In Ontario, you generally can discontinue an employee’s benefits during an unpaid leave if the employee fails to pay their required share of premiums—but only after making reasonable efforts to notify them and giving a clear opportunity to maintain coverage. Under the Employment Standards Act, 2000, employees on maternity/parental leave have the right to continue participating in benefit plans if they continue paying their portion. If they do not, the employer may stop contributions and coverage, provided you can demonstrate you gave proper notice (e.g., written communication explaining the consequences of non-payment and a reasonable deadline). Given the length of time (one year) and your repeated unanswered attempts, you would likely be justified in terminating benefits—but you should issue one final written notice (preferably by trackable means) stating that coverage will end on a specific date if no response or payment is received.

Separately, work permit validity is a distinct issue. An employee must have valid authorization to work in Canada, but during a protected leave their employment relationship continues even if their permit expires. You are not required to continue employing someone who cannot legally work, but before taking any step toward termination, you should make a final documented attempt to confirm their status and request updated authorization. If there is still no response, you may need to treat this as job abandonment or frustration of employment, but that step carries legal risk—particularly given the protections around maternity leave. It would be prudent to consult an employment lawyer or your benefits provider before terminating employment, to ensure your process and documentation are defensible.

-HRInsider Staff