Boring question on Workmen's Compensation & Employee Status

[Craig Schiller]

A person was injured on a job, and hasn't worked for Company E for almost 2 years. He has been receiving Workmen's Compensation, but does not qualify for the plan's definition of Disability.

I recall hearing that if a person is on workmen's compensation, he is still an "employee" of that company.

In this case, the employer would not hire this person back even if able to work again.

Can we pay this person out as a terminated employee or does the fact that he is receiving Workmen's Compensation either: A): Prevent payment or B): Complicate the answer as there may be a separate legal status this person has.

Thanks for any opinions.

Craig Schiller