Terminating Employees on Medical Leave in Ontario: A Complete Legal Guide
Ontario’s employment laws provide strong protections for workers on medical leave. Terminating an employee during this vulnerable period carries significant legal risks. This guide breaks down the key considerations for both employers and employees.
Key Laws Protecting Employees on Medical Leave
1. Employment Standards Act (ESA) Rights
✔ Sick Leave – 3 unpaid days per year
✔ Family Medical Leave – 8 weeks unpaid to care for ill family members
✔ Pregnancy/Parental Leave – Up to 78 weeks protected leave
2. Human Rights Code Protections
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Disability is a protected ground
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Employers must accommodate to the point of undue hardship
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Medical leave cannot be factor in termination decisions
When Can an Employer Legally Terminate?
| Scenario | Legal? | Requirements |
|---|---|---|
| Termination for cause | ✅ Yes | Must prove serious misconduct unrelated to leave (theft, fraud) |
| Termination without cause | ⚠️ Risky | Must provide proper notice/severance; cannot be linked to leave |
| Business closure/downsizing | ✅ Yes | Must prove legitimate business need |
| Fixed-term contract expiry | ✅ Yes | Non-renewal cannot be due to leave |
Prohibited Actions That Lead to Lawsuits
🚫 Retaliation for taking leave
🚫 Discrimination based on medical condition
🚫 Failure to accommodate return to work
🚫 Constructive dismissal through changed terms
Landmark Legal Cases
1. Chandran v. National Bank (2010)
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Employee fired during cancer treatment
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Court ruled termination was disability discrimination
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Awarded $100K+ in damages
2. Tremblay v. 1168531 Ontario (2015)
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Fired for “poor performance” while on medical leave
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Tribunal found performance issues were disability-related
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Employer ordered to pay lost wages + $20K moral damages
Best Practices for Employers
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Document everything – Keep records of performance issues pre-leave
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Consult a lawyer before any termination decision
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Explore accommodations before considering termination
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Provide full severance if terminating without cause
Employee Rights & Action Steps
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Know your entitlements under ESA and Human Rights Code
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Get medical documentation to support leave/accommodation needs
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Document all communications with employer
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Consult an employment lawyer if you suspect wrongful termination
Termination Pay Requirements
| Tenure | ESA Minimum Notice | Common Law Notice* |
|---|---|---|
| 1 year | 1 week | 1-2 months |
| 5 years | 5 weeks | 5-10 months |
| 10+ years | 8 weeks | 12-24 months |
*Courts often award much higher severance under common law
Key Takeaways
✔ Employees on medical leave have strong legal protections
✔ Terminations must be completely unrelated to leave
✔ Human rights damages can far exceed severance pay
✔ Documentation is critical for both employers and employees
Employers: When in doubt, consult an employment lawyer before acting.
Employees: If terminated during/after leave, seek legal advice immediately.
Need Help?
🔗 Ontario Ministry of Labour
📞 Legal Aid Ontario: 1-800-668-8258
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