As of June 19, 2025, Ontario employers are navigating an important update to the Employment Standards Act, 2000 (ESA): the introduction of Long-Term Illness Leave (LTI Leave).
This new unpaid, job-protected leave gives eligible employees up to 27 weeks off within a 52-week period when facing a serious medical condition. While the leave itself is straightforward on paper, it has meaningful implications for employer responsibilities, benefit plan administration, and accommodation planning.
Here is what Ontario employers should understand and act on now.
What Is Long-Term Illness Leave?
Long-Term Illness Leave was introduced through the Working for Workers Six Act, 2024. It allows employees to take extended time away from work due to a serious medical condition while retaining job protection.
Key points include:
- Eligibility: Employees qualify after 13 consecutive weeks of employment.
- Duration: Up to 27 weeks within a rolling 52-week period.
- Intermittent Leave: The leave does not need to be taken all at once. Employers may count partial weeks as full weeks for tracking purposes.
- Medical Certification: Employers may request a medical certificate from a physician, registered nurse, or psychologist confirming the employee is unable to work and noting the expected duration.
Importantly, eligibility for LTI Leave exists regardless of whether the employee qualifies for short-term or long-term disability benefits.
Employer Obligations You Cannot Overlook
Granting the leave is only one part of compliance. The ESA places several ongoing obligations on employers during an LTI Leave period.
Benefit Plan Continuation
Employers must continue the employee’s participation in benefit plans such as health, dental, and life insurance during LTI Leave unless the employee opts out in writing. The employer portion of premiums must also continue to be paid.
This is a critical area where benefit plan design and administrative processes must be aligned with legislation.
Seniority and Service Accrual
Time spent on LTI Leave continues to count toward an employee’s length of service and seniority. However, it does not count toward the completion of a probationary period.
Reinstatement Requirements
When the employee returns to work, they must be reinstated to their prior role or a comparable position. Compensation must be at least equal to the higher of:
- their pre-leave wage, or
- the wage they would have earned had they remained actively employed.
Vacation Timing
Employees may defer taking vacation until after their LTI Leave ends or to another mutually agreed time. Employers should be prepared for vacation requests to shift as a result.
How Long-Term Illness Leave Interacts With Human Rights Obligations
This is where many employers face increased risk.
LTI Leave under the ESA sets a statutory minimum protection period, but it does not replace an employer’s duty to accommodate disability under Ontario’s Human Rights Code.
In practice, this means:
- The 27-week LTI Leave is not an automatic end point.
- Employers may still need to explore additional accommodation once the leave is exhausted.
- Decisions to terminate or deny reinstatement without proper accommodation analysis may lead to human rights complaints, even if ESA obligations were technically met.
Employers should treat statutory leave management and accommodation planning as related but distinct processes.
Practical Steps Employers Should Take Now
To reduce legal and administrative risk, employers should consider the following actions:
Review and Update Policies
Employee handbooks and leave policies should clearly reference Long-Term Illness Leave, including eligibility, notice requirements, and documentation processes.
Strengthen Leave Tracking
HR systems must be able to track intermittent LTI Leave accurately across a rolling 52-week period. Partial-week tracking rules should be clearly defined internally.
Train Managers and Supervisors
Front-line leaders should understand:
- when LTI Leave applies,
- what medical information they are allowed to request, and
- when to escalate matters to HR or benefits advisors.
Align Benefits and Accommodation Strategies
Benefit continuation, disability coverage, and accommodation planning should be coordinated to avoid gaps or conflicting decisions.
A Final Word for Employers
Ontario’s new Long-Term Illness Leave reinforces the importance of proactive workforce planning. Employers who align their policies, benefit plans, and accommodation practices now will be better positioned to manage employee absences while reducing legal exposure.
At Norbram Group Insurance Benefits Inc., we help employers navigate the intersection of legislation, benefits, and workforce strategy with clarity and confidence.
If you would like to review how this change may impact your benefit plans or leave management approach, our team is here to help.
