Work-Sharing Program
Work-Sharing is designed to help employers and workers avert temporary layoffs. The measure provides income support to workers eligible for Employment Insurance benefits and who are willing to work a temporary reduced work-week when there is a reduction in the normal level of business activity that is beyond the control of the employer. Work-Sharing agreements must be approved by both employee and employer representatives and by the Employment Insurance Commission and can range from 6 to 26 weeks with an extension of up to a maximum of 38 weeks.
Work-Sharing agreements benefit employers by allowing them to stabilize their work force, to retain trained employees and to avoid the costly process of recruiting and training new employees when business returns to normal levels. Employees benefit by maintaining their job and receiving Employment Insurance income benefits for the days without work. It should be noted that if a worker is laid off subsequent to Work-Sharing, his/her entitlement to Employment Insurance regular benefits is unaffected by the receipt of Work-Sharing benefits.
How does it work
The employees are eligible to receive Employment Insurance benefits for the days they are not working to a maximum of $413 per week. This is based on the employees receiving 55% of their insurable earnings. There is no Employment Insurance waiting period to be served under work sharing benefits.
The shortage of work must be expected to last for a minimum of 6 weeks to a maximum of 26 weeks. Extensions beyond the maximum of 26 weeks may be considered in extenuating circumstances for up to a maximum of 38 weeks (12-week extension), and must be thoroughly substantiated.
The employer is responsible for setting up a schedule of work hours and notifying HRSDC/Service Canada officials of any changes in the amount of time worked and the number of employees on Work-Sharing. Work-Sharing Agreements do not affect workers’ rights to regular Employment Insurance Benefits if they happen to be laid off after the agreement ends.
Who can apply
Work-Sharing is a voluntary program in which management and workers agree to participate.
A Work-Sharing unit may include any group of EI eligible employees in a company, but does not necessarily include all of the employees. The unit should not include those employees who are needed to help generate work and assist in the recovery of the company. Outside sales staff and managers are generally not eligible
How do I apply
Employees must be deemed qualified Employment Insurance claimants and must mutually agree with the employer's strategy to share available work over a reduced work week in order to avert layoffs. Part-time employees may participate in Work-Sharing but seasonal employees are not eligible.
Employer Kit:
Work-Sharing Employer Information Kit
Work-Sharing Employer Instruction Package
Work-Sharing Utilization Report - Excel version
Form EMP5100: Application for a Work-Sharing Agreement
Form EMP5101: Worksharing Unit Attachment "A"
Employee Kit:
Work-Sharing Employee Information Kit
Repayment of Benefits at Income Tax Time
Am I an Eligible Employer?
To qualify for a Work-Sharing agreement, an employer must demonstrate through the development of a recovery plan, that a return to normal hours of employment within a maximum of 26 weeks is a reasonable expectation. They also have to be in business, year round, for at least two years; show that the need for reduced output is temporary, unavoidable and not seasonal in nature; have voluntary agreement from the employees; and ensure that the reduced work week is not more than three days and not less than one day. The minimum number of employees in a Work-Sharing unit is two.
No Work-Sharing agreements can be approved or continued as a result of or during a labour dispute.
More Information
For more information on Work-Sharing contact the Service Canada Centre closest to you.
