Employment-based

Describing a situation, benefit, or system primarily contingent upon, or derived from, one's status as an employee. This term highlights a direct connection between work and the thing it is describing. It often refers to visa programs, insurance policies, or retirement plans where eligibility or coverage is determined by current or past employment. The term emphasizes the essential role of employment in accessing or benefiting from something, contrasting it with alternative arrangements like government assistance or self-funding.

Employment-based meaning with examples

• The US offers several employment-based visas, requiring sponsoring companies to demonstrate a need for foreign workers with specific skills. Securing an employment-based visa often entails a lengthy application process, showcasing the applicant's qualifications and the employer's intent to hire. This process ensures that the visa holder's status is directly tied to their job.
• Many companies provide employment-based health insurance plans, making coverage a benefit of working for that organization. Employees' eligibility, premiums, and plan options are all determined by the employer's offerings. The advantage of this insurance is that it is usually subsidized by the company but dependent on continued employment. If employment ceases, so does coverage.
• A significant portion of retirement savings in the U.S. is facilitated through employment-based 401(k) plans. Contributions are made by both the employee and sometimes the employer, growing tax-deferred until retirement. The portability of the plan may be restricted and directly dependent on the employee's ongoing relationship with the employer.
• In some countries, unemployment benefits can be considered employment-based. The length and level of benefits depend on the duration and amount of contributions made by the employee, and potentially the employer, during their active employment. If an individual has never held a job, their entitlement to these types of benefits is non-existent.