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Find a Lawyer » Canada Legal Guides » Ontario Legal Guides » Workers’ Compensation (WSIB) Ontario » WSIB Claims & Workplace Injuries Ontario » Can an Ontario Employer Terminate You While on an Active WSIB Claim?

Can an Ontario Employer Terminate You While on an Active WSIB Claim?

15 Jun 2026 5 min read No comments WSIB Claims & Workplace Injuries Ontario
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In Ontario, it is illegal for an employer to terminate you because you filed a WSIB claim (this is called reprisal). Furthermore, employers with 20 or more workers have a legal obligation to re-employ you. However, you can still be legally let go during a legitimate, company-wide layoff or for just cause entirely unrelated to your injury.

Sustaining an injury on the job brings immense physical pain and emotional stress, but the fear of losing your livelihood often tops the list of anxieties. Whether you are working construction in Ottawa, retail in Mississauga, or tech in Waterloo, many injured workers quietly wonder: “Can my boss fire me while I am on WSIB?” The short answer is yes, but the legal framework surrounding it is extremely strict and heavily favours the protection of the worker.

The Workplace Safety and Insurance Act (WSIA) works in tandem with the Ontario Human Rights Code to protect disabled workers. If your employer lets you go, they carry the burden of proving that your termination had absolutely nothing to do with your workplace injury. Navigating a wrongful dismissal while dealing with the Workplace Safety and Insurance Board is complicated. If you suspect foul play, finding a dedicated Ontario employment and WSIB lawyer in our directory is highly recommended. 👨‍⚕️

Understanding Your Legal Rights Under the WSIA

Before jumping to conclusions, it is important to distinguish between illegal reprisal and legitimate business decisions. The WSIB explicitly protects workers through a mechanism called the “re-employment obligation.” If you have worked for an employer for at least 12 continuous months and the company regularly employs 20 or more workers, they are legally required to offer you re-employment once you are medically cleared to return to the essential duties of your pre-injury job.

Step 1: Request the Reason for Termination in Writing

If you receive a termination notice, do not sign any severance packages or release forms immediately. Politely request that the employer provide the exact reasons for your dismissal in writing. Are they claiming “restructuring”? Are they alleging poor performance? Having their stated reason on paper is the foundational piece of evidence your lawyer will use to challenge the dismissal if it turns out to be discriminatory. 📄

Step 2: Report the Termination to Your WSIB Case Manager

Do not wait to inform the WSIB. Call your case manager immediately to report that you have been fired. Your WSIB benefits (Loss of Earnings) will not automatically stop just because you were terminated. In fact, if the WSIB determines your employer breached their re-employment obligation, your employer could face severe financial penalties. The WSIB will launch an investigation into the nature of the termination.

Step 3: Apply for Re-employment Penalty and Benefits

If the WSIB finds that your employer violated Section 41 of the WSIA (the re-employment obligation), the board can levy a penalty against the employer up to the maximum amount of a worker’s net average earnings for the year. Furthermore, the WSIB can reinstate your Loss of Earnings (LOE) benefits for up to one year, or until you find suitable new employment. 💰

Step 4: Consider a Human Rights Complaint or Civil Lawsuit

If your employer has fewer than 20 employees or you worked there for less than a year, the WSIA re-employment obligation might not apply to you. However, you are still fully protected under the Ontario Human Rights Code. An employer cannot fire you due to a disability (which includes workplace injuries). You may have grounds to file a human rights application or a civil claim for wrongful dismissal in the Superior Court of Justice.

Reprisal vs. Legitimate Termination in Ontario

To help you understand if your firing was legal, review the key differences between a WSIA violation and a lawful termination.

ScenarioIllegal Termination (Reprisal / Breach)Legitimate Termination (Lawful)
Reason for FiringFired for taking time off for WSIB appointments, or because modified duties are “inconvenient” to the boss.Fired because the entire department shut down, or a company-wide 20% staff reduction occurred.
TimingFired less than 6 months after returning to modified work (WSIB presumes this is a breach).Fired for documented theft or violence in the workplace (Just Cause).
Duty to AccommodateEmployer refuses to buy a simple ergonomic chair and fires the worker instead.Worker’s permanent restrictions cannot be accommodated without causing the business “undue hardship.”

How Much Does It Cost to Challenge a Wrongful Termination?

Filing complaints through provincial boards is generally free, but navigating civil court can involve costs.

  • WSIB Re-employment Dispute: $0 CAD. Raising this issue with your WSIB case manager has no filing fee.
  • Human Rights Tribunal of Ontario (HRTO): $0 CAD filing fee to submit an application.
  • Lawyer Fees: Most employment and WSIB lawyers in Ontario offer a free initial consultation. If they take your wrongful dismissal or human rights case, they generally work on a contingency basis, taking 25% to 33% of your final settlement.

Timelines You Must Keep in Mind

The law in Ontario strictly enforces limitation periods. Missing a deadline can destroy your case.

  • WSIB Notification: You must notify the WSIB of an employer’s breach of re-employment obligations within 6 months of the date of termination.
  • Human Rights Tribunal: You have strictly 1 year from the date of termination to file a claim with the HRTO.
  • Civil Wrongful Dismissal: The general statute of limitations to sue for wrongful dismissal in Ontario court is 2 years from the date you were fired.

Frequently Asked Questions (FAQ)

Do my WSIB payments stop immediately if I get fired?

No, not automatically. If you are still medically impaired and unable to work, your Loss of Earnings (LOE) benefits should continue while the WSIB investigates the termination. You must inform your case manager immediately.

Can I be fired while on probation if I get injured?

While probationary employees generally do not have WSIA re-employment rights (since you need 12 months of tenure), they are fully protected from discrimination under the Ontario Human Rights Code. Firing someone solely because they got hurt on probation is illegal.

What happens if my employer claims I was fired for poor performance, not my injury?

If the termination happens within 6 months of your injury or return to work, the WSIA applies a “presumption” that the firing was a breach of the re-employment obligation. The employer must provide overwhelming evidence (like documented, pre-injury performance warnings) to prove otherwise.

Should I sign the severance package my boss offered me?

Never sign a severance offer or a Full and Final Release right away. Once you sign, you usually sign away your right to pursue human rights claims or WSIB re-employment penalties. Always have an Ontario lawyer review it first.

How long does the WSIA re-employment obligation last?

For eligible workers, the obligation lasts until the earliest of: 2 years after the date of injury, 1 year after you are medically cleared to do the essential duties of your pre-injury job, or the date you reach age 65.

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