Running out of short-term disability benefits while you are still too sick to work can create immediate financial and employment concerns. Your benefit payments may be ending, but your medical condition may not have improved enough for you to return to your job. At that point, you need to know what income sources may be available, whether your employment remains protected, and what steps you should take before your benefits stop.
In Ontario, the next stage may involve long-term disability coverage, EI sickness benefits, job-protected medical leave, workplace accommodation, or other available benefits. If an insurer has denied your claim or you are facing a dispute over your benefits, speaking with a short term disability lawyer can also help clarify your legal options.
Check Whether You Have Long-Term Disability Coverage
The first thing to determine is whether your employer provides long-term disability (LTD) insurance.
Short-term disability coverage generally provides benefits for a limited period, often up to approximately six months. Long-term disability insurance commonly begins after short-term disability, employer sick leave, or another applicable waiting period ends. According to the Financial Consumer Agency of Canada, many LTD plans replace approximately 60% to 70% of normal income, although every policy has its own terms.
If you have LTD coverage, you generally need to make a separate claim or complete the insurer’s required transition process. Do not assume that LTD benefits will automatically begin simply because your short-term benefits have ended.
Before your short-term benefits expire, check:
- The exact date your short-term benefits end
- Whether you have an LTD policy through your employer
- The LTD elimination or waiting period
- The definition of disability under the LTD policy
- Medical forms your insurer requires
- Any deadline for submitting an LTD application
- Whether your employer requires updated medical documentation
- How your health and other benefits will be handled while you remain off work
Starting this process early can be important because an insurer may need additional medical information before deciding an LTD application.
Your LTD Claim May Have Different Eligibility Requirements
One of the most important points to recognize is that qualifying for short-term disability does not automatically guarantee approval for long-term disability.
The definitions of disability can change between the two stages. For example, an LTD policy may initially ask whether your medical condition prevents you from performing the essential duties of your own occupation. After a specified period, the policy may change the test and ask whether you can perform another occupation for which you are reasonably suited.
The exact wording depends on your insurance contract.
Your insurer may review:
- Your diagnosis and symptoms
- Functional limitations
- Medical treatment and response to treatment
- Your occupational duties
- Your education and work experience
- Restrictions documented by your healthcare providers
- Your expected recovery timeline
This makes medical documentation particularly important when transitioning from short-term to long-term disability.
What If You Do Not Have Long-Term Disability Coverage?
If your employer does not provide LTD insurance, you may need to investigate other income-support programs.
Employment Insurance (EI) sickness benefits can provide financial assistance when you cannot work because of a medical reason. As of 2026, eligible individuals can receive up to 26 weeks of EI sickness benefits, subject to the program’s eligibility requirements and maximum weekly amount. Canada.ca states that a medical certificate is required to establish that you are unable to work and approximately how long you are expected to be unable to work.
However, EI sickness benefits are not a replacement for an employer’s disability insurance plan. Eligibility and benefit amounts are determined under separate rules.
If your condition is expected to be long-term or permanent, you may also need to investigate CPP disability benefits if you meet the contribution and disability requirements.
Your Job May Still Be Protected
Losing short-term disability payments does not automatically mean that your employment ends.
Ontario’s Employment Standards Act provides several forms of job-protected leave that may apply depending on your circumstances. Since June 19, 2025, eligible Ontario employees can take up to 27 weeks of unpaid, job-protected long-term illness leave within a 52-week period because of a serious medical condition. The employee generally must have been employed for at least 13 consecutive weeks and provide the required medical certificate.
This is separate from disability insurance. In other words, you could potentially have a legal right to remain away from work even when an insurance benefit has ended. At the same time, job-protected leave does not necessarily provide income.
What If Your Employer Wants You to Return?
If your benefits have ended and your employer asks you to return, the situation can become complicated if you remain medically unable to work.
You should communicate honestly about your restrictions and follow the appropriate medical process. Depending on your circumstances, accommodation may also become relevant under Ontario’s human rights framework.
You may need updated medical information describing your functional limitations rather than simply stating that you are “still sick.” Clear information about what you can and cannot do can help your employer determine what workplace adjustments may be appropriate.
What If Your Insurer Denies LTD Benefits?
A denial does not necessarily mean that you are medically capable of working.
Insurance companies assess claims according to the wording and requirements of the applicable policy. If an LTD application is denied, the insurer should provide information explaining the decision and any available review or appeal process.
Read the denial letter carefully and preserve:
- The insurance policy and benefit booklet
- Your LTD application
- Medical forms submitted by your healthcare providers
- Correspondence with the insurer
- Internal appeal information
- Your employment and job-description documents
- Records of treatment and appointments
If the insurer maintains its denial, speaking with a short term disability lawyer or disability lawyer may help you determine what options are available. The appropriate legal strategy depends on the policy, medical evidence, reason for denial, and applicable deadlines.
Do Not Wait Until Your Benefits Have Already Ended
One of the biggest practical mistakes is waiting until the final short-term disability payment arrives before investigating what comes next.
Ideally, start several weeks in advance. Ask your employer or benefits administrator for the LTD policy and claim instructions. Contact your healthcare providers about any forms that may need to be completed and find out what medical information the insurer requires.
You should also create a personal financial plan for the possibility that LTD approval takes time or that your application is disputed.
A useful checklist:
- Confirm your short-term disability end date.
- Obtain a copy of your LTD policy.
- Find out when an LTD application must be submitted.
- Ask your doctor or other treating professionals about required medical documentation.
- Keep copies of every form and communication.
- Investigate EI or other potentially available benefits.
- Confirm your employment and leave status with your employer.
- Get legal advice promptly if your LTD claim is denied or terminated.
If you are still sick when short-term disability runs out, your next step depends on the benefits and legal protections available to you. You may be able to transition to long-term disability, apply for EI sickness benefits, explore CPP disability benefits, use job-protected long-term illness leave, or consider workplace accommodation.
The end of short-term disability payments does not necessarily mean you have to return to work immediately or that you have no further financial or legal options. Check your insurance coverage, address medical documentation promptly, and pay close attention to deadlines if your benefits are being challenged.