I have been on LTD for three years and my insurance company have finally not bothered me too much since I won my appeal with CPP. Now my employer has sent a letter asking if I would be returning in the forseeable future or not returning at all. We did check back forseeable as recovery is always possible but not right now. I have now received a second letter from my employer asking for a further medical update along with a physical and mental demand check list and expected date of return. This has deeply concerned me as I am not ready to return. My policy does extend to the age of 65 provided I am deemed disabled. Can my employer terminate me? This has been such a whirlwind process. I wish I never got sick. Kindly advise. Thank you.
Yes, your employer can terminate you.
It is called “frustrated employment” (something like that). Apparently a lot of employers wait until someone has been off work for 4 years (presumably so they can win a wrongful dismissal lawsuit).
I would guess if you specify a date to return and then don’t return to work, they would have more ammunition to fire you.
Your existing LTD claim will continue even if you are fired.
I don’t know how it works if you get fired, lose LTD coverage, find a new job, work for a bit, become disabled again, have no LTD coverage…
The laws governing employees out on sick leave are well established in Canada. Employers have to duty to accommodate a sick or disabled employee, but do not have to hold a person’s job indefinitely. If an employee is off on an extended sick leave, and there is no immediate plan for return to work, either full time or with accommodations, then the employer has the right to unilaterally terminate the employment. This is called the doctrine of frustration of employment contract. The usual period for holding a job for an employee is 2-4 years, with 4 years being the generally accepted max.
An employer has a duty to accommodate you, so this is why they would ask for more specific information about your condition, prognosis and limitations. They do this so they can determine if accommodation in the workplace is possible. If you can’t work with accommodation, then employers have the right to let the employee go after 2-4 years.
David Brannen
Disability Lawyer with Resolute Legal
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David, if they let me go, my current LTD coverage would still continue for as long as I’m disabled right? Who is paying for my LTD premium after I get terminated though?
I know this answer. 
Yes, your LTD payments continue if you’re fired.
The contract is between you and your insurance company then.
There are no more premiums for LTD coverage.
You will probably lose extended health (drugs, dental, etc) group coverage though.
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