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| Courtney Mulqueen |
Many Canadians have watched with increasing apprehension as stock markets tumbled amid a global trade war ignited by U.S. President Donald Trump’s tariff plan.
According to a Politico report, Bank of Canada governor Tiff Macklem said “the erratic, unpredictable course of U.S. trade policy” has “violently” damaged the economy.
Macklem noted that in a “long-lasting trade war, the economic consequences are severe … and the economy is in recession for a year.”
Meanwhile, Canada lost 33,000 jobs in March, the biggest decrease since January 2022.
Economic uncertainty adds another level of stress to already challenging times. People are on edge for good reason.
For those anxious about losing their jobs, it can trigger a mental health disability. I have witnessed more people dealing with issues that are affecting their everyday lives. Some have difficulty with emotional regulation, depression or anxiety, and they are struggling to just hold it together.
What’s worse is that some people suffering from mental health issues may be hesitant to seek help, worrying about how it will be perceived.
Throw in a precarious economic environment and many people will keep pushing and pushing, going to work no matter how horrible they feel or how much worse their condition is getting.
It can get to the point where it impacts their ability to do their jobs and interferes with their relationship with their employer.
The stress of dealing with a mental health problem can lead some to just give up, believing that quitting their jobs will take all the stress off their plate. But making such a rash decision could have consequences.
Something can happen to trigger an outburst, and they may not even intend to quit, but there is some communication with their supervisor that is taken the wrong way, resulting in a termination. Then it can be difficult to undo the damage.
Take, for example, the King’s Bench for Saskatchewan decision in Denton v. Parriwi Management Inc., [2024] S.J. No. 359, which dealt with the wrongful dismissal of a man who argued that his employer incorrectly treated his statement made during a heated exchange as a resignation.
The man reacted to an intense argument during a July 2020 meeting, saying he was “done” before walking out of the office. Court heard the man had suffered some emotional setbacks and was given time off to get better.
He later received a text from his employer following the incident telling him he was “welcome back anytime.”
The man was on short-term disability (STD) for seven weeks. However, in November 2020, after being turned down for long-term disability (LTD) benefits, he received a letter from his employer stating his resignation had been accepted.
Fortunately, the court found the man hadn’t actually resigned, and he was awarded almost $350,000 in lieu of notice. However, it shows how an impulsive statement made in the heat of the moment can have serious repercussions.
Quitting can have an impact on a person’s entitlement to disability benefits, which could limit their ability to get the help they need.
Without an employee insurance plan, people may not be able to afford treatment for a mental health issue. Their issue could then become far worse.
Some may be fearful of losing their job if their employer learns they have a mental health issue or if they take a medical leave, but workers in this province are protected from discrimination under the Human Rights Code.
People may also not know that if you become disabled while you were employed, even if your job was terminated, you may still be entitled to insurance benefits.
I offer my clients who are dealing with mental health issues the following advice:
- If you are struggling at work, apply to go on leave. Do not resign.
- Continuing to work while unwell risks damaging your workplace relationships and may result in termination of employment.
- If you are terminated but can prove that your disability arose while employed and you were still covered under your group benefit plan (either prior to termination or during the statutory notice period following termination), then you are entitled to LTD coverage and possibly even STD coverage.
- If you were fired but had been struggling to do your job due to disability, or the termination caused your condition to become worse, contact your employer immediately to apply for STD and LTD.
- If the employer refuses to provide disability forms, reach out directly to the insurance company or contact a disability insurance lawyer for help in obtaining and submitting the STD/LTD forms.
- If your LTD claim is denied on the basis that you were not covered under the employer’s plan, contact a disability lawyer to help you determine your eligibility and whether it will be necessary to sue both the insurance company and the employer for interfering in your insurance entitlements.
Being brave and riding out a mental health issue is not a viable option. Your health should come first because if you don’t have that, you don’t have much. Discuss your issues with your doctor and explore all your options, including applying for disability benefits.
Courtney Mulqueen, of Mulqueen Disability Law, has over 20 years of experience litigating disability claims. Her focus and passion is representing plaintiffs with disabilities who live with complex “invisible conditions,” like mental illness and chronic conditions that are difficult to prove, diagnose and treat.
The opinions expressed are those of the author and do not reflect the views of the author’s firm, its clients, Law360 Canada, LexisNexis Canada or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
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