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Work-Sharing (WS) – Synopsis
When to Apply
Applications are accepted for review on an ongoing basis.
Work-Sharing is an adjustment program designed to help employers and employees avoid temporary layoffs when there is a reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work-week.
Work-Sharing is about helping:
- employers retain skilled employees and avoid the costly process of recruiting and training new employees when business returns to normal levels; and,
- employees maintain their skills and job by supplementing their wages with Employment Insurance benefits for the days they are not working.
The work shortage must be significant enough to warrant support of the program (i.e. a demonstrated decrease in sales/orders of at least 10%).
Who Can Apply
Eligible employers must:
- be a public or private company or a not-for-profit organization;
- have been in year-round business in Canada for at least two years;
- show that the need for reduced hours is unavoidable;
- show that the work shortage is temporary and unexpected;
- demonstrate (through a recovery plan) the activities they are undertaking to return to normal working hours by the end of the agreement;
- not be undergoing a labour dispute; and,
- have the agreement of the union (if applicable) and employees.
Eligible employees must be:
- "core staff" (year-round permanent full-time or part-time employees who are required to carry out the day to day functions of the business); and,
- eligible to receive regular Employment Insurance benefits.
A minimum of two employees is required for a Work-Sharing Agreement.
How to Apply and More Information
Work-Sharing Agreements must be agreed upon by both employee and employer representatives, and approved by Service Canada.
Completed applications (including the Recovery Plan and Attachment A) must be submitted a minimum of 30 days prior to the requested start date. All agreements start on a Sunday.
All applications are subject to an assessment and approval process by Service Canada.
You may apply for Work-Sharing in-person at a Service Canada Centre or by mail. Service Canada will acknowledge by e-mail or in writing the receipt of the application.
For more information, see Work-Sharing.
Other Funding Programs
For information on grant and contribution programs offered by HRSDC, Service Canada, and Labour, see Funding Programs.