Your Personal Injury Lawyers
Call 1-888-404-5167
Preszler Injury Lawyers

Will Long-Term Disability Payments Continue After Termination?

Going onto long-term disability (LTD) may be stressful. Your stress levels may increase further if your employer terminates your job while you are receiving LTD benefits. In this situation, you may wonder if your LTD payments may continue after termination.

The Effects of Termination on Long-Term Disability Benefits Payments

If you’ve been diagnosed with a serious illness, sustained a debilitating injury, or developed a severe mental health condition that prevents you from completing the duties of your job for a substantial period of time, you may be eligible to collect long-term disability benefits. These resources may be provided through your employer’s group insurance plan, a private insurance policy you’ve purchased, or the Canada Pension Plan (CPP). Depending upon how you receive benefits payments, you may face different outcomes if you are let go from your job while on long-term disability leave.

If your employer’s insurance policy covers long-term disability and your medical condition prevents you from returning to work, you may continue to receive benefits payments from this insurance policy even after your employment has been terminated, so long as you were employed when you received the qualifying diagnosis.

Likewise, your long-term disability benefits may continue after your employment is terminated if you receive compensation through a private policy.

Ontario employers are not legally allowed to terminate your employment solely because you have been diagnosed with a disability. If you believe you were fired because of your disability, legal options to regain your employment may be available to you. However, if you have been unable to perform the duties of your job for more than two years because of your disability together with confirmation that your medical condition will not improve, your company may have legal recourse to terminate your employment based on the doctrine of frustration.

Long-Term Disability Benefits Payments Following a Job Termination

Even though your benefits may continue after your employment is terminated, the payments you receive throughout your period of long-term disability leave will most likely not be the full amount of your regular wages. Most long-term disability plans cover between 60-70% of a recipient’s normal income.

The amount of benefits available to you will most likely not increase if you happen to collect payments from secondary sources, like the CPP. Instead, the combined payment amount will account for the total salary percentage to which you are entitled.

Consider the Impact of Termination on Your Health Insurance

Although employees who are unable to work because of their medical conditions may be able to continue collecting long-term disability benefits payments even after their employment has been terminated, losing their jobs may prevent them from accessing their regular health and dental insurance coverage.

As long as you remain employed, you may be able to continue using your company’s group health and dental insurance coverage.

Reasons Your Long-Term Disability Benefits May Be Discontinued

Even though eligible recipients of long-term disability benefits may continue collecting payments after being let go from their jobs, these benefits may not be available indefinitely.

In some situations, eligibility requirements for benefits may be reassessed after two years. While you may have initially qualified for long-term disability benefits because your medical condition prohibits you from performing the duties of your current job, after two years, in order to continue receiving payments, you may be required to prove that your condition prevents you from performing the duties of any job. In these situations, if your insurance provider believes you are able to work in another capacity, even if it is unrelated to your current occupation, they may decide to terminate your benefits payments.

Benefits may also be terminated when recipients sufficiently recover from their condition in a manner that allows them to return to work, even in a modified capacity. Insurance companies issuing long-term disability benefits payments may require recipients to submit to regular medical checks to assess their health and recovery progress to determine when they are able to begin working again.

Contact Preszler Injury Lawyers Today

Your long-term disability benefits payments may continue after you’ve been let go from your job, but these payments can still be terminated by your insurance company for a number of reasons. If your long-term disability payments have been terminated even though you’re still unable to return to work, Preszler Injury Lawyers may be able to offer useful assistance and advice. For a free consultation, call Preszler Injury Lawyers today at 1-800-JUSTICE.

Call us now at

151 Eglinton Ave W,
Toronto, ON
M4R 1A6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
4145 N Service Rd
Burlington, ON
L7L 4X6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
2 County Ct Blvd #400,
Brampton, ON
L6W 3W8
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
105 Consumers Drive
Whitby, ON
L1N 1C4
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
92 Caplan Ave #121,
Barrie, ON
L4N 0Z7
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
380 Wellington St Tower B, 6th Floor,
London, ON
N6A 5B5
Toll Free: 1-888-608-2111
2233 Argentia Rd Suite 302,
East Tower Mississauga, ON
L5N 6A6
Toll Free: 1-888-608-2111
1 Hunter St E,
Hamilton, ON
L8N 3W1
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
459 George St N,
Peterborough, ON
K9H 3R9
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
22 Frederick Street,
Suite 700
Kitchener, ON N2H 6M6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
116 Lisgar Street, Suite 300
Ottawa ON
K2P 0C2
Toll Free: 1-888-608-2111
10 Milner Business Ct #300,
Scarborough, ON
M1B 3C6
Toll Free: 1-888-608-2111
*consultation offices

DISCLAIMER: Please be advised that the header image and other images throughout this website may include both lawyer and non-lawyer/paralegal employees of Preszler Injury Lawyers and DPJP Professional Corporation and unrelated third parties. Our spokesperson John Fraser, or any other non-lawyer/paralegals in our marketing is not to be construed in any way as misleading to the public. Our marketing efforts are not intended to suggest qualitative superiority to other lawyers, paralegals or law firms in any way. Any questions regarding the usage of non-lawyers in our legal marketing or otherwise can be directed to our management team. Please also note that past results are not indicative of future results and that each case is unique and that case results listed on site are from experiences across Canada and are not specific to any province. Please be advised that some of the content on this website may be out of date. None of the content is intended to act as legal advice as each situation is independent and unique and requires individual legal advice from a licensed lawyer or paralegal. For legal advice on your individual situation – we can provide legal guidance after you have contacted our firm and we have established a lawyer-client relationship contractually. Maximum contingency fee charged is 33%. Finally, our usage of awards and logos for awards does not suggest qualitative superiority to other lawyers, paralegals or law firms. All awards received from third party organizations have been done so through their own reasonable evaluative process and do not include any payment for these awards except for the use of the award logos for our marketing assets. We are also proud to service additional provinces like Alberta, British Columbia and Nova Scotia.