Work-Sharing fact sheet for employers - COVID-19 temporary special measures

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Work-Sharing is a program supported through the Employment Insurance fund, that assists employers to face cutbacks and avoid layoffs. The reduction of employment must average between 10% to 60% of a normal work week over the life of the agreement. In order to help compensate for reduced income from the employer, the Canada Employment Insurance Commission (the Commission) assists EI eligible workers to collect Employment Insurance benefits.

Work-Sharing agreement definition

During a Work-Sharing agreement, available work is redistributed through a voluntary reduction in hours worked by all employees within one or more work units. This enables the employer to retain a full work force on a reduced work week rather than laying off part of the work force.

Duration of a Work-Sharing agreement

Work-Sharing is a temporary measure. Usually, Work-Sharing agreements can be a minimum of 6 weeks and a maximum of 26 weeks in duration. In extenuating circumstances, an extension to the agreement may be considered and approved by ESDC of up to 12 weeks.

A temporary special measure for COVID-19 has been put in place providing an extension of another 38 weeks, with a maximum of 76 weeks, to all businesses across Canada that are directly or indirectly impacted by the downturn in business due to COVID-19.

If the employer’s agreement begins or ends between March 15, 2020 and March 14, 2021, they may be eligible for a 38 or 50-week extension for a total of 76 weeks, regardless of the sector. For current agreements, the end date must fall between March 15, 2020 and March 14, 2021 at which point they would re-apply for the extension.

For active agreements that end between March 15, 2020 and March 14, 2021, they may be eligible for a 38 or 50-week extension for a total of 76 weeks.

Who can apply for Work-Sharing

Employers and employees must agree to participate in Work-Sharing and apply together.


To be eligible for a WS agreement, your business must:

  • be a year-round business in Canada in operation for at least 1 year
  • be a private business or a publicly held company
  • have at least 2 employees in the WS unit

Eligibility was also extended to:

  • Government Business Enterprises (GBEs), also referred to as public corporations
  • not-for-profit employers experiencing a shortage of work due to a reduction of business activity and/or a reduction in revenue levels due to COVID-19

Your business is not eligible for WS if it is experiencing a reduction in business activity due to:

  • a labour dispute
  • a seasonal shortage of work

And if you are a:

  • shareholder who is responsible for the direction of the company and who holds 40% or more of the voting shares
  • employer who operates solely for the purpose of carrying out the administration of a government program/activity that is purely government in nature. For example:
    • municipalities
    • government agencies
  • self-employed


To be eligible for WS, your employees must:

  • be year-round, permanent, full-time or part-time employees needed to carry out the day-to-day functions of the business (your "core staff")
  • be eligible to receive EI benefits
  • agree to reduce their normal working hours by the same percentage and to share the available work

Eligibility was also extended to:

  • employees considered essential to the recovery and viability of the business including:
    • technical employees engaged in product development
    • outside sales agents
    • marketing agents

Employees are not eligible if they are:

  • seasonal employees and students hired for the summer or a co-op term
  • employees hired on a casual or on-call basis, or through a temporary help agency
  • employees responsible for the direction of the company and who hold more than 40% of the voting shares in the business
  • self-employed

Not-for-profit employer eligibility

Not-for-profit employers experiencing a shortage of work due to a reduction of business activity and/or a reduction in revenue levels due to COVID-19 will be eligible to access the program.

New employee eligibility guidelines

Government Business Enterprises (GBEs), also referred to as public corporations, will now be eligible to access the Work-Sharing program.

Government owned establishments engaged in activities that are not purely governmental in nature, are usually classified to the same industry as privately owned establishments engaged in similar activities, and are now eligible for Work-Sharing.

This temporary expanded eligibility excludes employers that operate solely for the purposes of carrying out the administration of government programs and activities that are purely governmental in nature.

