If you have been terminated in Ontario, you may still be able to apply for long-term disability (LTD) benefits even after your employment has ended. The key issue is whether your benefits coverage should have continued during your notice period after termination.
Does LTD Continue After Termination?
In many cases, yes. Long-term disability benefits can continue after termination if your benefits coverage remains in place during your notice period. Under the Employment Standards Act, 2000 (ESA), employers are required to continue an employee’s wages and benefits during the statutory notice period. This includes group benefits such as disability insurance.
However, the ESA only sets minimum entitlements:
- up to 8 weeks’ notice; and
- up to 26 weeks’ severance pay, if applicable.
In a wrongful dismissal, employees are often entitled to much longer notice periods under common law, which can extend for months or even years. During this time, benefits should typically continue. If your employer cuts off benefits too early, it may affect your ability to claim LTD.
How Long Do Benefits Last After Termination in Ontario?
Benefits must continue during your statutory notice period under the ESA. However, many employees are entitled to a longer notice period under common law. In those cases, compensation may include the value of lost benefits, including disability coverage. If your benefits end earlier than they should have, this may form part of a wrongful dismissal claim.
What Happens to Your Group Benefits After Termination?
In most cases, your group benefits should continue during your notice period. This includes coverage such as health, dental, and disability benefits. If your employer ends these benefits earlier than required, you may be entitled to compensation for the loss of that coverage.
Can You Apply for LTD After Being Fired?
You may still qualify for LTD benefits after termination if your disability arises during the period when your benefits should have continued. This means:
- you do not need to be actively working;
- you must still be within your benefit coverage period; and
- your disability must meet the policy definition.
What About Short-Term Disability (STD) After Termination?
Short-term disability (STD) benefits may also be relevant after termination if they fall within the period when your benefits should have remained active.
- STD benefits apply first;
- LTD benefits begin after the STD period ends; and
- interruptions in coverage can affect both claims.
If your STD benefits were cut off early, this may also impact your ability to transition to LTD.
What Happens If Your Benefits Were Cut Off?
Employers sometimes:
- limit benefits to ESA minimums only; or
- fail to continue disability coverage at all.
This can be a serious issue. If your benefits were improperly discontinued, you may have a claim for:
- wrongful dismissal damages; and
- compensation equal to the LTD benefits you lost.
Example: LTD After Termination
In B. v. Canac Kitchens, 2012 ONCA 61, the employee had 24 years of service and was terminated without cause.
- He received only ESA minimum notice;
- he later became disabled during what should have been a longer notice period; and
- his new job did not include disability benefits.
The Court found he was entitled to 22 months of reasonable notice and awarded damages equal to the LTD benefits he would have received until age 65. This case confirms that LTD entitlement can extend beyond termination if the disability occurs during the proper notice period.
Key Takeaways for Employees
- LTD benefits may still be available after termination.
- Benefits should continue during your notice period.
- Common law notice is often much longer than ESA minimums.
- Short-term disability may also continue and affect LTD eligibility.
- Losing benefits too early can significantly impact your rights.
Frequently Asked Questions
Does long-term disability continue after termination?
In many cases, long-term disability (LTD) benefits can continue after termination if your benefits coverage remains in place during your notice period. If your employer ends benefits too early, this may affect your entitlement and could form part of a wrongful dismissal claim.
Can you apply for long-term disability after being terminated?
Yes. You may still be able to apply for LTD benefits after termination if your disability arises during the period when your benefits should have continued. You do not need to be actively working, but you must still be within your coverage period and meet the policy definition of disability. For more information about starting a claim, see our long-term disability lawyer in Toronto page.
How long do benefits last after termination in Ontario?
Under the Employment Standards Act, benefits must continue during the statutory notice period. However, many employees are entitled to longer notice under common law, which may increase the value of lost benefits if they are cut off too early. This often becomes a key issue in determining whether long-term disability benefits remain available after termination.
What happens to employee benefits after termination?
Employee benefits should continue during the notice period. If benefits are discontinued prematurely, an employee may be entitled to compensation for the loss of those benefits as part of a wrongful dismissal claim.
Can you get long-term disability if you were fired?
You may still qualify for LTD benefits after being fired if your disability occurs during the period when your benefits should have remained active. The timing of the disability and the continuation of coverage are key factors.
Does short-term disability continue after termination?
Short-term disability (STD) benefits may continue after termination if they fall within the period when your benefits should still be active. Since STD often precedes LTD, any interruption in coverage can affect your ability to access long-term disability benefits.
What happens if my benefits were cut off after termination?
If your employer ended your benefits earlier than required, you may have a claim for wrongful dismissal damages. This can include compensation equal to the LTD benefits you would have received.
Can an employer terminate an employee on long-term disability in Ontario?
An employer may terminate an employee on long-term disability in certain circumstances. However, the employer must still comply with notice obligations and human rights laws. Each situation depends on the specific facts, including whether the employment contract has been frustrated.
Speak With an Employment Lawyer
If you have been terminated and are concerned about LTD benefits, it is important to get advice before your deadlines pass or your claim is affected. Monkhouse Law Employment Lawyers represent non-unionized employees across Ontario. Contact us for a free 30-minute phone consultation to discuss your situation.