Work-Sharing program
Canada
Support for businesses to avoid layoffs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJune 25, 2023
- grant_single|closingDateNovember 04, 2023
grant_single|financingType
Wage Subsidies And Interns
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Mining, quarrying, and oil and gas extraction
- Construction
- Manufacturing
grant_single|grantors
- Government of Canada
- Employment and Social Development Canada (ESDC)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
If your employees are eligible for Employment Insurance (EI) benefits, and your business is suffering a downturn, you can apply for a work-sharing agreement. The agreement would allow your employees to work a temporarily reduced work week while receiving
grant_single_labels|projects
The Work-Sharing Program supports projects and activities aimed at preventing layoffs during a temporary decrease in business activity beyond the employer's control. Eligible activities include implementing reduced work schedules and sharing available work among employees.
- Reduced schedule of work
- Sharing the available work equally among employees
- Submitting applications for Work-Sharing agreements
grant_single|admissibleProjectsExample
$52,000
Calgary
Running a work-sharing arrangement for the bakery staff to maintain jobs during seasonal downtime
$95,000
Toronto
Supporting theatre staff through a work-sharing agreement to cope with reduced ticket sales
$64,000
Vancouver
Implementing a work-sharing program for our IT department to avoid layoffs during a downturn
$64,000
Halifax
Setting up a work-sharing scheme for our restaurant staff to manage a decline in dine-in customers
$160,000
Hamilton
Introducing a work-sharing protocol for our manufacturing unit to counteract reduced orders
$35,000
Montreal
Facilitating a work-sharing scheme for our artists' cooperative during gallery closures
grant_single_labels|admissibility
The Work-Sharing Program provides income support to employees with reduced work weeks to avoid layoffs during temporary business downturns. Employers, employees, and unions must agree to participate, and agreements must meet specific duration and approval requirements.
- Employer and employees must agree to participate.
- A reduced schedule of work must be agreed upon.
- Share the available work equally over the term of the agreement.
- Employees must be eligible for Employment Insurance benefits.
- The agreement must have a minimum duration of 6 weeks and can last up to 26 weeks.
- Extensions may be requested up to 12 additional weeks, totaling a maximum of 38 weeks.
- An application for extension must be submitted a minimum of 10 business days prior to the end date of the agreement.
- Work-Sharing agreements can only start on a Sunday.
grant_eligibility_criteria|who_can_apply
The Work-Sharing Program is available to employers experiencing a temporary decrease in business activity beyond their control. It aims to provide income support to employees through a three-party agreement involving the employer, employees, and Service Canada.
- Businesses affected by a temporary decrease in the normal level of business activity
- Employers who need to implement a reduced work schedule temporarily
- Companies needing help to avoid layoffs
- Businesses recovering from an economic downturn, natural disaster, or national emergency
grant_eligibility_criteria|who_cannot_apply
Some types of companies may not be eligible for the Work-Sharing Program grant. Not eligible companies include:
- Companies not experiencing a temporary decrease in business activity beyond their control
- Companies unable to meet the minimum 10% reduction in normal weekly earnings for all employees
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include:
- Costs related to maintaining a reduced work schedule
- Income support for employees on a Work-Sharing agreement
- Administrative expenses associated with the program
grant_eligibility_criteria|zone
The eligible geographic zones for the Work-Sharing Program special measures specific to the 2023 Wildfires cover multiple regions across Canada. The special measures are effective from June 25, 2023, to November 4, 2023.
- Multiple regions across Canada
grant_single_labels|criteria
There are evaluation and selection criteria for the Work-Sharing Program grant:
- Demonstrated temporary decrease in business activity beyond the employer's control
- Minimum 10% reduction in normal weekly earnings for all participating employees
- Agreement signed by employer, employees, and Service Canada
- Agreed reduced work schedule and equal sharing of available work
- Application submitted with employer/employee/union representatives
grant_single_labels|register
- Step 1: Determine eligibility criteria and ensure that both the employer and employees meet the defined requirements.
- Step 2: Ensure all employees participating are in agreement with the reduced schedule of work and the sharing of available work equally.
- Step 3: The employer, along with employee and possibly union representatives, prepare to apply for the Work-Sharing agreement.
- Step 4: Submit application for Work-Sharing agreement, ensuring that the start date aligns with the Sunday Employment Insurance payment cycle.
- Step 5: If necessary, request an extension of up to 12 weeks by submitting the application a minimum of 10 business days prior to the end date of the initial agreement.
- Step 6: Serve the mandatory cooling-off period equal to the number of weeks utilized in the previous agreement (up to a maximum of 38 weeks) once the agreement ends or is terminated.
grant_single_labels|otherInfo
The Work-Sharing Program provides special measures during economic downturns and emergencies to support affected businesses and employees in Canada.
- The Work-Sharing Program can introduce temporary special measures to provide added support during periods of economic downturn, natural disasters, or national emergencies.
- Special measures for businesses affected by the 2023 Wildfires in Canada are effective from June 25, 2023, to November 4, 2023.
- Special measures for the COVID-19 pandemic were effective from March 15, 2020, to September 24, 2022, requiring a 26-week cooling-off period after the agreement ends.
- Support measures for the steel and aluminum sector were in place from August 19, 2018, to March 27, 2021.
- Support measures for the forestry sector were available from July 30, 2017, to March 28, 2020, and for Fort McMurray wildfires from May 4, 2016, to May 4, 2017.
