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Losing your job is one of the most stressful times of your life. When a health condition develops around the same time—or worsens after termination— the added stressor can feel overwhelming. Many Canadians in this situation ask this question: “Can I still apply for disability benefits after I’ve been fired, laid off, or resigned?”
The short answer is: yes, in many cases you can.
But the longer answer depends on which disability benefit you’re applying for, when your disability began, and how your coverage is structured.
This guide breaks down the rules for long term disability (LTD) benefits, Canada Pension Plan Disability (CPP‑D), EI sickness benefits, and other income replacement programs. It also explains the common pitfalls that lead to denied claims—and how to protect your rights.
Most Canadians rely on one or both of the following when they cannot work due to illness:
These benefits are provided through your employer’s group insurance policy or, less commonly, through a private policy you purchased yourself. LTD benefits replace a portion of your income if you cannot work due to illness or injury.
For general information on LTD and disability insurance, see: Government of Canada website.
These benefits become payable if you become disabled within the meaning of the plan and can provide benefits if you suffer a loss of income but can continue to work. They are not tied to your employment as they are stand-alone policies owned by the insured person. If you lose your job and are too ill to work, you can make an application for benefits as long as you satisfy the requirements to make a claim under the policy. As with every insurance policy, private or professional disability income policies have deadlines and eligibility requirements which you should look into as soon as you start to suffer a loss in your ability to earn income or perform an essential duty of your occupation.
CPP‑D is a federal program that provides monthly payments to people who:
For more information see Government of Canada – CPP Disability Benefits.
This is a common question disability lawyers hear. The good news is yes, you may still qualify for LTD after losing your job—if your disability began while you were still employed. However, losing your job will impact the availability of your long term disability benefits, and employment changes have significant effects on your eligibility and the continuation of your benefits.
Many people develop disabling symptoms shortly after being fired, laid off, or resigning. Insurers often deny these claims; however, in most cases coverage continues as long as the disability started before your employment ended. Consult a lawyer knowledgeable about disability matters to determine what steps you should take to make an application for benefits. In addition, before signing a release or anything provided by your employer regarding severance or termination pay, consult an employment lawyer.
Your eligibility depends on the onset date of your disability.
If your symptoms:
then you are typically still covered under your LTD policy—even if you apply after termination.
It is common for a disability to become more pronounced around the time you are terminated, for example:
If the underlying condition existed before termination, you may still qualify. If your medical condition prevents you from working, you may still be eligible for LTD benefits
In most cases, you cannot apply for LTD if your disability began after your employment ended, because your coverage ends with your job.
However, exceptions include:
Always review your policy wording carefully so that you understand the deadline for submitting a claim for disability benefits. Advise your employer that you wish to submit a claim and request the claim form. If your employer will not provide you with the forms, request them directly from your group insurance company.
Yes. CPP‑D eligibility does not depend on whether you are currently employed.
You can apply for CPP‑D:
To qualify, you must show:
EI sickness benefits provide up to 26 weeks of income support if you cannot work due to illness or injury. You can apply after losing your job, as long as:
EI sickness benefits are often part of your employer’s disability insurance plan and pay short term disability income replacement during the elimination period for LTD benefits. In addition EI illness benefits can bridge the gap while waiting for LTD or CPP‑D decisions.
Insurers often deny claims filed after termination, even when the law supports the claimant. Common reasons include:
It’s important to get advice from a knowledgeable disability lawyer to provide evidence and information which disputes these reasons for a denial. The insurer will state the reason for denial in unequivocable terms – suggesting that there is no opportunity to dispute or appeal these assertions. While there are challenges to these claims but you are not without recourse.
Your doctor should clearly record:
It is unlikely that your employer will readily provide you with your complete employment file. A disability lawyer can request the file for you and may find the following supportive information to prove your claim:
Your lawyer will analyze:
This may include:
Keep in mind that things like WSIB payments, CPPD benefits, and severance pay can affect your LTD benefits due to offset rules in most LTD policies. If you receive severance pay, your LTD payments might stop or get cut back until that severance money has been used up over a certain number of months.
A disability lawyer can:
If your employer terminated you because you were struggling with a medical condition, you may have:
It is important to document everything related to your job loss, as this can be crucial for any potential legal action.
Losing your job does not automatically disqualify you from disability benefits in Canada. In fact, many people only realize the full extent of their health issues after the stress of employment ends. The key is understanding your rights, documenting your symptoms early, and getting support when you need it.
If you’re navigating this situation, you’re not alone—and you don’t have to figure it out without guidance. Contact Burn Tucker Lachaîne today by texting at 613-777-0992, calling at 613-777-3301 or visiting our website. We will discuss your situation and get guidance on your eligibility and next steps.
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