Can You Be Fired While on Medical Leave in Ontario? Understanding the Rules Behind a Sudden Termination
Losing a job is stressful. Losing it while you are away from work because of a medical condition can be even more difficult to understand.
For an employee who has followed the proper process, informed their employer about a medical absence and provided supporting documentation, receiving a termination notice during that leave can raise immediate questions: Was the employer allowed to do this? Does medical leave protect a person’s job? What happens to severance? And does it matter if the employer says the termination was caused by a restructuring?
Those questions have recently appeared in an online discussion involving an Ontario employee who said they were terminated while on medical leave. The employee described being away from work for several weeks for health-related reasons, providing medical documentation and receiving what appeared to be support from the employer before subsequently receiving a termination email.
The discussion can be viewed in full on Reddit’s LitigationPioneers community.
The circumstances described in that post are only one employee’s account and do not establish whether the employer breached the law. However, the situation highlights several important areas of Ontario employment law that workers should understand.
Medical Leave Does Not Create a Simple “No Termination” Rule
The first thing to understand is that being absent from work for medical reasons does not automatically make every termination unlawful.
Ontario employees can have different forms of protection depending on why they are away from work, how long they have worked for the employer, whether they meet the requirements for a protected statutory leave, whether a disability is involved and what their employment contract says.
The employer’s reason for ending the employment can also be important.
For example, there is a substantial difference between:
- eliminating a position as part of a genuine company-wide restructuring; and
- terminating an employee because they took a legally protected medical leave.
Both situations could involve an employee who is away from work when the termination occurs, but the legal questions surrounding them can be very different.
That is why employees should not assume that the timing alone proves discrimination or wrongful dismissal. At the same time, employees should not assume that an employer’s reference to “restructuring” automatically settles the issue.
The surrounding evidence matters.
Ontario’s Long-Term Illness Leave Rules Have Changed
One of the most important developments for Ontario workers is the province’s long-term illness leave.
Since June 19, 2025, eligible employees covered by Ontario’s Employment Standards Act, 2000 can take up to 27 weeks of unpaid, job-protected long-term illness leave in a 52-week period if they meet the legal requirements.
Generally, an employee must have been employed for at least 13 consecutive weeks and must be unable to perform their duties because of a serious medical condition. The employee must provide the employer with a certificate from a qualified health practitioner confirming the serious medical condition and the period during which the employee will not be working because of it.
This legislation is particularly relevant when examining situations in which an employee is dismissed during a significant medical absence.
However, the precise circumstances still matter. Not every medical absence necessarily qualifies for this specific statutory leave, and employees may have other forms of protection depending on their situation.
What Does “Job-Protected” Actually Mean?
The phrase “job-protected leave” is important.
It means an employee who qualifies for the statutory leave has protections against certain forms of employer retaliation or punishment because they exercised the leave entitlement.
Ontario’s government guidance states that employers cannot threaten, fire or otherwise penalize employees because they take, plan to take, or are eligible for long-term illness leave.
That protection should not be confused with an absolute prohibition on terminating an employee who happens to be away from work.
If an employer has an independent and legitimate reason for ending employment, the circumstances need to be assessed carefully.
For instance, imagine that an employer announces a company-wide reduction affecting dozens of positions. One of the affected employees happens to be on medical leave. The fact that the employee was on leave does not necessarily mean the leave caused the termination.
Now consider a different situation in which an employee begins a protected medical leave and shortly afterward is singled out for termination, while the employer provides inconsistent explanations about why the position is being eliminated.
The facts in those two examples are materially different.
Why “Restructuring” Can Require a Closer Look
Businesses regularly reorganize.
Companies may reduce expenses, merge departments, eliminate positions, outsource work or change their organizational structure. A termination connected to a legitimate restructuring can occur even when an employee is absent.
But when an employee is terminated during medical leave, the explanation given by the employer can become an important part of the factual record.
If “restructuring” is cited as the reason, an employee may want to understand what actually happened to their position.
