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Work‑Sharing – Who Is Eligible

This page summarizes the official eligibility rules for Canada’s Work‑Sharing Program. It explains who qualifies (and who does not) among employers and employees, and flags time‑limited special measures. Use it as a quick, plain‑language checklist before you apply.

Eligible employers

Operate year‑round in Canada for ≥ 2 years. (Evidence needed to show normal business patterns.)
Business types: private businesses, publicly held companies, and eligible non‑profits (that retain profits to support organizational goals). Public‑sector bodies are not eligible.
At least 10% decrease in overall work activity in the last 6 months, caused by factors beyond employer control (e.g., lost contracts, market changes, supply issues). Show hours lost vs. prior quarter/year using metrics like sales, production, hours worked, stock levels, and new orders.
Recovery measures are in place to return staff to normal hours by the end of the agreement.
Work‑Sharing unit (WS unit) has at least two eligible employees sharing available work equitably.

Ineligible employers

Experiencing a labour dispute (e.g., slowdown, strike, lockout, work stoppage).
Facing a cyclical or seasonal shortage of work.
Where reduced work arises from increasing employee headcount or internal business decisions to reduce staffing for efficiency or profit.
Public‑sector administration of government programs (e.g., municipalities, government agencies).
Self‑employed individuals.

Eligible employees

Core staff: year‑round, permanent full‑time or part‑time employees needed for day‑to‑day operations.
Eligible for Employment Insurance (EI) benefits.
Agree to reduce normal hours by the same percentage and share available work equitably.
Recently laid‑off core staff may be included in the WS unit.
Note: EI eligibility is assessed after an employee applies for EI; they are not required to disclose EI status to the employer.

Ineligible employees

Seasonal workers (e.g., lifeguards, ski resort staff).
Co‑op students.
Casual/on‑call staff.
Temporary help agency workers.
Self‑employed individuals.
Roles that generate work or direct the company (e.g., senior management, product development, marketing, sales) and those holding > 40% voting shares or acting as investors.

Special measures

Tariffs (March 7, 2025 – March 6, 2026): Time‑limited flexibilities are in place in response to tariff risks. Refer to the official “Special measures” page for the most current details.