Employer Permitted To Terminate Employees Receiving Ltd Benefits

A recent New Brunswick Labour Adjudication decision addressed the sensitive issue of terminating permanently disabled employees on long-term disability leave ("LTD"). The decision, United Steelworkers, Local 7085 (Haché & Harvey) and Brunswick Smelter, Glencore Canada Corporation, 2107 CanLII 20338 (NB LA), provides a useful precedent for employers embroiled in such a dilemma.

Eight employees were terminated, on a non-disciplinary basis, by the Employer after it was determined that the employees were totally and permanently disabled and never able return to the workplace or any gainful employment. All of the terminations were grieved; however, six of the grievances were resolved in advance of the arbitration hearing. Thus, the hearing dealt with the termination of two employees. The two employees had been on an extended medical leave for six and eight years respectively.