An employer has an obligation not to prevent an employee from claiming coverage to disability benefits.
In Egan v Alcatel Canada Inc (2006), the employee was denied long term disability benefits as her employer had cancelled her insurance coverage prior to the expiration of the reasonable notice period. The trial judge had held that, given that the employee’s period of long term disability had originated within the notice period that was awarded and the employer had wrongfully discontinued her insurance coverage before she had become disabled, the employer was liable for any resulting loss. This was upheld at appeal.
Similarly, in Brito v Canac Kitchens (2012), the employee had established that he was totally disabled within the meaning of his disability insurance plan through viva voce and medical evidence and had contributed to the costs of the plan. It was found that the employer had chosen not to make alternative arrangements to provide the employee with replacement disability insurance coverage. At first instance, the trial judge had awarded damages which represented the loss of long term disability benefits. This portion of the judgement was upheld at appeal.
As it can be seen, your employer has an obligation not to interfere with your entitlement to disability benefits, and if they do, they may be held liable for the value of those disability benefits that would have otherwise been payable to you.
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