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Find a Lawyer » Canada Legal Guides » Ontario Legal Guides » Workers’ Compensation (WSIB) Ontario » Can an Employer Be Sued for Constructive Dismissal While Offering WSIB Light Duties in Ontario?

Can an Employer Be Sued for Constructive Dismissal While Offering WSIB Light Duties in Ontario?

29 Jun 2026 5 min read No comments Workers’ Compensation (WSIB) Ontario
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Yes. While Ontario employers have a legal duty to offer modified light duties to injured workers, drastically changing an employee’s pay, shifts, or work location to accommodate those duties can trigger a civil lawsuit for constructive dismissal. Balancing WSIB rules and general employment law is crucial.

When an employee in Ontario is injured on the job, the Workplace Safety and Insurance Board (WSIB) requires the employer to cooperate in their early and safe return to work. Often, this means providing “light duties” or modified work that fits the worker’s medical restrictions. However, a dangerous legal trap exists for employers who aggressively alter a worker’s job in the name of accommodation.

Imagine a scenario in Mississauga where a daytime warehouse manager injures their back. The employer offers them modified duties, but reassigns them to a midnight shift as a security guard at a different facility, slashing their hourly rate. 📝 While the employer might think they are satisfying WSIB return-to-work obligations, they may have just fundamentally breached the employment contract. In Ontario, drastically altering the core terms of employment without consent can lead to a lawsuit for constructive dismissal. This guide explores how to safely navigate the delicate intersection of WSIB compliance and employment law.

Step-by-Step Process for Offering Light Duties Safely in Ontario

To avoid costly civil litigation while still fulfilling your WSIB obligations, you must structure your return-to-work offers carefully. Most employers in this province find that following a formal, transparent process protects both the business and the worker.

Step 1: Obtain a Functional Abilities Form (FAF)

Before offering any modified work, you need objective medical evidence of what the worker can and cannot do. Provide the injured employee with a WSIB Functional Abilities Form (FAF) to be completed by their treating physician. The doctor will outline specific restrictions, such as “no lifting over 10 lbs” or “must sit for 15 minutes every hour.” You cannot create a safe light-duty plan without this medical baseline.

Step 2: Identify Suitable and Available Work

Once you have the medical restrictions, look at the worker’s pre-injury job. Can the core duties be modified slightly to accommodate them? If not, you must look for alternative suitable work. 🔍 The goal is to find tasks that are productive and safe. Asking a senior accountant to sweep the factory floor as “light duty” is generally considered demeaning and could be viewed by a court as a bad-faith attempt to push the employee to quit.

Step 3: Compare to the Original Employment Contract

This is where constructive dismissal risks peak. Review the proposed modified duties against their original contract. Are you drastically changing their hours of work (e.g., moving them from days to nights)? Are you significantly reducing their pay? Are you transferring them to a location 50 kilometres away? If the light duties fundamentally alter the essential terms of their employment, the worker may have grounds to claim they were constructively dismissed.

Step 4: Present the Offer and Document Consent

Draft a formal, written Return to Work (RTW) plan. Outline the exact duties, hours, and pay rate. If the light-duty job pays less than their pre-injury job, the WSIB will typically pay a partial Loss of Earnings benefit to top them up. Present this plan to the worker for their signature. Having a documented dialogue shows the WSIB that you are cooperating, and it protects you legally if the worker later claims you forced unreasonable changes upon them.

How Much Does a Constructive Dismissal Claim Cost?

Failing to balance WSIB duties with employment law can be incredibly expensive for Ontario businesses. If an employee successfully sues for constructive dismissal, the financial fallout is significant:

  • Severance Pay: Under Ontario common law, long-tenured employees can be awarded up to 24 months of full pay if constructively dismissed.
  • Legal Fees: Hiring an employment lawyer to defend your company will typically cost between $300 and $600 CAD per hour. A full trial can easily exceed $50,000 CAD in legal costs.
  • Human Rights Damages: If the worker proves you failed to accommodate their disability properly, the Human Rights Tribunal of Ontario (HRTO) can order additional damages for injury to dignity, often ranging from $10,000 to $35,000 CAD.

How Long Does the Legal Process Take?

In Ontario, a worker generally has two years from the date they were fundamentally demoted or forced into unreasonable shifts to file a civil lawsuit for constructive dismissal. If a lawsuit is initiated, it can take 1.5 to 3 years to resolve through the standard Ontario Superior Court of Justice system. Conversely, resolving WSIB disputes regarding whether the offered work is “suitable” usually takes 3 to 6 months through the WSIB’s internal mediation services.

Suitable Light Duties vs. Constructive Dismissal Risks

Understanding the difference between a reasonable WSIB accommodation and a risky contract change is vital. Review the comparison below.

Proposed Light Duty ScenarioWSIB ComplianceConstructive Dismissal Risk
Same job, but with a provided ergonomic chair and no heavy liftingExcellent. Accommodates the FAF.Very Low. Core contract remains intact.
Temporary transfer to an office role at the same pay and same hoursGood. Keeps worker engaged and safe.Low. It is a temporary, comparable accommodation.
Permanently moving a daytime manager to an overnight security shiftQuestionable. Might meet physical restrictions.Very High. Fundamental change in hours and status.
Creating demeaning “make-work” tasks (e.g., counting paperclips)Poor. WSIB requires productive work.High. Can be viewed as a toxic work environment.

Frequently Asked Questions (FAQ)

What happens if the worker refuses my light-duty offer?

If the worker refuses the offer, you must notify the WSIB immediately. The WSIB will investigate to determine if your offer was medically safe and suitable. If the board deems the work suitable, the worker risks having their WSIB benefits cut off for non-cooperation. Do not automatically fire them; wait for the WSIB ruling.

Can I pay them minimum wage for light duties?

Technically, yes, if the new temporary role usually pays minimum wage. However, significantly slashing their pay without their consent increases the risk of a constructive dismissal claim. Fortunately, if you lower their wage, the WSIB generally pays the worker the difference (up to 85% of their net pre-injury earnings), which softens the financial impact.

Is it better to just send them home until they are 100% healed?

No. Under the WSIA, employers have a legal obligation to accommodate injured workers and offer early and safe return to work. Sending them home without exploring accommodation options can lead to hefty WSIB re-employment penalties and human rights complaints.

Can a worker sue for constructive dismissal and claim WSIB?

It is legally complex, but yes. A worker cannot sue their employer for the workplace injury itself (WSIB is a no-fault system). However, if the employer uses the injury as an excuse to fundamentally breach the employment contract through malicious demotions or toxic behavior, the worker may pursue a civil claim for constructive dismissal separate from the physical injury claim.

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