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Terminated While on Medical Leave in Ontario: What Employees Should Know

Being let go while on medical leave isn't automatically illegal in Ontario, but it can be. Here's how to tell the difference and what to do next.

Litigation6 min readTSLBy the Treadstone Law team · OntarioUpdated 2026-07
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Key takeaways
  • Employers in Ontario generally retain the right to end an employment relationship without cause, provided they give the employee proper notice, or pay instead of notice.
  • Two distinct bodies of law tend to come into play in this situation, and it helps to keep them separate: - Job-protected leave rules under Ontario's employment standards framework…
  • Some patterns tend to draw closer scrutiny from lawyers and, potentially, courts or human rights tribunals: - The termination happens very shortly after the employee discloses a…

Being dismissed while you are away from work on medical leave feels like a particularly harsh version of an already difficult situation. It also raises a specific legal question: was this a lawful, no-cause dismissal that happened to occur during your leave, or a dismissal connected to your illness or disability itself?

Ontario law does not say an employer can never terminate someone who is on medical leave. It does say the employer cannot terminate someone because of a disability or because they took a protected leave, and the timing of a dismissal during a leave is often the first thing a lawyer will want to examine closely.

Being Let Go During a Leave Is Not Automatically Illegal

Employers in Ontario generally retain the right to end an employment relationship without cause, provided they give the employee proper notice, or pay instead of notice. That underlying right does not disappear just because the employee happens to be on a leave of absence at the time.

This means a termination that coincides with a medical leave is not automatically wrongful or discriminatory. What matters is the real reason behind the decision, and whether the employer can show it was not connected to the employee's disability, illness, or the fact that they took a leave at all.

Two Separate Protections at Play

Two distinct bodies of law tend to come into play in this situation, and it helps to keep them separate:

A termination during medical leave can raise concerns under either or both of these frameworks, depending on what actually happened and why.

What Makes a Termination During Leave Look Suspicious

Some patterns tend to draw closer scrutiny from lawyers and, potentially, courts or human rights tribunals:

None of these facts alone proves discrimination, but together they can support an inference that the leave, or the underlying disability, played a role in the decision.

What an Employer Can Still Legitimately Do

An employer is not frozen in place just because an employee is on leave. Legitimate, unrelated business reasons — a genuine restructuring, a permanent elimination of a role, or documented performance or conduct issues that predate the leave — can still support a lawful dismissal, provided proper notice or pay in lieu is given and the real reason is not connected to the disability or the leave itself.

The key question is always the true motivating reason, not simply whether the timing looks difficult from the outside.

Comparing the Two Scenarios

SituationMore likely legitimateMore likely a red flag
TimingDecision was already planned or documented before the leave beganDecision followed shortly after disclosure of illness or a leave request
ExplanationConsistent, documented business reasonVague, shifting, or unsupported explanation
HistoryPrior documented performance or conduct concernsClean record, then sudden dismissal
ComparatorsSimilar decisions made regardless of leave statusOther employees on leave treated differently than others

Steps to Take If This Happens to You

  1. Get the termination in writing, including whatever reason the employer gives, even informally.
  2. Preserve your medical and leave-related communications — emails, notes, and any accommodation requests you made.
  3. Write down the timeline while it is fresh: when you disclosed your condition or requested leave, and when the termination happened.
  4. Avoid signing a release or severance package quickly without understanding what you may be giving up in exchange.
  5. Speak with an employment lawyer promptly, since both wrongful dismissal claims and human rights complaints operate on their own timelines, and delay can limit your options.

Frequently asked questions

Can my employer terminate me just because my leave is taking a long time?

The length of a leave alone is not usually a lawful reason to terminate someone; an employer generally has to have explored whether the employee's condition can be accommodated before treating the employment relationship as unable to continue.

Do I lose my right to notice or severance if I was on leave when I was terminated?

No — being on a leave does not, by itself, reduce your entitlement to proper notice, pay in lieu of notice, or other amounts you would otherwise be owed under Ontario law.

What is the difference between a wrongful dismissal claim and a human rights complaint here?

A wrongful dismissal claim is about whether you received adequate notice or pay in lieu; a human rights complaint is about whether discrimination based on disability played a role in what happened. The same set of facts can sometimes support both, and a lawyer can help you decide which route, or combination, fits your situation.

How quickly do I need to act?

Both wrongful dismissal claims and human rights complaints are subject to their own time limits, and evidence about timing and motive is easiest to gather while things are fresh — do not wait to get advice.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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