Taking a leave of absence—whether for maternity, parental, sick, disability, or other protected leave—should not put your job at risk. However, many employees worry about being dismissed while they are away from work.

So, can an employer legally fire you while you are on leave in Ontario? The answer is complicated. While employers cannot terminate you because you took a leave, they may still dismiss you for other valid reasons.

This article explains when termination during leave is legal or illegal, and what employees can do if they believe they were wrongfully dismissed.

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Your Right to Job Protection During Leave

Ontario’s Employment Standards Act, 2000 (ESA) provides job-protected leaves, meaning that employees cannot be fired, penalized, or treated unfairly because they took an approved leave.

Some of the most common protected leaves under the ESA include:

• Maternity and parental leave
• Sick leave and disability leave
• Family caregiver leave
• Bereavement leave
• Injury-related leaves (WSIB claims, workers’ compensation leave)

Employers must reinstate employees returning from leave to either:

• The same job they had before leave, or
• A comparable job with the same pay, benefits, and seniority

If an employer terminates an employee because they took leave, this could be considered wrongful dismissal or human rights discrimination.

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When Can You Be Legally Terminated While on Leave?

Although employees on leave have legal protections, Ontario employers can still terminate employment for legitimate, non-discriminatory reasons.

Examples of Legal Termination During Leave:

Company Restructuring – If the employer is eliminating positions due to downsizing, business closure, or financial difficulties, they can terminate employees, including those on leave.

Mass Layoffs or Workforce Reductions – If a company is letting go of many employees as part of a corporate reorganization, workers on leave may also be included—as long as the leave was not a factor in the decision.

Performance or Misconduct Issues – If an employer can prove that an employee was already at risk of termination before taking leave, they may proceed with the termination during the leave. However, they must have clear, documented evidence that the dismissal was unrelated to the leave.

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When Termination During Leave is Illegal

Termination Linked to Leave – If an employer dismisses an employee because they took leave, this is a violation of the ESA and Ontario Human Rights Code.

Failure to Reinstate After Leave – If an employee is terminated right before or after returning from leave, this could raise suspicion that the leave influenced the decision.

Singling Out Employees on Leave – If an employer lays off multiple employees but targets employees on leave disproportionately, this may indicate discrimination.

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What to Do If You’re Fired While on Leave

If you are terminated while on leave, follow these steps to protect your rights:‍

1. Request a Written Explanation: Ask your employer for a written termination letter outlining the reason for dismissal. This can help determine whether the termination was lawful.

2. Review Your Employment Contract: Check if your employment contract includes termination clauses or severance entitlements that may affect your rights.

3. Gather Evidence: If you suspect you were fired because of your leave, collect relevant emails, performance reviews, and any documents related to your termination.

4. File a Complaint with the Ministry of Labour: If you believe your dismissal violated the Employment Standards Act, you can file a complaint with the Ontario Ministry of Labour for an investigation.

5. Consult an Employment Lawyer: If your termination appears unfair, consulting an employment lawyer can help determine if you have a case for wrongful dismissal, human rights violations, or severance compensation.

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Conclusion

In Ontario, employees on protected leave cannot be dismissed simply because they took time off. However, employers can terminate employees on leave for legitimate business reasons, as long as the decision is not influenced by the leave itself. If an employer fails to reinstate an employee or uses the leave as a pretext for dismissal, it may be grounds for wrongful dismissal or a human rights violation.

If you were terminated while on leave and believe it was unfair, you have legal options to challenge the dismissal and seek compensation. Taking action can help ensure your rights are protected and prevent similar violations from happening to others.

If you have been fired while on leave and need legal advice, contact our experienced Brampton employment lawyers for a free consultation. Randy Ai Law Office can be reached at (365)-536-2474 or through our contact form.

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