- Special measures for the commodities sector were effective from April 1, 2016, to March 31, 2017.
grant_single_labels|contact
edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca
Apply to this program
Work-Sharing Program
The Work-Sharing Program in Canada is designed to help employers and employees avoid layoffs when there's a temporary downturn in business activity beyond the employer's control. The program offers income support to employees eligible for Employment Insurance while they work reduced hours during the employer's recovery period.
Comprehensive Guide to the Work-Sharing Program in Canada
The economic landscape is an ever-changing environment, and businesses often face temporary downturns that affect their normal levels of activity. The Canadian Work-Sharing Program is designed to mitigate these effects, providing substantial benefits to both employers and employees. By reducing the need for layoffs, the program not only secures jobs but also helps businesses stay afloat during times of volatility. This detailed guide will explore every aspect of this program, ensuring that Canadian businesses and employees can take full advantage of it when needed.
What is the Work-Sharing Program?
In essence, the Work-Sharing (WS) Program is a collaborative agreement between employers, employees, and Service Canada. Its primary aim is to help businesses avoid layoffs when there's a temporary reduction in the usual level of business activities due to circumstances beyond the employer's control. These circumstances could range from economic downturns to natural disasters, such as the 2023 wildfires in multiple regions across Canada.
The program allows employees eligible for Employment Insurance (EI) benefits to receive income support while working a temporarily reduced workweek. All employees under the WS agreement must experience at least a 10% reduction in their usual weekly earnings. In return, they agree to share the available work equally throughout the agreement's term.
Eligibility and Agreement Duration
To participate in a Work-Sharing agreement, the employer and the employees (including unions, if applicable) must mutually agree to reduced working hours. The employer's representative, employee representative, and union representative (if applicable) must then apply for participation in the WS agreement. Agreements starting after September 25, 2022, must have a minimum duration of six weeks and can last up to 26 weeks. If necessary, the employer can request an extension of up to 12 weeks, bringing the total possible duration to 38 weeks.
Once the agreement has ended, or if it is terminated early, a mandatory cooling-off period will be enforced. This period equals the number of weeks utilized in the previous agreement, up to a maximum of 38 weeks. It's essential to note that WS agreements can only start on a Sunday to align with the Employment Insurance payment cycle.
Application Process
The application process for the Work-Sharing Program involves several steps and requires detailed documentation to ensure eligibility. Here's an overview:
- Initial Consultation: Employers should first consult with Service Canada to discuss their eligibility and the specific requirements of their situation.
- Application Form: The employer must complete the "Application for a Work-Sharing Agreement" form, along with the "Attachment A – Employer Form" and "Attachment B – Employee Form."
- Submission: Submit the completed forms to the nearest Service Canada Centre. Ensure that the application is submitted at least 30 days before the requested start date of the WS agreement.
- Approval: Once the application is reviewed and approved, Service Canada will provide a detailed agreement outlining the terms and duration of the WS arrangement.
Special Measures
In times of widespread economic challenges, natural disasters, or national emergencies, the Work-Sharing Program can introduce temporary special measures to provide additional support to affected businesses. These special measures are designed to offer targeted aid, allowing businesses to recover and avoid layoffs during particularly difficult periods.
2023 Wildfire Special Measures
The 2023 wildfires across multiple regions in Canada necessitated the introduction of special measures to support affected businesses. Effective from June 25, 2023, to November 4, 2023, these special measures offer enhanced support to businesses grappling with the fallout from these natural disasters. For inquiries regarding these special measures, businesses can contact the Work-Sharing Employer Inquiry Unit at edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca.
Previous Special Measures
Throughout its history, the Work-Sharing Program has implemented several special measures to help businesses in various sectors during periods of economic downturn:
- COVID-19 Pandemic: From March 15, 2020, to September 24, 2022, special measures were introduced to support businesses affected by the pandemic-induced economic downturn. A mandatory 26-week cooling-off period is required before eligibility for a new agreement under the regular program.
- Steel and Aluminum Sector: Special measures were in effect from August 19, 2018, to March 27, 2021, to support businesses in these sectors.
- Forestry Sector: From July 30, 2017, to March 28, 2020, special measures helped businesses in the forestry sector navigate economic challenges.
- Commodities Sector: Special measures, in response to a downturn in the commodities sector, were in effect from April 1, 2016, to March 31, 2017.
Benefits of the Work-Sharing Program
The Work-Sharing Program offers numerous benefits to both employers and employees:
For Employers
- Avoid Layoffs: The program helps businesses retain their skilled workforce, avoiding the costs and disruptions associated with layoffs and subsequent rehiring processes.
- Maintain Operations: By reducing working hours instead of the workforce, businesses can continue operating at a reduced level without shutting down completely.
- Employee Morale: Maintaining employment relationships and providing financial stability to employees can significantly boost morale and loyalty.
For Employees
- Income Support: Employees receive Employment Insurance benefits to supplement their reduced income, ensuring financial stability during the agreement period.
- Job Security: Participation in the program offers better job security compared to layoffs, providing employees with continued employment and benefits.
- Skill Retention: Employees can maintain and enhance their skills while working reduced hours, making them valuable assets to the company when business picks up again.
Conclusion
The Work-Sharing Program in Canada is a beneficial initiative for both employers and employees facing temporary economic challenges. By providing an alternative to layoffs, this program helps businesses retain their skilled workforce, ensures financial stability for employees, and ultimately contributes to a more resilient economy. Whether faced with an economic downturn, natural disaster, or other uncontrollable circumstances, the Work-Sharing Program offers a lifeline to businesses, providing the support needed to navigate tough times and emerge stronger.
