Do Most Employers Offer Long-Term Disability?
Yes, most employers offer long-term disability, although they are not legally required to do so. They typically do this by having employees pay a portion of the premium while the employer contributes an amount as well.
The employer does this for several reasons. The primary reason is to protect its employees and give them time to recover and come back to the position someday when they are fit to do so. While some companies may let an employee go after several years of disability, this is under extreme circumstances wherein the employee may never be able to return to work. In Ontario, there are laws in place to protect employees from losing their jobs when they are injured—unless a period of several years has passed and the employee is deemed unfit to contribute for the foreseeable future. The Government of Ontario, under regulation 288/01, calls this a ‘frustrated’ employment contract.
Further, while an employee may have access to both a government-sponsored disability plan and an employer-sponsored plan, in most cases, they may not be able to recoup a higher amount of income from doing so. If an employee receives government benefits through CPP, the long term disability carrier will decrease its payments in order to award the same sum of money as would have been received from one plan alone. Ultimately, the specifications of the long-term disability plan may depend on the provider.
How Much Money You May Expect from Long-Term Disability
Generally, most employers do offer long-term disability insurance policies, awarded in payouts that may equal around 60% to 85% of the filer’s previous income, according to the Financial Consumer Agency of Canada and the Ontario Human Rights Commission (OHRC). It is important to note that there are also other supplemental income programs in place, which may determine additional proceeds based on how much money you were making before your ailment and after. Further, short-term disability programs could allow you to be covered until your long-term disability plans begin to take hold.
Yet, in some cases, there might be a period where no income may be provided. In these cases, long-term disability may provide back-payments to cover the months that the disabled party spent waiting on their payouts. In the end, the amount of money paid out may be examined on a case-by-case basis to be determined between the company, the insurer, the employee, and their unique set of hardships.
Expect to Wait for Your Long-Term Disability
While companies have programs in place to cover employees during temporary bouts of disability, such as short-term disability plans and sick leave, the disabled party should expect to wait anywhere from 90 to 120 days. On average, employees begin receiving the benefits of their plan around the four-month mark, after the appropriate precautions and paperwork have been examined by the insurers.
If you file with the Canadian government for CPP-D, the length of time you must wait may depend on how busy their caseloads are at the given time. Generally, the government review is a slow process and can take up to a year or longer.
Long-Term Disability Lawyers in Your Corner
Here at Preszler Injury Lawyers, we know how important long-term disability may be to a person’s livelihood. That is why we continue to fight for our clients and do everything within our legal power to represent their cases. Our lawyers may look at every aspect of your case, including gathering important evidence and filing the appropriate paperwork, so you may return to your life as soon as possible. You do not have to feel alone throughout this process—we are here to help protect your right to compensation when you become disabled.
Contact a Preszler Injury Lawyers representative today to learn more. Call our team at 1-800-JUSTICE for your free initial consultation.