Expanding eligibility to staff essential to the recovery

In the context of COVID-19, employees now considered essential to the recovery and viability of the business are now considered to be eligible to participate for Work-Sharing. Examples of employees now eligible includes:

  • inside/outside sales responsible for recovery
  • technical employees engaged in product development
  • executive marketing and sales agents responsible for recovery
  • senior management responsible for recovery
  • shareholders who have a role in recovery/investors

New temporary special measures for Work-Sharing

On March 11, 2020, the Government of Canada announced that it would make available over $1 billion for a whole-of-government response to the effects of COVID‑19 on Canada’s people, economy and businesses.

As such, the temporary special measures to support workers and employers affected by COVID‑19 includes the following:

  • the maximum duration of Work-Sharing (WS) agreements was extended to a maximum of 76 weeks
  • the mandatory cooling-off period between WS agreements is waived. Eligible employers can apply immediately for the remaining time up to the maximum established duration of 76 weeks
  • reduce the previous requirements for a recovery plan by removing the Annex B and replacing it to a single line of text within the application
  • reduce the requirement and expand eligibility to employers affected by accepting business who have been in year-round business for only one year rather than two, and to eliminate the burden of having to provide the sales/production figures for the last two years at the same time
  • expand eligibility for staff who are essential to recovery, Government Business Enterprises (GBEs) and non-for-profit organization employers

Eligibility to apply for the temporary special measure

Eligible employers across Canada include those that are experiencing a downturn in business activity related to the global outbreak of COVID-19. Employers who received an extension under any of the other temporary special measures, and are now experiencing further reductions in business activity due to COVID-19, may also be eligible for these measures.

These measures are not limited to one specific sector or industry. They are intended to mitigate job loss and support business viability and recovery for all Canadian employers experiencing unexpected and unavoidable downturns as a result of COVID-19.

Employers are only eligible to participate in a maximum consecutive agreement period of 76 weeks under this temporary special measure.

Measures taken by the department doing to ensure there is sufficient capacity to support the Work-Sharing program

  • The department currently has 9 processing sites across Canada that can process Work-Sharing applications
  • Cross-training of employees from other programs to support the increased demand for the Work-Sharing Program
  • The Department is exploring options to further support employers who have questions regarding Work-Sharing and is adding additional capacity to these efforts

Service Canada has also created an enquiry unit for clients affected by COVID-19 that are seeking information related to the Work-Sharing Program. Enquiries can be sent to the mailbox below for specific Work-Sharing information or to request general information about the Program.

Email: [email protected]

Streamlined form and process

The streamlined Work-Sharing application form developed as part of COVID-19 now enables employers to request an initial agreement of up to 76-weeks as well as amendments, all in one form. Before COVID-19, a separate form was in place for employers who wished to request amendments to their existing agreements.

One application form for multiple work units

Employers can now submit one Work-Sharing application even when there are multiples work units are included, as long as the employer, union representative or employee representative remains the same for all units and their names are added to all Attachment A forms. 

Application with multiple work locations

A new process was developed in order to enable employers who have employees in multiple work locations across Canada, to submit one bundle application that is processed in the region that has the biggest proportion of employees in the agreement.

This new process is an improvement from before COVID-19, where employers had to submit separate applications if they had employees working in different locations (regions), as each of the applications had to be entered separately by regional project officers.

Need for a Recovery Plan

The recovery plan (Annex B) requirement was removed as part of the special measures to support employers and was replaced by a single line of text within the application.

Weekly requirements (Utilization Reports)

Weekly requirements for employers/employees are still a requirement under the COVID-19 special measures. The weekly Utilization Report is still required via Data Gateway to ensure the appropriate WS Benefits are calculated and paid.

Note: Completed Attachment A forms should not be sent via Data Gateway.

However, if technical difficulties arise with Data Gateway, they can be sent by email instead of by courier. Please consult the Coronavirus disease (COVID-19) – Work-Sharing web page to find out your region’s email address, and submit documentation electronically.

