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An employee is on disability leave and has been for two years. She is 53 years old and unlikely to ever return to work. The department she used to work in has just been completely restructured and the job she left is no longer. It has absolutely nothing to do with her disability. She was hired in 2000. What kind of severance is due to her.

We really should discuss this. If you know and have been provided information that there is no likelihood of her returning to work in the foreseeable future, you can rely on the principle of "frustration of contract". This means that the employee is only entitled to her minimum entitlements under the Employment Standards Act (de[pending on the size of the company, this would either be 8 weeks pay or 23 weeks pay). On the other hand, if you have not been provided with information that she cannot return to work, but you have to terminate, she would be owed much more, likely no less than 12 months pay. In that case, you may be better off not terminating employment at all and allowing her to remain on leave. We should discuss this before you do anything, so please give me a call.

Lior Samfiru
Lior Samfiru
Direct Tel (Toll Free): 1-855-821-5900     Email: lior@stlawyers.ca     Web: www.stlawyers.ca
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