Rolling the dice on disability (Legal view)

Ending LTD benefits during notice period risky for employers
By Nikolay Chsherbinin
|Canadian HR Reporter|Last Updated: 06/05/2011

Employment is a game and wrongful dismissal is a gamble. Employers sometimes roll the dice by opportunistically offering just the statutory minimum to dismissed employees instead of what workers might be entitled to under the common law.

Sometimes it works — employees fold their rights and walk away. But, in other cases, workers up the ante and litigate. The pot: Recovery of significant damages, which may include the value of long-term disability (LTD) insurance benefits for the entire period of reasonable notice and beyond.

A case in point is Brito v. Canac Kitchens, in which the Ontario Superior Court of Justice dealt with the vexing question of whether employers are required to continue employees’ LTD insurance coverage during a period of reasonable notice. The court found they are.