Course of action: should I ask for severance


I have been on LTD since 2009, and on CPPD since 2016 (due to having applied late).

I recently was able to settle with my LTD insurer, and have been planning to relocate permanently to Europe, (I understand that I can still receive my CPPD even when in Europe).

Curiously enough, even tough I have settled with my insurer 2 months ago, my company has made no move to terminate me yet.

At this point, I need to figure out how much termination pay and severance pay I may be entitled to get from my employer, and whether I can obtain it.

I should mention that my employer has no knowledge that I want to relocate. (I am not 100% sure if they are even aware that I am on CPP really, even though, years back, I did email to my HR rep that I am on CPPD.)

So what should I do? Am I entitled to severance and/ or termination pay? (I am from Ontario, and my employment has taken place in Ontario)

Do I get severance for every year I worked at my company, or do I get it for every year I have been employed? (I got hired by my company in 2004, worked for them for 5/6 years, and then became disabled in 2009)

The thing is, my company, is big enough, that it so happens that it has offices even in the same country, and city, where I plan to relocate. Would it even make sense to tell my company that I am planning to relocate to a city where they have offices in, so that, instead of getting severance, I actually keep my dental and medical benefits? Is this even an option? (The country I am moving to is in the EU, if that helps.)

Thank you

So you would offer to quit in exchange for severance?
If I was the employer I’d say no because you don’t get severance if you quit and you’re basically saying you want to quit.

No, you may not be entitled to severance if on LTD, it seems to vary by employer.
I haven’t seen a hard rule.
You would probably get severance for every year you have been employed by that company.

I do not know what to do. That is why I am here looking for suggestions.

I want to move back to Europe where my family support is.

However, I was wondering what are the implications of relocation wrt my relationship with my company.

Will they still keep me on their benefits if I just move?

Will they see my move as a sign that the employment is frustrated, and/or I cannot be accommodated to work ever, due to having moved out of the country? What would that mean? Will they give me severance?

What I know is that I cannot return to work due to disability. (Hope is the last to die…)

I am completely at a loss wrt what are the implication of my moving to another country wrt my employment with my company, and the impact of my move in regard to my severance.

What are my options?

I just do not want to give up/lose both my benefits and my severance due to making the wrong communication to my company.

To be honest, if I had an emoloyee that was on LTD since 2009 I would just terminate the employment due to frustration and pay pretty much no severance. They are likely well within their rights to terminate your employment and pay the minimum legal severance governed by your province.

The fact that they have paid your extended health benefits for over 10 years is absolutely amazing. The company I work for stops any extended health benefits at the 2 year year mark of LTD. Some companies stop paying extended health benefit at 1 year mark or 6 month mark.



So, I do not want to quit because that’s going to eliminate me from both benefits and from severance.

I also want to move to Europe because that’s where I have the most support, due to my family being located there.

Keep in mind that my company has offices in Europe, including in my country. What can I tell my employer, so that he does not terminate me, and I can keep my benefits.

Can I tell them I move to Europe because it is good for my wellbeing and my health? So, since my employer has kept me until now, now it has even more reasons to keep me?

Should I get a note from my doctor supporting my move to Europe, for reasons of psychological well-being?

This is a tough question to give you advice on, because it’s really a business decision. I have no idea what your employer might be thinking, nor if their benefits would be available to you in Europe. It might not be up to your employer, the plans might not allow it, it might be organized as a different division and/or company, etc. I have no clue what would be possible or wise or how risky it is to ask for anything.

You are right.

I have no control over this.

I will tell my employer: I do not care if I keep my benefits, I care that you keep me in your fold, and my move/ relocation is due to my seeking my betterment/ healing.

I will add that my doctor thinks that this move is towards my betterment. (I am pretty sure my doctor will agree that this is the case, but I will ask him anyway)

I will conclude telling my employer, that given that they have offices in the very city I am moving to, I hope that they will keep me as employee.

I think this will maximize my chances that my company does not terminate me.

From what i understood about severance pay its when you are let go by the company, im guessing thats why they are not making a move to terminate you abd i also belive that when youve not been actively in your position for an amount of time they have the right to suspend your position without termination.

