A company has decided to outsource the department while an employee is on LTD7


I worked for my company for 5 years. After that I have been on STD for 6 month and then on LTD for 3 years. My colleague just told me that my company is going to outsource my department by the end of the year and lay off the employees.

My questions are:

  1. What is going to happen with my position?
  2. Can they lay me off while on LTD?
  3. If yes how much severance will they offer?
  4. Can I still sue my company for laying me off while on LTD?
  5. What are the best options for me in this situation?

Thank you for your responses!

P.S. Should I contact my LTD coordinator at work to ask her about the details?

  1. It gets eliminated.
  2. I think so, they can get rid of anyone for any reason?
  3. I doubt they are under any obligation to offer you severance because you’re not working but they may anyway.
  4. Sue them for laying you off? You can always sue. Do you mean win a lawsuit? I doubt it. Get the free consult from Resolute Legal. Free Consultation - Resolute Legal Disability Lawyers
  5. Read Employment Rights and Disability Benefits: The Ultimate Guide - Resolute Legal Disability Lawyers

Re #3, you should be offered the same severance as the rest of your group, at a minimum the statutory severance required by your provincial employment standards act. Unfortunately this severance might be deducted from your LTD depending on what your policy says. They may also decide it is not worth the risk to lay you off, so for now I would check what your policy says and wait and see.

Thank you for all your responses!

My policy says that they won’t deduct severance from my LTD.

You probably will be or they’ll just leave you on the books.
The employer may have “forgotten” about you if they have an employment category like “permanent medical leave”.

I wouldn’t count on severance:

If it doesn’t say “severance” then it probably isn’t deductible.
I would send them an email after you get it just to make sure.
I would check everything but that is just me.

Best of luck.