Severance pay and insurance company

Are gwl entitled to my severance pay if im let go because i can not return to work through disability

It will say in the GWL contract if severance pay is deducted from your benefits. My husband’s policy with GWL did-but not all do.

There has been some debate on severance pay vs. statutory pay and deductions. So if you got 6months or more of severance you could deduct from that amount the minimum statutory pay that either your provincial laws or if under, the Canada Labour code amounts.

I am sure GWL would likely protest–but might be worth a small claim and/or an application to court.

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I wouldn’t assume you will get severance but if HR said you will then you will.

My policy doesn’t mention severance but who knows if I will get it (maybe I’ll stay on the books forever :-)).

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Hi Alllyhoops
Can I ask you about your husbands offset with GWL re: severance - How did they end up offsetting the severance?


This depends if “severance pay” or the equivalent language is listed as a direct or indirect offset under your policy. It is a case by case determination and there is no general rule.

David Brannen

Disability Lawyer with Resolute Legal

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