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Being unable to work is stressful, but Ontario has some safety nets to help you. Our personal injury lawyers are walking you through short-term and long-term disability so you can figure out what comes next.
Everything from accidents to acute injuries or chronic disease leaves hundreds of thousands of Ontarians unable to go to work. Of course, our work is our lifeline to financial security, and losing our income can trigger our most primal fear responses and lead to even more discomfort, stress, and depression.
What is short and long-term disability?
Fortunately, in Ontario, we’re not left alone to manage the impossible. We have supports in place to protect and cover our income, though these legal and insurance systems require some complex navigation. We have different protections under short-term and long-term disability—every personal situation is different, so it’s vital to know your rights, responsibilities, and short-term disability Ontario requirements.
Read on to learn more about these crucial insurance options, eligibility requirements, and the claims process.
Whether you’re a full-time employee, a contractor, self-employed, or simply trying to plan for the future, this guide to short-term and long-term disability can help.
What is short-term disability in Canada?
In Canada and Ontario, short-term disability insurance covers any injuries or illnesses that temporarily keep you away from work. Typically, the cut-off timeframe is 6 months, after which you may need to pursue long-term options instead.
Short-term disability covers a percentage of your income, and the payouts are tied to our Employment Insurance programs. The weekly payable amount under short-term disability must meet EI minimums, which is at least 55% of an employee’s normal weekly insurable earnings to a minimum of at least $668 in 2024.
Many employers offer short-term disability coverage and sick leave, which may be used to supplement these governmental benefits.
Basic Benefits of STD
- Solid coverage. STD benefits cover various illnesses or injuries, so people aren’t left to fend for themselves. Unlike Worker’s Compensation benefits, your injuries and illnesses are still covered even if they occur outside of work.
- Financial benefits. Though you won’t likely get 100% of your pre-disability income, most people receive a decent chunk of 60% to 85% between government and insurance benefits.
- Timeframe. Most benefits are paid up to 6 months, though timeframes vary by policy.
What qualifies for long-term disability in Canada?
If short-term disability isn’t enough to cover injuries and illnesses, long-term disability benefits swoop in to help when either your short-term disability insurance or sick leave is over.
How much does long-term disability pay Canada?
Every situation is different, but you can usually expect to receive at least 60% to 70% of your regular income on LTD.
How long does long-term disability last in Ontario?
Every disability insurance plan is different—some provide benefits for 2 years or until you can return to work, while others continue covering you permanently.
Basic Benefits of LTD
- Solid coverage. LTD covers a wide range of disabilities, including chronic, permanent, and long-lasting ones.
- Financial benefits. You’ll usually see around 60% to 70% of your usual income.
- Timeframe. You get much more flexibility with LTDs, ranging until your injury ends, for several years, or even your lifetime.
What is the difference between short and long-term disabilities?
Some people use short-term disability insurance to cover a short-lived illness, while long-term coverage kicks in to support any longer-term injuries and illnesses.
The biggest differences are:
- Duration of benefits. STD tends to last a few weeks to 6 months, while LTD could last for years, decades, and even to retirement age.
- Waiting period. Since most STD benefits must start financially helping people ASAP, most have a short waiting period of 1 – 2 weeks. With LTD, you usually have to wait until short-term benefits run out and prognoses have had time to develop, so you’ll face a several-month wait.
- Definition of disability. There’s a slight shift in how we define LTD disabilities compared to short. Most short-term disability covers you if you can perform your own job, while you often need to prove you can’t do any job for which you’re reasonably suited with an LTD.
- Benefit amounts. Rates vary widely by case, but you’ll generally get a higher percentage with a short-term payout than with long-term disability coverage.
Short and Long-Term Disability & Employer Responsibility: Know Your Rights
As an employee, your employer can help you through the disability claims process and provide some other option protections, like sick leave. At a minimum, they must provide you with the right information, keep your health status confidential, and not discriminate against you based on your long-term or short-term disability.
How does long-term disability work in Canada?
Your employer must:
- Provide reliable information. Your employer cannot conceal coverage or claim information about your disability insurance plan or prevent you from making a claim.
- Support through the claims process. Your employer should be helping you open a claim by providing you with the right forms and relevant documentation. They must also maintain full confidentiality with your medical and claims information.
- Work accommodations. Your employer must work to accommodate your disability up until the point it causes the business undue hardship. They must try modifying your job duties, offering assistive devices, and adapting flexible work arrangements where they’re reasonably able to do so.
- Discrimination rules. Your employer cannot use your long-term or short-term disability to discriminate against you. If they’re treating you differently from other employees, refusing to promote you, or unduly terminating you, they could face serious legal consequences.
Your Rights as an Employee
Beyond an employer’s duties when it comes to disabilities, you also have some vital rights as an employee.
You have the right to request accommodations and appeal a denial if your disability benefits are denied.
You also have legal recourse if your employer fails to meet the obligations outlined above or discriminates against you because of your disability.
The Morris Law Group—Law Office Hamilton
If you have any questions about the differences between short- and long-term disability claims, your benefits, or your employer’s responsibilities, you need expert advice from a disability lawyer in Hamilton, ON.
If you’re struggling with an insurance claim or fighting with an adjuster, The Morris Law Group’s lawyer injury team is ready to help. We’ll listen and serve as your advocates and lawyers for short-term and long-term insurance claims to help you navigate the complicated legal and insurance systems. Request a free consultation or call us at 905-526-8080 to learn more.
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