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For many people in Ontario, disability benefits are their only income during a period of illness or following an injury. However, while the definition of disability is usually described as “total”, the experience of disabling symptoms and whether they prevent you from being able to work is more nuanced than a simple yes or no answer.
There are times when you may feel well enough to try a few hours of work. Your employer may be pressuring you to return. You might be wondering whether you can work part‑time, take on modified duties, or try a gradual return without losing your disability benefits.
The short answer: sometimes you can work while claiming disability—but it depends on the type of benefit you receive, the nature of your work, and your medical restrictions. The rules are different for long‑term disability (LTD), short‑term disability (STD), CPP‑Disability, WSIB, and private insurance policies.
This guide breaks down what you need to know, what risks to avoid, and how to protect your rights if you’re considering working while on disability.
Disability benefits are a crucial source of financial support for people in Ontario who are unable to work due to a serious injury, illness, or chronic health condition. There are several types of disability benefits available, each with its own eligibility criteria and rules. Some common options include long term disability benefits provided through employer-sponsored group insurance, private insurance policies, Canada Pension Plan (CPP) disability benefits, and the Ontario Disability Support Program (ODSP).
Understanding which disability benefits you may qualify for—and how they interact—is essential. For example, long term disability benefits are often provided through your employer’s group insurance plan, or you may be a self-employed professional or tradesperson having purchased a private disability income policy. An additional income source may involve CPP disability benefits which are administered by the federal government through Service Canada. ODSP is a provincial program designed to support people with disabilities who have limited income and assets.
Navigating the application process for these benefits can be complex and time-consuming. A lawyer who specializes in long term disability law can help you understand your rights, gather the necessary documentation, and ensure you receive the benefits you are entitled to. Whether you are just starting your application or already receiving disability benefits, knowing your options is the first step to protecting your replacement income.
When it comes to disability insurance, the type of definition which applies to your benefits can play a major role in determining your whether you can work while receiving benefits. The two main definitions are “Own Occupation” and “Any Occupation”.
An Own Occupation policy defines disability as the inability to perform the essential duties of your own job. This means that if you are unable to do your specific job—even if you could work in a different job—you may still qualify for benefits. For example, a surgeon who develops a hand tremor may be considered disabled under an own occupation policy, even if they could work in a teaching or administrative role. Many private insurance policies pay benefits pursuant to an own occupation definition of disability.
On the other hand, the Any Occupation definition is stricter. It defines disability as the inability to perform any job for which you are reasonably qualified by education, training, or experience. Under this definition, if you are able to work in a different job—even if it pays less or is outside your usual field—you may no longer be eligible for benefits.
Many group insurance policies apply the own occupation definition for the initial period with the definition of disability changing to the more restrictive any occupation definition after the first 24 months. Understanding the definition in your policy is critical. It affects not only your eligibility for disability benefits but also your options for returning to work or exploring other opportunities to earn income. Always review your policy carefully and seek advice if you are unsure about your coverage. Regardless of which definition applies to your claim, you need to be aware of whether you are allowed to work at all and inform your insurer if you plan to do so.
Disability income insurance pays a monthly disability benefit to replace only a portion of one’s pre-disability income. Therefore when you are receiving long term disability benefits, you will suffer a reduction in your lifestyle and it is understandable that your income will no longer meet your family’s expenses. It is understandable that, if you can do so, you will want to earn extra income.
People often assume disability programs and insurance require complete inability to work to be payable. In reality, disabled individuals experience illness, injury and recovery in a far more nuanced way having:
• Good days and bad days
• The ability to work a few hours but not full‑time
• Capacity for light duties but not their regular position
If your disability income will be terminated if you try to test your ability to return to work, it is a disincentive to attempting to do so. For this reason, insurers and government assistance programs often use vocational services, partial disability benefits, and rehabilitation programs to assist disability claimants in attempting to return to work or adapt to new employment situations.
At the same time, insurers and government programs often scrutinize any work activity. Even a small amount of work, if not properly reported, can be misinterpreted as proof that you are no longer disabled.
Some LTD policies in Ontario allow some form of work as long if you still meet the policy’s definition of disability. That definition usually changes over time:
• Own occupation period (usually first 24 months): You must be unable to perform the essential duties of your job. During the own occupation period, many group insurance LTD policies offer partial disability benefits as a rehabilitation benefit to allow you to attempt to return to your own job or a modified or new position, providing top-up income while you attempt a return to work.
• Any occupation period (after 24 months): You must be unable to perform any job for which you are reasonably suited by education, training, or experience. Your insurer may allow you to attempt new employment – particularly if you are not earnings wages close to the disability benefit being paid. This type of program rarely continues indefinitely and will only be offered to benefit recipients who are forthright about return to work efforts.
During the first two years, many policies allow:
This is because the own occupation definition in most disability insurance policies defines disability as the inability to perform the essential duties of the job held before the onset of disability. As long as you cannot perform the essential duties of your original job, you may still qualify for LTD.
In a policy with a shifting definition of disability, after the initial period often 24 months), the test becomes stricter. If you can perform any suitable job—even part‑time—your insurer may argue that you no longer meet the definition of disability. This is due to a change in occupation coverage: most long-term disability policies shift from ‘Own Occupation’ to ‘Any Occupation’ coverage after a set period. Under Any Occupation policies, you only receive benefits if you are unable to work in any job which will provide you with commensurate income, not just your previous one.
