Taking a leave from work is often necessary for health, family, or personal reasons, but confusion about pay during leave is common. In Ontario, most statutory leaves under the Employment Standards Act (ESA) are unpaid, but employees may qualify for federal income support through Employment Insurance (EI). This blog clarifies which leaves are paid or unpaid, how EI benefits work, and exceptions where employers might provide top-up pay.

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1. The General Rule: Most ESA Leaves Are Unpaid

Under Ontario law, employers are not required to pay employees during job-protected leaves (e.g., sick, parental, or family caregiver leave). However, your job is guaranteed upon return, and employers must continue benefits if you pay your share.

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2. Leaves Under the ESA: Paid or Unpaid?

Under Ontario's Employment Standards Act, most statutory leaves are unpaid. This means that while your job is protected during the leave, your employer is not legally required to pay you your regular wages. Specific leaves and their general pay status are as follows:

• Sick Leave (3 days per year) is unpaid.
• Maternity Leave (17 weeks) is unpaid.
• Parental Leave (up to 77 weeks) is unpaid.
• Family Caregiver Leave (8 weeks) is unpaid.
• Critical Illness Leave for a child is unpaid.
• Compassionate Care Leave (28 weeks) is unpaid.
• Bereavement Leave (2 days) is unpaid.
• Domestic/Sexual Violence Leave (10 days per year) is unpaid.

While these leaves are generally unpaid by the employer under the ESA, some of them do qualify for federal Employment Insurance (EI) benefits, which can provide some income replacement during the leave. EI benefits have specific eligibility requirements and payment amounts.

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3. Federal Employment Insurance (EI): Your Source of Income

While ESA leaves are unpaid, EI provides partial income replacement for eligible employees:

• EI Sickness Benefits: 15 weeks at 55% of earnings (max $668/week in 2024).
• EI Maternity/Parental Benefits: 55% (standard) or 33% (extended) of earnings.
• EI Caregiving Benefits: 15–35 weeks for family care.
• EI Compassionate Care Benefits: 26 weeks for end-of-life care.

Eligibility: You need 600 insured hours in the last 52 weeks.

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4. When Might Employers Pay During Leave?

Some employers offer top-up pay (supplemental income) as a benefit, often through:

• Collective Agreements: Unionized workplaces often negotiate top-ups.
• Employment Contracts: Senior roles or corporate policies may include paid leave.
• Short-Term Disability (STD) Plans: Employers may cover a portion of wages for medical leaves.

Example: A teacher on maternity leave might receive 55% of wages from EI plus a 30% top-up from their school board.

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5. Exceptions: Leaves That Can Be Paid

• Vacation Time: Employers must pay accrued vacation pay during any leave.
• Contractual Obligations: Employers must honor any paid leave terms in your contract.

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6. Employer Responsibilities During Unpaid Leave

• Job Protection: Guarantee your position (or equivalent) upon return.
• Benefits Continuation: Maintain health/dental benefits if you pay your premiums.
• No Penalties: Prohibited from disciplining or demoting you for taking leave.

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7. Key Steps to Secure Income During Leave

1. Apply for EI Early: File your claim within 4 weeks of your leave start date.
2. Review Employer Policies: Check for top-up pay or STD coverage.
3. Use Accrued Paid Time Off: Some employers allow using vacation days to cover unpaid leave.

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8. Common Misconceptions

• “My employer must pay me for sick days”: Only true if your contract or policy guarantees it. ESA mandates 3 unpaid days.
• “EI replaces 100% of my income”: No—EI covers up to 55% of earnings, capped at $668/week (2024).
• “All leaves are unpaid”: While ESA leaves are unpaid, employers may offer discretionary pay.

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9. What If Your Employer Refuses to Reinstate You?

If you’re penalized for taking leave:

1. File a Complaint: Contact the Ontario Ministry of Labour within 2 years.
2. EI Appeals: Dispute denied benefits through the Social Security Tribunal.

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10. Planning Financially for Leave

• Calculate your EI income and savings needs.
• Negotiate a top-up with your employer (if possible).
• Explore provincial supports (e.g., Ontario Works for low-income households).

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Conclusion

In Ontario, most statutory leaves are unpaid, but EI benefits and employer top-ups can help bridge the gap. By understanding your rights under the ESA, coordinating with EI, and reviewing workplace policies, you can minimize financial stress during leave. Always document agreements and seek legal advice if your employer violates your rights.

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Free Consultation with London Employment Lawyers

Ontario’s laws provide critical protections for employees during mass layoffs, ensuring they receive fair notice, severance pay, and support. If you’re affected by a group termination, understanding your rights and seeking professional advice can help you navigate this challenging time and secure the compensation you deserve. Please do not hesitate to contact our experienced Ottawa employment lawyers for a free legal consultation. Randy Ai Law Office can be contacted at (548) 489-2006 or fill out the contact form.