New Long-Term Illness Leave

May 14, 2025 | Business Insurance, Canada, Employee Benefits, Lawrie Insurance Group, Life Insurance

New Long-Term Illness Leave

Ontario has introduced a new unpaid, job-protected leave under the Employment Standards Act (ESA) for employees dealing with long-term illnesses. 

This change, enacted through the Working for Workers Six Act (Bill 229), received Royal Assent in Dec 2024 and is set to come into force in June 2025.​

Key Features of the New Long-Term Illness Leave 

  • Duration: Employees are entitled to up to 27 weeks of unpaid, job-protected leave if they are unable to perform their duties due to a serious medical condition.
  • Eligibility: To qualify, an employee must have been employed for at least 13 consecutive weeks with their employer.
  • Medical Certification: A medical certificate from a qualified health practitioner is required, stating that the employee is unable to work due to a serious medical condition.
  • Flexibility: The 27 weeks of leave do not need to be taken consecutively. For instance, an employee could take 10 weeks off, return to work, and then take the remaining 17 weeks later. However, any part of a week taken as leave may be counted as a full week by the employer.
  • Job Protection: Employers are required to reinstate employees to their previous position or a comparable one upon their return from leave.​
  • Alignment with EI Benefits: This leave aligns with the federal Employment Insurance (EI) sickness benefits, which provide up to 26 weeks of financial assistance, plus a one-week waiting period, totalling 27 weeks.​

Implications for Employers and Employees

  • For Employers: Employers should prepare to accommodate this new leave by updating their policies and ensuring compliance with the ESA. They must also be aware of the obligation to maintain the employee’s position during the leave period.
  • For Employees: This leave provides greater job security for those facing serious medical conditions, allowing them to focus on recovery without the added concern of job loss.​

Interaction with STD and LTD Benefits

1. Complementary Nature of ESA Leave and Disability Benefits: The new ESA leave provides job protection for employees unable to work due to serious medical conditions. While the ESA leave is unpaid, it ensures that employees can return to their position or a comparable one after their absence. This job protection can complement STD and LTD benefits, which offer income replacement during periods of disability.​

2. Coordination with STD Benefits: STD benefits typically cover the initial weeks of an employee’s disability. With the ESA’s 27-week leave, employees can remain on job-protected leave while receiving STD benefits, ensuring both income support and job security during their recovery period.​

3. Transition to LTD Benefits: For disabilities extending beyond the STD period, employees often transition to LTD benefits. The ESA’s provision allows for up to 27 weeks of leave, which can overlap with the waiting period commonly required before LTD benefits commence. This overlap ensures that employees are not left without job protection during the transition between STD and LTD benefits.

 

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