is allowed.
• There is no military leave policy in Japan but employers grant time off for civic duties such as voting.
• In India, workers employed in privately owned factories, mines, and plantations are entitled to one day off for every 20 days worked during the previous year – typically providing 12 days off with pay each year.
• Local governments set the number of minimum required days off as well as the number of paid holidays, varying between 15 and 20 days.
• Leave is usually calculated for each year based on the number of days worked in the previous year, allowing a maximum of 30 days to roll over to the next year.
• There is no statutory provision for paternity leave, but maternity leave is allowed in the form of paid time off and a possible medical bonus
• All employees get paid time off for various public an national holidays.

64. Briefly explain paid time off benefits in the United Kingdom. (United Kingdom)

Main Points
● Workers are entitled to 28 days of annual paid leave, including statutory and public holiday, and 28 weeks of statutory sick pay in any three-year period.
● Employers cannot permit women to work in the two weeks immediately following birth and women may receive a leave of 26 weeks, which may not begin prior to 11 weeks before birth.
● Employees with one year of service are entitled to take 13 weeks of unpaid leave reated to child care.
● Fathers can receive paid paternity leave within eight weeks of a child’s birth.
● Employees are entitled to take a reasonable amount of time off during working hours to take care of dependents.
● Parents of young children have the right to flexible work arrangements.

65. Briefly discuss paid time-off policies in People’s Republic of China (People’s Republic of China)

Main Points
● Employees who have worked for one or more years are entitled to paid annual leave but there are no binding laws about this; national policy guidelines recommend 7 to 14 days.

● Employees who have worked for more than one year are entitled to “home leave” if they do not live in the same place as their spouse or parents.

● Women are entitled to no less than 90 days of maternity leave starting 15 days prior to birth.