Yes, you can be terminated while on short-term disability. The leave itself does not prevent your employer from ending your employment. What matters is why they did it. If the reason has nothing to do with your disability or your leave, it may be lawful. If your disability played a role, Ontario law treats that very differently.
Being let go while you are already dealing with a health issue is a lot to absorb. You are managing your medical situation, and now you are also managing job loss and questions about your income and what comes next. That is a hard combination.
The question worth focusing on is whether the termination coincided with your leave or whether it was driven by it. That distinction shapes whether you have a wrongful dismissal claim, a human rights complaint, or both.
What Protections Do You Have While on Short-Term Disability?
Disability is a protected ground under the Ontario Human Rights Code. That means your employer cannot treat you adversely because of a medical condition, because you are using disability benefits, or because you are off work for health reasons. If a termination is connected to any of those things, it may constitute discrimination under Ontario law.
Your employer also has what is called a duty to accommodate. This means they are required to adjust your work, your schedule, or your role to allow you to keep working despite your disability, as long as doing so does not cause undue hardship. Undue hardship is a high bar. Cost, outside funding sources, and health and safety are the main considerations. Your employer does not have to keep you in any specific role, but they do have to genuinely explore what is possible before walking away from that conversation.
The accommodation process is meant to be a conversation, not a one-sided decision. Your employer should be asking about your restrictions, considering medical information where appropriate, and working with you to find a path forward. That might involve a gradual return to work, modified duties, or temporary adjustments while you recover. What matters is that the process is real. If that conversation never happens, that absence can become part of the legal analysis.
Short-term disability leave is not a standalone protected leave under the Employment Standards Act the way some other leaves are. But the human rights protections for disability apply regardless of what the leave is called. If your benefits come through a private plan, those are separate from your employment rights. Losing your job does not automatically end your entitlement to claim them. The human rights protections that apply to your situation exist independently of any benefit plan.
If you work in a federally regulated industry such as banking, telecommunications, or interprovincial transportation, the Canada Labour Code applies to you and provides stronger reinstatement rights. If you are unsure which framework covers you, an employment lawyer can help you sort that out.
When Is Termination During Medical Leave Considered Discrimination?
Under the Ontario Human Rights Code, your disability does not have to be the only reason your employer let you go. If it was a factor in the decision, even alongside other reasons, that is enough to raise a discrimination issue. Timing matters. If you were terminated shortly after disclosing your diagnosis or going on leave, that sequence is something the Human Rights Tribunal of Ontario takes seriously.
Not every termination during leave is discriminatory. A genuine restructuring that would have happened regardless of your leave can support a lawful dismissal. The same is true for legitimate performance or conduct issues that have nothing to do with your health. The key word here is genuine. Employers sometimes frame a termination as restructuring or a performance issue when the real reason is something else. That kind of pattern is not difficult to spot.
Some patterns are worth paying attention to. Being terminated very shortly after disclosing your condition is one. Being the only person affected by a so-called restructuring is another. So is being replaced quickly after leaving, or receiving a sudden negative performance review after your condition became known when there were no concerns before. None of these is conclusive on its own, but together they tell a story. If you are not sure whether what happened to you qualifies as unjust dismissal, that is exactly the kind of thing a consultation is for.
Your employer’s failure to accommodate is also worth examining on its own. If they never asked about your restrictions, never discussed modified duties, and never had a real conversation about your return, that matters legally. Ending your employment without going through the accommodation process is a strong sign they did not meet their obligations under the Code.
What Should You Do If You Are Terminated While on Short-Term Disability?
Start by preserving your records. Keep any written communication from your employer about the termination, your leave, your medical restrictions, and any return-to-work discussions. Emails, letters, and notes from conversations all matter.
Do not sign anything yet. Employers often present a severance package at termination and ask you to sign a release in exchange. Once you sign, you are generally giving up your right to make further claims. A release signed without legal advice can close the door on rights you did not know you had, including a human rights claim that may be worth considerably more than what was offered. You typically have time to consider it. Use that time.
Have a lawyer look at the package before you respond. A severance package review will tell you whether the offer reflects what you are actually owed under common law and the Employment Standards Act, and whether it accounts for the circumstances of your termination. Severance under common law factors in your length of service, your age, your role, and your prospects for finding comparable work. Employers frequently offer less than what employees are owed, and that gap tends to be larger when you were terminated on medical leave.
You may have both a wrongful dismissal claim and a human rights complaint. They can run in parallel. The wrongful dismissal claim deals with the notice and severance you are owed. The human rights complaint can result in compensation for injury to dignity, feelings, and self-respect, lost wages, and in some cases reinstatement. Knowing what to do after a wrongful dismissal will help you move through this in the right order.
Medical Disclaimer: This blog post is intended for general informational purposes only and does not constitute legal or medical advice. Sultan Lawyers are employment lawyers, not medical professionals. Nothing in this post should be taken as a diagnosis or assessment of any medical or mental health condition. If you are experiencing symptoms of anxiety, depression, or any other health concern, please consult a qualified healthcare provider.
Legal Disclaimer: This post is general information only. Nothing in it constitutes legal advice, and nothing here applies to your specific situation. Every case turns on its own facts, and the only way we can advise you on yours is through a proper consultation and engagement. Reading this post does not create a lawyer-client relationship with Sultan Lawyers. If you have questions about your situation, contact us directly.
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