How much funding can be received?

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

This program does not specify particular geographical areas for eligibility, instead it offers nationwide support to businesses affected by specific downturns or crises as outlined by the program's special measures. Eligible areas are defined by the impact of these events on businesses across Canada.

Nationwide support during economic downturns, natural disasters, or national emergencies as declared by the Canadian government.
Specific regions across Canada affected by the 2023 Wildfires.
Areas impacted during past downturns in specific sectors such as steel, aluminum, forestry, and commodities.

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

To be eligible for the Work-Sharing Program, the following criteria must be met by the company:

The business must be experiencing a temporary decline in the usual level of business activity that is beyond the employer's control.
All employees participating in the agreement must be eligible for Employment Insurance benefits.
The employer must agree to a work-sharing agreement where employees work a reduced work week.
There must be a collective agreement between the employer, employees and, if applicable, the union.
The reduction in work hours must be at least 10% of the employee's normal weekly earnings.

grant_eligibility_criteria|who_can_apply

Employers who are experiencing a temporary reduction in business activity beyond their control and are aiming to avoid layoffs by implementing reduced work schedules for their employees. Both employers and employees (and the union, if applicable) must agree to participate in the program. Employees must be eligible for Employment Insurance benefits and agree to a reduced work schedule that results in at least a 10% reduction in their normal weekly earnings. Special measures may apply to specific sectors or circumstances, such as natural disasters or economic downturns.

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

This grant facilitates the maintenance of employment during temporary business declines beyond employers' control. Eligible activities under this program ensure equitable sharing of available work and support income stability for employees.

Implementing reduced work schedules for employees to prevent layoffs.
Engaging in Work-Sharing agreements involving employers, employees, unions (if applicable), and Service Canada.
Applying for extensions when necessary to continue Work-Sharing agreements.
Utilizing special measures during defined periods to address impacts from events like wildfires or economic downturns.

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

Here are the steps to submit an application for the Work-Sharing Program:

Step 1: Determine Eligibility
- Verify that your business and employees meet the eligibility criteria for the Work-Sharing Program.
- Ensure that there is a temporary decrease in business activity beyond your control.
Step 2: Consultation with Employees
- Discuss the intention to enter a Work-Sharing agreement with employees.
- Obtain agreement from all parties involved, including the union, if applicable.
Step 3: Prepare Application
- Complete the Work-Sharing application package, available on the Service Canada website.
- Gather necessary documents such as business activity reports and employee lists.
Step 4: Submit Application
- Email the completed application package to the appropriate regional Work-Sharing Unit.
- Ensure submission is done well in advance to meet the minimum 10 business days processing time before the agreement start date.
Step 5: Notification and Agreement Execution
- Wait for confirmation from Service Canada about the approval of the Work-Sharing agreement.
- Sign the agreement with Service Canada, employees, and union representatives, if applicable.
Step 6: Implementation
- Begin the reduced work schedule as outlined in the agreement.
- Ensure equitable work distribution among employees.
Step 7: Monitoring and Reporting
- Regularly update Service Canada on the business’s recovery progress and any changes to the agreement.

grant_single_labels|otherInfo

Here are additional relevant details for this grant:

Agreements can only start on Sundays to align with the Employment Insurance payment cycle, which should be considered when planning the agreement start date.
A mandatory cooling-off period equal to the number of weeks used in the previous agreement must be served once the agreement ends, up to a maximum of 38 weeks.
To extend a Work-Sharing agreement, an application must be submitted at least 10 business days before the end date of the current agreement.
Work-Sharing agreements starting after September 25, 2022, have a minimum duration of 6 weeks, and can last up to 26 weeks, with a possible extension of up to 12 weeks.
Special measures may be introduced during economic downturns, natural disasters, or national emergencies to provide additional support.
Employers may contact the Work-Sharing Employer Inquiry Unit for questions regarding the 2023 Wildfire Special Measures.

grant_single_labels|contact

edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca

Apply to this program

A Vital Economic Support Through the Work-Sharing Program

The Work-Sharing Program is designed to provide crucial support to businesses and employees during periods of reduced business activity, mitigating the risk of layoffs by enabling a collective approach to managing temporary work reductions. This initiative is an invaluable tool for maintaining employment stability while allowing businesses the necessary time to recover.

In-Depth Insights into the Work-Sharing Program and Its Impact on Employment Stability

The Work-Sharing Program is a strategic response developed by the Canadian government to counteract the adverse effects of unforeseen business downturns. This initiative is particularly invaluable during economic declines or natural disasters, circumstances beyond the control of employers that affect normal business operations. The program's main benefit is its ability to provide employment insurance benefits to employees working reduced hours, thereby maintaining income stability while aiding businesses in recovery.

Work-Sharing operates through a unique tripartite agreement involving employees, employers, and Service Canada. Employers experiencing a downturn must coordinate with their employees — and a union if present — to agree to share the available work hours among all participants. The program mandates a minimum of a 10% reduction in regular weekly earnings for participants, effectively distributing employment and financial burden to ensure shared responsibility and support.

Agreements under the Work-Sharing Program generally last between 6 to 26 weeks, though employers can request one extension up to 12 weeks, bringing the total duration to a maximum of 38 weeks. This flexibility allows businesses additional time to stabilize without resorting to layoffs. Communication and agreement among all parties are pivotal in drafting and extending these agreements, ensuring a mutual understanding and participation.

The necessity for a cooling-off period after the conclusion or termination of an agreement, equivalent to the number of weeks of shared work used, underscores the program’s structured approach. This cooling-off period prevents immediate reacquisition of the agreement benefits, promoting sustainability in employment practices and encouraging companies to solidify their recovered financial standings.

Special measures within the Work-Sharing Program address the unique needs posed by broader economic challenges and disasters, such as the COVID-19 pandemic and the 2023 wildfires. These special measures ensure tailored support, allowing businesses impacted by these exceptional circumstances to access enhanced support structures to maintain operations and employment levels.

The approach of scheduling Work-Sharing agreements to start on Sundays aligns with Employment Insurance cycles, simplifying the integration of benefit distribution with pay schedules for affected employees. These meticulous details emphasize the program’s aim to reduce administrative burdens while streamlining the delivery of crucial support.

This program significantly contributes to Canada’s economic resilience by providing a safety net for both employers and employees during challenging times. It fosters a collaborative effort to overcome economic hurdles without resorting to job losses, thus maintaining community stability and workforce morale.

Overall, the Work-Sharing Program is a pivotal component in the landscape of economic support mechanisms available in Canada, showcasing a successful model of shared responsibility and mutual support in the face of economic challenges. Its continued evolution to address emerging economic threats ensures that it remains a viable option for distressed businesses aiming to retain their workforce during tough economic times.