Ontario Introduces New Long-Term Illness Leave:

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New ESA amendments expand leave entitlements for employees with serious medical conditions 

At People2.0, keeping our partners informed and prepared is our top priority. With this in mind, we are bringing to your attention recent legislative updates to Ontario’s Employment Standards Act, 2000 (ESA), which will have significant implications for your business operations in Canada. 

Overview

Ontario has amended the Employment Standards Act, 2000 to introduce new long-term illness leave provisions that will provide greater job security for employees facing serious medical conditions. These changes represent a significant expansion of employee leave rights in the province. 

Objectives

  • Provide employees with adequate time to recover from serious medical conditions 
  • Ensure job security during extended health-related absences 
  • Support work-life balance and employee wellbeing 
  • Align Ontario’s employment standards with evolving workplace needs 

Key Provisions

The legislation introduces several important changes that will take effect on different dates: 

  • Long-Term Illness Leave: Employees with at least 13 weeks of service are entitled to up to 27 weeks of unpaid leave for serious medical conditions that prevent them from performing their job duties 
  • Job Protection: Employers must hold the employee’s position and reinstate them upon return from leave 
  • Flexible Usage: The 27 weeks do not need to be taken consecutively, allowing for flexible arrangements 
  • Future Adoption/Surrogacy Leave: An additional 16 weeks of unpaid leave will be available for adoption or surrogacy situations (effective date to be proclaimed) 

Impact Analysis 

These changes will specifically affect employers operating in Ontario by: 

  • Requiring longer-term workforce planning to accommodate extended absences 
  • Necessitating updated leave policies and procedures 
  • Creating potential operational challenges during employee absences 
  • Requiring enhanced record-keeping for leave administration 

Requirements 

Employers must now: 

  • Update employee handbooks and leave policies to reflect the new provisions 
  • Establish procedures for handling long-term illness leave requests 
  • Maintain accurate records of employee service time and leave usage 
  • Ensure managers understand the new leave entitlements and job protection requirements 
  • Prepare for potential staffing adjustments during extended absences 

Opportunities 

These legislative changes also present opportunities for forward-thinking businesses: 

  • Enhanced employee loyalty and retention through supportive leave policies 
  • Improved employer brand and recruitment advantages 
  • Opportunities to develop more flexible workforce strategies 
  • Potential for stronger employee engagement and wellbeing programs 

Immediate Actions 

To prepare for the June 19, 2025 effective date: 

  1. Review and update your employee handbook and leave policies 
  2. Train HR personnel and managers on the new leave provisions 
  3. Assess current workforce planning and coverage strategies 
  4. Establish clear procedures for leave requests and approvals 

Long-Term Strategies 

For ongoing compliance and strategic planning: 

  • Develop comprehensive leave administration systems 
  • Create succession planning for critical roles 
  • Consider temporary staffing solutions for extended absences 
  • Implement employee wellness programs to support overall health 
  • Regularly review and update policies as regulations evolve 

Personalized Assistance 

Every business situation is unique. We encourage you to reach out to People2.0 for customized guidance on how these changes will specifically impact your operations and workforce strategy. 

Our commitment to your success extends beyond just providing services; we are your partner in navigating the complexities of the evolving Canadian employment landscape. By staying proactive and informed about legislative changes like Ontario’s new long-term illness leave provisions, we can collaboratively ensure that your business not only remains compliant but also thrives. 

These changes reflect the ongoing evolution of workplace expectations and employee rights. With proper preparation and the right partnership, your organization can successfully adapt while maintaining operational excellence and supporting your valued employees. 

For questions about how these changes affect your specific situation, contact our Canadian employment specialists at HRCanada@people20.com. Together, let’s continue to shape the future of work responsibly. 

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