Wages paid to employees

The employer pays the wages to employees for the hours they worked, as per normal. The employer also completes the Utilization Report, so that Employment Insurance (EI) is aware of the work hours that employees missed. The employees are paid directly from EI for the percentage of their benefit rate that corresponds with the percentage of the work hours they missed. 

For example, if the employee missed 50% of their normal weekly hours due to WS, they would receive 50% of their benefit rate from EI. Their benefit rate will not be equivalent to their normal wages, as it is generally 55% of their average weekly earnings to a maximum of $573 per week (for 2020).

Work reduction of employees exceeding 60%

The employee’s work reduction cannot exceed 60%. Under the Work-Sharing Program, the employer must agree to a reduction in the employees’ regular work schedule ranging between a minimum of 10% and a maximum of 60% on average, over the life of the agreement.

For example, in a regular 40-hour work week, the projected reduction in hours must be a minimum of 4 hours per week (10%), or a half day, and the projected maximum weekly reduction cannot exceed 3 days per week or 24 hours (60%). 

Party applying for Work-Sharing agreement

Employers and workers must agree to participate in Work-Sharing and submit a joint application to ESDC. For any extension of the agreement or addition/deletion of Work-Sharing participants, the employer or the union/employee representative and ESDC all must agree. At any time during the agreement the employer, the union or employee representative or ESDC have the right to terminate the Work-Sharing agreement.

Employer’s responsibilities in a Work-Sharing agreement

The employer is responsible for scheduling hours of work. The employer will be responsible for reporting Work-Sharing hours on a weekly basis. Any changes to the original agreement, including the addition or deletion of workers, should be reported to Service Canada immediately. Work-Sharing agreements do not affect workers’ entitlement to regular EI Benefits if they happen to be laid off after the agreement ends.

Apply for Work-Sharing

Employers can use the simplified Work-Sharing application forms to apply:

Note: Employers must submit their application to one of the following email addresses, based on the area your business is located or where the maximum of participants are located:

Atlantic Provinces

Email: [email protected]


Email: [email protected]


Email: [email protected]

Western Canada and Territories

Email: [email protected]

Mandatory signature of all employees on Attachment A

No but all employees in the Work-Sharing agreement must be listed on Attachment A. The Attachment A: EMP 5101 must at least have the name of a union representative (in cases of a unionized WS unit) or of the employee representative (in cases of non-unionized WS unit) who has verified the list of employees for accuracy

Employee representative in a Work-Sharing agreement

Under COVID-19 special measures, additional flexibility is being provided for employee representative even if they are not part of the Work-Sharing unit.

In a non-unionized workplace, the employee representative will normally be a member of the Work-Sharing unit but other examples can include:

  • Payroll Administrators, or
  • Human Resources Advisors/Administrators

The employee representative is required to verify Attachment A for accuracy and may play a role in sharing information with the Work-Sharing unit.

Employee layoffs

Some employers may have been unable to avoid layoffs prior to applying to participate in WS. Core employees who were laid off prior to the employer applying to enter into a WS agreement may be included in the WS unit. Any employees laid off between the submission of an application to enter into a WS agreement and the date the WS agreement commences will also be eligible to participate however, nothing requires an employer to include them. An employer is also not required to call back all employees in layoff status.

If the employer would like to add workers that were not part of the Work-Sharing agreement after the agreement commences, an amendment to the agreement will be required.

If the business does not recover as expected and an employee is laid off during or at the end of a Work- Sharing agreement, the employee can apply to transfer their claim to regular benefits. Normally, the benefit rate and the normal duration of the claim are not reduced by Work-Sharing participation, as WS benefits are not regular benefits. WS participation will not have exhausted any of their entitlement to regular or special benefits if only WS benefits were paid.

Note that employee benefits are based on their original Record of Employment (ROE), not on the Work-sharing hours.

Establishment of the Employment Insurance benefit rate

The Employment Insurance benefit rate for each employee is established at the start of the Work-Sharing agreement after the submission of a claim. The benefit rate is established in the same manner as the benefit rate for all other EI claims. The Work-Sharing benefit payable in any given week is based on the employee’s loss in normal average weekly earnings. It is expected that workers will make themselves available for work that is offered to them while participating in Work-Sharing.

Earnings received from sources other than Work-Sharing need to be reported by each claimant.

Employment earnings that are not from the Work-Sharing employer will be deducted from the Work-Sharing benefits payable based on the existing working while on claim provisions.

Employees receiving EI benefits

Employees who are receiving Employment Insurance regular or special benefits and are called back to work can stop receiving these benefits in order to participate in WS. If not already on the WS agreement, an amendment would have to be done to add employees to an existing agreement and then, they would need to be added to weekly Utilization Reports in order to start receiving WS EI benefits.

Other sources of earnings

The EI working while on claim provisions allow claimants to stay connected to the labour market and earn additional income while on claim. The provisions allow claimants to keep receiving a portion of their EI benefits, along with all earnings from employment or other sources.

Claimants can keep 50 cents of EI benefits for every dollar earned or received while on claim, until their earnings reach 90% of the weekly earnings used to establish their claim. Any earnings above this cap are deducted dollar-for-dollar from benefits. This method is the default rule that automatically applies to all eligible claims.

Note: Specific statutory holidays occurring within a Work-Sharing period are the responsibility of the employer and not compensated by Employment Insurance benefits.

Employee benefits under a Work-Sharing agreement

The employer must maintain all existing employee benefits for example:

  • health/dental insurance
  • pension benefits
  • vacation
  • group disability

However, employees should be made aware that benefits (including any subsequent payout of benefits) may be reduced if calculated based on earnings or hours of work.

Waiting period for Work-Sharing benefits

There is no one-week waiting period for Work-Sharing benefits. However, benefits are processed through the EI payment system, meaning it will take a few weeks for the first cheques to arrive. It is important that employers advise employees of this delay in the initial receipt of Work-Sharing benefits.

Taxable Employment Insurance benefits

EI Benefits are taxable and are subject to the rules and regulations of the Canada Customs and Revenue Agency Act. In certain cases for high-income workers, a portion of the EI benefits under Work-Sharing may have to be repaid when the annual income tax return is filed. For more information on repayment of benefits at income tax time please visit: Employment Insurance (EI) and Repayment of Benefits at Income Tax Time.

Shareholders and Work-Sharing agreement

Shareholders can be part of the Work-Sharing agreement if they do not hold significant decision-making power and own less than 40% of the company’s shares.

Wages calculation under a Work-Sharing agreement

The amount of benefits paid for a week of Work-Sharing is calculated by comparing the hours of work missed because of the Work-Sharing agreement against the hours the claimant would have normally worked. Benefits are paid as a percentage of hours missed. For example:

  • weekly benefit rate = $500.00
  • the normal work week was 40 hours prior to the Work-Sharing agreement, and
  • in the week under consideration, the claimant works 30 hours, and misses 10 hours of work due to the Work-Sharing agreement

In this case, the claimant has worked 30 out of a possible 40 hours. Therefore, 10 out of 40 hours were lost due to the Work-Sharing agreement, or 25%. This claimant will be entitled to 25% of their benefit rate, or $125.00, for the 10 hours missed because of the Work-Sharing agreement.

For employers who have employees whose hours of work vary depending on emergency volume (on call)

The employer must establish an average of Normal Weekly Hours (NWH) and Average Weekly Earnings (AWE) for the Work-Sharing (WS) participants. NWH and AWE are used to determine the percentage of work an employee has missed and the amount they may be payable, and NWH are included in Attachment A (EMP5101) under the column titled “Normal Weekly Hours”.

If the NWH vary from week to week, the project officer shall determine an average over the last year to come up with the NWH per participant.

