The legality of dismissing an employee as a compensation for employees is thin. The law protects employees against dismissal during a disability. However, there are legitimate and legal reasons to dismiss an employee while receiving compensation. Can I be terminated while on workers compensation?

Injured worker

An employee with a disability due to work-related injury is entitled to continue compensation benefits for employees for temporary total disability (TTD) until they are dismissed by a doctor to return to work. The return to work may be small at first until he is discharged to full service.

If the doctor provides the employee with work restrictions, and the employer is unable to meet these restrictions, they are entitled to TTD benefits. It is in the best interest of the employer to adapt to light restrictions not only to limit exposure, but also to restore the employee to routine, to finally return to work, full of duties. In some cases, when an employee returns to work with a small load, they may have a negative attitude or misconduct. This is usually because he has returned to a less-paid job or is dissatisfied with the job he was assigned to.

Can I be terminated while on workers compensation?

Resignation from work as compensation for employees

An employee may resign from work when he receives employee remuneration. They:

  • they must give their employer an appropriate notice period
  • may use the compensation period for employees as a notice period.

The notice periods may be different for each contract and registered contract. Check cancellation – how many pages of notice to get more information about the notice periods.

Dismissed by the employer as compensation for employees

According to national employment standards, if an employer dismisses an employee when he is out of work with employee remuneration, then:

  • they must notify the employee in writing of their last day of employment
  • they are not required to pay the employee’s notice period (but they can do so).

Your employer cannot terminate you solely because you apply for or receive compensation from an employee. This is known as retaliation and is against the law. Unfortunately, it’s difficult to prove exactly why your employer dismissed you. This may be due to employee compensation, but they may recall things from your past or justify the reason for dismissal.


There are cases where it is legal to terminate an injured employee’s employment as compensation for employees. The employer must ensure that the reasons are valid and did everything possible to help the employee return to work, whether it is a full duty, light duty or restrictions. There are situations in which the employer is not able to accommodate and cannot offer the employee an alternative job.



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