What is the impact of an employer’s short-term disability plan on an employee's wages?

British Columbia, Canada


The following excerpt is from A.G. Can. v. Szaniszlo, 1985 CanLII 321 (BC SC):

In Chan v. Butcher, supra, the employer was a chartered bank which had established and funded a short-term disability programme. It was held that the right to benefits, although not insured or negotiated for, was a term of the employment contract and not simply a continuation of the employee’s wages. It was noted, however, that the amount payable was not precisely the same as the amount of the victim’s wages as length of service was factored into the calculation of the amount payable. The result of Chan v. Butcher, supra, seems to me to be that payment under most disability plans will not be deductible.

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