An Employee’s Rights While on Short-Term Disability

An employer may offer short-term disability coverage, in which case an employee’s earnings should be supplemented in the event they are unable to work for a short-term period. When returning from a short term leave, an employee should expect to come back to their previous job or one that is comparable. Approved medical leaves are protected by legislation in Ontario and  it is rare that an employer will be justified in ending employment.  Two principles come into play if a prolonged medical leave or your overall medical condition substantially interferes with your ability to do your job, ‘frustration’ and the employer’s duty to accommodate. 

‘Frustration’ & the Duty to Accommodate

An employer will be able to justify ending employment if they demonstrate that employment has become ‘frustrated’. This essentially means you are unable to perform your job duties due to impossibility. The basis for your employment being frustrated could stem from a medical disability. Frustration does not often occur overnight and could take time to develop.  

How does the interplay between a medical leave and frustration work? If an employee takes what is supposed to be a temporary medical leave, but turns into a prolonged medical leave, the concept of your employment becoming frustrated may come up depending on your diagnoses and anticipated recovery. 

What if an employee wants to return from medical leave but cannot perform the full duties of their previous job? Under the law, your employer has an obligation to reasonably accommodate an employee. The obligation ends if the accommodations take the employer to a point of undue hardship.
Accommodation is a likely requirement with short-term disability cases, as Human Rights legislation defines illness/disability in broad terms. An employer would have to offer a reasonable accommodation, if possible, in order to assist an employee to return to work in a way that allows the employee to perform the fundamental duties of his/her job. Job modification would, at a minimum, have to be assessed as a possibility.

Privacy Rights & Return-to-Work Expectations

Overall, an employee can expect to return to his/her job upon their return from short-term disability leave. In the event a disability hinders return to work, an employee is entitled to reasonable accommodation. If an employer seeks information from an employee’s medical practitioner/physician for accommodation purposes, the employee is entitled to privacy. An employer may only request information relevant to accommodation purposes. This often does not include the cause of disability, the illness, types of treatment or any diagnosis. Prognosis, a timeline for a return, and limitations while performing job duties is the most common information employers would seek.

Can You Leave Canada If You Are on Short-Term Disability?

Leaving Canada while receiving short-term disability benefits may be possible, but it depends on your insurance policy and the terms of your coverage. Most short-term disability insurance policies include a clause requiring ongoing availability for medical assessments and treatment, which can be complicated if you’re out of the country.

Before making travel plans, review your insurance policy and consult your case manager or plan administrator. Leaving without proper authorization can lead to a suspension of your disability benefits or a claim denial. If you’re unsure of the terms or your insurance provider is withholding information, speaking with a disability lawyer can help you protect your benefits while maintaining compliance.

Can You Collect EI While on Short-Term Disability?

In most cases, employees do not collect Employment Insurance (EI) sickness benefits while receiving short-term disability coverage through a private insurance provider. These are separate programs, and collecting both may be considered double compensation unless clearly coordinated.

EI sickness benefits are available to eligible workers who don’t have access to private short-term disability plans. If your employer does not offer group disability coverage, or if your claim is denied, you may apply for EI sickness benefits through Service Canada to receive income replacement for up to 26 weeks.

If your private disability claim is delayed or denied, and you’re facing a gap in financial benefits, a disability lawyer can advise on whether you qualify for EI or other support programs like the Canada Pension Plan (CPP) disability benefits.

Can You Terminate an Employee on Short-Term Disability in Ontario?

Yes, but only under very limited circumstances. In Ontario, employers must comply with human rights legislation and employment law when considering termination during a short-term disability leave. You cannot be terminated simply for being on disability leave.

To legally end employment during this period, an employer must prove that the employment contract has been frustrated or that reasonable accommodation is no longer possible without causing undue hardship. This is a high bar to meet, especially during a protected medical leave. Employers are expected to explore job modifications and other solutions before considering termination.

If you’ve been dismissed while on short-term disability, consult an employment lawyer immediately. 

How Long Can You Be on Short-Term Disability in Canada?

Short-term disability coverage typically lasts anywhere from a few weeks up to six months, depending on the insurance policy. Most plans define the benefit period clearly in the benefits booklet or employee handbook.

During this time, the insurance company may require ongoing medical evidence to confirm you are still “totally disabled” from performing your own occupation. If you remain unable to work after the short-term disability period ends, you may need to transition to long-term disability benefits—provided you meet the eligibility requirements.

It’s important to start reviewing your options early, especially if your condition is not improving. Transitioning from short-term to long-term disability coverage often requires a new application, updated physician statements, and adherence to waiting period rules outlined in your insurance policy.

Know Your Rights—Protect Your Benefits

Whether you’re unsure about your employer’s obligations or your insurance coverage, knowing your rights is the first step to protecting them. At Whitten & Lublin, we’re here to help you understand where you stand and what you can do next.

If you’re facing issues with a short-term disability claim, termination, or accommodation, don’t wait. Take control of your outcome. Call 416-640-2667 or contact us online to book a consultation.