Rogue decision on extended LTD absences waiting to be appealed?

Brian, July 24, 2018

Typically, employers have not been allowed to terminate employees for frustration of contract (i.e., for being unable to do their job due to a disability), if the employee qualifies for long-term disability benefits. If there’s an LTD plan, an employee being absent due to disability for an extended period of time cannot frustrate the employment contract; it’s part of the employment contract! In a decision released last week, however, the Ontario Superior Court did uphold a termination for frustration of contract for an employee on LTD, precisely because the LTD approval proved he would be unable to return to work within a reasonable time! Welcome news for employers dealing with extended LTD absences? Or just a rogue decision waiting to be appealed?

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