An injured employee that you place on leave may be entitled to receiving partial wages and some Workers’ Compensation claims. It’s different for discharged workers as they may not be eligible for any type of compensation. Apart from that, termination or placement on leave can hinder an employee’s future employment prospects. Most potential employers may deem such an individual incapable of doing their job and will hesitate to hire them. Also, you can legally terminate an employee who is on leave as per the Family Medical Leave Act (FMLA).