Common use of Termination of Employment before Coverage Begins Clause in Contracts

Termination of Employment before Coverage Begins. Employee is hired on March 15th Employer makes a contribution on April 20th and the Employee’s employment ends before May 1st. ► There will be no benefit coverage on May 1st and the Employer (and Employee, if applicable) is entitled to a credit (but no refund) for the contribution made on April 20th.

Termination of Employment before Coverage Begins. Employee is hired on March 15th 15th. Employer makes a contribution on April 20th and the Employee’s employment ends before May 1st. ► ⮚ There will be no benefit coverage on May 1st and the Employer (and Employee, if applicable) is entitled to a credit (but no refund) for the contribution made on April 20th.