Most LTD policies reduce your benefits if you earn income while on claim. For example:
If you work while on LTD and do not disclose it, the insurer may:
Even volunteer work can raise red flags if it contradicts your reported limitations.
CPP‑Disability has its own rules. To qualify, you must have a disability that is:
If you are receiving CPP-D, you are permitted to earn income as long as you disclose it. There is a threshold income level which you can earn without having any impact on your entitlement to CPP-D benefits. For 2026, the income threshold for CPP-D is $7,400 before tax. Earning above $20,153 may suggest capability for regular work and will trigger a re-evaluation of entitlement to benefits. You must report all income earnings to Service Canada to ensure compliance with CPP-D rules.
CPP‑D offers a “work trial” or “return‑to‑work” program that lets you attempt working without immediately losing benefits. If the attempt fails due to your disability, your benefits can continue.
ODSP has some of the most flexible rules for working while disabled.
If you are a person with a disability, you can earn up to $1,000 a month through employment without it affecting your ODSP income support, benefits, or eligibility. The first $1,000 per month in pay is exempt income under ODSP, and 25% of any net earnings after the first $1,000 is also exempt. A non-disabled spouse or children 18 years of age or older who are not attending high school or postsecondary school full-time can receive up to $200 a month in net earnings with no reduction in your income support. ODSP recipients can also receive a Work-Related Benefit of up to $100 for each family member when they earn money from work. These rules apply whether your income comes from wages, self-employment, or other types of pay.
You can work and still receive ODSP income support. In fact, ODSP encourages employment by allowing you to keep a portion of your earnings.
However, you must report all income, and ODSP may adjust your monthly support accordingly.
This is where many people get into trouble. Insurers and government programs consider the following as “work”:
Even if you don’t earn money or wages from these activities, insurers or programs may still interpret the activity itself as evidence of work capacity. Disclosure of these activities in advance is far less likely to attract negative attention or suspicion from your insurer.
Rehabilitation and training programs are valuable resources for individuals on disability benefits who want to return to work or start their own business. These programs can include vocational rehabilitation training, job placement services, and support for developing new skills or adapting to different types of work. Many long term disability policies offer rehabilitation incentives, such as a top of your regular disability income, to encourage participation in these programs.
Participating in rehabilitation and training can help you gradually re-enter the workforce, explore new employment options, or launch your own business. These supports are designed to match your abilities and medical needs, making the transition back to work safer and more sustainable.
A disability insurance lawyer can help you understand your rights and options regarding rehabilitation and training. They can also assist in communicating with your insurance company. If you’re considering returning to work or starting a new job, exploring these programs can be an important step toward regaining your independence and financial stability while maintaining your eligibility for long term disability benefits.
If you’re considering working while on disability, here’s how to protect yourself. Many people want to try working to earn extra income while on disabil but it’s important to understand the rules to avoid risking your benefits.
Your doctor must support any return‑to‑work attempt. It is important to determine if you are being realistic about your recovery and restrictions and to seek their professional advice about whether you are ready to try to work.
In any letter which supports your return to work efforts, your physician should detail:
Never start working without disclosing your intentions to your insurer. This is a wise time to seek advice from a legal professional to determine what information you need to provide which might include:
You will likely need to provide proof of your earnings and hours worked on a regular basis to your insurer or program administrator.
Keep a calendar or diary which documents:
This information will provide important evidence of your effort to return to work and the reasons why it was unsuccessful or could not progress to full time or increased responsibility and income.
Working may:
Trying to return to work is important to your mental health and financial security. It is scary to take steps which might impact your benefit entitlement and seeking professional help from a lawyer is a good choice.
A failed return‑to‑work attempt is common and not a sign of weakness. An Ontario judge famously once said that a failed return to work attempt is the best evidence of disability. If your symptoms worsen or you cannot sustain the work:
Disability insurers and programs recognize that attempts can fail. In many cases, benefits can continue or be reinstated.
Insurers often discover undisclosed work through:
Undisclosed work can lead to termination of benefits.
Even a few hours per week in a part time job or time job can jeopardize eligibility depending on the benefit. Some disability insurance policies have language that says that if you work in any capacity, you no longer satisfy the definition of disability. (This provision is unrealistic and prior disclosure that you wish to attempt part-time work will likely result in the insurer waiving reliance on the provision.)
Your doctor—not your employer—determines your fitness for work.
Every LTD policy is different. Small wording differences in your long term disability policy can have major consequences.
You should speak with a disability lawyer if:
A lawyer can help you navigate the rules, protect your benefits, and communicate with your insurer or employer. Many disability lawyers offer a free consultation to help you understand your options and next steps.
Working while on disability is possible in many situations—but it must be done carefully, transparently, and with medical support. The key is understanding the rules of your specific benefit, documenting everything, and avoiding assumptions that could put your financial security at risk.
If you’re considering working while on disability, or if you’re facing pressure to return before you’re ready, getting clear legal guidance can help you avoid receiving a precipitous termination of disability benefits as a result of an undisclosed attempt to return to work.
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