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Work-Sharing 2010
Work-Sharing is an adjustment program designed to help employers and employees avoid temporary layoffs when there is a reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work-week.
Work-Sharing Agreements must be agreed upon by both employee and employer representatives, and approved by Service Canada.
Work-Sharing is about:
- helping employers retain skilled employees and avoid the costly process of recruiting and training new employees when business returns to normal levels; and
- helping employees maintain their skills and job by supplementing their wages with Employment Insurance benefits for the days they are not working.
Eligibility Criteria
Eligible employers must:
- have been in year-round business in Canada for at least two years;
- show that the need for reduced hours is unavoidable;
- show that the work shortage is temporary and unexpected;
- demonstrate (through a recovery plan) how the business will be maintained for the duration of the agreement and return to normal working hours as the economy strengthens;
- not be undergoing a labour dispute; and
- have the agreement of the union (if applicable) and employees.
Eligible employees must:
- be "core staff" (year-round permanent full-time or part-time employees who are required to carry out the functions that will lead to recovery);
- be eligible to receive regular Employment Insurance benefits; and
- not be participating in a labour dispute.
A minimum of two employees is required for a Work-Sharing Agreement.
The work shortage must be:
- significant enough to warrant support of the program i.e. a demonstrated decrease in sales/orders of at least 10%.
Duration
Work-Sharing Agreements have a minimum duration of 6 weeks.
For new agreements which start on or after April 4, 2010, the maximum initial duration is 26 weeks with a possible extension of up to 12 weeks (to a maximum agreement duration of 38 weeks).
Under Canada’s Economic Action Plan (Budget 2010), an additional 26 weeks is available to employers with active or recently terminated agreements. These extensions must end by April 2, 2011.
How to apply for Work-Sharing
Employers should read the Work-Sharing Applicant Guide before filling out the Work-Sharing Application form. The completed application, along with the Attachment A (available in PDF and Excel) listing the employees involved and a recovery plan (template available in HTML and Word), can be submitted in-person at the local Service Canada Centre or sent by mail.
A Work-Sharing brochure is also available for employers to review.
Applications must be submitted a minimum of 30 days prior to the requested start date. All agreements start on a Sunday.
All applications are subject to an assessment and approval process by Service Canada.
Work-Sharing Application Form and Attachment A
Employers can download a printable Application Form and Attachment A (PDF / Excel) (which identifies all Work-Sharing Unit members) or obtain these forms at any Service Canada Centre.
Work-Sharing Applicant Guide
The Work-Sharing Applicant Guide contains important information for employers and employees. It includes:
- the eligibility criteria;
- step-by-step instructions for completing the Work-Sharing application;
- a list of elements for the recovery plan; and
- a description of the assessment and approval processes.
Expected Work Reduction and Utilization Report
Work-Sharing Agreements must include a reduction in work activity between a minimum of 20% of the employees' regular work schedule and a maximum of 60% (i.e. one to three days).
Employers who enter into a Work-Sharing Agreement must provide Service Canada with an Enrolment Sheet which lists all participants and their Social Insurance Numbers. The employer must also complete and submit to Service Canada a weekly Utilization Report detailing the number of hours worked by each employee participating in Work-Sharing.
For more information:
- Call 1-866-891-5319 (TTY: 1-800-926-9105)
- Visit your local Service Canada Centre
- Consult the Frequently Asked Questions
