Can you be terminated while on disability? This is a common question amongst our clients. In some cases, the disability might not be permanent but is likely to persist indefinitely.
Under Ontario law, what rights does the employee or claimant have?
Firstly, let’s address the common misconception that Ontario law protects disabled employees who are on LTD. As it currently stands, the law does not protect them entirely from being terminated. Certain conditions would allow an employer to terminate an employee’s engagement.
A disabled employee, for example, cannot be terminated on account of his or her disability. In other cases, employees on LTD may be terminated, either without cause or for cause.
If a disabled employee is deemed unable to return to work, then his or her employment contract will be considered ‘frustrated.’ This refers to an intervening event that renders a contract unfulfilled.
Take note, however, that an employer cannot declare that an employee cannot return to work without any supporting professional opinion. Before an employee is declared unlikely to return to work due to the disability, medical evidence must be obtained, as well as the opinion of health professionals.
Employers who fail to acquire sufficient evidence proving such will likely be required to make LTD payments to an employee once they are terminated, in addition to legal fees.
In this article, we’ll discuss the topic of long-term disability and termination of employment. If you’re in this situation and are wondering, ‘Can I get fired while on long-term disability?’ keep reading…
Long-Term Disability Termination Without Cause VS Long-Term Disability Termination For Cause
Under Ontario law, employers are obligated to accommodate employees on LTD and support them in their gradual return to work. Likewise, the injured or disabled worker must also try to perform their duties, albeit in a modified capacity.
Can you terminate an employee on long-term disability in Ontario? There are two scenarios to examine when exploring this further:
- Long-term disability termination without cause
- Long-term disability termination for cause
Long-Term Disability Terminations Without Cause
An employee can be terminated without cause, even while on disability leave or while receiving long-term disability benefits. Consider the following examples:
- A company’s location closes down and has to terminate all employees working in that location, including those on LTD.
- An organization re-organizes its workforce, and such reorganization includes plans of terminating certain employees, including those on LTD.
Under Ontario law, applicable legislation does not regulate business decisions related to workforce. However, there are safeguards in place to ensure that terminated employees are treated fairly and justly:
- The employee should be given notice of their termination within a reasonable period.
- The employee should be paid in lieu or compensated according to their agreed-upon terms in the employment contract.
Failure to do so will constitute a wrongful dismissal on the part of the employer.
Long-Term Disability Terminations For Cause
Likewise, an employee on disability benefits can be terminated for cause, under certain conditions. As such, employees on disability leave can still be terminated, especially in cases where:
- The employee stole money or goods from the employer before their leave
- The employee has violated certain terms of his or her contract
While disabled employees cannot be terminated because they are disabled, they also are not shielded from terminations on account of their disability. Note, however, that a person receiving LTD benefits cannot be fired ‘for cause’ due to their inability to perform modified duties assigned to them in the workplace.
Long-Term Disability and Frustration of Contract
We’ve discussed frustration of contract briefly earlier on, but let’s overview it further. When someone is on leave for disability but is unlikely to return to work or complete their modified duties post-injury, their employment contract may be considered ‘frustrated.’
In this case, both the employer and employee are released from their obligations stipulated in the employment contract as the performance of the contract becomes impossible due to unforeseen events, such as a permanent disability stemming from an accident or a medical diagnosis of a chronic condition.
The employer is neither mandated to provide common law severance nor reasonable notice to an employee. The employer is expected, however, to provide the following:
- Minimum statutory severance pay, where applicable
- Minimum statutory notice
Note that employers only declare frustration of contract in very rare cases where the employee’s permanent disability renders them unable to return to work. In cases where there is still a chance that an employee may return to work but must be terminated for an unrelated reason, then employers can terminate without cause.
However, terminating a disabled employee must not be taken lightly by employers. Employers are expected to ensure that they have been fair in accommodating and supporting the disabled employee, to the best of their ability.
What Will Happen to Your LTD Benefits When You Are Terminated While on Disability?
If an Ontario employee is fired from his or her job with an LTD coverage under their employer plan, their employer is mandated by law to continue their LTD coverage for at least one week per year of employment, up to a maximum of eight weeks. This is the minimum requirement for LTD benefits but may vary depending on employer plans for when an employee is terminated.
Employees who were actively employed during the time of their disability should not have their long-term disability entitlements affected by termination. This is because LTD benefits are paid out by an insurer, and not the employer. Note, however, that payments for termination or severance may be deducted from a disabled employee’s long-term disability entitlement.
People who are terminated while receiving LTD benefits may continue receiving their benefits after termination. One’s LTD policy will detail how benefits are affected by termination of employment, so it’s always best to check one’s policy and consult an employment lawyer.
In some cases, disabled persons are required to maintain regular checkups and treatments with their doctors to avoid the termination of their LTD benefits.
Contact a Long-Term Disability Lawyer in Ontario if You Got Fired While on Long-Term Disability/Contact a Long-Term Disability Lawyer in Ontario
If you have been terminated from your employment while on LTD, a lawyer can help you understand your rights, as well as the best courses of action.
At AvaGio Law, our long-term disability lawyers are experts at dealing with insurers and employers who fail to pay out long-term disability claims upfront. To schedule a consultation, call us at 4165515492 or get in touch with us.
