When Can A Disabled Employee Be Terminated?

March 11, 2014

Employers often struggle with balancing their obligation to accommodate disabled employees and determining when the employment relationship has become “frustrated” in that a disabled employee is no longer capable of performing his or her job. A recent decision of the Ontario Human Rights Tribunal offers some clarity on this issue.

 

In Gahagan v. James Campbell Inc., 2014 HRTO 14, the employer operated a number of McDonald’s restaurants, one of which employed the complainant, Gahagan. In 2009, Gahagan suffered a workplace injury and was placed off work. Gahagan remained off work for two and a half years. During that time, Gahagan applied for, and received, workers compensation benefits, long-term disability benefits, CPP disability benefits. Gahagan never returned to work. In 2011, her employment was terminated on the basis of frustration of contract. Gahagan filed a human rights complaint alleging she had been terminated as a result of her disability. The Human Rights Tribunal held that:

  1. Gahagan had significant permanent physical restrictions and limitations;
  2. In order to receive long-term disability benefits and CPP disability benefits, Gahagan had professed an inability to perform her job and a severe and prolonged disability.

The Tribunal concluded that the employer was unable to accommodate Gahagan and therefore a return to work was not possible. The termination was upheld.
This case illustrates that employers may terminate a permanently disabled employee, without violating human rights legislation, so long as the employer is able to demonstrate that the employee’s disability and/or medical restrictions are severe and prolonged and that the employer is unable to accommodate the employee.

Related Articles

PEI: Required Workplace Policies & Legislative Amendments

Written by Maggie Hughes, Associate and Kaylee Campbell, Articled Clerk Workplace policies are a helpful tool to provide employees with clear expectations. This may include setting parameters around expected employee conduct or outlining procedures to streamline processes. While there are a wide range of policies that any one organization may implement, it is important to […]

read more

Post-Incorporation Checklist: Essential Next Steps

Written by Ben Ladner Once your corporation is established, it is important to take the necessary steps to set a solid foundation. This checklist outlines essential post-incorporation tasks, from tax filings to corporate governance, to help you navigate the next phase of your business journey. Read more: Post-Incorporation Checklist: Essential Next Steps

read more

Limiting Liability by Contract

Written by F. Richard Gosse. Background The concept is not new – parties committing to provide work or services decide to write down what each expects of the other: a scope of work, a mechanism for payment, some general provision for timelines, changes, and warranties or the like. More sophisticated engagements may (or may not) […]

read more
view all
Cox & Palmer publications are intended to provide information of a general nature only and not legal advice. The information presented is current to the date of publication and may be subject to change following the publication date.