My employer has different insurance companies in other countries so presumably different plans.
I wouldn’t assume the benefits are the same/transferable to a different country.
I’d ask your employer (but is reminding them of you worth doing?).
If you will move regardless of the answer then ask them. :slight_smile:

Do the European country have any public health system?

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yes of course all countries in the EU have some form of public health system

I think you posed a good assumption that I move regardless of what my company will say.

As I wrote in my previous post, I realized that I have no control over my employer’s reaction to my move. As such, (as I wrote above,) I am planning to just tell them of my move, and plead with them to keep me as employee.

Unfortunately, I do not think not telling them is a good solution, even tough it would be tempting (so as to accrue employment time in case I get severance). The reason is simple: my company generates a T4 each year, and this T4 also goes to CRA. Now, I DO have to let bot Service Canada and CRA that I no longer reside in Canada, so I cannot let my company just keep issuing T4a as if I still reside in Canada.

So, I think that my only option is to let my company I am relocating to another country.

Give them the new address and hope they keep sending you a T4.
You don’t need to say anything else.

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One thing that I just realized is that as far as my status with my employer is concerned, I am not on LTD, rather, my status seems to be LOA (leave of absence)
As well, my benefits election has been frozen, (I cannot choose between the different dental/ medical plans available) and I pay a monthly insurance premium based on the increase in premiums since my disability. (Essentially my employer’s contribution to the medical/dental plan has been frozen in time to the time of my disability.)
Does this mean that the years I have been on LOA are not counting towards a possible severance?

Your years on LTD/LOA should count towards your employment history. That said, based on how long you’ve been off of work due to illness, and that there is no chance you’ll return to work your employment contract is most definitely frustrated, and you are likely only owed the minimum severance governed by your province. For example, in Alberta, frustrated employment status has a maxumum severance of 8 weeks even if you worked for your employer for 30 years.

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I question getting any severance for frustration-of-contract.
It doesn’t seem there is a rule.

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Hi Alecs,

Seems you have received a number of replies to your questions. Based on your situation, I think you should definitely contact Resolute for a consultation as your facts are complex. These are some thoughts/questions which I have:

  1. Why did your LTD insurer settle with you? How old are you? Do you think the perception (of the insurer) is that you are permanently disabled and will never return to work, or did they settle with you for other reasons?

  2. It has only been 2 months since your insurer settled with you. Your employer may be backed up, or the HR may have new people in it who don’t know you, and they may be planning to connect with you soon.

  3. If you do not have an open LTD claim, I think your employer would expect you to return to work. If you cannot, maybe that really would be a frustration of contract and they may terminate.

  4. Employees are entitled to working notice of termination. This allows you to be paid your salary while you look for another job. A severance payment (lump sum) is in lieu of working notice. If you are not in a position to look for another job because you are still disabled, I don’t know that they would necessarily owe you any severance if your position is terminated.

  5. Do not quit your job under any circumstance.

  6. The value of your employment to you is your medical/dental benefits and the remote possibility of returned to work with this employer. Would you need or be able to use these medical/dental benefits in the country you want to move to in Europe? If no, then incentive is simply possibility of a return to work at some point.

  7. I think there could be a good case for you to live in Europe surrounded by family who can support you through challenging times of your disability and it increases the chance of you not being terminated.

You have received lots of responses, but I think us here do not really know what would happen in your situation. I think you should talk to Resolute asap and before you do anything.

Out of curiosity, if you are comfortable, could you tell us:

A. Did the insurer approach you to settle?
B. How many years of benefit did your settlement cover? e.g. if you got $30K per year from the insurer (not including CPPD portion) and your settlement was for $200K, that would be $200K/$30K = 6.7 years.
C. What is your age or age range?

If these questions feel too personal, please disregard.

Hope you have a good consultation.

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Hi Meow

Thank you for your reply

The settlement was fair. I believe that the insurer settled because I have been disabled for 13 years, (I am closer to 50 now that I like to think)I cannot get into details too much, because I have signed a non disclosure clause.

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Thanks Alecs. I’m really glad it was fair.

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