Employment and Social Development Canada has extended temporary flexibilities for the Work-Sharing program, providing additional income support for employees and assisting businesses in avoiding layoffs during economic transitions.
The Work-Sharing program is a temporary income support measure designed to help employers and employees avoid job losses when there is a reduction in business activity beyond the employer's control. The program allows eligible employees to work a reduced schedule while receiving Employment Insurance (EI) benefits for the days they are not working.
The extended temporary measures include an increase in the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks. This extension provides a longer period for employers to stabilize their operations and retain skilled employees during fluctuating economic conditions. Additionally, the mandatory waiting period between Work-Sharing agreements has been waived, allowing employers to reapply for the program immediately if needed.
Under these flexibilities, employers are not required to submit a recovery plan with their Work-Sharing application, simplifying the application process. The simplified application requirements aim to reduce administrative burden on businesses facing economic uncertainty. The government also maintained the requirement for all employees covered by a Work-Sharing agreement to agree to a reduction in their normal working hours and share the available work.
These temporary flexibilities were first introduced in response to economic challenges and have been extended to continue supporting Canadian businesses and workers. The program aims to maintain employee skills and experience within companies, facilitating a quicker recovery when economic conditions improve.
Source: Employment and Social Development Canada (https://www.canada.ca/en/employment-social-development/news/2026/03/government-of-canada-extends-work-sharing-temporary-flexibilities-to-help-employers-and-workers-avoid-mass-layoffs.html)