Maternity Leave Top-Up in Canada: Repayment Rules

What is maternity leave top-up pay in Canada? A maternity leave top-up is extra money an employer pays while you’re receiving Employment Insurance (EI) maternity or parental benefits. It helps replace some or all of the income you would normally earn while working.

Some employers require employees to return to work for a certain period after maternity or parental leave to keep the money. If you resign, are laid off or get fired, whether you must repay the top-up depends on your agreement and the circumstances.

⚠️ Employer demanding repayment? Don’t assume you have to repay your maternity top-up simply because your employment ended. A repayment clause isn’t automatically enforceable, especially if your employer fired you or eliminated your position.

Reviewed by: Lior Samfiru, Employment Lawyer and National Co-Managing Partner

What Is Maternity Leave Top-Up Pay?

Maternity leave top-up pay is an employer-funded payment that supplements EI maternity or parental benefits.

EI benefits replace only part of your regular earnings, subject to government limits. A top-up helps reduce the difference between your EI payments and your usual salary.

For example, an employer might provide enough additional money to bring your total income to 75%, 90% or 100% of your normal salary for a specified period.

A top-up may be available during:

Maternity or pregnancy leave.
Parental leave after the birth or adoption of a child.
A specified portion of either leave, depending on the employer’s plan.

Maternity top-up pay is separate from your legal right to take maternity leave in Canada.

How Does Maternity Leave Top-Up Work?

Your employer decides how much additional pay its top-up plan provides and how long payments continue, subject to the applicable agreement and law.

Here’s a simple example:

Your regular weekly salary is $1,000.
You receive $550 per week in EI maternity benefits.
Your employer offers a top-up to 90% of your regular salary.
Your employer pays an additional $350 per week.
Your combined weekly income is $900 before applicable deductions.

This is an illustration. Actual EI payments are subject to eligibility rules and maximum benefit amounts.

Some employers provide top-up payments for only a few weeks. Others offer them for several months.

Does Your Employer Have to Provide Maternity Leave Top-Up Pay?

No. Employers in Ontario, Alberta and British Columbia aren’t automatically required by employment standards legislation to provide maternity or parental leave top-up pay.

However, an employer may be required to provide it under an employment contract, workplace benefit plan or other binding agreement.

If your employer offers a top-up, it must administer the benefit consistently with its legal obligations, including human rights protections.

💡 Important: Your right to take protected maternity or parental leave doesn’t depend on whether your employer offers top-up pay.

Do You Have to Repay Maternity Leave Top-Up?

Not automatically. Whether you must repay maternity top-up depends on the terms of your agreement, why your employment ended and whether the repayment clause is enforceable.

Some employers require employees to return to work for a certain period after maternity or parental leave. If an employee leaves before completing that period, the employer may demand repayment.

However, there’s an important difference between choosing to leave your job and having your employment ended by your employer.

When might repayment be required?

You voluntarily resign before completing an agreed return-to-work period.
You signed a clear and enforceable repayment agreement.
The repayment condition applies to your particular circumstances.

When might repayment be challenged?

Your employer fires you without cause.
Your position is eliminated in a layoff or restructuring.
Your employer prevents you from returning to work.
The repayment clause is unclear or unenforceable.
You leave because of a serious breach of your employment rights.

Even if your agreement contains a repayment clause, your employer can’t assume every departure triggers it.

Do You Have to Repay Maternity Top-Up if You Quit?

You may have to repay the top-up if you voluntarily resign before completing the return-to-work period required by an enforceable agreement.

For example, suppose your employer paid $10,000 in maternity top-up benefits on the condition that you return to work for six months.

If you resign after only two months, your employer may argue that you must repay some or all of the top-up.

But the agreement matters. Some policies require full repayment, others provide for partial repayment, and some don’t impose a repayment obligation at all.

If you’re considering leaving your job after maternity leave, review your top-up agreement before resigning.

If your employer has made major changes to your job, pay or responsibilities, you may also have rights involving constructive dismissal.

Do You Have to Repay Maternity Top-Up if You’re Fired or Laid Off?

If your employer fires you without cause or eliminates your position, you may have strong grounds to challenge a demand to repay maternity top-up benefits.

An employer shouldn’t assume it can recover a benefit simply because you couldn’t complete a return-to-work period after it ended your employment.

The agreement must still be reviewed to determine whether repayment is legally required.

