Except in very rare situations (collective agreements, unique term contracts), employers can terminate any person’s employment as long as it is not for a discriminatory purpose. There is no law against terminating an employee who has a disability, or who is on sick leave, you just can[t terminate because of the disability or sickness. This is a fine line and it is often hard for an employer to show that the reason for termination is not because of disability.
Most employers across Canada can terminate employment based on doctrine of frustration of contract. Again, there are always exceptions, but those are unique situations. Termination for cause is done after it is proven that there is no accommodation that can be made. once that is established your work is not protected by human rights laws.
“Severance” is a loaded word that means many things to all people. All provinces mandate a minimum level of severance pay (called termination pay or severance pay) that is usually a number of weeks of pay, based on the number of years worked for the employer. Both Alberta and Ontario have these laws under Employment Standards Legislation.
Depending on the wording of the employment agreement, that may be all that is owed. If the employment agreement is not specific about severance pay, then the common law rules apply. The common law rules for severance are what most people think about when they think about severance pay. What you are being paid for is proper notice of termination. The employee has a right to notice of termination, and that notice period can be a month or a year or more depending on many factors. You often hear that common law severance pay is one month for every year worked, but it is not as simple as that. The common law severance rules do not apply in union workplaces.
It is a condition of the insurance agreement that the insured person notify the insurer of any new sources of income, including severance pay or retirement pay. The insured person has a good faith obligation to notify the insurer and is in breach of he policy if he or she does not. This is an area where you want to be 100% above board and open with the insurer.
Disability Lawyer with Resolute Legal
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