Alberta Court Win: Senior Sewer Operator on LTD Wins 20 Months’ Notice

Samfiru Tumarkin LLP has secured an important Alberta court victory for a 24-year employee who lost his job while dealing with a serious medical condition and receiving long-term disability benefits.

In Babcock v. Thuro Inc., the Alberta Court of King’s Bench found that our client, Dale Babcock, was entitled to 20 months of notice when his employment ended — significantly more than the approximately 13 months provided by his employer.

The court also rejected the argument that Babcock’s long-term disability (LTD) benefits automatically eliminated his wrongful dismissal claim.

The successful appeal was handled by Jon Pinkus of Samfiru Tumarkin LLP.

The Lower Court Ended His Wrongful Dismissal Claim

The lower court initially ruled against Babcock.

It concluded that because he was receiving LTD benefits, he had no additional financial loss to recover from his employer through a wrongful dismissal claim.

Samfiru Tumarkin LLP appealed that decision on Babcock’s behalf.

The Court Found 13 Months Was Not Enough

The Alberta Court of King’s Bench found that Thuro Inc. had not provided Babcock with enough notice before ending his employment.

The court looked at several important factors, including that Babcock:

• Was 62 when he was told his employment would end
• Had approximately 24 years of service
• Had specialized experience in sewer, water maintenance and vacuum-truck work
• Faced significant challenges finding similar work

The court concluded that Babcock was entitled to 20 months of severance pay, not the approximately 13 months his employer had provided.

That meant Thuro Inc. had failed to provide proper notice of termination.

Being On LTD Didn’t Eliminate His Severance Rights

The court also rejected the idea that Babcock’s LTD benefits automatically meant his employer owed him nothing more.

An employee’s severance rights must still be determined even if they are receiving disability benefits.

Why This Decision Matters For Employees

• Being on LTD does not automatically eliminate your severance rights. Your employer can’t simply point to disability payments and say it owes you nothing.
• Long service and age can significantly increase what you’re owed. In this case, approximately 13 months of severance was increased to 20 months.
• Your disability benefits and severance need to be reviewed separately. How the two interact can depend on the wording of the LTD policy.

When Should You Contact An Employment Lawyer?

Speak with an employment lawyer in Alberta if you are fired while on disability leave, receive LTD benefits during your notice period, or are told that your disability payments mean you aren’t entitled to severance.

Do not assume that being on LTD means your employer owes you nothing. As this case shows, a long-service employee can still have substantial severance rights in Alberta.

Most severance disputes can be resolved quickly without going to court. But when an employer refuses to recognize an employee’s rights and litigation becomes necessary, wins like Babcock v. Thuro Inc. show the experience our lawyers bring to court.

If you’ve lost your job while receiving disability benefits, contact Jon Pinkus or another member of the employment law team at Samfiru Tumarkin LLP. We can review what happened and determine what your employer may owe you.