What if you’re fired for cause?

An employer may argue that a valid repayment obligation applies if you’re dismissed for serious misconduct.

However, an employer’s accusation of termination for cause doesn’t automatically establish that it was justified or that repayment is owed.

What about severance pay?

If you’re fired without cause during or after maternity leave, you may also be entitled to severance pay. In appropriate cases, full severance can reach up to 24 months’ pay.

Your employer’s demand for top-up repayment should be assessed separately from your severance entitlement.

If you’ve received a termination offer, have your severance package reviewed before signing.

⚠️ Don’t agree to a repayment deduction without advice. Your employer may not be entitled to deduct a disputed top-up amount from your final wages or severance. Different rules apply depending on the province and the type of payment.

What Should a Maternity Top-Up Agreement Include?

A maternity or parental leave top-up agreement should clearly explain:

Eligibility: Which employees qualify for payments.
Amount: How much of your regular salary will be replaced.
Duration: How many weeks or months payments continue.
Return-to-work requirement: Whether you must return and remain employed for a specified period.
Repayment: When money must be repaid and how the amount is calculated.
Termination: What happens if you’re fired, laid off or unable to return.

Don’t assume a policy is enforceable simply because you signed it. Our employment contract review guide explains why the wording of workplace agreements matters.

Does Maternity Leave Top-Up Affect EI Benefits?

An employer-paid maternity or parental top-up doesn’t have to reduce your EI benefits if it meets Service Canada’s requirements.

For qualifying top-up plans:

Your combined EI benefits and employer top-up can’t exceed your normal weekly earnings.
The top-up can’t be used to reduce accumulated employment benefits, such as vacation credits or severance pay.
You must report the top-up on your EI application.

Employers don’t need to register maternity or parental top-up plans with Service Canada, but the plans must meet the applicable requirements to avoid reductions to EI benefits.

For government benefit eligibility and payment rules, see our EI maternity and parental benefits guide.

You can also review Service Canada’s maternity and parental top-up requirements.

Frequently Asked Questions About Maternity Leave Top-Up

Is maternity leave top-up mandatory in Ontario?

No. Ontario employers aren’t automatically required to provide maternity leave top-up pay. However, an employment contract or workplace benefit plan may create an obligation to provide it.

Is maternity leave top-up mandatory in Alberta or BC?

No. Alberta and BC employers aren’t automatically required to offer maternity or parental leave top-up pay. The benefit may be available through an employment agreement or workplace plan.

How much is maternity leave top-up in Canada?

The amount depends on your employer’s plan. Some employers provide enough money to bring your total income to 75%, 90% or 100% of your regular salary for a set period.

Do I have to return to work after maternity leave to keep my top-up?

Some top-up agreements require employees to return for a specified period, such as three or six months. Whether that condition is enforceable depends on the agreement and circumstances.

Do I have to repay maternity top-up if I resign?

Possibly. If you voluntarily resign before completing an enforceable return-to-work commitment, your employer may be entitled to repayment.

Do I have to repay maternity top-up if I’m laid off?

Not automatically. If your employer eliminates your position, you may have grounds to challenge repayment. The agreement and circumstances must be reviewed.

Can my employer deduct maternity top-up from my severance?

Not automatically. Wage deduction rules and the terms of your agreement matter. An employer can’t assume it has the right to deduct a disputed amount from your termination payments.

Does maternity top-up affect EI payments?

A qualifying maternity or parental top-up doesn’t reduce EI benefits when Service Canada’s requirements are met. You must still disclose the top-up when applying for benefits.

What if I’m fired after returning from maternity leave?

You may be owed severance pay, and your employer may not be entitled to recover your top-up. If your dismissal was connected to pregnancy or maternity leave, you may also have a discrimination claim. Read our guide to being fired while pregnant.

Get Legal Help With Maternity Top-Up Repayment

If your employer is demanding repayment of maternity or parental leave top-up benefits, don’t assume you have to pay simply because your employment ended.

The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia review employment agreements, challenge improper repayment demands and recover the severance they’re legally owed.

Our team can review your top-up agreement, explain your rights if you’ve resigned or been dismissed, and determine whether your employer can legally demand repayment.

For more information about your provincial rights, visit our Ontario employment law, Alberta employment law and BC employment law pages.

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Maternity Leave Top-Up in Canada: Pay and Repayment Rules

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