Toronto, ON — January 28th, 2026 — The recent decision in Gauthier v. Ignace (Township), 2026 HRTO 48 provides guidance on whether employers can lawfully end long‑term disability (“LTD”) benefits at age 65.
Facts
The applicant, Philip Gauthier, alleged that his employer, the Township of Ignace discriminated against him on the basis of age when his LTD benefits ended on his 65th birthday before he had received the full 24 months of LTD benefits that he was entitled to. The benefits provider confirmed that Gauthier’s age was the sole reason his LTD benefits ended on that date. The municipality also stopped the $900 monthly supplement payment it had been paying during his leave.
Gauthier argued that this amounted to discrimination on the basis of age as his co‑workers who perform the same level of work and are under the age of 65 were still eligible for the full 24 months of LTD benefits. He also relied on Talos v. Grand Erie District School Board 2018 HRTO 680 (“Talos“), where the Tribunal found that cutting off extended health, dental, and life insurance benefits at age 65 was unconstitutional.
Analysis
The central issue in the case was whether such a cutoff is prohibited by the Ontario Human Rights Code (the “Code”). The Tribunal emphasized that it is bound by the Code’s statutory framework and that its jurisdiction to adjudicate applications is limited by the provisions of the Code.
S.5(1) of the Code provides that:
Every person has a right to equal treatment with respect to employment without discrimination because of …. age, ….
Subsection 25(2.1) of the Code is an exemption that limits the application of subsection 5(1) of the Code. It provides:
The right under section 5 to equal treatment with respect to employment without discrimination because of age is not infringed by an employee benefit, pension, superannuation or group insurance plan or fund that complies with the Employment Standards Act, 2000 and the Regulations thereunder.
Section 1 of Ontario Regulation 286/01 to the Employment Standards Act, 2000 (the “ESA”) defines “age” for benefit‑plan purposes as “18 years or more and less than 65 years”. The Tribunal noted that because the Township’s LTD plan terminated benefits at 65, it aligned with this definition. In other words, the termination of benefits after an employee turns 65 is compliant with the Code.
Further, the Tribunal rejected Gauthier’s analogy to Talos because Talos only dealt with extended health and dental, not LTD.
The Tribunal ultimately concluded s. 25(2.1) of the Code applied and the Tribunal had no jurisdiction to consider the Application.
Tips for Employers
- Employers can cut off LTD benefits at 65 as long as the benefit plan complies with the ESA.
- 25(2.1) of the Code shields ESA‑compliant benefit plans from age‑based discrimination claims.
- The law treats health/dental benefits differently from LTD. In Talos, the HRTO found s. 25(2.1) of the Code unconstitutional only for extended health, dental, and life insurance benefits. Although s. 25(2.1) of the Code has been successfully challenged in the health/dental context, no decision has found LTD cutoffs at age 65 unconstitutional. We note that the applicant in this case did not make submissions that s. 25(2.1) was contrary to the Canadian Charter of Rights and Freedoms. This is a helpful decision for employers, and aligns with recent arbitration and tribunal decisions.
