Canadian Court Rulings Reshape Employer Duties on Disability and Dismissal
Published on 08/01/2026 at 22:07 | Redaktion boerse-global.de
Recent court decisions and policy changes across Canada are sharpening the legal landscape for employers, with significant implications for how they handle dismissals, medical assessments and disability support. Ontario and Quebec courts have handed down substantial awards, while Alberta has launched a new framework for disability employment services.
Record Damages in Financial Planner Dismissal
The Ontario Superior Court has ordered the Royal Bank of Canada (RBC) to pay nearly $2 million to a financial planner dismissed for cause. In Silva v. Royal Bank of Canada, the court awarded $1,919,272 for lost future income and benefits to the 47-year-old employee, who had 12 years of service at the time of termination.
The court found the bank's internal investigation was flawed and that no valid cause existed for the dismissal. The plaintiff's annual earnings fell from $235,000 to $69,000 in subsequent employment. The ruling also granted a 16-month notice period, underscoring the high bar employers must clear when justifying termination for cause.
Insurer Penalised for Demanding Unnecessary Medical Exams
In a separate ruling on July 20, 2026, the Ontario Licence Appeal Tribunal imposed a 50% penalty on Wawanesa Insurance. The tribunal found the insurer had made unjustified demands for a psychiatric examination in a case involving a claimant receiving $6,000 per month in attendant care benefits.
The decision reinforces limits on insurers when requesting medical assessments that may not be warranted by the circumstances of a claim. It serves as a reminder that such requests must be grounded in genuine need rather than routine practice.
These rulings highlight just how closely courts and tribunals are scrutinising employer and insurer obligations. With workplace safety duties under similar pressure, UK employers face their own compliance risks — and many are unknowingly exposed. A free toolkit with ready-to-use risk assessments and checklists helps you stay ahead of your legal duties. Download the free Health & Safety Toolkit
Alberta Overhauls Disability Employment Services
Alberta has introduced the Alberta Disability Assistance Program (ADAP) to run alongside the existing Assured Income for the Severely Handicapped (AISH) system. The province has secured multi-million-dollar contracts with two multinational firms — AKG Canada, owned by an Australian parent company, and UK-based Serco Canada — to manage referrals for disability employment services.
Primary offices will be located in Edmonton and Calgary. The transition has drawn criticism from political figures including the NDP's Marie Renaud, who has called for a pause on the program. Critics have raised concerns about potential benefit reductions and a perceived lack of stakeholder consultation during the program's development.
National Push to Tackle Disability Unemployment
Advocacy groups continue to highlight a significant gap in Canada's labour market for individuals with intellectual disabilities and autism. Inclusion Canada reports that its Ready, Willing and Able program has secured employment for 6,300 Canadians.
Yet data from organisations such as RBC Economics suggests roughly 500,000 working-age Canadians with these conditions remain unemployed or underemployed. Experts describe this as a largely untapped workforce that could help address ongoing labour shortages across the country.
Just as Canadian employers are being pushed to rethink their workplace obligations, UK businesses face their own legal duties under the Health & Safety at Work Act 1974. Many directors don't realise they can be held personally liable for compliance failures. A free toolkit with nine practical tools — including risk assessments and a director's liability guide — helps you protect your workforce and your business. Get the free Health & Safety at Work Act Toolkit
Quebec Government Sanctioned for Charter Violation
The Quebec Superior Court has ordered the provincial government and a former minister to pay over $60,000 in damages to a Christian organisation. The court ruled that the government violated the Charter of Rights and Freedoms by cancelling an event planned by Harvest Ministries.
The ruling found that minister Caroline Proulx acted without the necessary legal authority when cancelling the group's event. The court awarded $30,636.92 in compensatory damages plus $30,000 in punitive damages, concluding the government's actions breached freedom of expression.
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