Can You Work While on Long-Term Disability in Ontario?

If you’re receiving long-term disability (LTD) benefits in Ontario, you may be wondering whether you’re allowed to work at all — even part-time — without risking your benefits.

This is one of the most misunderstood parts of disability insurance, and it’s also where insurance companies often cut people off unfairly.

The short answer: sometimes you can work while on LTD — but it depends on your policy, your medical restrictions, and how the insurer interprets your activities.

Here’s what Ontario claimants need to know.

Can You Work While Receiving LTD Benefits in Ontario?

Yes — in some cases.
But working while on LTD is not automatically safe, and it can create serious risks if handled incorrectly.

Most LTD policies allow:

• Modified work
• Part-time or trial work
• Gradual return-to-work programs

However, insurers closely monitor how much you work, what kind of work you do, and whether it appears inconsistent with your disability claim.

Why Insurance Companies Scrutinize Work So Closely

Insurers often assume:

• If you can work at all, you may not be “totally disabled”
• Any income suggests an ability to earn elsewhere
• Attempts to work undermine medical evidence

This is especially dangerous when insurers apply a narrow or aggressive interpretation of total disability, which has a specific legal meaning under Ontario law.

Does Part-Time Work Automatically End LTD Benefits?

No.
Working part-time does not automatically disqualify you from LTD benefits in Ontario.

That said, insurers may:

• Reduce benefits due to income offset
• Argue you can work more hours
• Claim you qualify under an “any occupation” standard

This is especially common after the 24-month mark, when many policies shift from own occupation to any occupation.

What Counts as “Work” While on LTD?

Insurers don’t just look at formal employment. They may consider:

• Freelance or contract work
• Self-employment
• Volunteer work
• Running a small business
• Helping family or friends regularly

Even unpaid activities can be used to argue that you’re capable of competitive employment — particularly if the work appears consistent, structured, or demanding.

Can a Gradual Return to Work Be Used Against You?

Yes — and this happens often.

Many people attempt a good-faith return to work based on medical advice, only to have insurers later argue:

• “You were able to work, so you’re no longer disabled
• “Your condition improved”
• “You qualify for another occupation”

If the return to work fails, insurers may still rely on that attempt to justify cutting off benefits.

This is a common pathway to LTD benefit termination, even when the medical condition hasn’t improved.

What About Sedentary or Desk Jobs?

Insurers often argue that claimants can perform sedentary work, even when real-world limitations make that unrealistic.

In Ontario, courts have confirmed that:

• A job must exist in the real labour market
• It must align with your skills, education, and experience
• You must be able to perform it reliably and consistently

Simply being capable of short tasks or limited activity does not mean you can maintain full-time employment.

Can Working Trigger Surveillance or Reviews?

Yes.

Once you disclose work activity — or if insurers suspect it — they may:

• Conduct surveillance
• Request updated medical reports
• Demand functional capacity evaluations
• Review social media activity

Should You Talk to a Lawyer Before Working While on LTD?

In many cases, yes.

Before starting or continuing work while on LTD, it’s important to understand:

• How your policy defines disability
• Whether income offsets apply
• How the insurer may interpret your activity
• The risk of a future denial or cutoff

This is especially true if your benefits have already been questioned, reduced, or terminated.

In many LTD disputes, the issue isn’t whether you’re medically disabled — it’s how the insurance company applies the policy language.

A disability lawyer can help by:

• Reviewing the exact wording of your LTD policy
• Identifying how work activity may be used against your claim
• Challenging unfair insurer interpretations
• Helping prevent benefit reductions or terminations before they happen

Key Takeaway for Ontario LTD Claimants

Trying to work while on long-term disability does not automatically disqualify you — but it can create serious legal and financial risks if done without proper guidance.

Understanding how insurers assess work activity and policy definitions is critical to protecting your benefits.