Employees on irregular work schedules

Employees on an irregular work schedule may cycle through a period of rotating shifts comprising longer days or hours of work followed by more hours or days off work, rather than working a conventional work week comprised of five working days with two days off within a calendar week. For example, the normal work period may cover a total 21 calendar days, with employees working 15 days followed by 6 days off.

The way an employer divides work hours is up to them and can vary from one week to the next. Employees participating in WS can alternate weeks of employment and would be considered having an irregular work schedule; for example, an employee would work 1 week while the other would work the next.

Once the employer’s irregular work schedule is defined, the employee’s normal weekly hours may be determined based on their normal work schedule pattern over the last year.

All employees are required to work at least 30 minutes per week to remain eligible for benefits under the program. Normally, a week is counted as a week of unemployment for the purposes of paying WS benefits when an employee has worked at least 30 minutes in a calendar week (Sunday to Saturday). In the case of an irregular work schedule, due to the combination of hours/shifts/days not worked due to an employee’s participation in WS and those dates not worked due to the irregular work schedule, the likelihood exists that there will be calendar weeks in which an employee does not work a minimum of 30 minutes. When a WS agreement is approved on the basis of an irregular work schedule, such a week may be counted as a week of unemployment for the purposes of paying WS benefits. However, the manner by which the employer reports hours worked and hours not worked due to the WS agreement may be modified as an averaging or pro-rating formula.

However, employers need to make sure that throughout the life of the agreement, employees who have irregular work schedules have a reduction in working hours between 10-60% (on average).

Employers who already requested an extension under special measures for the steel and aluminum or forestry sector

Employers who already received an extension (to up to 76 weeks) under any of the other temporary special measures, and are now experiencing further reductions in business activity due to COVID-19, may be eligible another WS agreement.

For example, an employer currently accessing special measures under Steel and Aluminum or Forestry could serve the 76-week maximum agreement period that was already approved, and then apply for a new agreement under COVID-19 to a maximum of 38 weeks.

Timeline for submitting Work-Sharing documentation

Before COVID-19, employers had to send their Work-Sharing application (and supporting documentation) at least 30 days prior to their requested start date.

Employers no longer need to submit applications 30 days in advance. The streamlined measures undertaken by Service Canada will aim to reduce the average 30-day processing time to approximately 10 business days. The Department will prioritize incoming WS files and aim to process these applications quickly to support Canadian employers and employees.

Note that this timeline may vary based on the amount of applications received.

Business name change and eligibility

Regardless of a change to the employer’s legal name, and provided that the name change is not the result of receivership, bankruptcy or a sale of assets, employers who have been in business in Canada for over a year are eligible to the Work-Sharing program.

Work-Sharing unit description

A Work-Sharing unit is a group of core employees who have agreed to participate in the Work-Sharing program and to reduce their normal working hours. A Work-Sharing agreement may include more than one Work-Sharing unit. Some larger employers may have WS agreements that are comprised of several WS units (included in separate attachment A forms) with different job descriptions or from different departments.

The unit generally includes all employees in a single job description or all employees who perform similar work. Employees who do different work but whose jobs impact one another (in other words slowdown in business affects one job resulting in less work for another job or jobs) may form one WS unit provided that all employees can reduce their hours equally.

There must be a minimum of 2 employees in a Work-Sharing unit.

Speed of service

Given the high volume of applications currently being submitted by employers across Canada due to COVID-19, and in order to assist employers with the benefit as quickly as possible, the speed of service for processing applications is approximately 10 business days (instead of 30 days before COVID-19).

Utilization Reports for employers with irregular work schedules

Each employee is required to work at least 30 minutes per week to remain eligible for benefits under the program, as indicated on Utilization Reports.

Relief grant payment

A relief grant one-time lump sum payment to employees would be excluded from earning under regulation 35 if the payment is not conditional to providing some sort of service to the employer for the assistance and that the assistance is freely given by the employer, without any legal obligation.

