In Ontario, your employer cannot fire you simply because you are sick or because you took a valid sick leave. However, termination can still happen in some situations — and whether it is legal depends on the circumstances.
If you are on sick leave or unable to work due to illness or injury, it is important to understand your rights before making any decisions. For a broader overview, see our guide on sick leave in Ontario. In some cases, employees may still be entitled to severance pay or other compensation, even if they are dismissed while on leave.
Can Your Employer Fire You While on Sick Leave?
Your employer cannot terminate your employment simply because you are sick or because you took a valid sick leave under Ontario law. However, this does not mean that termination is impossible while you are on leave.
Employers may attempt to terminate employment for other reasons, but they must meet strict legal requirements — especially where a medical condition or disability is involved.
When Can an Employer Legally Terminate Employment During Sick Leave?
- termination unrelated to your illness;
- business restructuring or layoffs;
- frustration of contract in certain circumstances;
- serious misconduct unrelated to your illness.
Even in these situations, the employer must comply with employment standards legislation and may still owe termination pay, severance pay, or other compensation.
Duty to Accommodate and Disability Rights
If your illness or injury qualifies as a disability, your employer has a legal duty to accommodate you to the point of undue hardship. This may include modified duties, a gradual return to work, or extended time off.
Terminating an employee without properly considering accommodation can result in legal claims, including wrongful dismissal, constructive dismissal, or discrimination.
What Is Frustration of Contract?
Frustration of contract can occur when an employment relationship can no longer continue due to illness or injury and there is no reasonable likelihood of returning to work.
In these cases, employees may still be entitled to minimum termination and severance pay under the Employment Standards Act, depending on the circumstances.
Are You Entitled to Severance Pay If You Are Fired While on Sick Leave?
In many cases, yes. If your employer terminates your employment while you are on sick leave, you may still be entitled to termination pay or severance pay.
Your entitlement depends on factors such as your length of service, your position, your age, and your ability to find comparable employment.
For more information, see our guide on severance pay in Ontario.
Should You Resign Instead of Being Terminated?
In some situations, employees consider resigning while on sick leave. However, this can be a costly mistake.
Resigning may limit your ability to claim severance pay or other compensation. Before making this decision, it is important to understand your legal options.
Learn more here: Can you resign while on sick leave in Ontario?
What Should You Do If You Are Fired While on Sick Leave?
- Do not sign anything immediately;
- Request a copy of any termination letter or severance offer;
- Keep records of communication with your employer;
- Seek legal advice before making decisions.
Frequently Asked Questions
Can you be fired for taking sick leave in Ontario?
No. Your employer cannot fire you simply because you took a valid sick leave. However, termination can still occur for other lawful reasons, depending on the circumstances.
Can your employer replace you while on sick leave?
Your employer may make temporary arrangements while you are away, but they must respect your legal rights and obligations, including accommodation and job protection requirements.
How long does an employer have to keep your job open?
There is no fixed time limit. Employers must consider accommodation and whether you are likely to return to work in the foreseeable future.
Can you be laid off while on sick leave?
Layoffs may occur in certain circumstances, but they must not be related to your illness or disability and must comply with employment standards legislation.
What happens if you cannot return to work?
If you are unable to return to work due to illness or injury, your employment may end through frustration of contract. In some cases, you may still be entitled to termination pay or severance pay.
Speak With a Monkhouse Law Employment Lawyer
If you were terminated while on sick leave, you may be entitled to compensation. It is important to understand your rights before accepting any severance offer or making any decisions.
Monkhouse Law Employment Lawyers represents non-unionized employees in Ontario. We offer a free 30-minute phone consultation to help you understand your rights and options.