When an employee goes on long-term disability, employers need to take necessary steps to support the employee, keeping compliance with the employee policy. This situation involves several criticalities, and HR managers must make important decisions depending on the situation. This article navigates you towards the possibilities and responses required to be taken when an employee goes on long-term disability.
Long-Term Disability
In long-term disability, individuals become completely disabled and cannot be recovered. This disability can occur either due to an illness or an accident that impedes a person’s ability to perform routine work or regular functioning, resulting in loss of income. Such disabilities include but may not be limited to loss of eyesight, hearing loss, loss of limbs or hands, paralysis, burn injuries, and more. When an employee goes on such a long-term disability, they are supported with long-term disability insurance.
Long-Term Disability Insurance
A long-term disability insurance plan is designed to support individuals suffering from a prolonged illness or an accidental injury that makes them incapable of earning. This disability insurance supports family when any of their members are unable to earn due to an irrecoverable health condition or complete disability. Let us see the coverage of this insurance policy-
- Permanent Total Disability
- Burns
- Fractures (depending on the limits defined in the policy)
- It covers prosthetics or any assistive devices
- Child Education Coverage
- Nursing Care
- Diagnostic Tests
- Repatriation of mortal remains
- Accidental Death
Eligibility for Claiming the Benefits
Employees are allowed to use long-term disability benefits when their short-term benefits and paid sick leaves are exhausted. In order to claim long-term disability benefits, employees must fulfill the eligibility criterion. Here are the eligibility requirements-
1) Completing the Period of Employment
You can only claim the benefits of the insurance if you have completed the required period of employment. Depending on the policy, the minimum employment period to qualify for the benefit is determined.
2) Qualifying Disability
Employees seeking benefits from long-term disability insurance must have a qualifying disability as defined by the policy. The general qualifying disability covers an injury or illness that takes away the ability of a policy member to earn for their livelihood. However, members who can work even a little cannot claim the benefits. Some plans often provide long-term benefits for partial disability, depending on the policy.
3) Extended Period of Disability
The disability of the member must last for an extended period. Employees with a fracture healed within 4 weeks would not be eligible for long-term disability benefits.
4) Completing the Elimination Period of the Insurance
Long-term disability insurance has an elimination period. Employees must complete this elimination period to receive the benefits. The elimination plan for this policy usually lasts from three to six months.
Can Employees’ Jobs be Protected if They are on Long-Term Disability?
Despite the benefits offered by the insurance, employees can also be sacked from their jobs as it doesn’t provide job security. However, they can claim job protection under other laws. This may include-
ADA or Americans with Disability Act
ADA is designed to protect employees from workplace discrimination due to disability. Under this law, employers must be provided with leaves if they are disabled. Employers having a minimum of 15 employees are eligible for ADA.
ERISA or Employee Retirement Income Security Act
This law protects employees having employer-sponsored health and disability plans. Under this legislation, employers cannot reciprocate against an employee because they have rights under ERISA.
State Leave Laws
Under state leave laws, employees with long-term disability are accorded additional job protections, such as family leave and medical leave. Employers must comply with this law and cannot fire any employee with a disability.
FMLA or Family and Medical Leave Act
The Family and Medical Leave Act allows employees to take 12 weeks’ unpaid job-protected leave due to any medical and family issue. This law applies to employers with 50 or more employees.
Rejoining
Rejoining-related complexities is the next issue that happens when an employee goes on long-term disability. This can be challenging for both employers and employees. Employees often cannot return to their old jobs after returning to work from a long-term disability. A phased return is often suggested for such employees to avoid challenges. Employers must be clear about their workplace policies while dealing with employees rejoining after long-term disability. The policy must specify the tenure they are going to hold the job for the employee and other return-to-work policies.
Dealing with employees while they go on long-term disability requires strategic planning and policy revival to ensure nothing goes wrong for both parties. So, these are the things that should be considered when an employee goes on long-term disability.
