Government of Canada

Employer Sponsored Training

Program Objectives   
  • The Employer Sponsored Training (EST) component of Labour Market Partnerships support measure provides financial assistance to eligible employers to support approved training activities for employees who have been identified as facing a loss of their employment.
  • The objective of EST is to assist employees to acquire the skills that will allow them to remain employed, or, if they are laid off, that will shorten the period of their unemployment.
  • The EST component is restricted to employers who are likely to close or downsize operations or who must affect changes in the workplace that will leave some of their employees without employment.
  • Training activities supported under EST must be clearly linked to prevention of job loss for targeted employees or the provision of skills that will shorten the duration of unemployment.
  • EST is not intended to provide direct financial assistance to employees facing a loss of their employment.  Direct assistance to individuals is provided through Employment Benefits such as Job Creation Partnerships, Skills Development and Self-Employment.

How does it work?

Duration

  • The maximum duration of an EST project is normally one year.  In exceptional circumstances, this duration may be extended to a total of three years.
  • Approval of an extension of an EST agreement beyond the normal one year maximum duration must be based on a detailed assessment of the continued risk of job loss.

Financial Parameters

  • Funding may be provided to cover the following eligible costs:  training needs analysis; skills assessment; development and adaptation of training content; adaptation of training materials; purchase of training contracts or tuition fees; training for trainers; evaluation tools; salaries of employees in training or delivering training; overhead costs for employees in or delivering training. 
  • The maximum Service Canada contribution is normally $100,000 per EST agreement.
  • Under EST, employers are required to make a financial contribution.  This normally amounts to at least 50% of the expenses associated with the EST Activities.

Who can apply?

Eligible Sponsors

  • Among employers eligible for EST assistance are private sector/for-profit businesses (including sole proprietorships); not-for-profit organizations; municipal governments; band or tribal councils; cooperatives; and public health and educational institutions that are affected by one or more of the following circumstances:

         a)   Reduce business activity;

         b)   Significant changes in market conditions;

         c)   New legislative or regulatory requirements for workers.

How do I apply?

  • To find out how this service offering is delivered in your province, eligible employers should communicate with their Service Canada Centre.

Labour Market Development Agreements

  • Human Resources and Skills Development Canada (HRSDC) has entered into agreements with all provinces and territories to define how the Benefits and Measures would be delivered in each region.
  • As a result, in New Brunswick , Québec , Ontario , Manitoba , Saskatchewan , Alberta , the Northwest Territories and Nunavut , programs similar to the Employment Benefits and Support Measures are delivered by the provincial or territorial government pursuant to agreements under Section 63 of the Employment Insurance Act.
  • Service Canada (SC) delivers the Employment Benefits and Support Measures in Newfoundland and Labrador, Nova Scotia, Prince Edward Island, British Columbia, and the Yukon.

More information

Please consult the Employer Sponsored Training Fact Sheet.  To obtain further information about Service Canada and its programs, please contact your Service Canada Centre or call 1-800 O-Canada.