Disability management is a crucial aspect of HR in nonprofits, and it isn’t just about paperwork and policies. It’s about supporting employees during challenging times. In nonprofits, where compassion and community are core values, effective disability management is essential. Let’s explore how to handle disability claims with empathy, efficiency, and compliance.
Before we dive in, here’s a set of free HR resources to streamline your processes:
- Protected Leaves Policy
- Medical Consent Form
- Functional Abilities Form
- Employee Benefits Policy
- Continuation of Benefits Coverage Letter
- Group Benefits Policy
- Webinar Recording: Managing Sick Leaves and the Importance of Medical Documentation
- Webinar Recording: Disability Management and Claims Handling
Why disability management matters
Whether it’s a sudden injury, a chronic illness, or something unforeseen, when an employee has to go off work, you need to act quickly and efficiently. Having a system ready to go the moment someone signals they’re going on leave can save you a lot of stress down the road. It’s not just about paperwork and protocols—it’s about ensuring your employee feels supported and cared for, which is key to fostering loyalty and trust in your organization.
And let’s face it, nonprofits operate with tight budgets and small teams, so making sure your employees return to work as soon as they’re able is just as important for your organization as it is for them.
Key steps in effective disability management
1. Be Ready from the Start:
As soon as an employee indicates they need to take time off, be prepared. Have a system in place where you can quickly review their situation—whether it’s medical leave, a protected leave under law, or a claim for workers’ compensation. This not only ensures a smoother process but reassures your employee that their absence is being managed with care.
2. Get the Right Medical Info:
It’s essential to have appropriate medical documentation at the start of the leave and throughout the process. Stay in regular contact with your employee—reach out within 24 hours of their leave and keep in touch with updates. This ongoing communication shows your employee they’re not forgotten and helps you stay on top of their status.
3. Know the Path for Each Type of Leave:
Is it a short-term disability (STD) claim? Long-term disability (LTD)? Are they eligible for Employment Insurance (EI)? These distinctions matter. Figuring out the right leave type helps you handle claims efficiently and lets you guide your employee through their options. You’ll want to reassure them while keeping your processes organized.
4. Centralize Your System:
One of the best ways to avoid confusion is to have a single point of contact for all disability claims, be it STD, LTD, or workers’ compensation. Having one office or person handle everything ensures consistency and prevents errors. Plus, it makes the whole process easier for employees—they know exactly who to reach out to for updates and support.
5. Plan for Their Return to Work:
When employees are ready to return, you’ll want to make sure you have a well-thought-out return-to-work (RTW) plan in place. This may include accommodations or modified duties depending on their situation. The goal is to get them back into the workplace safely and as quickly as possible, which benefits everyone.
6. Keep Up with Regular Reviews:
Don’t just leave cases sitting idle—check in monthly with both your employees and insurers to make sure everything’s on track. Proactive management keeps claims moving forward, prevents delays, and shows employees that their well-being is a priority for your organization.
Read our previous article here for a deeper understanding of leaves of absence and accommodations.
Communication is key
Let’s talk about timing and communication—because they’re everything. You’ll want to get the necessary medical documents right away and keep communication consistent throughout. Employees appreciate knowing their situation is being handled, and this level of care shows your entire workforce that your nonprofit truly supports its people during tough times.
Cooperation is essential
Employees have a legal obligation to cooperate with the disability management process—whether it’s providing medical documentation or working with you on return-to-work plans. But nonprofits have a responsibility too, to be diligent and reasonable in their approach. It’s all about working together to ensure the best possible outcome.
Returning to work: The sooner, the better
The longer an employee is away from work, the harder it becomes for them to return. Getting them back safely, but as soon as they’re able, reduces the costs of the claim and helps the employee feel connected to the workplace. This is the essence of effective disability management—keeping things moving forward while showing you care about their recovery.
Medical documentation: What you need to know
As an employer, you have the right to ask for “appropriate and satisfactory” medical documentation. ‘Appropriate and satisfactory’ means you are entitled to capabilities, restrictions, and a prognosis (not a diagnosis). Based on this information, you can determine whether an employee requires to be off work, can be at work with accommodation, and if you are able to provide said accommodation.
A simple note that says, “off work for medical reasons” isn’t enough. You’re entitled to know what their capabilities are, any restrictions, and the prognosis (not the diagnosis) so you can make informed decisions about accommodations or extended leave. When an employee tells you they have an illness (even if they are not going off work), they tell you they will be off work for any length of time, or they are off work for some time (generally more than 1 week), you need to require them to have their doctor complete a non-occupational functional abilities form (FAF).
It’s important to work closely with doctors and insurance companies—they are your allies, but also remember that you’re the one managing the process. Don’t accept a self-diagnosis from an employee, especially in cases of cognitive illness. Always verify claims with proper documentation to ensure the process is fair and transparent for everyone involved.
Wrapping it up
Managing disability and claims can be challenging for nonprofits, but with the right system, clear communication, and a compassionate approach, it doesn’t have to be overwhelming. At the heart of it, disability management is an opportunity to show your employees that your nonprofit stands by them during their most vulnerable times.
By staying proactive and organized, you can keep the claims process smooth while focusing on your mission—serving your community.
About HR Covered: At HR Covered, we have a deep understanding of the critical organizational needs and processes specific to Canadian nonprofits. We provide a plethora of services including HR Compliance, Legislative Training, HR Documentation, Health & Safety Compliance, HR Legal, HR Consulting and Outsourcing. For more info visit our website: www.hrcovered.com or call us at +1 866-606-0149.