Work-Sharing Program (WSP)

The Work-Sharing Program (WSP) is designed to help employers and workers avert temporary layoffs.  The program 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.

Eligibility Criteria

WSP 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.

Summary

WSP 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.  If a worker is laid off subsequent to the WSP, his/her entitlement to Employment Insurance regular benefits is unaffected by the receipt of WSP 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 the WSP. WSP 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

WSP is a voluntary program in which management and workers agree to participate.

A WSP unit may include any group of Employment Insurance 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.

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 WSP but seasonal employees are not eligible.

For more information on the WSP, contact the Service Canada Centre closest to you.

New Brunswick Contact(s):
Service Canada Centres
For a complete list of all Service Canada Centres please visit the Web site or check the government listings in your telephone directory.
Web site: http://www1.servicecanada.gc.ca/en/gateways/where_you_live/regions/nb.shtml

National Contact(s):
See regional contact(s).