On March 7, 2025, the federal government launched a suite of measures to support Canadian workers and businesses during these turbulent times. This included the introduction of temporary flexibilities to the Work-Sharing Program which increase access to the program and extend the maximum agreement duration. These temporary special measures are available from March 7, 2025 until March 6, 2026.
The Work-Sharing Program
Service Canada offers a Work-Sharing Program designed to help an employer avoid layoffs and terminations when there is a temporary decrease in the normal level of business activity and the decrease is beyond the control of the employer. The Work-Sharing Program allows employers and employees to agree to a temporarily reduced work week and to share available work. Where a work-sharing application is approved, the program provides Employment Insurance (“EI”) benefits to supplement the reduced employee income for those participating in an approved work-sharing arrangement.
The employer, the employees involved, and the union, if applicable, must agree to participate in a Work-Sharing agreement. Where there is agreement, the employer representative, employee representative and union representative, if applicable, apply to participate in a Work-Sharing agreement.
Service Canada must approve a Work-Sharing agreement before the program can be implemented. It will consider whether Work-Sharing is the appropriate program to address the reduction, whether there is a reasonable expectation that all participating employees in Work-Sharing will return to normal working hours by the end of the agreement and whether sufficient supporting information is on file to render the decision.
If a Work-Sharing agreement is approved, the parties involved, and Service Canada, must sign it within 60 calendar days of approval, and implement the agreement within 60 calendar days of signing.
US tariffs special measures – Work-Sharing Program
Eligibility Expansion
Employer eligibility for Work-Sharing has been expanded to include:
- businesses that have been in operation in Canada for a minimum of one year (rather than two years);
- non-profit and charitable organizations experiencing a reduction in revenue levels as a direct or indirect result of the tariffs;
- cyclical or seasonal employers; and
- employers experiencing a decrease in work activity over the past six months of less than 10 percent and allowing utilization of Work-Sharing to exceed 60 percent.
Employee eligibility has been expanded to include:
- employees who are not year-round, permanent, full-time or part-time employees, specifically seasonal or cyclical employees; and
- employees assisting the employer recovery efforts.
Duration and extension of Work Sharing
- Work-Sharing agreements approved under US tariffs special measures must have a minimum duration of 6 weeks and may be extended to a maximum of 76 weeks, if required.
- Other special measures flexibilities include waiving the required cooling-off period between successive Work-Sharing agreements while special measures are in place and focusing recovery measures on supporting the business’s ability to maintain its viability related to the threat or potential realization of US tariffs.
For more information about the Work-Sharing Program, please contact your Harris lawyer.
