Employee on Accommodation on full pay, working limited hours

[Trisha Drew]

#97964

Forum: Private

Hello and Happy New Year! We have an employee who is on work accommodation (Ontario) and as per the ongoing Functional Abilities Forms we have been receiving, he is limited to working 6 hours per day, 5 days per week. He is a very long term employee, and as a kind gesture we have kept him on full payroll (full salary) since April of 2025. We are now at a point where we feel if the hours do not increase (as advised on a FAF), we would like to transition to pay him for only the hours he works. Would you kindly provide best practice and any insight you have on moving and employee in this situation to paying him for hours worked only? We would provide him a few weeks notice ahead of doing so.

[Haley O’Halloran]

#97965

Happy New Year! Below I’ve provided some general HR guidance, but this should not be mistaken for legal advice.

What Ontario Says
a) Duty to Accommodate (Human Rights Code)

You must accommodate disability-related limitations to the point of undue hardship. Accommodation is about work performed, not income replacement. Paying full salary for reduced hours is not required under the Code unless it is part of a benefit plan or collective agreement. Continuing full pay has been a discretionary, goodwill measure, not a legal obligation.

b) Employment Standards Act (ESA)

ESA does not require you to maintain full salary when hours are reduced due to accommodation. You must pay at least minimum wage for hours worked and comply with overtime rules (which won’t apply here).

c) Constructive Dismissal Risk

A reduction in pay can trigger constructive dismissal unless:
-It is directly tied to medically supported accommodation; and
-It is implemented carefully, transparently, and with notice.

Courts and tribunals generally accept reduced pay when it flows from reduced hours due to medical restrictions, especially when supported by ongoing FAFs.

Why Your Position Is Reasonable

You are on solid footing because:
-The FAFs consistently limit him to 6 hours/day, 5 days/week
-There has been no medical progression toward increased hours
-You have already provided months of enhanced accommodation (full pay since April 2025)
-You are not withdrawing accommodation — only aligning pay with hours worked

This is not a discipline or performance issue; it is a sustainability and equity issue.

Best Practice Approach
Step 1: Confirm Medical Status

Before making the change:
-Ensure the most recent FAF confirms the same hour limitation
-Consider asking one clarifying question on the FAF: “Is there a foreseeable timeline for increased hours?”
This demonstrates ongoing procedural accommodation.

Step 2: Frame the Change Correctly

The messaging is critical. The change should be framed as a transition from a temporary goodwill measure, not a withdrawal of accommodation and not related to performance.

Avoid language like:
“We can no longer afford this”
“You must return to full hours or lose pay”

Use language like:
“Aligning compensation with medically approved hours”
“Continuing accommodation within sustainable parameters”

Step 3: Provide Reasonable Notice

There is no fixed legal rule, but best practice is:
-2–4 weeks’ written notice
-Longer notice (e.g., 4 weeks) further reduces risk given his long service

Notice should include:
-Effective date of the change
-Confirmation that accommodation remains in place
-Confirmation that benefits remain unchanged (if applicable)

Final Step: Document the Rationale

Your internal file should clearly show:
-Ongoing medical support for reduced hours
-Duration of full-pay accommodation
-Business rationale (sustainability, consistency, fairness)
-Continued willingness to revisit hours if medical status changes

This documentation is critical if challenged.

How to Communicate the Change (Sample Structure)

You may wish to communicate this in a meeting followed by a letter.

Key points to include:
-Acknowledge his service and contributions
-Confirm continued accommodation at 6 hours/day
-Clarify that full pay was temporary and discretionary
-Explain that compensation will align with hours worked
-Reconfirm openness to revisiting hours if medical status changes

Example language:

“Since April 2025, we have continued your full salary while accommodating your reduced hours as a supportive, temporary measure. Based on the ongoing medical information confirming a 6-hour workday, we will be transitioning to compensation based on actual hours worked, effective [date].

Your accommodation remains fully in place, and we will continue to review any updated medical information should your functional abilities change.”

Additional Risk-Reduction Measures (Optional but Helpful)

Confirm benefits continuity (very important for optics and morale). Offer to review:
-Sick leave
-Disability benefits (if applicable)
-Invite the employee to raise concerns or ask questions
-Avoid unilateral tone — emphasize collaboration

What Not to Do

-Do not require increased hours without medical clearance
-Do not characterize this as a “demotion”
-Do not suggest the employee should resign or go on leave
-Do not stop the accommodation itself

I hope this helps!
-HRInsider Staff

[Author]

Posts