Short-term disability (STD)

Short-term disability is an optional employer plan that replaces part of an employee's pay for a limited time when illness or injury keeps them off work.

Also called: STD, weekly indemnity, short-term disability insurance, wage-loss replacement

What short-term disability (STD) means

Short-term disability (STD) is a benefit that pays an employee part of their usual income when they cannot work for a period because of an illness or injury that did not happen at work. It is usually part of a group benefits plan bought from an insurer, though some employers pay it directly from their own funds.

No employment standards law requires you to offer STD. It sits between the short sick leave the law gives (a few days, sometimes paid) and long-term disability, which covers longer absences. If you do not have an STD plan, an employee who is off sick for weeks may rely on federal EI sickness benefits instead.

STD replaces income. It does not protect the job. Job protection comes from employment standards and human rights law, so an employee on STD may also be on a statutory sick leave at the same time.

How it works

Most insured STD plans have a waiting period of a few days before payments start, pay a set percentage of weekly earnings up to a maximum, and last for a set number of weeks. The details are in your policy contract. Read it and give employees a plain summary when they join the plan.

When an employee goes off sick, they apply to the insurer, which asks for medical information directly from the employee and their doctor. You usually fill in an employer statement with job details, earnings and the last day worked. You do not need the diagnosis, and you should not ask for it; the insurer decides eligibility.

Check how the plan works with EI. If your plan pays first and EI may pay afterwards, tell employees so they can apply on time. If you pay STD yourself through payroll, remember the Record of Employment is completed after employer-paid sick payments end.

Line up STD with the job-protected leave in your province. In Ontario, British Columbia and Saskatchewan, a serious illness can give up to 27 weeks of unpaid, job-protected leave; in Manitoba up to 17 weeks. Keep the job open while the employee is on protected leave, and plan the return together.

Common mistakes: promising benefits that are not in the policy, delaying the employer statement, and contacting the employee's doctor yourself.

Is it the same in every province?

STD is a private benefit, not a legal requirement, so the idea is the same everywhere. Job-protected sick leave differs by province: Ontario, British Columbia and Saskatchewan give up to 27 weeks for a serious illness, Manitoba 17 weeks, and Quebec up to 26 weeks over 12 months.

Example: A broken leg at a Halifax insurance brokerage

Sophie runs a 12-person brokerage in Halifax with a group benefits plan that includes STD. Her customer service rep Ali breaks his leg skiing and will be off for about 8 weeks.

Sophie sends Ali the insurer's claim form and completes the employer statement the same day: job title, hours, earnings and last day worked. The insurer handles the medical side. Sophie records the absence as sick leave, puts a check-in date in her calendar for week 6, and starts thinking about a gradual return plan.

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Questions about short-term disability (STD)

Do I have to offer short-term disability?

No. STD is an optional benefit. Employment standards laws set sick leave rules, but none require an STD plan.

Is an employee's job protected while they are on STD?

STD itself does not protect the job. Job protection comes from your province's sick leave rules and from human rights law.

Can I ask an employee on STD for their diagnosis?

Generally you do not need it. The insurer assesses the medical information. You need to know the expected length of absence and any limits on duties when they return.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.