Can You Be Fired While on Long-Term Disability in Canada?

Being on long-term disability (LTD) can already feel stressful. Getting fired while you’re off work dealing with a medical condition makes everything worse. Many Canadians believe an employer can’t terminate an employee on disability leave — but the truth is more complicated.

Here’s the bottom line:

👉 Yes, you can be fired while on LTD — but in most cases, it’s illegal.
👉 You may be owed full severance, human rights damages, and protection of your LTD benefits.

This guide explains how the law works, what your employer can and cannot do, and what steps to take if this happens to you.

Can Your Employer Legally Fire You While You’re on LTD?

Technically, yes. But in most cases, the employer breaks the law when they do it.

Employers can’t terminate someone for reasons connected to their disability. This violates human rights legislation across Canada.

A firing is likely illegal if:

• you were let go because you were on disability leave
• the employer claimed your absence was a “burden”
• the employer made no effort to accommodate your medical needs
• the timing suggests the disability leave triggered the termination

In these cases, employees are often entitled to significant compensation.

What Compensation Are You Owed if You’re Fired While on LTD?

If the termination is unlawful or improperly handled, you may be entitled to:

1. Full Severance Pay

Many employees receive far more than the minimum amounts under employment standards.
Some can be owed months or even years of severance pay in Canada

2. Human Rights Damages

If the employer discriminated based on your disability, you may be owed additional financial compensation.

3. Protection of Your LTD Benefits

Your settlement with your employer must be structured carefully so your LTD payments are not reduced or cut off.

4. Additional Damages

This may include bad-faith damages if the employer acted unfairly, aggressively, or dishonestly.

Can Being Fired Affect Your LTD Benefits?

Yes — and this is one of the most important reasons to get legal advice immediately.

Many LTD policies allow the insurer to deduct (“offset”) income you receive from your employer, including:

• severance
• termination pay
• salary continuation

If the settlement is not structured properly, the insurer could claim 100% of your severance, leaving you with nothing.

A lawyer experienced in both employment and LTD law can:

• prevent offsets
• negotiate alternate damages
• protect your LTD income
• ensure both your claim and severance are maximized

This is where most people lose money — and where our firm’s combined expertise makes a major difference.

What If the Employer Says They “Can’t Hold Your Job”?

Employers must accommodate your medical condition up to the point of undue hardship.
Most employers reach this point far later than they think.

You can’t be fired simply because:

• you’re on medical leave
• you need more time to recover
• your doctor says you can’t return yet
• the company wants someone “more reliable”

If your employer did not attempt proper accommodation—or used your disability as a justification for the termination—it may be a wrongful dismissal and a human rights violation.

What Should You Do If You Were Fired While on LTD?

Take these steps right away:

1. Do NOT sign anything from your employer.
   Severance packages are often designed to benefit the employer — not you.
2. Contact a lawyer before responding.
   The wording of your severance affects both your job rights and your LTD benefits.
3. Gather any documents you have:
   Termination letter, LTD policy, medical notes, and correspondence with HR or your insurer
4. Avoid discussing your case with co-workers or online.
   Legal advice is confidential. Social conversations are not.

Common Questions About Being Fired While on LTD

Can my employer pressure me to return to work early?

No. You must follow your doctor’s medical restrictions, not the employer’s preferences.

Can my LTD insurer force me back to work?

Insurers sometimes attempt this, but if your doctor disagrees, they can’t cut off benefits without justification.

Can I still be on LTD after I’m terminated?

Yes. Losing your job does not automatically end your LTD benefits.

Should I apply for EI or CPP Disability?

These decisions depend on the timing and your LTD policy. Get legal advice first about EI and CPP Disability.

Speak to an Employment & Disability Lawyer Today

If you were:

• fired while on LTD
• pressured to return before you’re medically ready
• denied accommodation
• worried your severance will reduce your LTD benefits

Samfiru Tumarkin LLP can help. Our long-term disability lawyers and employment lawyers handle these cases every day and knows how to protect both your income and your health.

