Roger Thorpe led a discussion on the legal complexities of benefits, joined by Jason Hubbell and Dante Manna, who brought expertise in pensions, employment, and benefits law. The conversation focused on sensitive issues like terminating employees on maternity or long-term disability leave, with clear guidance that such actions must not be discriminatory and should be supported by legitimate business reasons. Statutory protections for maternity, parental, and disability leave were emphasized, along with the need for legal counsel before proceeding with terminations. The panel also explored how leaves affect pension contributions and vesting, stressing the importance of reviewing plan contracts. Throughout, the message was clear: disability management, clear communication, and legal consultation are essential for navigating employee leave scenarios responsibly.
Chapters
Legal Considerations for Terminating Employees on Leave
Dante Manna addressed whether employers can terminate employees on maternity or long-term disability (LTD) leave, clarifying that such terminations are legally possible if they are not discriminatory and stem from unrelated reasons, such as corporate restructuring. He emphasized that human rights legislation prohibits discrimination on grounds such as age, race, gender, family status, and mental or physical disability. Dante noted that terminating an employee because she took maternity leave would likely be viewed as discriminatory based on gender or family status. He explained that statutory minimum leaves—like vacation, holidays, and paid sick leave—are governed by provincial or federal employment standards. Maternity and parental leaves, he added, are protected by statute in all jurisdictions, and as such, terminations may not take effect until the statutory leave period concludes. In the case of LTD leave, Dante explained that termination becomes more complex due to the protections under human rights legislation, which imposes a duty to accommodate. This duty, however, is not absolute; employers are only required to accommodate up to the point of undue hardship. He noted that employment may be declared frustrated when an employee cannot return to work within a reasonable period—typically within two years of the onset of LTD—if the employer has made diligent efforts to accommodate and has regularly followed up on medical prognosis. Dante strongly advised employers to seek legal counsel before declaring frustration of employment or proceeding with the termination of employees on maternity or parental leave, to assess risks and ensure compliance.
Pension and Retirement Implications During Employee Leave
Jason Hubbell explained that employees on leave typically do not contribute to retirement programs unless they choose to make voluntary contributions. He cautioned that such leaves are often treated as breaks in continuous employment and recommended reviewing plan documentation to clearly define how leaves affect contributions and when benefits are paused, ceased, or resumed. Jason reinforced that any employee contributions made during leave are considered personal and are immediately vested, regardless of the leave status.