Overview

The Work-Sharing Program helps employers and employees avoid layoffs when:

• there is a temporary decrease in the normal level of business activity, and
• the decrease is beyond the control of the employer

The agreement provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers. All employees participating in the agreement must experience a minimum 10% reduction to their normal weekly earnings to comply with the terms of the agreement.

A Work-Sharing agreement is a three-party agreement involving employers, employees and Service Canada.

Employees on a Work-Sharing agreement must agree to:

• a reduced schedule of work, and
• share the available work equally over the term of the agreement

The employer and the employees involved (and the union, if applicable) must agree to participate in a Work-Sharing agreement. Then, the employer/employer representative, employee representative and, if applicable, the union representative apply to participate in a Work-Sharing agreement.

Agreement duration and extension

Work-Sharing agreements must have a minimum duration of 6 weeks and can last up to 26 weeks. If needed, an extension may be requested of up to 12 weeks bringing the initial agreement to a maximum total of 38 weeks. Work-Sharing agreements are not extended automatically. To request an extension of a Work-Sharing agreement, an application must be submitted a minimum of 4 weeks prior to the end date of the Work-Sharing agreement.

A mandatory cooling-off period must be served once the agreement has ended or has been terminated. The duration of the cooling-off period will be equal to the number of weeks utilized in the previous agreement (up to a maximum of 38 weeks).

Please note that Work-Sharing agreements can only start on a Sunday to align with the Employment Insurance payment cycle. Please consider this when planning the desired start date of your agreement in your Work-Sharing application.

Special measures

The Work-Sharing Program may introduce temporary special measures at any time to provide additional support for affected businesses during a period of economic downturn, natural disaster or if a national emergency is declared. The special measures provide targeted support for businesses impacted to recover and avoid layoffs for a specific period of time.

Tariffs

The Government of Canada has extended the Temporary Special Measures under the Work-Sharing Program to March 31, 2027. These Special Measures, originally implemented in response to the impact of tariffs, were previously in effect from March 7, 2025, to March 6, 2026. The extension of these temporary special measures until March 31, 2027 ensures continued support for employers and workers facing temporary reductions in business activity.

Employers experiencing a decline in business activity attributable to the threat or potential realization of tariffs may be eligible for Work-Sharing special measures if they:

• are operating in Canada for a minimum of 1 year
• have a minimum of 2 EI eligible employees who agree to a reduction in hours and to share any available work

Affected businesses may benefit from the Work-Sharing special measures if they are:

• new to the Work-Sharing program
• have an existing Work-Sharing agreement
• are serving a mandatory cooling-off period

Work-Sharing agreements approved under tariffs special measures:

• must have a minimum duration of 6 weeks, and
• may be extended, to a maximum total of 76 weeks, if required

Work-Sharing tariffs special measures flexibilities include:

• maximum duration of Work-Sharing agreement up to 76 weeks
• waiving the required cooling-off period between successive Work-Sharing agreements while special measures are in place
• focusing recovery measures on supporting the business' ability to maintain its viability related to the threat or potential realization of tariffs

Expanded employer eligibility:

• to businesses that have been in operation in Canada for 1 year
• to include non-profit and charitable organizations experiencing a reduction in revenue levels as a direct or indirect result of the tariffs
• to include cyclical or seasonal employers
• to employers experiencing a decrease in work activity over the past six months of less than 10% and allowing utilization of Work-Sharing to exceed 60%

Expanded employee eligibility:

• to employees who are not year-round, permanent, full-time or part-time employees, specifically seasonal or cyclical employees
• employees assisting the employer recovery efforts

If you have any questions regarding the Work-Sharing tariffs special measures, please contact our Work-Sharing Employer Inquiry Unit at edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca.