Fired While on Medical Leave: Employee Rights in Canada

You can be fired while on medical leave, but your employer can’t terminate you because of a disability or because you legitimately need medical leave.

An employer can end employment during a leave for reasons that are unrelated to the leave, such as a genuine restructuring or position elimination. But the employer must still respect human rights protections, accommodation obligations and your severance rights.

Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia understand their rights when they are fired while off work for medical reasons.

⚠️ Fired while on medical leave?
Do not assume the termination is legal just because your employer says your position was eliminated or the decision was unrelated to your leave. Have the circumstances and severance package reviewed before signing anything.

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

On This Page:

1. Can You Be Fired?
2. When Termination Can Be Legal
3. Disability Discrimination
4. Duty to Accommodate
5. Job Eliminated While on Leave
6. Short- & Long-Term Disability
7. Severance Rights
8. Fired After Returning
9. What to Do
10. Common Questions

Can You Be Fired While on Medical Leave?

Yes. Being on medical leave does not give you absolute protection from termination.

An employer can terminate an employee while they are off work if the decision is genuinely unrelated to the employee’s disability, illness or need for leave.

However, an employer can’t use medical leave as the reason for the termination or disguise a disability-related termination as a restructuring.

💡 The timing matters, but timing alone does not decide the case.
If you are fired during medical leave or shortly after returning, the employer may need to show that the decision was genuinely unrelated to your medical condition or leave.

When Can an Employer Legally Fire Someone on Medical Leave?

A termination during medical leave can be lawful where the decision is unrelated to the employee’s disability or leave.

Examples can include:

A genuine company-wide restructuring
A permanent closure of the workplace
Elimination of the employee’s role for legitimate business reasons
Serious misconduct unrelated to the medical condition

Even where the termination itself is lawful, the employer may still owe notice, severance and other compensation.

When Can Firing Someone on Medical Leave Be Discriminatory?

Disability is protected under human rights law.

An employer can create legal problems if an employee’s disability, medical restrictions or need for leave played a role in the decision to terminate them.

Warning signs can include:

The termination happens shortly after the employee requests medical leave
The employer complains about the employee’s absence or medical restrictions
The employer refuses to discuss accommodation
The employee is told they are being terminated because they can’t return by a fixed date
The employer gives inconsistent explanations for the termination
The employee’s position remains available or is quickly filled by someone else

Read more about disability discrimination at work.

Does Your Employer Have to Accommodate Medical Leave?

Employers have a duty to accommodate employees with disabilities to the point of undue hardship.

Accommodation can include:

Time away from work for medical treatment or recovery
A gradual return to work
Modified duties
Reduced or altered hours
Temporary workplace restrictions
Changes to how certain tasks are performed

An employer does not have to provide the exact accommodation an employee asks for, but it should meaningfully consider reasonable options.

Read our guide to the duty to accommodate.

What If Your Employer Says Your Job Was Eliminated While You Were on Leave?

An employer can eliminate a position while an employee is on medical leave, but the restructuring must be genuine.

The fact that you were away from work can’t be the reason your role was selected for elimination.

Questions to consider include:

Were other positions eliminated?
Does your job still exist under a different title?
Were your duties transferred to another employee?
Was someone hired to replace you?
Did the employer raise concerns about your leave before terminating you?

⚠️ “Restructuring” does not erase your severance rights.
Even if the position was genuinely eliminated, you may still be owed a substantial severance package.

What If You Are on Short-Term or Long-Term Disability?

Being on disability benefits does not automatically prevent an employer from ending your employment.

But termination can affect more than your job. It can also raise questions about:

Continued health and dental benefits
Short-term disability coverage
Long-term disability coverage
Life insurance
Pension or retirement benefits

If you are receiving or applying for long-term disability benefits, do not assume your claim ends simply because your employment ends.

Our disability lawyers can help if an insurer denies or cuts off long-term disability benefits.

Do You Get Severance If You Are Fired While on Medical Leave?

Yes, you can still be entitled to severance if your employment is terminated while you are on medical leave.

For employees entitled to common-law notice, severance can be as much as 24 months’ pay and depends on factors such as:

Age
Length of service
Position
Compensation
Availability of comparable employment
Employment contract

Being medically unable to work can also affect how a severance package should be assessed.

Read our guide to severance pay in Canada or use the Severance Pay Calculator.

⚠️ Your employer gave you a short deadline to sign?
An employer’s deadline to accept a severance offer is different from the legal deadline for pursuing your severance rights. Get advice promptly, but do not rush into signing a release.

What If You Are Fired Shortly After Returning From Medical Leave?

A termination shortly after returning from leave can raise questions about whether the medical absence played a role in the decision.

The closer the termination is to the leave, accommodation request or return to work, the more important it can be to examine the employer’s explanation and supporting evidence.

Keep copies of:

Medical leave requests
Doctor’s notes and restrictions
Accommodation discussions
Return-to-work plans
Performance reviews
Termination documents

What Should You Do If You Are Fired on Medical Leave?

Do not resign. Let the employer clearly state what it is doing.
Ask for the termination terms in writing.
Keep your medical and accommodation records.
Do not sign a release immediately.
Review your disability and benefits coverage.
Have your severance package reviewed.

The termination can involve both employment-law and disability-benefit issues, so it is important to look at the full picture.

Fired While on Medical Leave: FAQs

Can your employer fire you while you are on medical leave?

Yes, but not because of your disability or legitimate need for medical leave. The employer must be able to justify the termination on grounds unrelated to the protected medical issue.

Can your employer replace you while you are on medical leave?

An employer can arrange temporary coverage while you are away. Permanently replacing you because you took disability-related leave can raise human rights concerns.

Can you be laid off while on medical leave?

You can be affected by a genuine layoff or restructuring, but the employer can’t select you because of your medical condition or absence.

What if the employer says you can’t return until you are 100% better?

An employer should consider whether you can return with reasonable restrictions or accommodation rather than insisting on complete recovery in every case.

Can you be fired because your medical leave lasts too long?

An employer can’t simply choose an arbitrary deadline and terminate you because you have not recovered by that date. The accommodation process and medical evidence must be considered.

What if your doctor says you can return with restrictions?

The employer should consider reasonable accommodation based on your medical restrictions and the requirements of the job.

Can your employer ask for medical information?

An employer can request reasonable medical information needed to understand your restrictions, ability to work and accommodation needs. It does not automatically need your entire medical history or diagnosis.

Do you still get severance if you are unable to work?

You can. Medical leave does not automatically remove your termination or severance rights.

Should you sign a severance package while on medical leave?

Not before having it reviewed. A release can affect your ability to pursue additional severance and may also affect other rights connected to your employment.

What if you’re unionized?

Your collective agreement governs termination, leave and accommodation disputes. Contact your union about the termination and any grievance deadlines. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.