at
The short answer is yes — but only in limited circumstances. In Ontario, you can be fired while on disability leave, but not simply because you are on leave: lawful termination is usually limited to situations such as a business closure, a legitimate restructuring unrelated to your disability, just cause, or frustration of contract. Employers must still follow strict rules under employment standards legislation, common law and human rights legislation.
An employer cannot discriminate against or fire an employee because of a disability, illness, or medical condition, nor can they dismiss you for taking disability leave. That kind of termination is illegal. However, an employer can end your employment for reasons completely unrelated to your condition, as long as they meet their legal obligations and provide proper compensation.
If you are an Ontario employee who is on a disability leave or thinking about taking one, this is the issue that affects your job security, your benefits, and your ability to challenge a wrongful dismissal. Understanding the line between legal and illegal termination, the duty to accommodate, what happens to disability benefits, what compensation may be available, and what steps to take if you are fired can help you protect your rights.
There are a few situations where termination may be lawful, even if you are currently off work on Short‑Term Disability (STD) or Long‑Term Disability (LTD).
If the company shuts down entirely, your employment ends along with all other employees. This is not considered discrimination because the job no longer exists due to the business closure, not because of your disability. You would still be entitled to statutory termination pay, severance pay (if eligible), and possibly common‑law notice depending on your employment contract.
Employers are allowed to restructure their business, eliminate roles, or reduce staff. If your position is legitimately eliminated — and the decision is unrelated to your disability — the termination may be legal.
However, employers must be able to prove the restructuring was genuine. If they eliminate your role and immediately hire someone else to do the same job, that is a red flag. Employer concerns about restructuring in these cases are closely examined by courts when the employee was on disability leave.
This is rare, but possible. If an employer can show serious misconduct — such as fraud, theft, or repeated insubordination — they may have valid grounds for dismissal even while you are on disability leave.
However, “just cause” is a very high bar in Ontario. Poor performance, minor mistakes, or inability to work due to disability do not qualify as cause, and disability-related inability to work is not.
This concept is often misunderstood in employment and disability law.
A contract is “frustrated” when an employee is permanently unable to return to work and there is no reasonable accommodation that would allow them to perform their job; it usually requires proving there is no reasonable prospect of the employee returning to work.
Key points:
Frustration should only be considered after a long period of absence from the workplace due to disability and, in most cases, not after a matter of months.
Termination is illegal when the employee’s disability is even one factor in the decision. Under the human rights law, employers cannot fire you because:
Employers have a legal duty not to discriminate based on disability.
If disability played any role in the termination, it is discriminatory — even if the employer claims “restructuring” or “performance issues.”
Illegal termination may entitle you to:
Before terminating an employee on disability leave, employers must show they attempted to accommodate the disability to the point of undue hardship. This includes:
Accommodation is a legal obligation, not a courtesy. Employers cannot simply say, “We don’t have light duties,” or “We need someone full‑time.” They must demonstrate real efforts to explore options.
If they fail to accommodate, any termination is likely discriminatory.
This depends on your policy.
Short‑Term Disability (STD): You usually continue receiving STD benefits until the end of the approved period, even if your employment ends.
Long‑Term Disability (LTD): Generally, LTD policies continue paying benefits as long as you remain medically eligible, even if your employment is terminated. LTD is an entitlement which exists if you became disabled while employed. Therefore, if your employment ends while you are on disability benefits, your LTD benefits should continue for as long as you continue to be eligible under the policy.
However:
Always review your policy to confirm what benefits remain covered after termination, and seek advice if there is a denial or dispute. If LTD is denied, an appeal may be available.
If you were terminated while on STD or LTD, take these steps:
If the employer’s explanation points to your medical leave or restrictions, treat that as a warning sign.
Being fired while on disability leave is frightening, but you have legal protections. If you are unsure of your rights, seek further legal guidance.
For advice please text 613-777-0992 or contact us through our website to schedule a meeting with one of our lawyers. We provide a free consultation, in French or English, to ensure that your rights are protected. In most cases, we can offer to represent you on a contingency fee basis. This means that you do not pay legal fees unless you win or achieve a settlement on your case.
Reviews
