Can You Work While on Long Term Disability in Ontario?

Long-term disability (LTD) benefits can be ideal for individuals who experience an illness or accident in Ontario and are unable to work in their former role following the incident. Victims of illnesses or accidents may seek to work when receiving LTD but may wonder how work income will impact their claim.

It is important to understand the rules surrounding receiving LTD benefits and taking up employment. In this article, our experienced personal injury lawyers will explore whether individuals can work while on long-term disability in Ontario.

What Is Long-Term Disability in Ontario?

Long-term disability is a kind of insurance that protects an individual if they are unable to work and earn a salary when their illness or injury prevents them from working. It offers the victim a monthly income replacement.

LTD is available through workplace insurance plans or private policies you have taken out yourself. They will typically pay between 60% and 70% of the income received prior to the disability, with the benefit being offered after a waiting or elimination period – and it will be paid for an extended period lasting at least two years.

Eligibility for LTD requires an individual to demonstrate that they have a qualifying medical condition that has prevented them from working for a period of time that is set out in the individual policy. The severity of the condition is a key assessment factor, as is the medical condition, and these elements can be proven with a medical report.

Can You Work While on LTD in Ontario?

In some circumstances, you might be allowed to work part-time and still earn LTD benefits – this will depend on your specific insurance policy. If you do decide to work, other policy specifications may apply.

For example, you may have to remain within an income threshold. This means that if you begin to work and exceed the maximum income amount, it might begin to affect the benefits you receive.

Factors that Can Impact Your LTD Benefits when Working

In addition to the income threshold, which we have covered in more detail below, other factors can impact LTD benefits if you choose to work at the same time. The key factors to take into account include:

Medical Conditions – Various medical conditions can affect your claim, from physical and mental health conditions to musculoskeletal health difficulties and chronic illnesses. But, as mentioned, the severity of the condition is important. For example, arthritis can make it difficult to complete work that requires physical activity, but claims are granted if this condition significantly limits your ability to perform in the job.

Income Thresholds – In terms of your maximum income threshold, if the wages combined with the monthly disability benefit equate to more than 100% of your pre-disability income, this will mean the LTD benefits will decrease.

Insurance Companies – It is important to review your insurance policy clauses carefully. They may restrict your option to work while receiving LTD. For instance, various policies have an Any Occupation clause, which states that after two years, individuals need to prove they cannot perform in any job that aligns with their education or experience, and if they work in any capacity, ongoing benefits may cease.

Risks of Working While on LTD

As briefly mentioned, although it is possible to work while receiving LTD, you risk losing the long-term disability benefits altogether if the earnings you receive from employment exceed a specific amount. In terms of the specific permitted employment income, your policy will allow you to earn a small income.

There are also potential complications with your insurance company to consider. Insurance companies may determine that your return to work contradicts your claim for disability. Yet, keep in mind that this will also depend on the kind of work you take up and the LTD policy you have.

Additionally, there is the chance of the medical condition worsening when working, especially if you do not receive adequate care or look after yourself sufficiently.

How to Navigate Working While on LTD

Despite these risks, there are steps you can take to navigate working while on LTD. It is worth considering the following approaches to ensure you continue receiving the benefit and can work with minimal health risks:

Consult with Your Healthcare Provider – To ensure you have the best medical advice before taking up employment, it is ideal to consult with your healthcare provider. Even if you are planning on working part-time, clearance from your doctor will ensure that returning to work will not impact or jeopardize your health.

Understand Your Policy – You will need to look closely at the clauses in the policy to adhere to its work restrictions. This means carefully reading the Own Occupation and Any Occupation clauses to determine which types of work are permitted.

Navigate Long-Term Disability Claims with Ristich Law

Working while on LTD requires comprehensive knowledge of your rights and your insurance policy, and it is important to be aware of the rules surrounding this arrangement. Remember, transparency with your insurance provider is important and you can navigate this process by looking closely at your policy or considering a gradual return-to-work program.

If you are about to face a long-term disability claim, our local personal injury lawyers can help to ensure your claim is approved. Our personal injury law firm has experience in negotiating with insurance companies and can offer the legal advice needed to navigate your claim. Contact Ristich Law for a free consultation today to handle your claim.