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Unlocking Partnership Success: Managing EI Disability Plans

When it comes to relying on Employment Insurance disability plans, employers should consider partnering with a professional absence management provider to keep absences on track.  This will help relay active information about prognosis and return to work potential but also contain or even save on Long Term Disability (LTD) premiums!

According to Government of Canada data, at the end of February 2025, 1.1 million Canadians were accessing Employment Insurance (EI) benefits.  Part of EI protects employees that cannot continue to work due to sickness or injury.  EI is available to an employee where an employer doesn’t include short-term disability benefits as part of the overall group health benefits package.

For employers, EI is part of the premiums already paid.  There is a premium reduction plan (PRP), but the savings may not be significant enough to outweigh the cost of private short-term disability coverage.  For employers, the choice involves weighing various factors, including cost, control over claims, administrative burden, and the level of support provided to employees.  However, EI should not be considered an “actively” managed absence management program and may leave an employer with gaps in understanding absence duration and return to work potential.  In the world of data as currency, there is a lot of value in active management of employee absences.

Consider leveraging an external partner like Bridges Health to help manage, monitor and navigate the return-to-work challenges.  Even with an EI program, employers have a choice to involve an external provider, and the cost savings could be significant.

Bridges Health has proudly been involved in this very situation for 18 months.  During this time, working directly with a strong HR team, we actively managed absences for a service-based organization that relied on EI to provide their employees income support.  For their part, involving a third party helped manage the appropriateness of accommodation requests, navigate return to work and benefit from an overall decrease in the number of absences.  Active management has led to a greater than 20% savings in LTD premiums. 

Employment insurance plays a pivotal role in supporting Canadians facing health challenges.  However, EI plans can leave employers at a disadvantage navigating the employer/employee relationship during periods of absence lasting up to 6 months.  Working with an absence and disability provider equipped with the latest case management software, rehabilitation capabilities, mental health services and return to work expertise is an important consideration that could benefit organizations.

By Eric Egan, B. Sc. (Kin)

Vice President, Bridges Health