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Sunday, October 4, 2026

Ontario, Canada Arbitrator Deems Termination of LTD Coverage for Employees at Age 65 a “Reasonable Limit” Under Canadian Charter of Rights - Littler Mendelson PC

In Rayonier v Unifor, Locals 256 and 89, 2022 CanLII 75226 (ON LA), a union filed an individual grievance on behalf of an employee who died at age 66 while still an active employee. This grievance alleged that the employer violated the clear wording of the Collective Agreement (CA) by reducing the amount of life insurance an employee was entitled to when they reached age 65. The employer’s primary defence to this claim was based on the equitable doctrine of estoppel: the insurance policy was in place for over two decades without the union ever questioning the age reduction, filing a grievance or raising the issue in bargaining, indicating that it was satisfied with the terms of the policy.

In support of two locals’ grievances relating to the unavailability of long-term disability (LTD) to employees at the age of 65, the union noted that Ontario’s Human Rights Code (Code) and the Employment Standards Act, 2000 (ESA) permit distinctions based on age in short- and long-term disability plans. The union argued, however, that these “carve outs” violated s. 15(1) of the Canadian Charter of Rights (Charter), which provides:

Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on …age....

In its defence, the Employer relied on s. 1 of the Charter and the doctrine of estoppel. Section 1 of the Charter:

…guarantees the rights and freedoms set...



Read Full Story: https://www.littler.com/publication-press/publication/ontario-canada-arbitrat...