Can I Be Laid Off While on Short Term Disability?

Short term disability refers to insurance that helps to replace income while someone is off from work due to an illness or injury. As an employee, you may have short term disability insurance as part of your employment benefits. In Canada, some employees are also eligible for employment insurance benefits provided by the Government. There are many reasons why someone may need to utilize short term disability benefits and take leave, however, it is important to note that being on short term disability does not prevent you from being let go from your place of employment.

At Soni Law Firm, we are the employment lawyer Toronto workers depend on to help them understand and protect their rights. We are often asked; can I be laid off while on short term disability? Generally speaking, the answer to this question is yes though there are a few things you may wish to keep in mind if you are currently facing this issue. In this post, we help you understand when you can be laid off and if you are, what you can expect from your employer. Have specific questions or feel you may have been wrongfully dismissed? Contact the experts at Soni Law Firm. We are your top choice when looking for a wrongful dismissal lawyer Toronto wide. Also see our post, What Happens When You Get Laid Off, to help you understand what being laid off means and what you can expect to happen if you are laid off. We also have a great in-depth article to help you understand what medical conditions qualify for disability in Canada.

Can I Be Laid Off on Short Term Disability?

In our post, Can You Get Fired for No Reason in Ontario, we state that an employer can fire you without cause, even if you haven’t done anything wrong. Though layoffs are not due to anything an employee has done and are instead due to operational needs, an employer can lay off an employee at any time, including when an employee is on short term disability.
Though you can be laid off while on short term disability, it is important to note that an employer cannot lay you off because you are on leave. Your employer must also give you adequate notice or severance pay when you are laid off. Being on short term disability leave may complicate how a layoff is handled. You should be aware that a layoff is possible even when on leave.

Will I Be Compensated If I am Laid Off While on Short Term Disability?

When a layoff takes place, you will receive notice of the layoff and, in some cases, may also receive severance pay. Not all employees will be entitled to severance pay, and it is important to understand what you qualify for. Speaking with a termination lawyer is always a good idea when a layoff takes place. Though some layoffs may be straightforward, others are more complex due to the unique employer-employee relationship. If you have been working for the same employer for many years, you are likely entitled to severance pay be sure to seek legal advice from a lawyer to ensure you understand and protect your rights as an employee.

Being on short term disability does not protect you from being laid off. Always speak with an employment lawyer if you feel your layoff was not due to operational concerns. A severance lawyer can help you understand what compensation you may be entitled to. For more information on how severance pay works, see our post, Understanding Severance Pay in Ontario.

About Post Author

Rahul

Rahul founded Soni Law Firm, a boutique employment, labour, and human rights law firm, with the goal of taking his Downtown Toronto litigation experience and making it accessible to Ontario’s Main Street employees and employers.