Short-Term Disability Policy
Purpose
To provide eligible employees with salary replacement for a non-work-related short-term illness or injury.
Eligibility
Regular employees who work a minimum scheduled number of hours annually (for example, approximately 1,000 hours/year, roughly half-time or more) are generally eligible; the company may designate other employee groups as eligible as well.
How it works
Short-Term Disability (STD) provides salary replacement for up to a defined maximum period (commonly up to 26 weeks) for an authorized non-work-related illness or injury, at full or partial (for example, two-thirds) base pay depending on the stage of the claim and years of service. A typical schedule ties full-pay weeks to tenure — for example:
| Years of service | Weeks at full pay |
|---|---|
| Under 2 years | 2 weeks |
| 2–3 years | 4 weeks |
| 3+ years | 4 weeks, plus 1 additional week per year of service over 2 years |
Amounts paid are typically reduced by benefits received from other disability-related sources (for example, other employer or governmental disability funds/insurance) to avoid duplicate replacement of income.
STD covers non-work-related illness or injury only. A work-related injury or illness is handled under the company's Workers' Compensation policy instead.
Claim requirements
- The employee must be certified as disabled by a treating physician and submit required documentation.
- A statement from the attending physician is generally required for any absence beyond a short initial period (for example, 5 days), completed by the treating physician and submitted promptly (for example, within 10 business days of the disability's onset).
- Absences of a few days or less may, at the manager's discretion, be handled as regular paid time rather than triggering STD; longer absences convert the entire absence (including the initial days) to STD.
Medical management
The company may require an independent medical examination to verify the nature, severity, and expected duration of a disability, and will monitor active claims to support as prompt a return to work as is medically appropriate.
Return to work
Before returning, the employee must obtain a return-to-work authorization from the treating physician and submit it to HR (or the local health/benefits contact) to obtain clearance.
Successive/recurring absences
A period of disability generally ends once the employee returns to work. If the employee is out again for the same or a related condition within a short window after returning (for example, 30 calendar days), that absence is typically treated as a continuation of the same disability period rather than a new one. A new period begins once the employee has worked at least a full day and is later out for an unrelated reason.
Grounds for terminating STD payments
Benefits may be discontinued if the employee does not follow the prescribed treatment plan, fails to submit required documentation on time, or fails to maintain reasonable periodic contact with their manager during the leave.
Exclusions
STD generally does not cover: disability arising from employment with another employer; periods when the employee is not under a physician's care; periods for which required proof of disability isn't provided; or intentionally self-inflicted injury.
Responsibilities
| Role | Responsibility |
|---|---|
| Human Resources / Benefits | Administers the plan; provides case management and consultation. |
| Manager | Understands and consistently applies STD guidelines; maintains contact with the employee during leave. |
| Employee | Provides required certification and documentation; maintains contact with their manager; obtains return-to-work clearance. |
General information, not legal advice. Treat this as a drafting starting point, not a finished policy — employment law varies by jurisdiction and changes often, so have a licensed attorney tailor it to your situation before you rely on it.
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