How have courts interpreted LTD plans in employment law?
British Columbia, Canada
The following excerpt is from Morris v. ACL Services Ltd., 2014 BCSC 1580 (CanLII):
The first case is McKendrick v. Open Learning Agency, [1997] B.C.J. No. 2763 (S.C.). There, the court found that similar to Sylvester, the LTD plan was intended to be a substitute for the employee’s regular salary and that the LTD plan was an “integral component” of the employment contract. There was no basis upon which to infer that the employee would receive both disability benefits and damages for wrongful dismissal. Scarth J. specifically found that the payment by the employee for the benefit coverage did not give rise to any different conclusion than that found in Sylvester: para. 37.
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