Determining Normal Weekly Hours, on call Average Weekly Earnings and implications on Utilization Report (UR)

On call hours and earnings:

During a WS agreement, the employer is required (for Employment Insurance purposes) to provide the hours worked and hours missed for all weeks of the agreement. If the employees did not work at all (0 hours), the employer is required to report the amount of any money paid to the employees.

If an employee is ‘on call’, the employer only has to report the hours worked if the employee is called in. If the employee is called in, the hours worked for the call are added to the Hours Worked column of the Utilization Report (UR). The hours worked reduce the amount in the Hours Missed column.

For example:

If the employee has Normal Weekly Hours of 40:

Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Hours worked 8 8 0 0 8 0 0
Hours missed due to WS 0 0 8 8 0 0 0
On call No No Yes No No Yes No

If the employee was not called in to work on any of their on call periods, the declaration on the UR would be:

Normal Weekly Hours: 40

Hours Worked: 24

Hours Missed: 16 (including 8 hours missed as part of the WS agreement and 8 hours missed considering that the employee was not called in too work)

If the employee was called in during an ‘on call’ period, the hours physically spend doing the job need to be added to the hours worked and reduced from the hours missed. If, in this example, the employee came in for 4 hours, the declaration on the UR would be:

Normal Weekly Hours: 40

Hours Worked: 28

Hours Missed: 12

With regards to earning while ‘on call’, these are considered earnings that arise out of the WS employment and are not to be reported on the UR, unless hours worked were at 0. Since the employee would only be in receipt of ‘on call’ earnings if they physically responded to a call, the hours worked would not be 0 and the earnings would not be reported.

Non Employment Insurance eligibility

An employee who is not eligible for Employment Insurance (EI) benefits, and would like to be removed from the Utilization Reports (UR) submitted by employers, should be removed from the Attachment A (and subsequent URs). If a non-EI eligible employee has requested to be removed from the UR, the employer must obtain permission from the employee to disclose this information to the Project Officer. If the employee does not agree with the employer disclosing the non-EI eligibility, the employer may indicate that the individual no longer wishes to participate in a WS agreement, as reason for removal, from the Attachment A and UR.

If they agree to the work reduction, non-EI eligible employees can still work the reduced hours and be paid by the employer for the days they work, but would not receive EI benefits on the days they don’t work.

Training for employees participating on Work-Sharing

Employees may participate in training activities during the hours and days for which they are receiving benefits under a Work-Sharing Agreement (that is during the hours or days of work missed due to participation in Work-Sharing) and are compensated according to the terms of the Work-Sharing Agreement. The employer may not specifically or intentionally reduce the scheduled hours of work of employees in a Work-Sharing unit to allow them to take training.

During Work Sharing, employees may still be eligible to receive additional support for skills training during the day when they are not working through other federal, provincial laying start date of a (Labour Force Development Agreements), but not through Labour Market Development agreements (LMDAs) as they are still considered employed.

Scenario 1

Kim works at a small retail business. As part of the COVID-19 isolation measures, the provincial government has ordered all non-essential businesses to close. To remain viable and avoid layoffs, the store’s owner, Tony, has decided to shift sales to an online platform. Tony and his employees agree to enter into a Work-Sharing agreement.

Kim requires assistance to learn how to operate in an online retail environment as she has limited technical skills. Tony contacts a provincial employment centre and is offered support through Employer-Sponsored Training, a measure available under the Labour Market Development Agreements. This provides financial support to help Tony cover the reskilling costs of his employees. Without this training, Tony fears that Kim and her colleagues may need to be laid off.

The salary costs for Tony’s employees taking part in this training are not compensated through the Work-Sharing Program, because the training will take place during normal scheduled working days. Under the Program, any training activities offered during non-scheduled working days for which the employees would be receiving Work-Sharing benefits would be optional

Scenario 2

Mallory and Tim own an independent music production company based out of Toronto, and employ 3 staff. Due to a decrease in business resulting from COVID-19 isolation measures, Mallory and Tim’s employees have agreed to reduce their working hours by 50% under a Work-Sharing agreement.