Was the position eliminated entirely?
Were several employees affected?
Did the company reduce the department?
Were the employee’s duties redistributed?
Was someone else hired to perform substantially the same job?
Had management discussed restructuring before the employee went on leave?
None of these questions automatically proves wrongdoing. They are simply examples of facts that can help explain the circumstances surrounding a termination.
Disability Rights May Also Be Relevant
Employment standards legislation is only one part of the picture.
Ontario’s Human Rights Code prohibits discrimination in employment on protected grounds, including disability. The Ontario Human Rights Commission explains that disability-related discrimination can arise in areas such as hiring, employment conditions, dismissal and layoffs. (Ontario Human Rights Commission)
This means an employee dealing with a medical condition may have rights that go beyond the statutory leave provisions of the Employment Standards Act.
For example, where a disability affects an employee’s ability to perform their job, an employer may have a duty to accommodate the employee’s disability to the point of undue hardship.
Accommodation can take many forms depending on the circumstances. It may involve modified duties, changes to scheduling, gradual return-to-work arrangements, temporary adjustments or disability-related leave.
The specific accommodation depends on the employee’s functional limitations and the requirements of the job.
Mental Health Can Be Part of the Legal Discussion
Medical leave is not limited to physical injuries or illnesses.
Mental-health conditions can also raise employment and human-rights issues.
In the Reddit discussion, the employee described being away from work for reasons involving stress and anxiety. Whether a particular mental-health condition meets the legal definition of disability depends on the circumstances and applicable law, rather than simply the name of the condition.
The important point is that workplace disability protections can apply to both visible and non-visible disabilities.
The Ontario Human Rights Commission recognizes that disability can include conditions that are not immediately apparent to an employer or co-worker.
Consequently, an employee should not assume that the absence of a visible physical condition means disability-related protections cannot apply.
Employers May Need Medical Information, But Privacy Still Matters
Another issue that can arise during medical leave is the information an employer requests.
Employers may need enough information to understand an employee’s functional limitations and determine whether accommodation is required.
That does not necessarily mean an employee must provide unlimited medical details.
The Ontario Human Rights Commission explains that employers generally do not have an unrestricted right to an employee’s confidential medical information, including diagnosis and treatment details. The relevant information can depend on the accommodation being requested and the circumstances of the case.
For employees, this creates an important balance: provide the information necessary to establish the need for leave or accommodation while being mindful of medical privacy.
What Happens to Severance?
The termination package can be another major issue.
In the Reddit account, the employee reportedly received an offer of four weeks of severance.
But a stated number of weeks should not automatically be treated as the employee’s final entitlement.
Ontario termination entitlements can involve several different sources of law. The Employment Standards Act establishes minimum standards. An employment contract may contain a termination clause. Depending on the circumstances and the validity of the contract’s wording, common-law reasonable notice may also become relevant.
This means an employee should not necessarily accept or reject a package based solely on the number of weeks offered.
The underlying employment agreement should be reviewed.
For employees looking for additional information about Ontario employment disputes, wrongful dismissal, termination and workplace rights, HTW Law’s official website provides employment-law resources and information about legal services in Ontario.
A Termination Letter Is Only One Piece of Evidence
When someone receives a termination letter, it can be tempting to focus entirely on the employer’s stated reason.
But the broader record may be equally important.
Imagine that the termination letter says “restructuring.” An employment lawyer reviewing the situation may also want to know:
- What happened in the weeks before the medical leave?
- When did the employer learn about the medical condition?
- Was the employee’s leave approved?
- Was medical documentation supplied?
- Did managers discuss the employee’s absence?
- Was the company actually restructuring?
- Were other employees dismissed?
- What happened to the employee’s job responsibilities?
- What does the employment agreement say?
- How was the severance amount calculated?
The answers can change the legal analysis.
Employees Should Preserve Their Documents
Someone who has been dismissed during medical leave should consider keeping a complete record.