📞 Call us at 1-855-821-5900 or use our online form for a consultation.

If you have group disability insurance through work, you’ve probably come across the term Non-Evidence Maximum (NEM) or non-evidence limit in your benefits booklet. This number plays a big role in how much disability coverage you actually receive — and how much extra medical information the insurance company might require from you.

Below is a simple, clear breakdown of what the Non-Evidence Maximum means, how it affects long-term disability (LTD) benefits, and what your rights are if your LTD claim is denied.

What Is a Non-Evidence Maximum?

The Non-Evidence Maximum is the highest amount of disability insurance coverage you can receive without providing medical evidence.

In other words:

• It’s the maximum monthly LTD benefit automatically approved
• No medical questionnaire, doctor’s forms, or health history required
• It applies to all employees covered under a group insurance plan

Why Insurance Companies Use a Non-Evidence Maximum

Insurers use the NEM to reduce risk. It helps them provide basic disability coverage to everyone in the workplace, even if someone has pre-existing medical conditions.

Key reasons insurers set a Non-Evidence Maximum:

• Keeps group plans affordable
• Limits risk while ensuring basic coverage for all employees
• Allows additional coverage if you provide medical evidence

How the Non-Evidence Maximum Affects Your LTD Benefits

Your monthly LTD benefit is usually a percentage of your income — often 60% to 70%.

But if the amount you’re entitled to exceeds the NEM, you’ll only receive the automatic portion unless the insurer approves the rest through Evidence of Insurability (EOI).

Example

• Your LTD policy pays 66.67% of your salary
• That works out to $4,000 per month
• Your plan’s Non-Evidence Maximum is $2,500 per month

You will automatically qualify for $2,500.
To access the additional $1,500, the insurer may require medical evidence.

Do You Need to Apply for Extra Coverage Above the NEM?

Most plans do not automatically provide coverage above the Non-Evidence Maximum.

To increase your disability coverage:

• You typically must complete an evidence of insurability form
• The insurer may request medical records
• Approval is not guaranteed

Common Problems Employees Face With the Non-Evidence Maximum

Many Canadians discover NEM issues after they become disabled and need to claim benefits. Some experience:

• Lower LTD payments than expected
• Denials for coverage above the non-evidence limit
• Confusion about whether they ever received the chance to apply for more coverage
• Lack of proper explanation from employers or insurers

Can a Non-Evidence Maximum Affect a Disability Claim?

Yes — and it often does.

Your insurer may:

• Approve LTD payments up to the NEM only
• Deny payments above the limit
• Claim you never submitted the required medical evidence
• Say you were not eligible for extra coverage

But insurers and employers must clearly communicate:

• What your NEM is
• Whether additional coverage is available
• What you need to do to apply for that extra coverage

If they failed to explain this properly, the insurer may still be responsible for paying the higher amount.

What to Do If Your LTD Benefits Are Lower Because of the NEM

If your disability benefits are less than what you expected — or the insurer says you’re capped at the Non-Evidence Maximum — take these steps:

1. Review your benefits booklet or group policy
2. Check old emails or onboarding documents
3. Ask HR for confirmation of your NEM
4. Request the insurer’s explanation in writing
5. Speak to a disability lawyer before accepting a lower payment

You may still be entitled to the full benefit amount, especially if you were never given a fair chance to apply for coverage above the NEM.

When to Contact a Disability Lawyer

If your LTD benefits have been reduced because of a Non-Evidence Maximum — or your insurer is refusing to pay amounts above the limit — our team can help.

At Samfiru Tumarkin LLP, our long-term disability lawyers helped thousands of Canadians challenge unfair LTD decisions and get the compensation they’re owed.

There are no upfront fees. You don’t pay unless we win.

📞 Call us at 1-855-821-5900, email help@disabilityrights.ca, or use our online form for a FREE consultation.