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Thursday, November 20, 2025

Employee wage loss benefits during leave: a reference for managers - HRD America

An employment lawyer provides guidance on legal and other options for employees taking medical leave

In the course of our workplace law practice, employers often raise concerns about staff that need to be off on medical leave. One such concern centres around resources that an employer can provide to guide the employee toward wage loss replacement benefits while ill or disabled.

This summary is intended to provide a quick reference for managers, including HR managers, who would like to provide information to employees on leave.

Firstly, this question is often asked because employees are not entitled to pay from the employer while on medical leave unless there is a statutory paid sick leave entitlement, their employment contract or an employer policy provides for a paid sick leave entitlement, or there is another arrangement to which the employer has agreed which will compensate the employee for lost pay during leave.

That said, employees in Canada often have options through which to receive financial compensation during medical leave though options vary by jurisdiction, employment sector, and employer policies and programs. These options consist of federally regulated benefits, provincial programs, employer-sponsored plans, and Employment Insurance options.

Options for medical leave

Federal medical leave with pay

For federally regulated employees, the Canada Labour Code mandates up to 10 days of medical leave of absence with pay per calendar year, with each day paid at...



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