Work-Sharing ("WS") is an adjustment program for employers to avoid layoffs when there is a temporary reduction in business that is beyond the employer's control, by providing income support to eligible employees for Employment Insurance ("EI") benefits who work a temporarily reduced work week.

Amidst COVID-19 the Federal government has temporarily extended the maximum duration of WS agreements from 38 weeks to 76 weeks, and has waived the mandatory waiting period so that employers with a recently expired agreement may immediately apply for a new agreement, without waiting between applications and ease Recovery Plan requirements for the duration of the WS agreement.

Temporary special measures are effective March 15, 2020 to March 14, 2021.

Eligibility:

To be an eligible employers must:

  • Have been in business in Canada year-round for at least 2 years;
  • Be a private business, a publicly-held company, or a not-for-profit organization;
  • Demonstrate that the shortage of work is temporary and beyond their control, and is not cyclical/recurring slowdown;
  • Demonstrate a recent decrease in business activity of approximately 10%; and
  • Submit and implement a recovery plan designed to return the WS units to normal working hours by the end of the WS agreement. There must be a reasonable expectation that recovery (return to normal work hours for all participating employees) will be achieved by the end of the agreement.

To be an eligible employee must:

  • Be "core employees" (year round permanent full-time or part-time employees who are required to carry out everyday functions of normal business activity)
  • Be eligible to receive EI benefits; and
  • Agree to a reduction of their normal working hours in order to share the available work

 

Eligibility Adjustments for COVID-19

You are eligible to apply if you are experiencing a downturn in business activity related to the global outbreak of COVID-19, and have:

  • WS agreements signed between March 15, 2020 and March 14, 2021
  • WS agreements that began, or ended between March 15, 2020 and March 14, 2021, and
  • WS agreements that ended between June 23, 2019, and March 14, 2020 and are in their mandatory cooling-off period

 

How to apply

**Please refer to the WS Applicant guide for the temporary special measures  for more information on how to complete your application.**

If you are applying for a new agreement or had a WS agreement that ended between October 30, 2016, and July 29, 2017 (for the forestry sector) or between November 25, 2018 and August 18, 2018 (for the steel and aluminum sector), you must submit the following documents:

If you currently have a 38-week agreement in place, and are applying for the 38-week extension, you must submit the following documents:

Please apply at least 30 days before you want the temporary special measures to begin.

Submit your completed documents to the appropriate region using the method listed here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.