How Ontario’s Long-Term Illness Leave Affects Your Disability & Group Insurance

September 22, 2025 | Posted by: Sharon Black

Ontario has introduced a new job-protected Long-Term Illness Leave that allows eligible employees to take up to 27 weeks off in a 52-week period if they cannot work due to a serious medical condition, effective June 19, 2025. This is a big step forward for workers across Ajax, Durham Region, and all of Ontario. However, the leave is unpaid, which is why your disability insurance, both group and individual, matters more than ever.

Below, I’ll explain how the leave works, how disability and group insurance fit in, where common protection gaps appear, and the practical steps you can take right now. If you want a personalized review, you can reach me anytime via contact or learn more about my Insurance Agent services.

What exactly is Long-Term Illness Leave in Ontario?

Eligible employees, those with at least 13 consecutive weeks of employment, can take up to 27 weeks of unpaid, job-protected leave in a 52-week period when they are unable to perform their job due to a serious medical condition. The weeks do not need to be consecutive, and leave can be taken intermittently if medically required. A qualified health practitioner must provide a medical note.

Is Long-Term Illness Leave the same as disability insurance?

No, the leave protects your job while you are away, but it does not replace your income. Disability insurance is what helps pay a portion of your income when illness or injury keeps you from working. That can be through your employer’s group plan or through an individual policy arranged with an insurance agent.

How do group disability plans typically work, and where are the common gaps?

Group disability benefits can be a strong foundation, but they often have limits, which is why many Ontarians add personal coverage too. Here are frequent gaps we see:

Benefit ceilings that do not fully replace income for higher earners or those with commissions and bonuses.
Definition changes after an initial period, for example, moving from “own occupation” to “any occupation.”
Taxable benefits when the employer pays the premium.
Coverage tied to your job, which can end if you change employers.
Waiting periods, exclusions, or limitations that leave an income gap early in your leave.

How does individual disability insurance fill those gaps?

An individual disability policy lets you tailor the waiting period, benefit period, coverage amount, and helpful riders, for example partial or residual disability. It stays with you if you change jobs and can complement your group plan to reach a more realistic income-replacement target. If you want to compare options, start here: Insurance Agent.

When would critical illness insurance make sense alongside disability coverage?

Critical illness insurance pays a one-time, tax-free lump sum if you are diagnosed with a covered condition, such as cancer or heart attack. It is not income replacement, but it can help with non-medical costs, out-of-pocket treatments, travel for care, or to bridge waiting periods before disability benefits start. Many families combine disability and critical illness for a more complete safety net in Ontario.

How do the leave and insurance benefits line up in real life?

Because the Long-Term Illness Leave is unpaid, your cash flow plan should account for:

Short-Term Disability kicking in first if available, then transitioning to Long-Term Disability.
Using an emergency fund or critical illness proceeds to cover any waiting period.
Coordinating medical notes for both ESA leave and insurer requirements.
Confirming how intermittent leave is handled by your insurer while you remain job-protected.

Who qualifies for Long-Term Illness Leave, and what documentation is needed?

Employees must have at least 13 consecutive weeks of service with the employer. A medical practitioner must certify that a serious medical condition prevents the employee from performing their job and indicate the expected duration. Employers may require a copy of the medical note, and any day taken in a week counts as a week toward the 27-week entitlement.

What steps should Ontario families and small businesses take now?

Here is a straightforward checklist to make sure your protection matches the new landscape in 2025:

Review your group disability booklet for benefit maximums, waiting periods, and definition changes.
Decide how much income you need to replace, including mortgage or rent, utilities, food, childcare, and debt payments.
Consider an individual disability policy to supplement your group plan and follow you between jobs.
Add critical illness coverage for lump-sum flexibility, especially if you have limited savings.
For business owners in Ajax and across Ontario, coordinate your personal coverage with your company’s key person or buy-sell planning.
Speak with a licensed insurance agent who knows Ontario rules and products, book a consultation and we will map out your options.

What related insurance topics should you explore next?

To go deeper on life and business coverage decisions, read these related posts on our site:

Where can you learn more about insurance options in Ontario?

Visit my Insurance Agent page to see the services I offer, including disability insurance, critical illness, long term care, and more. If you are in Ajax, Pickering, Whitby, Oshawa, or anywhere in Ontario, I can help you compare providers and tailor protection.

What are the most common questions people ask about disability and group insurance in Ontario?

How much income will disability insurance replace?

Most plans target a percentage of your gross income, often 60 to 70 percent, subject to plan maximums. Check your group booklet and consider an individual policy to increase your overall protection if needed.

How long is the waiting period before payments start?

Waiting periods vary, typically 14 to 90 days for short-term or long-term disability. Plan for this gap with savings or consider adding critical illness coverage for a lump sum during the waiting period.

Do I still qualify for benefits if I work part-time during recovery?

Some policies allow partial or residual disability benefits if your income drops due to reduced hours, subject to the policy’s rules. Ask your insurer or advisor to confirm how partial claims are handled.

Is coverage from work portable if I change jobs?

Group disability is usually tied to your employer, it may end when you leave. An individual disability policy stays with you regardless of job changes and can help avoid coverage gaps.

Does the new Long-Term Illness Leave provide pay?

No, the leave is job-protected but unpaid unless your employer offers paid benefits. This is why coordinating group and individual disability coverage matters for Ontario workers.

Next step, encourage readers to book a consultation or contact me: if you want a simple, no-pressure coverage review for your family or business, book a consultation or contact me and I will walk you through clear options that fit your budget.

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