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January 25, 2018

Who is Responsible for LTD Benefits?

Is an Employer Responsible for LTD Benefits?

Many employers often terminate employees early and continue benefits and pay, in lieu of required notice.  Be very careful and read about these two cases.  Get proper advice.

Case #1   Brito v. Canac Kitchens

In this case Canac Kitchens terminated a 55 year old employee who had over 24 years of service to the company.  The employee found another job 2 weeks later, that didn't include STD/LTD benefits.  Shortly after starting the new job, the employee became diagnosed with cancer.

Because this disability took place during the 22 month notice period implemented from Canac Kitchens, he received $200,000.  This number reflects the amount of LTD benefit he would have received up to age 65.

Case #2   Dhatt v. Kal Tire Ltd.(2015)

In this case the employee sued his former employer (Kal), for wrongful dismissal.  He was claiming damages for loss of LTD benefits he would have received if he would have been working until the end of the reasonable notice period of 21 months.  The employee then became disabled during the period.

He won the case and he received the rightful damages to make up for his losses.

The Benefit Guys offer affordable, meaningful options.  Whether you already have a benefits plan or are considering implementing your first one, give us a call for a personal, confidential discussion.  We have access to the best plans and the best advice available today.

"No matter how many employees you have - it's perfect. And it starts with one!"

Our Best Practices Annual Review is available for download. You need to reduce your benefits liability exposure. The content in this document will help you.

Get your preliminary questions answered immediately.

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