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I was on leave from work due to illness. My doctor told me I could handle light work. Will my injury and sickness allowance be cancelled if I do this work?

The inability to work that is a precondition for receiving injury and sickness allowance refers to the inability to do the job you were doing previously. In your case, while you can now perform light work, you are still unable to do the job you were doing before. However, if you do perform light work and receive pay from your employer, then since you are receiving income your injury and sickness allowance will be cancelled.