Maxime works for Mallory and Tim and is worried about the future of the company and his job. Prior to pursuing a career in music production, he was close to completing the required courses to become a personal support worker.

Maxime decides to explore options to help him complete the remaining training needed online outside of his scheduled work hours, such as financial support from the province or Canada Student Grants for Part-Time Studies. While Maxime loves his job and his employers, he knows that these workers are in demand due to COVID-19 and there may be opportunity for him to help with recovery efforts.

Scenario 3

Mallory and Tim own an independent music production company based out of Toronto, and employ 3 staff. Due to a decrease in business resulting from COVID-19 isolation measures, Mallory and Tim’s employees have agreed to reduce their working hours by 50% under a Work-Sharing agreement.

Maxime works for Mallory and Tim and is worried about the future of the company and his job. Prior to pursuing a career in music production, he was close to completing the required courses to become a personal support worker.

Maxime visits a provincial employment centre on one of his non-scheduled working days and is offered financial support to complete the remaining training needed online outside of his scheduled work hours. While Maxime loves his job and his employers, he knows that these workers are in demand due to COVID-19 and there may be opportunity for him to help with recovery efforts.

Electronic signatures

The new process under COVID-19 was simplified, and now allows for a typed name in an application (EMP5100), attachment A (EMP5101) and Work-Sharing agreement to be accepted as signatures. A wet signature is no longer required.

Employment Insurance enquiries

The Work-Sharing (WS) program provides income support for workers eligible for Employment Insurance (EI) benefits who are willing to work a reduced workweek when there is a reduction in the normal level of business activity that is beyond the control of the employer.

Signature of Work-Sharing agreement must be signed within 60 days

Work-Sharing agreements must be signed by the employer within 60 days of the application approval and must be implemented within 60 days of the project start date.

If the agreement is not signed by the employer within 60 days of the approval date, the agreement will be cancelled. If the 60-day grace period has lapsed, the employer will be notify by letter with a copy to the employee representative, indicating that the agreement has been canceled.

If the employer still wishes to participate in the Work-Sharing program, a new application can be submitted without having to serve the mandatory waiting period.

Hiring Co-op students

An employer can hire co-op students while participating in a Work-Sharing agreement.

However, students hired for the summer or for a co-op term are not eligible to participate in a Work-Sharing agreement. The work hours of these co-op students would be expected to be reduced as they are for those who are in the participating Work-Sharing unit, to ensure equitable sharing of the available work.

Given that reduced business activity serves as the context for being eligible to participate in Work Sharing and that the objective is to avert layoffs, there is also an expectation that any additional work would first be offered to the existing members of the Work-Sharing unit, not to the co-op students.

Employees participation in simultaneous Work-Sharing agreements

A Work-Sharing participant can only be paid for one agreement at a time, even if they work for two different businesses who are both applying for Work-Sharing benefits. Should this be the case, the employee must be added to Attachment A forms for all agreements they wish to participate in. The client will then be contacted to determine which agreement they want to be paid for and an Insurance Payment Operational Centre (IPOC) will manually process all payments.

Self-employed individuals and shareholders applying for Work-Sharing

Those who are self-employed as well as shareholders responsible for the direction of the company who hold 40% or more of the voting shares can apply for Work-Sharing benefits on behalf of the company, but cannot receive Work-Sharing benefits for themselves.

First Nations eligibility

If the First Nation organization solely carries out activities related to government administration, they would most likely not be eligible for Work-Sharing. A business enterprise or not-for-profit owned/run by the First Nation is eligible.

Apprentice eligibility

Apprentices who are funded through the province are eligible for Work-sharing benefits only if they are working during the Work-Sharing period. If they are attending the in-school/training portion of their apprenticeship, they are not eligible to participate in the WS agreement. However, they may be added back to the agreement when they complete their training period.

