Can You Still Claim if You're Working Part-Time?
You've been injured or diagnosed with a serious medical condition—but you're not completely bedridden. Maybe you can work part-time hours, from home, or in a reduced-capacity role. The question many Albertans ask is:
"Can I still qualify for disability benefits if I'm working part-time?"
The short answer is yes—in many cases, you can still receive disability benefits while working limited hours. But the answer depends on the type of work you're doing, the hours, the pay, and how your insurer defines "total disability."
As Alberta disability lawyers who once defended insurance companies, we've seen both sides of these claims. This article explains when part-time work is allowed under disability policies, how insurers use part-time work against claimants, and what you can do to protect your benefits.
This guide covers:
What Counts as a Disability Claim in Alberta?
Disability insurance replaces your income when a medical condition prevents you from working full-time. Alberta claimants typically have:
Types of Disability Insurance:
Can You Work Part-Time While on Disability Benefits?
In many Alberta disability policies, working part-time doesn't automatically disqualify you. However, it must be handled carefully.
During the "Own Occupation" Period
You may still receive benefits if: you can't perform the main duties of your full-time job; and your part-time role doesn't conflict with your medical restrictions or your previous position's core tasks. For example, if you were a heavy-equipment operator and now work 10 hours a week doing light administrative tasks, you likely still qualify.
During the "Any Occupation" Period
After two years, insurers apply a stricter test. You must prove that even with part-time work, you can't maintain any comparable, full-time employment. Part-time work at reduced pay may actually support your claim—it shows you're trying but still limited.
Partial Disability or Rehabilitation Provisions
Many policies have rehabilitation or partial disability clauses that allow claimants to work part-time while receiving partial benefits. This is meant to encourage gradual return to work. If your pre-disability income was $5,000/month, your LTD benefit is $3,000 (60%). If you now earn $1,000/month working part-time, your insurer may pay the difference to maintain your income near the 60% threshold.
When Part-Time Work Helps and Hurts Your Case
Understanding how part-time work affects your disability claim is crucial for protecting your benefits.
When Part-Time Work Helps Your Case
Insurers often accuse claimants of being unmotivated or 'non-compliant' if they don't attempt to return to work. Carefully documented part-time employment can show: you're following medical advice (many doctors recommend gradual return to work); you're demonstrating effort (insurers can't argue you're avoiding employment); you're testing your functional capacity (work limitations become clearer through actual experience); and you're establishing credibility (courts view honest, well-documented work attempts as proof you want to recover).
When Part-Time Work Hurts Your Case
Insurers may use even minimal part-time work to claim you're no longer 'totally disabled.' Common tactics include: reframing your role (they claim your part-time duties are equivalent to full-time capacity); cherry-picking medical notes (one optimistic line like 'patient improving' becomes justification for termination); ignoring pay differences (they focus on your ability to work, not the fact you earn much less); and assuming sustainability (they assume you can scale up to full-time, even if you can't). Working part-time without clear medical approval or legal guidance can give the insurer an excuse to terminate your claim.
How Insurers Monitor Part-Time Workers
Once you report employment, insurers often intensify monitoring.
Frequent Updates
Insurers may demand monthly earnings reports or progress updates.
Medical Re-Evaluations
They might send you for insurer-arranged "independent" exams.
Surveillance
Filming or photographing you at work to claim you are physically capable.
Vocational Reassessment
Insurers may argue that you could perform a different, full-time job.
Frequently Asked Questions
Conclusion
Working part-time doesn't automatically disqualify you from disability benefits—but it can create risk if not managed properly. Alberta insurers often use limited work as a reason to cut off benefits, even when it's part of your recovery.
Always get medical approval before starting part-time work.
Report income honestly and keep detailed records.
Make sure your duties match your medical restrictions.
Seek legal advice before or during a gradual return to work.
Still have questions? Contact us today for a free consultation.
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