Overview: As part of their employee benefit programs, some employers arrange for their employees to have the option to purchase certain products and services at a discounted rate. Employers typically reach an agreement with a vendor that provides a discount in exchange for exposure to a large group of potential customers. The programs do not cost the employer anything, and employees appreciate the discounted prices.
While programs vary, typical programs may include discounts on tickets for theater/sporting events, computer products, software, cell phones and/or cell phone service, eye wear, car rentals and theme park admissions.
Programs can be either simple or sophisticated. A simple program might see an employer communicating discounts from local merchants, or distributing coupons or brochures that include discount information. More sophisticated programs are administered by a service vendor and employees receive online access to discounted products and services offered by a variety of retailers and service providers.
Tracy Morley, SPHR, Legal Editor
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Employment glossary definition of Employee Discount.
Employment glossary definition of Employee Purchase Program.
HR guidance on the benefits associated with offering discounted purchase programs.
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