Being away from work because of an illness or disability can be difficult enough. If your employer then tells you that your employment is ending, you may be left wondering whether they are legally allowed to fire you while you are on disability leave.
In Ontario, being on disability does not guarantee that your job can never be terminated. However, employers have legal obligations regarding disability, accommodation, and human rights, and the reason for termination can matter significantly.
Can an Employer Terminate Someone Who Is on Disability?
An employee can potentially be terminated while receiving disability benefits or while away from work for medical reasons. That does not mean every termination is lawful. The circumstances surrounding the decision, the employee’s entitlements, and whether disability played a role in the termination all need to be considered.
A termination may raise issues under employment standards, the employment contract, the common law, and Ontario’s human rights framework. This is why employees should be cautious about assuming that a termination package accurately reflects everything they may be entitled to receive.
Disability and the Duty to Accommodate
Ontario employers have obligations relating to disability accommodation. Depending on the circumstances, accommodation can include changes to duties, hours, scheduling, or other aspects of the workplace.
Accommodation is highly fact-specific. The employee’s medical restrictions, the job requirements, and the employer’s circumstances can all be relevant. A disability-related absence should therefore not automatically be treated as though the employee has simply chosen not to work.
What If Disability Was a Factor in the Termination?
If an employee believes they were dismissed because of a disability, medical leave, or a request for accommodation, human rights issues may arise. The timing of the termination, communications from the employer, and the stated reason for ending the employment can all be important.
Not every termination that occurs during a disability leave is discriminatory. An employer may have another legitimate reason for ending the employment relationship. The question is whether the employee’s disability was improperly considered and whether the employer met its legal obligations.
What Happens to Long-Term Disability Benefits After Termination?
Employment termination and disability insurance are related but separate issues. An employee may need to consider both their employment-law rights and their rights under an LTD policy.
The effect of termination on disability coverage can depend on the insurance policy, the timing of the disability, and the circumstances of the claim. Employees receiving or applying for LTD benefits should avoid assuming that termination automatically ends all disability-related entitlements.
Could You Be Entitled to Severance or Notice?
A terminated employee may be entitled to notice, pay in lieu of notice, severance pay, or other compensation depending on the circumstances. The amount offered by an employer is not necessarily the full amount available.
Before signing a release or accepting a termination package, an employee may want to have the documents reviewed. Once a release has been signed, it can become much more difficult to raise additional claims.
What Should You Do If You Are Fired While on Disability?
Keep copies of the termination letter, employment agreement, disability correspondence, benefit information, and relevant communications with your employer. Avoid signing documents immediately if you do not understand their effect.
It may also be useful to write down the timeline of events, including when the disability leave began, requests for accommodation, communications with the employer, and when the termination occurred.
When to Speak With an Employment Lawyer
Legal advice may be particularly useful when you believe disability played a role in your termination, an accommodation request was refused, your benefits are in question, you have received a severance package, or your employer has asked you to sign a release.
Top Lawyers Canada features Toronto employment lawyers who advise employees on wrongful dismissal, severance, workplace disability, and human rights issues.
You can also review employment law profiles, including Stacey R. Ball, Gil Fischler, and Chris Kim, to learn more about their experience and areas of practice.
Frequently Asked Questions
Can my employer fire me while I am on disability leave in Ontario?
An employer may be able to terminate an employee’s employment while the employee is on disability leave, but the termination must still comply with applicable employment and human rights laws. Whether disability played a role in the decision can be important.
Is being fired while on disability automatically discrimination?
No. The fact that a termination happens during a disability leave does not automatically make it discriminatory. The reason for the termination and whether disability was a factor need to be considered.
Does my employer have to accommodate my disability?
Ontario employers generally have an obligation to accommodate disability up to the point of undue hardship. What constitutes appropriate accommodation depends on the employee’s restrictions, job duties, and workplace circumstances.
Can I still receive LTD benefits if my employment is terminated?
Possibly. Employment termination and entitlement to disability insurance benefits are separate issues. The policy wording, the timing of the disability, and the facts of the claim can affect coverage.
Should I sign a severance package while on disability?
It is important to understand what you are agreeing to before signing a release or termination package. The document may affect employment-related claims or other rights, so legal review can be useful.
Can I claim wrongful dismissal if I am fired while on disability?
A wrongful dismissal claim may arise depending on the notice or compensation provided and the terms governing the employment relationship. Disability or human rights issues may also need to be considered separately.
Find an Employment Lawyer
If you have been terminated while on disability or have questions about accommodation, severance, or workplace rights, Top Lawyers Canada can help you explore experienced lawyers by practice area and location.