How Long Can You Be on Long-Term Disability Before Termination

Being on long-term disability (LTD) can already feel stressful. But one of the biggest concerns many employees have is:
How long can I stay on LTD before my employer can terminate me?

Here’s the reality:

• There is no fixed time limit before an employer can terminate someone on LTD.
• But in many cases, a termination while on disability is illegal.

The answer depends on whether your employer can prove they’ve met their legal obligations — including accommodating your medical condition.

If you’re looking for a broader overview of your rights, start with our guide to long-term disability claims.

How Long Can an Employee Be on LTD Before Termination?

There is no fixed time limit for how long an employee can remain on long-term disability before termination.

Instead, termination depends on whether:

• The employee can return to work in the foreseeable future
• The employer has fulfilled its duty to accommodate
• Further accommodation would cause undue hardship

In many cases, employees remain on LTD for years — but termination can still occur depending on the circumstances.

Can You Be Fired While on Long-Term Disability?

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

Employers can’t terminate someone because of their disability. Doing so violates human rights legislation.

A termination may be illegal if:

• You were let go because you were on disability leave
• Your absence was treated as a “burden”
• Your employer failed to properly accommodate your condition
• The timing suggests your LTD leave triggered the termination

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

What Does “Accommodation” Really Mean?

Employers have a legal duty to accommodate your medical condition — up to the point of undue hardship.

This can include:

• Extending your medical leave
• Modifying your role
• Adjusting your duties or schedule

Most employers reach “undue hardship” far later than they think.

What Happens After Long-Term Disability Lasts a Long Time?

As time passes, employers may begin to argue that:

• You are unlikely to return to work
• Your position can’t be held indefinitely
• The employment relationship has broken down

This is often when termination occurs — especially after extended periods on LTD.

Can Being Fired Affect Your LTD Benefits?

Yes — and this is where many people lose money.

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

• Severance
• Termination pay
• Salary continuation

If your severance is not structured properly, your insurer could claim a large portion — or even all — of it.

A lawyer at Samfiru Tumarkin LLP experienced in both employment and disability law can:

• Protect your LTD payments
• Prevent improper offsets
• Structure your settlement correctly

What If Your LTD Benefits Are Cut Off After Termination?

Being fired does not automatically end your LTD benefits.

However, insurers may:

• Reassess your claim
• Argue you can work
• Cut off benefits after the 24-month mark

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

If your termination was unlawful or mishandled, you may be entitled to:

1. Full Severance Pay

Many employees are owed far more than minimum entitlements (severance pay) under employment standards.

2. Human Rights Damages

If the employer discriminated based on your disability, you may be entitled to additional compensation.

3. Protection of Your LTD Benefits

Your settlement must be structured to ensure your LTD payments are not reduced or cut off.

4. Additional Damages

This may include compensation for bad-faith conduct by your employer.

What Should You Do If You’re Terminated While on LTD?

Take these steps immediately:

1. Do NOT sign anything from your employer
2. Speak to a lawyer before responding
3. Gather key documents (termination letter, LTD policy, medical records)
4. Avoid discussing your situation publicly or online

Common Questions About LTD and Termination

Can I still receive LTD after being fired?

Yes. Your employment status and LTD benefits are separate.

Can my employer force me back to work?

No — your return to work must follow your doctor’s medical advice.

Can my insurer cut off benefits after 2 years?

Yes. Many policies change definitions after 24 months. See our guide on own occupation vs. any occupation disability for more information.

Speak to an Employment & Disability Lawyer

If you were:

• Fired while on LTD
• Pressured to return too early
• Denied proper accommodation
• Concerned about losing your benefits

The long-term disability lawyers and employment lawyers at Samfiru Tumarkin LLP can help you understand your rights and next steps.

We regularly help employees:

• Challenge wrongful terminations
• Protect LTD benefits
• Maximize severance outcomes

📞 Call us at 1-855-821-5900 or contact us online to get started.