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Work-Sharing program - Canada

Work-Sharing program

Last Update: July 22, 2025
Canada
Support for businesses to avoid layoffs

At a glance

Eligible Funding
  • No Condition
Timeline
  • Open Date : June 25, 2023
  • Closing date : November 4, 2023
Financing Type
Grant and Funding
Eligible Industries
  • Manufacturing
  • Accommodation and food services
  • Other services (except public administration)
  • Public administration
Program status
Closed

Overview

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

Financing terms and conditions

  • Minimum duration of a Work-Sharing agreement is 6 weeks, which can be extended up to a maximum of 38 weeks under normal conditions.
  • Extensions of up to 12 weeks may be requested, requiring application submission at least 4 weeks prior to the agreement end date.
  • The agreement provides income support to employees who reduce their work week and are eligible for Employment Insurance benefits.
  • All agreements include a mandatory cooling-off period equal to the number of weeks used in the previous agreement, up to a maximum of 38 weeks.
  • Work-Sharing agreements must start on a Sunday to align with the Employment Insurance payment cycle.
  • Special measures under economic downturn, natural disasters, or national emergencies, may alter the usual terms, such as extending agreement durations and waiving cooling-off periods.
  • Work-Sharing agreements approved under special measures for U.S. tariffs may last up to 76 weeks, with waivers for the required cooling-off period.

Activities funded

  • Avoiding layoffs during a temporary decrease in business activity beyond employer control.
  • Providing income support to employees eligible for EI benefits who work a reduced work week.
  • Sharing available work equally among employees during the agreement term.
  • Maintaining business viability during economic downturns, natural disasters, or national emergencies with special measures.
Examples of admissible projects:
$ 64,000
Setting up a work-sharing scheme for our restaurant staff to manage a decline in dine-in customers
$ 52,000
Running a work-sharing arrangement for the bakery staff to maintain jobs during seasonal downtime
$ 95,000
Supporting theatre staff through a work-sharing agreement to cope with reduced ticket sales
$ 160,000
Introducing a work-sharing protocol for our manufacturing unit to counteract reduced orders
$ 64,000
Implementing a work-sharing program for our IT department to avoid layoffs during a downturn
$ 35,000
Facilitating a work-sharing scheme for our artists' cooperative during gallery closures

Eligibility

  • The employer must have been operating in Canada for a minimum of 1 year.
  • The business must have a minimum of 2 employees who are eligible for Employment Insurance and agree to a reduction in hours and to share available work.
  • For employers affected by U.S. tariffs or the Jasper and Bunibonibee Cree Nation wildfires, the business activity decline must be attributable to these events.
  • Be a business new to the Work-Sharing program, have an existing Work-Sharing agreement, or be serving a mandatory cooling-off period.
  • Non-profit and charitable organizations experiencing a reduction in revenue due to tariffs, cyclical or seasonal employers, and those without a recent 10% decrease in business activity may apply under certain special measures.

Who is eligible?

  • Businesses operating in Canada for a minimum of 1 year
  • Non-profit and charitable organizations
  • Cyclical or seasonal employers
  • Employers experiencing a decrease in work activity over the past six months of less than 10%

Who is not eligible

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

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.

Eligible geographic areas

  • Jasper, Alberta
  • Bunibonibee Cree Nation, Manitoba

Selection 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

How to apply

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.
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.
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.
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.
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.
6

Implementation

  • Begin the reduced work schedule as outlined in the agreement.
  • Ensure equitable work distribution among employees.
7

Monitoring and Reporting

Regularly update Service Canada on the business’s recovery progress and any changes to the agreement.

Additional information

  • Work-Sharing agreements approved under special measures related to external crises such as U.S. tariffs or natural disasters may allow for exceptions to standard terms, including extended duration and waived cooling-off periods.
  • For agreements starting after September 25, 2022, a mandatory four-week advance notice is required for requesting an extension of the Work-Sharing agreement.
  • The Work-Sharing program stipulates that agreements can only start on a Sunday to align with the Employment Insurance payment cycle.
  • The program may introduce temporary special measures at any time to address specific events like economic downturns or natural disasters, providing tailored support based on the specific crisis circumstances.
  • Businesses can utilize Work-Sharing during a defined period to ensure they maintain their workforce and operational viability in times of decreased business activity due to uncontrollable external factors.

Contacts

edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca
Canada
Apply to this program

Frequently Asked Questions about the Work-Sharing program Program

Here are answers to the most common questions about the Work-Sharing program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Work-Sharing program?

How much funding can be received?

What expenses are eligible under Work-Sharing program?

What is the deadline to apply?

Is the Work-Sharing program a grant, loan, or tax credit?

Who are the financial supporters of the Work-Sharing program?

Who is eligible for the Work-Sharing program program?

Who can I contact for more information about the Work-Sharing program?

Where is the Work-Sharing program available?

Are Indigenous Peoples eligible for the Work-Sharing program program?

Apply to this program

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