Work-Sharing program
Highlights
The Work-Sharing Program is designed to help your business avoid layoffs during temporary downturns. This program provides income support to your employees who work reduced hours while your business recovers. By participating, you can maintain your skilled workforce and ensure your business is ready to bounce back when conditions improve.
Key Benefits:
- Income support for employees working reduced hours
- Avoid layoffs and retain skilled workers
- Flexible agreement duration from 6 to 26 weeks, with possible extensions up to 38 weeks
- Special measures available during economic downturns or emergencies
Why Apply?
- Easy qualification if your business meets the criteria
- Shared responsibility between employer, employees, and Service Canada
- Support during tough times, ensuring your business remains operational and ready for recovery
Participating in the Work-Sharing Program can provide your business with the stability it needs during challenging periods, helping you retain valuable employees and maintain operations.
Financing Details
Type of Financing: Wage Subsidy
Repayment Terms and Interest Rates:
- There are no repayment terms or interest rates associated with this wage subsidy.
Eligible Expenses:
- The funds can be used to cover wages for employees who are part of the Work-Sharing agreement.
- It supports employees who are working a reduced schedule due to a temporary decrease in business activity.
Use of Funds:
- The subsidy cannot be used for any other expenses outside of employee wages.
- It is specifically designed to help maintain your workforce during periods of reduced business activity.
Fees:
- There are no fees associated with participating in the Work-Sharing Program.
Qualifications
- Must have a temporary decrease in the normal level of business activity.
- The decrease must be beyond the control of the employer.
- Employees must be eligible for Employment Insurance benefits.
- All employees participating must experience a minimum 10% reduction in their normal weekly earnings.
- The employer and employees (and union, if applicable) must agree to participate.
- The agreement must have a minimum duration of 6 weeks and can last up to 26 weeks.
- Extensions can be requested for up to 12 additional weeks, with a maximum total of 38 weeks.
Agreements can only start on a Sunday.
Disqualifications:
- Businesses that do not have a temporary decrease in business activity.
- Decreases in business activity that are within the control of the employer.
- Employees not eligible for Employment Insurance benefits.
- Employees not willing to accept a reduced work schedule.
- Employers and employees (and union, if applicable) not in agreement to participate.
- Agreements not adhering to the minimum and maximum duration requirements.
- Agreements not starting on a Sunday.
Description
This program helps your business avoid layoffs during tough times. If your business is facing a temporary drop in activity that you can't control, this program can be a lifesaver.
Here's how it works:
- Income support for employees: Your employees who qualify for Employment Insurance will get income support while working fewer hours. This means you can keep your team together even when business is slow.
- Shared work schedule: Your employees will work a reduced schedule and share the available work equally. Everyone's weekly earnings will be reduced by at least 10%.
Agreement details:
- Duration: The agreement lasts between 6 to 26 weeks. If needed, you can request an extension for up to 12 more weeks, making it a total of 38 weeks.
- Special measures: During economic downturns, natural disasters, or national emergencies, the program may offer extra support to help your business recover and avoid layoffs.
This program is a great way to keep your skilled workforce intact while your business gets back on its feet.
Program Steps
Prepare Required Documentation: Gather the necessary documents for the application. These include:
- Business financial statements
- Employee details and work schedules
- Proof of business activity decrease
- Agreement to participate from all parties (employer, employees, and union if applicable)
Complete the Application Form: Fill out the Work-Sharing application form. Ensure all sections are completed accurately.
Submit the Application: Send the completed application form and required documentation to Service Canada. This can be done online or by mail.
Plan the Work-Sharing Schedule: Develop a work-sharing schedule that shows the reduced hours for each participating employee. Ensure the schedule meets the program's requirements.
Communicate with Employees: Inform all participating employees about the work-sharing agreement and the reduced work schedule. Ensure they understand and agree to the terms.
Wait for Approval: Service Canada will review your application. They may contact you for additional information or clarification.
Implement the Agreement: Once approved, implement the work-sharing schedule. Ensure all employees follow the agreed-upon reduced hours.
Monitor and Report: Regularly monitor the work-sharing arrangement and report any changes to Service Canada. Keep detailed records of hours worked and any deviations from the agreed schedule.
Request Extension if Needed: If you need to extend the agreement, submit an extension request at least 10 business days before the end date of the current agreement.
Serve Cooling-Off Period: After the agreement ends, serve the mandatory cooling-off period before applying for a new agreement. The duration will match the number of weeks used in the previous agreement, up to a maximum of 38 weeks.