Work-Sharing Program – Overview

The Work-Sharing Program is a federal initiative designed to help businesses and workers avoid layoffs amid temporary disruptions in business activity. This involves a three-party agreement among the employer, employees (and union where applicable), and Service Canada. Eligible employees agree to reduce working hours and share available work; in return, they receive Employment Insurance (EI) benefits to compensate for lost income. The program benefits employers by enabling them to retain experienced staff and save on hiring and training costs, while employees maintain employment and preserve their skills. (Government of Canada)

• Purpose & Structure
  • Aims to prevent layoffs during a temporary drop in business activity beyond the employer’s control.
  • Involves a three-party agreement between employer, employees, and Service Canada.
    (Government of Canada)
• Employee Benefits
  • Employees must reduce work hours and share available work fairly.
  • They receive partial earnings through EI benefits during reduced hours.
    (Government of Canada, Unifor)
• Employer Benefits
  • Retain qualified employees.
  • Avoid costs of recruiting and training new staff.
    (Government of Canada, Epe)
• Duration & Extensions
  • Standard agreements: 6 to 26 weeks.
  • Can be extended up to 12 additional weeks (total up to 38 weeks).
  • Must apply for extension at least 4 weeks before current agreement ends.
  • Agreements must begin on a Sunday to align with EI payment cycles.
  • After an agreement ends, a “cooling-off” period equal to the agreement’s duration applies.
    (Government of Canada)
• Tariffs–Related Special Measures (March 7, 2025 – March 6, 2026)
  • In response to U.S. tariff threats, the following flexibilities apply:
    • Maximum agreement length extended to 76 weeks.
    • No cooling-off period required between successive agreements.
    • Expanded eligibility for:
      • Employers operating in Canada for at least 1 year, including non-profits/charities, seasonal and cyclical businesses.
      • Employers with less than 10% decline in activity and allowing over 60% reduction in work.
      • Seasonal, cyclical, or recovery-effort employees.
        (Government of Canada, Unifor, Cassels, Mondaq)
• Wildfire–Related Special Measures (Dec 1, 2024 – Aug 3, 2025)
  • Designed for businesses affected by the 2024 Jasper and Bunibonibee Cree Nation wildfires.
  • Adjustments mirror standard terms with added flexibility:
    • Up to 26 weeks, with possible extension to 38 weeks.
    • No cooling-off period required.
    • Less stringent eligibility—including seasonal/cyclical businesses, seasonal employees, and no minimum 10% decline in activity.
      (Government of Canada

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