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Employer’s Obligations on Termination of Employment

Employers must be careful when terminating a contract of employment with employees that are entitled or eligible for long-term disability benefits. In certain instances, the law operates in such a way whereby even though an individual may be eligible for long-term disability benefits, their employment contract can end due to the fact that their disability is said to “frustrate” the employment contract – that is, the individual can no longer provide services to the employer and the employer cannot be faulted for same.

However, frustration of an employment contract is difficult to argue and a great deal of our clients – who find themselves both disabled and terminated – are still able to sue and obtain significant compensation. Moreover, in general terms, the employer cannot terminate the employee for reasons of disability, unless the accommodations required by law bring about undue hardship on the employer. Anything short of the foregoing, may amount to discriminatory conduct.

Termination is a crucial issue in group policies because many of such policies require that individuals remain employees in order to receive the coverage. Employers often have an obligation to inform the employee of any such provisions or they otherwise risk liability.

The law of long-term disability in the context of wrongful dismissal is extremely complex. Zeilikman Law has lawyers with unique and in-depth knowledge in the area of employment law and will be able to assist with any matter involving termination and the duties and obligations of both employers and employees.