Break in service,
Definition of Break in service:
The Patient Protection and Affordable Care Act (ACA) defines returning workers as rehires if a break in service (the time between the day they left and the day they came back) is less than 13 weeks. On the other hand, employers can designate someone rehired beyond the 13-week period as a new hire.
Temporary discontinuation of employment (for whatever reason) with a firm by an employee before he or she rejoins it. For employee benefit plans and pension purposes, this break should be usually less than five years or for a period shorter than the period of continuous employment prior to the break.
A break in service is the loss of benefits when an employee returns to a company more than 13 weeks after they left and must wait to become eligible again. It’s not unusual for an employee to either voluntarily or involuntarily leave a job then get rehired in the future by the same company. However, how the employee's benefits are handled upon returning depends on whether they’re considered a new hire or a rehire. .
How to use Break in service in a sentence?
- A break in service happens when an employee leaves a company for at least 13 weeks but is rehired.
- A returning employee deemed a new hire must work for a determined period before being eligible for benefits, hence, the break in service.
- The “rule of parity” says a rehired employee can be treated as a new hire if the break in service is longer than the period worked prior to leaving.
- A break in service for pension credit relates to failing to work enough hours in a given year to keep previously vested pension credits. .
- Employees that return to their previous company within 13 weeks are considered a rehire and will get benefits reinstated immediately. .
Meaning of Break in service & Break in service Definition