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Work-Sharing Program │ Employment and Social Development Canada (ESDC)

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Value

Varies.

Description

The Work-Sharing Program helps employers and employees avoid layoffs when:

  • there is a temporary decrease in the normal level of business activity, and
  • the decrease is beyond the control of the employer

The agreement provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers. All employees participating in the agreement must experience a minimum 10% reduction to their normal weekly earnings.

Eligible Applicants

To be eligible for a Work-Sharing agreement, your business or organization must:

  • be a year-round business operating in Canada for at least 2 years
  • be a private business, a publicly held company or a certain type of non-for-profit
  • have experienced a decrease in business activities of at least 10% in the last 6 months in order to establish the need for the Work-Sharing program
  • must implement recovery measures designed to return the work unit to normal staffing levels and hours of work by the end of the Work-Sharing agreement
  • have at least 2 eligible employees in the Work-Sharing unit that must share the available work equally

Eligible employees:
To be eligible for Work-Sharing Employment Benefits, your employees must:

  • be year-round, permanent, full-time or part-time employees needed to carry out the day-to-day functions of the business (your “core staff”)
  • be eligible to receive Employment Insurance benefits*, and
    agree to reduce their normal working hours by the same percentage and to share the available work equitably

Eligible Expenses

  • Work-Sharing agreements starting after September 25, 2022 must have a minimum duration of 6 weeks and can last up to 26 weeks. If needed, an extension may be requested of up to 12 weeks bringing the initial agreement to a maximum total of 38 weeks.
  • The Work-Sharing Program may introduce temporary special measures at any time to provide additional support for affected businesses during a period of economic downturn, natural disaster or if a national emergency is declared. The special measures provide targeted support for businesses impacted to recover and avoid layoffs for a specific period of time.

Deadline Date

The Work-Sharing Program accepts applications on a continuous basis, allowing employers to apply as needed to avoid layoffs during temporary business downturns. Special measures related to tariffs, which offer additional flexibilities, have been extended and are now in effect until March 31, 2027. Employers should note that Work-Sharing agreements can only start on a Sunday and applications should be submitted a minimum of 10 business days before the requested start date. Visit the official Canada.ca website for detailed eligibility criteria and application procedures.

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