Being terminated while on sick leave is one of the most stressful situations an Ontario employee can face. You are already dealing with a health crisis — and now your employer has ended your employment. It may also be illegal.

Disability is a protected ground under the Human Rights Code

The Ontario Human Rights Code prohibits discrimination in employment on the basis of disability — a term that includes physical illness, mental health conditions, and chronic conditions that affect your ability to work. This protection applies throughout your employment, including during sick leave.

An employer who terminates an employee while they are on medical leave faces a serious evidentiary problem: the timing creates a strong inference that the termination was connected to the disability. Courts and the Human Rights Tribunal of Ontario examine these situations carefully.

The duty to accommodate

Before terminating an employee with a disability, an employer must first meet its duty to accommodate — that is, take reasonable steps to allow the employee to remain employed, up to the point of "undue hardship." Undue hardship is a high threshold. Inconvenience, modest cost, and ordinary operational disruption do not meet it.

Common accommodations include modified duties, graduated return-to-work plans, adjusted hours, and temporary leaves of absence. If your employer terminated you without seriously exploring these options, that failure may itself be a Code violation.

Frustration of contract: a widely misused doctrine

Some employers claim the employment contract has been "frustrated" by prolonged illness — arguing that because you cannot currently perform the job, the employment relationship has legally ended and no severance is owed.

Ontario courts have made clear that this doctrine has a very high threshold. Frustration requires permanent incapacity with no reasonable prospect of return — not simply an extended leave. A physician's note saying a patient cannot currently perform their duties is not sufficient. Employers who misuse frustration arguments face wrongful dismissal claims and human rights liability.

What happens to your STD and LTD entitlements

If you were receiving short-term disability benefits or had a pending long-term disability claim when you were terminated, your entitlements under the policy may not automatically end. A termination does not extinguish a disability claim with an insurer. This is a complex area that requires advice specific to your policy and circumstances. You may have an additional disability dispute with your employer. Make sure to contact King Law regarding a disability dispute.

Human rights damages: an additional remedy

If a court or the HRTO finds that your termination was connected to your disability, you may be entitled to damages for injury to dignity, feelings, and self-respect under the Human Rights Code — in addition to the wrongful dismissal notice period. These are separate remedies that can significantly increase the value of a claim.

King Law · Employment Lawyers · Oshawa, Ontario 📧 steven@kinglaw.ca | 🌐 kinglaw.ca

This post provides general legal information for Ontario employees. It is not legal advice. Contact us directly for advice specific to your situation.