Being fired while on WSIB in Ontario does not automatically end your benefits. If you are terminated without just cause while performing modified duties, your Loss of Earnings (LOE) benefits are generally restored to the full 85% of your pre-injury net pay. Additionally, your employer may face severe financial penalties for breaching their legal re-employment obligations.
Suffering a workplace injury is stressful enough, but losing your job while you are still recovering can feel like an absolute catastrophe. Many injured workers across Ontario—from construction sites in Toronto to manufacturing plants in Windsor—live in constant fear that their employer will simply fire them to avoid dealing with a Workplace Safety and Insurance Board (WSIB) claim. Some employers attempt to use “company restructuring” or sudden “performance issues” as an excuse to terminate a worker who has physical restrictions.
Fortunately, the Ontario Workplace Safety and Insurance Act (WSIA) provides robust protections for injured workers. You are not left at the mercy of an employer who wants to discard you after an accident. The WSIB system is designed to assess the true reason for your termination and ensure your financial lifeline is not unfairly cut. In this comprehensive guide, we will explore your employer’s legal obligation to re-employ you, how a termination impacts your Loss of Earnings (LOE) benefits, and the steps you must take to protect your rights.
Understanding the Obligation to Re-employ
In Ontario, you cannot legally be fired simply because you filed a WSIB claim or because you need physical accommodations. Beyond basic human rights protections, the WSIA establishes a strict “Obligation to Re-employ.” Not every employer is bound by this specific rule, but it covers a vast majority of the provincial workforce. 🔍
For this specific WSIB obligation to apply, three conditions must generally be met: your employer must regularly employ 20 or more workers, you must have been employed continuously for at least one year before the date of your injury, and you must be medically able to perform either your pre-injury job or suitable modified work. If these conditions are met, your employer is legally required to offer you re-employment. This obligation typically lasts for two years from the date of your accident, one year after you are declared medically fit to return to your regular job, or until you reach age 65 (whichever comes first).
What Happens to Your LOE Benefits?
If you are terminated while holding an active WSIB claim, the Adjudicator assigned to your file will launch an immediate investigation to determine the exact cause of your dismissal. The outcome of this investigation directly dictates what happens to your monthly LOE cheques. 💰
Fired Without Just Cause (The WSIB Steps In)
If the WSIB determines that your employer fired you because of your injury, because they did not want to accommodate your restrictions, or under the guise of a suspicious “shortage of work,” the WSIB will protect you. Because your wage loss is now deemed to be a direct result of the workplace injury and the employer’s failure to accommodate, your LOE benefits will generally be restored to the full 85% of your pre-injury net average earnings. The WSIB may also levy a massive financial penalty against the employer for breaching their re-employment obligations, sometimes equal to a full year of your wages.
Fired With Just Cause (Misconduct)
If an employer proves that they fired you for severe, documented misconduct that is entirely unrelated to your injury, your WSIB benefits could be at risk. For example, if you are caught stealing from the company, violently assaulting a co-worker, or consistently failing to show up for your modified shifts without a valid medical reason, the employer has “just cause” to fire you. In these specific cases, the WSIB may rule that your current loss of income is due to your own behaviour, not your physical injury, and your LOE benefits may be reduced or completely cut off.
Step-by-Step Process If You Are Terminated in Ontario
If your boss hands you a termination letter while you are recovering from a WSIB injury, you must act swiftly and strategically. Here is the process you should follow. 📝
Step 1: Notify the WSIB Immediately
Do not wait for your employer to report your termination. Call your WSIB Adjudicator or send a secure message through the WSIB online portal on the exact day you are fired. Explain that you were participating in modified duties (or were completely off work) and have suddenly been terminated. The WSIB will immediately freeze any potential benefit reductions while they investigate.
Step 2: Do Not Sign a Severance Package Right Away
Employers will often offer you a severance package and demand that you sign a “Full and Final Release” within a few days. Do not sign it. Signing this document might accidentally waive your right to pursue a wrongful dismissal or human rights claim. You generally have ample time to review a severance offer with an Ontario employment law firm, who can advise you on how the severance pay will interact with your WSIB benefits.
Step 3: Participate in Work Transition (WT)
If the WSIB confirms you were fired without cause, and your employer refuses to take you back, the WSIB will not leave you stranded. They will typically offer you a Work Transition (WT) assessment. This programme is designed to retrain you for a completely new career that accommodates your permanent medical restrictions. Your full LOE benefits will continue while you actively participate in this retraining programme.
How Much Does a Lawyer Cost to Fight a Termination?
Dealing with a termination while injured often requires legal help. Because a termination crosses both WSIB law and employment law, many workers hire a specialized firm. Most Ontario lawyers handle these matters on a contingency fee basis. Here are the typical financial figures in Canadian dollars (CAD).
| Service / Benefit Type | Estimated Cost / Value (CAD) |
|---|---|
| Lawyer Contingency Fee (WSIB Appeal) | 15% to 30% of retroactive LOE backpay won. |
| Lawyer Contingency Fee (Wrongful Dismissal) | 25% to 33.3% of your civil severance settlement. |
| Restored LOE Benefits | 85% of your net pre-injury wages. |
| Employer WSIB Penalty for Breaching Obligation | Up to $10,000 to $50,000+ (Paid to WSIB, not the worker). |
How Long Does the Process Take?
The WSIB takes allegations of illegal terminations very seriously. Once you report the firing, the Adjudicator will generally conduct interviews with you and your employer within 14 to 30 days to make an initial ruling on the re-employment obligation. If the WSIB wrongly cuts off your benefits and you must file an appeal to the Appeals Services Division or the Workplace Safety and Insurance Appeals Tribunal (WSIAT), the formal appeal process can take anywhere from 6 to 24 months to fully resolve.
Frequently Asked Questions (FAQ)
Can I collect EI and WSIB at the same time after being fired?
No, you generally cannot “double dip.” If you are receiving full Loss of Earnings (LOE) benefits from the WSIB, you are not eligible to receive regular Employment Insurance (EI) benefits for the same period. If WSIB cuts you off while you appeal, you can apply for EI sickness benefits, but you must repay EI if you later win your WSIB appeal.
What happens to my physical therapy if I am fired?
Your WSIB healthcare benefits are completely independent of your employment status. Even if you are legally terminated with just cause, the WSIB will continue to pay for your approved physiotherapy, medications, and surgeries related to the workplace injury.
Can I sue my employer for wrongful dismissal?
Yes. Even though you cannot sue your employer for the physical injury itself (due to the WSIA’s historic compromise), you absolutely maintain the right to sue them in civil court for wrongful dismissal or human rights violations if they fire you illegally.
What if my company goes completely bankrupt?
If your employer permanently closes their doors or declares bankruptcy, the obligation to re-employ naturally ends. However, the WSIB will recognize that you cannot return to work through no fault of your own, and they will generally continue paying your LOE benefits and offer you Work Transition retraining.
Does my boss have to pay severance if I am on WSIB?
Yes. If you are terminated without cause (for example, during a mass layoff), you are still legally entitled to your minimum notice and severance pay under the Ontario Employment Standards Act. This severance may be offset against your WSIB benefits, so consulting a law firm is highly recommended.
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