Losing Your Job Does Not Always End Your Right to Disability Benefits

One of the most difficult calls we receive at Mulqueen Disability Law comes from people who have just lost their jobs and are now facing serious health problems at the same time.

The story is often similar.

Someone struggles quietly for months while continuing to work through chronic pain, anxiety, depression, PTSD, concussion symptoms, or another disabling condition. They try to push through because they need the income, the benefits, and the stability. Their performance begins to slip. Attendance becomes harder. They become overwhelmed. Then, before they ever formally apply for long-term disability benefits, they are terminated.

Many people assume that once employment ends, disability benefits disappear with it.

That is not always true.

A recent Ontario decision, Eastwood-Fischer v. Equine Canada et al., 2026 ONSC 2721, highlights an issue that frequently arises in long-term disability litigation: whether an employee who became disabled before termination can still qualify for LTD benefits even if the claim was not completed before employment officially ended.

At Mulqueen Disability Law, we continue to see more claims involving employees who were struggling long before they were terminated but had not yet formally stepped away from work.

The Reality of Invisible Disability in the Workplace

Most people do not stop working the moment they become disabled.

In fact, many continue working long after their symptoms become severe because they are trying to preserve their careers, income, benefits, and sense of normalcy.

We regularly represent clients who:

• worked through panic attacks and severe anxiety;
• continued attending work while suffering from chronic pain or migraines;
• hid cognitive difficulties after concussions or traumatic brain injuries;
• masked depression while their work performance deteriorated;
• delayed medical leave because they feared stigma or termination.

By the time employment ends, the medical evidence often shows that the disability had already been developing for months.

The legal question then becomes whether the person was “totally disabled” under the policy while coverage was still in place.

That issue was central in Eastwood-Fischer.

The Eastwood-Fischer Decision

In Eastwood-Fischer v. Equine Canada et al., the plaintiff alleged that she became unable to perform her job duties before her termination due to disabilities arising from a motor vehicle accident.

According to the evidence before the Court, she had become overwhelmed trying to manage her medical conditions at work, had considered taking medical leave, and her employer was allegedly aware of her difficulties.

The insurer and employer argued that:

• LTD coverage ended when employment ended; and
• no LTD application had been completed before coverage terminated.

The plaintiff brought a summary judgment motion seeking LTD benefits.

The Ontario Superior Court refused to grant summary judgment and instead ordered that the issues proceed to trial.

Importantly, however, the Court did not dismiss the claim.

The Court confirmed that there were genuine issues requiring a full trial, including:

• whether the plaintiff became disabled before termination;
• whether she remained disabled under the policy definition;
• whether the insurer owed benefits; and
• whether the employer could potentially be responsible if benefits were improperly unavailable.

For many claimants, this is an important point.

Termination does not automatically eliminate a viable LTD claim.

Why These Cases Are Increasing

We are seeing more of these cases in Ontario for several reasons.

First, mental health claims continue to rise dramatically.

Employees often continue working despite severe psychological symptoms until they simply cannot continue.

Second, workplaces have become increasingly performance-driven. Employees struggling with disability symptoms are sometimes placed on performance plans, disciplined, or terminated before anyone fully understands the medical issues involved.

Third, many people still do not understand their disability coverage or when they should apply.

Some employees mistakenly believe they must completely stop working before speaking to their doctors about disability.

Others fear retaliation if they disclose medical limitations.

Unfortunately, delays can complicate LTD claims.

Insurance companies frequently argue that:

• there was insufficient medical evidence before termination;
• the claimant was capable of working because they continued attending work; or
• the disability only arose after employment ended.

These are highly fact-specific disputes that often require extensive medical and legal evidence.

Continuing to Work Does Not Automatically Defeat an LTD Claim

One of the biggest misconceptions in disability law is that a person cannot be disabled if they continued working.

Ontario courts have repeatedly recognized that people sometimes work beyond the point where they reasonably should because of financial pressure, professional obligations, or fear.

At Mulqueen Disability Law, we frequently see clients who used extraordinary effort to keep working before eventually reaching a breaking point.

Medical records often reveal:

• escalating symptoms;
• repeated doctor visits;
• medication changes;
• recommendations for leave;
• declining function; and
• significant psychological distress.

In many cases, coworkers, family members, and treating professionals observed the deterioration long before employment formally ended.

The fact that someone struggled through work for a period of time does not automatically mean they were capable of performing the essential duties of their occupation.

The Importance of Early Medical Documentation

These cases often succeed or fail based on medical evidence.

When disability develops before termination, contemporaneous medical records become critically important.

Insurers frequently scrutinize:

• family physician notes;
• therapy records;
• specialist consultations;
• medication histories;
• workplace accommodations;
• attendance records; and
• communications with the employer.

The earlier symptoms are documented, the stronger the claim may become.

Unfortunately, many people delay seeking treatment while attempting to continue working.

That gap in documentation can later become a major issue in litigation.

Employers May Also Face Liability

Another important aspect of cases like Eastwood-Fischer is the potential liability of employers.

In some circumstances, employers may face exposure where:

• benefits should have remained available during the notice period;
• disability arose before termination;
• accommodation obligations were not properly addressed; or
• employees were terminated while medically vulnerable.

These cases can involve overlapping issues of employment law, human rights law, and disability insurance law.

That is why early legal advice can be extremely important.

What To Do If You Were Terminated While Struggling With Health Issues

If you were terminated while experiencing significant medical problems, there are several important steps to take immediately.

First, seek medical treatment and ensure your symptoms are fully documented.

Second, preserve records relating to your employment, performance reviews, accommodation requests, and termination.

Third, obtain a copy of your disability policy or employee benefits booklet.

Finally, speak with a lawyer experienced in long-term disability litigation before assuming you have no claim.

Many people wrongly believe that because they were terminated before formally applying for LTD benefits, they have lost all rights.

That is not always the case.

Q&A: LTD Claims After Termination

Can I still receive LTD benefits after losing my job?

Potentially, yes. If you became disabled while coverage was still active, you may still qualify for LTD benefits even if the claim was submitted later.

What if I kept working despite my disability?

Continuing to work does not automatically defeat a claim. Courts recognize that many people continue working despite serious medical limitations.

Does my employer have to tell me about LTD benefits?

Employers generally have obligations regarding benefit information, but disputes often arise about whether employees understood or had access to LTD coverage.

What medical evidence is most important?

Contemporaneous medical documentation is critical. Records showing symptoms, treatment, functional limitations, and recommendations for leave can significantly strengthen a claim.

Can both the insurer and employer be sued?

In some cases, yes. Depending on the facts, both the insurer and employer may potentially face liability.

Contact us for a Free Consultation

Mulqueen Disability Law specializes in hard-to-prove long-term disability claims for “Invisible Conditions” such as mental illness (depression, anxiety, PTSD) and chronic conditions (pain, neurological, immunological, concussion, post-COVID)  Contact us for a free confidential consultation.

Mulqueen Disability Law is a boutique law firm, focused on litigating long-term disability insurance benefit claims. Courtney Mulqueen and her team of legal professionals are Trauma-Informed Certified and have over two decades of experience exclusively in the area of long-term disability law. She and her team draw on their “insider” experience working for the insurance companies (including, Canada Life, Sun Life, Manulife, and OTIP), that they now sue for their clients.  

The preceding is not intended to be legal advice. This blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog, you understand that there is no solicitor client relationship between you and the blog publisher. The blog should not be used as a substitute for competent legal advice from a licensed lawyer in your jurisdiction. If your disability claim has been denied and you require legal advice, please contact a lawyer specializing in disability law.