Important documents may include the original employment agreement, offer letter, workplace policies, pay statements, medical-leave communications, medical certificates, emails with human resources, text messages from managers and the termination letter.
It can also be helpful to create a simple timeline.
Write down when the medical issue began, when the employer was notified, when the employee stopped working, when medical documentation was provided, what the employer said about the leave and when the termination was communicated.
A timeline can help identify gaps or inconsistencies that may otherwise be difficult to remember later.
Be Careful With Release Agreements
A termination package may contain more than a cheque.
Many packages include a release requiring the employee to agree not to pursue certain claims against the employer.
This is one reason employees should understand the document before signing it.
A person who believes their termination may involve protected medical leave, disability discrimination, accommodation issues or an inadequate termination entitlement may want to obtain independent legal advice before accepting a package that includes a release.
A deadline in a severance letter does not necessarily mean an employee should make a rushed decision without understanding the document.
What If the Employer’s Restructuring Was Genuine?
It is equally important to consider that not every termination during medical leave is evidence of unlawful conduct.
Businesses can face legitimate economic and operational pressures.
A company may decide to eliminate a position shortly before or during an employee’s medical leave. The timing may be unfortunate without necessarily being unlawful.
For example, evidence that multiple employees were affected by the same restructuring may be relevant. Evidence that the employee’s position was genuinely eliminated may also be relevant.
On the other hand, evidence that the employee’s duties continued substantially unchanged could raise different questions.
The purpose of examining these facts is not to assume misconduct. It is to understand what actually happened.
Questions Employees Should Ask Before Accepting a Termination Package
Before signing a termination agreement, an Ontario employee may want to consider several questions:
What does my employment contract say about termination?
The contract may affect how termination compensation is calculated.
Was I taking a protected statutory leave?
The answer can depend on the type of medical absence and whether the statutory requirements were satisfied.
Did my employer know about my medical condition?
The timing and nature of the employer’s knowledge can matter in a disability-related analysis.
Was accommodation discussed?
Where disability is involved, the accommodation process can become relevant.
Was the position genuinely eliminated?
The employer’s restructuring explanation can be examined against the actual workplace changes.
Does the severance offer include a release?
If so, understanding the consequences before signing is important.
The Bigger Lesson for Ontario Employees
The circumstances described in the Reddit post demonstrate why medical-leave termination cases cannot always be reduced to a single question.
The fact that an employee was sick is relevant, but it is only part of the story.
The type of leave matters.
The employee’s medical circumstances may matter.
The employer’s knowledge may matter.
The employment contract may matter.
The reason for termination may matter.
And the evidence surrounding the employer’s decision may matter.
Ontario’s employment standards legislation now gives qualifying employees an important statutory long-term illness leave entitlement. Separately, human-rights protections can apply where disability and accommodation issues arise.
At the same time, employers can make legitimate business decisions, including restructuring and eliminating positions, provided those decisions comply with applicable legal obligations.
Final Takeaway
Being fired while on medical leave can leave an employee wondering whether the termination was connected to their absence or simply coincided with a business decision.
There is no universal answer.
Ontario employees should look at the specific type of medical leave involved, whether statutory protections apply, whether disability-related accommodation obligations arose, what the employment contract provides and what evidence exists concerning the employer’s stated reason for termination.
The Reddit discussion that prompted this article is a useful example of how quickly questions can arise when an employee receives a termination notice during a medical absence. It also shows why the words used in a termination email—such as “restructuring”—should be considered alongside the entire employment history rather than viewed in isolation.
For anyone facing a similar situation, preserving documents and obtaining appropriate legal advice before signing a termination agreement can be important. Resources from HTW Law may also help employees understand Ontario employment-law concepts relating to termination, severance and workplace disputes.
Ultimately, a medical leave does not make every subsequent termination unlawful, but neither should an employee assume that a termination is automatically valid simply because an employer calls it a restructuring. The legal answer depends on the facts, the applicable legislation, the employment agreement and the evidence surrounding the decision.