Parental leave is a core workplace protection under Ontario’s Employment Standards Act, 2000 (the “ESA”). It allows employees to step away from work to care for a new child while preserving their employment and the right to return.
A common question arises during parental leave: can you work for another employer without losing your job?
The short answer is yes. but not without legal risk. While parental leave is job-protected, working elsewhere during the leave can jeopardize reinstatement rights if it signals an intention not to return or breaches contractual obligations.
Is Parental Leave Job-Protected or Job-Exclusive?
Under the ESA, parental leave is a job-protected leave of absence. While an employee is on parental leave:
- The employment relationship continues
- Seniority and service continue to accrue
- The employer must reinstate the employee to the same or a comparable position at the end of the leave
The ESA does not expressly prohibit an employee from working elsewhere during parental leave, nor does it state that taking another job automatically ends the leave.
Just Because It’s Allowed Doesn’t Mean It’s Risk-Free
The absence of an explicit ESA prohibition does not mean there are no legal consequences. The real risk lies in how the employee’s conduct is interpreted.
The Key Legal Issue: Intention to Return to Work
Employers expect employees on parental leave to return to their positions once the leave ends.
However, if an employee’s conduct demonstrates that they no longer intend to return, the employer may argue that the employee has repudiated the employment relationship or effectively resigned.
When Working Elsewhere May Be Treated as a Resignation
An employer may take the position that parental leave has ended if an employee:
- accepts a permanent, full-time role with another employer
- communicates that they are “moving on” or will not be returning
- takes steps inconsistent with an intention to resume their original employment
The potential of a deemed resignation is a risk employees should understand before accepting new work. If the employee has cold feet about the new role but the employer has deemed the employee to have resigned, the employee will be unable to return to the original role.
Employment Contracts and Workplace Policies Still Matter
Employees on parental leave remain bound by their employment agreements and workplace policies, including:
- conflict-of-interest provisions
- non-solicitation clauses
- confidentiality obligations
If an employee accepts work with a competitor or engages in activities that undermine their employer’s business interests, the employer may have grounds for discipline or termination, even while the employee is on leave.
This risk exists regardless of whether the employee believes the new work is temporary or informal.
Parental Leave and EI Benefits Are Separate Legal Regimes
It is also important to distinguish between ESA parental leave and Employment Insurance (EI) parental benefits, which are governed by different legislation.
An employee may remain on parental leave under Ontario law while working elsewhere, but their earnings may:
- reduce EI parental benefits
- eliminate EI parental benefits
- trigger repayment obligations or penalties if not properly reported
Working during parental leave does not affect ESA rights directly, but it can have significant financial consequences under federal EI rules.
Does Starting Another Job Automatically End Parental Leave?
No. Starting another job while on parental leave does not automatically end the leave under the ESA, terminate the original employment, or remove the right to reinstatement.
Those outcomes only arise if the employee:
- resigns (expressly or implicitly)
- breaches contractual obligations
- clearly abandons the intention to return
Practical Guidance for Employees on Parental Leave
Employees considering other work during parental leave should proceed carefully. Best practices include:
- Reviewing the employment contract and workplace policies
- Avoiding work for competitors or clients of the original employer
- Being cautious about accepting permanent roles that replace the original job
- Avoiding communications that could be interpreted as a resignation
Key Takeaways – Working While on Parental Leave in Ontario
- Parental leave is job-protected, not job-exclusive
- Working elsewhere is not automatically prohibited under the ESA
- The main risk is being deemed to have resigned
- Employment contracts and policies still apply
- EI parental benefits may be reduced or lost if earnings are not reported
Frequently Asked Questions About Working During Parental Leave
Can I work another job while on parental leave in Ontario?
Yes, the ESA does not prohibit it, but doing so may create legal and financial risks.
Does starting a new job end parental leave automatically?
No. Parental leave only ends if the employee resigns, abandons the role, or breaches contractual obligations.
Can my employer say I resigned while on parental leave?
Possibly, if your actions demonstrate that you no longer intend to return to your position.
Do employment contracts still apply during parental leave?
Yes. Employees remain bound by confidentiality, conflict-of-interest, and other contractual obligations.
Will working elsewhere affect my EI parental benefits?
Yes. Earnings may reduce or eliminate EI benefits and must be reported to avoid repayment penalties.
Conclusion
In Ontario, parental leave does not automatically end simply because an employee starts another job. However, working elsewhere during leave can jeopardize reinstatement rights if it demonstrates an intention not to return or breaches contractual obligations.
As a result, employees should approach these situations with caution. If you are considering leaving your current position for a new one while on parental leave, please feel free to contact a member of the Whitten and Lublin team to discuss further. Whitten & Lublin’s employment lawyers regularly advise employees on parental leave rights, deemed resignations, and ESA compliance. Contact us online or call 416 640 2667.
Author – Jordan Cantor
