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Short-Term Disability Policy Template

This template provides a basic structure for your short-term disability policy.

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Short-Term Disability Policy Template

This template provides a basic structure for your short-term disability policy.


This policy outlines when and how you can take paid time off - beyond just your allotted sick leave — to focus on your health. Without worrying about paying your bills or the security of your job.

[Company name] recognizes all legal guidelines in effect in our area. Meaning, this policy works in addition to those local laws.

This benefit is offered to [all full-time and part-time employees] who are temporarily disabled and are eligible for short-term disability insurance.

What is Short-term Disability?

We define short-term disabilities as any temporary illnesses, injuries, or conditions (physical or mental) that impairs your ability to do your job.

Why a Short-Term Disability Policy?

Sometimes you get hurt way worse than just stubbing a toe. And it can make doing your job difficult — if not impossible — to do. We really hope this never happens to you. But if it does, we want to make sure that your employment at [company name] doesn't stop you from focusing on your health.

Our Short-Term Disability Policy

[Company name] provides paid leave for any individuals unable to perform their job for a short time due to medical-related reasons. If eligible, we will give some benefits to ensure that employees can fully focus on their health.

You can only be considered temporarily disabled if:

  • Are actively being treated for the condition, illness, or injury.
  • Expect to make a full recovery.
  • Need continuous medical attention for a short time.

However, minor injuries that can be accommodated by special arrangements (such as working from home or flexible hours) are not considered short-term disabilities. Neither are pre-existing conditions or caring for a sick family member.

Similarly, job-related injuries do not fall under short-term disability because it is covered by a different set of local laws. If you are injured on the job and need to take paid leave to recover, please contact [HR].

What’s Covered by Short-term Disability?

[Our company] covers the cost for Short Term Disability Insurance for up to [3 months].

However, there are a few things you need to know:

  • You need to have been with [company name] for at least [90 days] to qualify.
  • We have a [7-day] elimination period.
  • You will be compensated at [60% of your salary] that is [paid weekly] up to [$1,500 per week].
  • You get 12 weeks of paid short-term disability leave (after 12 weeks, long-term disability will kick-in).

Meaning, you will need to take [5 consecutive business days] of paid sick leave before short-term disability can take effect (that's the elimination period). If you have previously exhausted your sick leave, you will need to take [5 business days] of unused vacation paid time off to supplement your sick leave. This will be considered on a case by case basis.

While you are out on short term disability, our communication best practice will be a weekly check-in (call or email) to evaluate your approximate return to work or to work out the next steps.

If you are ever unsure if you are covered or what qualifies, feel free to ask [HR]!

How to Apply for Short-Term Disability Benefits

If you think you may need to take an extended period off for an illness or injury, please contact [HR] as soon as possible. And they will walk you through the process of applying for short-term disability and help you through the transition.

Please note that a doctor’s appointment might be required to get the necessary documentation for insurance.

Questions? Comments? Concerns?

Have a question about this policy? Reach out to [HR contact].

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