Delaying start date of agreement

There is a delay of 60 days or less in signing a Work-Sharing agreement. If an employer requests to delay their agreement start date, the agreement will be signed after the anticipated start date indicated in the agreement, and the employer will still be entitled to the full number of weeks agreed to.

If an agreement is not signed within 60 days of the approval date, it must be cancelled and a letter must be sent to the employer representative, with a copy to the employee representative, indicating that the agreement was cancelled because the 60-day grace period has lapsed.

In cases where the start date of an agreement is being delayed, the Project officer needs to advise Employment Insurance of the new date. Immediately prior to the new start date, the clients would apply and the employer would issue the Record of Employment (ROE) showing the last day worked as the last day the employee worked immediately prior to the start of the agreement. No Utilization Reports would be expected until after the new start date.

Training for employees and Utilization Reports

Employers do not need to indicate on Utilization Reports if employees are undertaking training activities during Work-Sharing.

School eligibility

As part of the enhanced eligibility for Work-sharing under COVID-19 special measures, post-secondary institutions are eligible given they are not fully publicly funded. 

Given the fact that public school boards are normally fully publicly funded, they are not eligible for Work-Sharing benefits.

Private schools remain eligible, as they are note solely publicly funded.

Canada Emergency Wage Subsidy and Work-Sharing

Apply for both the CEWS and the Work-Sharing Program

It is possible to combine the Work-Sharing Program and the Canada Emergency Wage Subsidy (CEWS) However, any benefits received by employees through the Work-Sharing program will reduce the subsidy amount that the employer is entitled to receive under the CEWS.

It should also be noted that while the CEWS is retroactive (from March 15, 2020, to June 6, 2020); the Work-Sharing Program is not.

More information on the CEWS can be found on the CEWS web page.

Calculation of the CEWS while on a Work-Sharing agreement

Work-Sharing benefits received by eligible employees will reduce the employer’s subsidy on a 1-to-1 basis. For example, if an employer expected to receive a wage subsidy of $500 per employee and an eligible employee receives $275 in Work-Sharing benefits, the employer’s subsidy would be $225 ($500-$275).

Cancellation of an active Work-sharing agreement to apply for CEWS

You can cancel your Work-Sharing Agreement at any time. Should you still need Work-Sharing support after accessing the CEWS, you are able to re-apply. Receiving CEWS funding will not negatively affect your ability to re-apply for a future Work-Sharing Agreement, nor will it cancel your current agreement.

Choosing between the Work-Sharing agreement or the CEWS

Whether and when to apply for government programs is a business decision that must align with the specific circumstances of an individual business. However, the employer should be aware that the CEWS amount will be reduced by the amount of Work-Sharing benefits received by each participating employee.

Apply for the CEWS while on Work-Sharing

You can apply for the CEWS online.

If you have a Work-Sharing Agreement, you will need to enter the total amount of benefits that all your eligible employees have received under the Work-Sharing program (for the claim period) at Line G.

Determining the total amount of benefits received by employees (to include at Line G)

In order to determine the total amount of benefits received by eligible employees, an employer should contact each employee directly and request this information. Please note due to privacy laws, Service Canada officials are not able to disclose the amount of EI benefits received. It should also be noted that employees are not obligated to disclose this information.

If an employer cannot collect the EI WS benefits from all employees, the Canada Revenue Agency (CRA) will accept a reasonable estimate of the total amount of WS benefits received by employees in order to facilitate an application for the CEWS.

Contact us

For more information on the Work-Sharing program, employers across Canada may call toll-free.

Canada and the United States

Toll-free: 1-800-367-5693 
TTY: 1-855-881-9874

Outside Canada and the United States

Telephone: 506-546-7569 (collect calls accepted)
Hours of operation: 7:00 am to 8:00 pm, Eastern Time, Monday to Friday.

Service Canada has also created an enquiry unit for clients affected by COVID-19 that are seeking information related to the Work-Sharing Program. Enquiries can be sent to the mailbox below for specific Work-Sharing information or to request general information about the Program.

Email: [email protected]
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