Under Ontario law, what rights does the employee or claimant have?
Firstly, let’s address the common misconception that Ontario law protects disabled employees who are on LTD. As it currently stands, the law does not protect them entirely from being terminated. Certain conditions would allow an employer to terminate an employee’s engagement.
A disabled employee, for example, cannot be terminated on account of his or her disability. In other cases, employees on LTD may be terminated, either without cause or for cause.
If a disabled employee is deemed unable to return to work, then his or her employment contract will be considered ‘frustrated.’ This refers to an intervening event that renders a contract unfulfilled.
Take note, however, that an employer cannot declare that an employee cannot return to work without any supporting professional opinion. Before an employee is declared unlikely to return to work due to the disability, medical evidence must be obtained, as well as the opinion of health professionals.
Employers who fail to acquire sufficient evidence proving such will likely be required to make LTD payments to an employee once they are terminated, in addition to legal fees.
In this article, we’ll discuss the topic of long-term disability and termination of employment. If you’re in this situation and are wondering, ‘Can I get fired while on long-term disability?’ keep reading…
Long-Term Disability Termination Without Cause VS Long-Term Disability Termination For Cause
Under Ontario law, employers are obligated to accommodate employees on LTD and support them in their gradual return to work. Likewise, the injured or disabled worker must also try to perform their duties, albeit in a modified capacity.
Can you terminate an employee on long-term disability in Ontario? There are two scenarios to examine when exploring this further:
- Long-term disability termination without cause
- Long-term disability termination for cause
Long-Term Disability Terminations Without Cause
An employee can be terminated without cause, even while on disability leave or while receiving long-term disability benefits. Consider the following examples:
- A company’s location closes down and has to terminate all employees working in that location, including those on LTD.
- An organization re-organizes its workforce, and such reorganization includes plans of terminating certain employees, including those on LTD.
Under Ontario law, applicable legislation does not regulate business decisions related to workforce. However, there are safeguards in place to ensure that terminated employees are treated fairly and justly:
- The employee should be given notice of their termination within a reasonable period.
- The employee should be paid in lieu or compensated according to their agreed-upon terms in the employment contract.
Failure to do so will constitute a wrongful dismissal on the part of the employer.
Long-Term Disability Terminations For Cause
Likewise, an employee on disability benefits can be terminated for cause, under certain conditions. As such, employees on disability leave can still be terminated, especially in cases where:
- The employee stole money or goods from the employer before their leave
- The employee has violated certain terms of his or her contract
While disabled employees cannot be terminated because they are disabled, they also are not shielded from terminations on account of their disability. Note, however, that a person receiving LTD benefits cannot be fired ‘for cause’ due to their inability to perform modified duties assigned to them in the workplace.
Long-Term Disability and Frustration of Contract
We’ve discussed frustration of contract briefly earlier on, but let’s overview it further. When someone is on leave for disability but is unlikely to return to work or complete their modified duties post-injury, their employment contract may be considered ‘frustrated.’
In this case, both the employer and employee are released from their obligations stipulated in the employment contract as the performance of the contract becomes impossible due to unforeseen events, such as a permanent disability stemming from an accident or a medical diagnosis of a chronic condition.
The employer is neither mandated to provide common law severance nor reasonable notice to an employee. The employer is expected, however, to provide the following:
- Minimum statutory severance pay, where applicable
- Minimum statutory notice
Note that employers only declare frustration of contract in very rare cases where the employee’s permanent disability renders them unable to return to work. In cases where there is still a chance that an employee may return to work but must be terminated for an unrelated reason, then employers can terminate without cause.
However, terminating a disabled employee must not be taken lightly by employers. Employers are expected to ensure that they have been fair in accommodating and supporting the disabled employee, to the best of their ability.
What Will Happen to Your LTD Benefits When You Are Terminated While on Disability?
If an Ontario employee is fired from his or her job with an LTD coverage under their employer plan, their employer is mandated by law to continue their LTD coverage for at least one week per year of employment, up to a maximum of eight weeks. This is the minimum requirement for LTD benefits but may vary depending on employer plans for when an employee is terminated.
Employees who were actively employed during the time of their disability should not have their long-term disability entitlements affected by termination. This is because LTD benefits are paid out by an insurer, and not the employer. Note, however, that payments for termination or severance may be deducted from a disabled employee’s long-term disability entitlement.
People who are terminated while receiving LTD benefits may continue receiving their benefits after termination. One’s LTD policy will detail how benefits are affected by termination of employment, so it’s always best to check one’s policy and consult an employment lawyer.
In some cases, disabled persons are required to maintain regular checkups and treatments with their doctors to avoid the termination of their LTD benefits.
Contact a Long-Term Disability Lawyer in Ontario if You Got Fired While on Long-Term Disability/Contact a Long-Term Disability Lawyer in Ontario
If you have been terminated from your employment while on LTD, a lawyer can help you understand your rights, as well as the best courses of action.
At AvaGio Law, our long-term disability lawyers are experts at dealing with insurers and employers who fail to pay out long-term disability claims upfront. To schedule a consultation, call us at 4165515492 or get in touch with us.
