Applicant Guide
A. Purpose
The purpose of this guide is to provide information to help employers apply for a Work-Sharing agreement. Please read all the information provided and discuss it with your employees.
B. Introduction
Work-Sharing is an adjustment program designed to help employers and employees avoid temporary layoffs Footnote 1 when there is a reduction in the normal level of business activity Footnote 2 that is beyond the control of the employer. The program provides income support to workers eligible for Employment Insurance benefits who work a temporarily reduced work week.
Work-Sharing is a three-party agreement involving employers, employees and Service Canada. Employees on a Work-Sharing agreement must agree to a reduced schedule of work and to share the available work over a specified period of time. Work-Sharing agreements must be agreed upon and signed by both employer and employee/union representatives (the employee/union representative signs on behalf of all employees in the Work Sharing unit Footnote 3).
i. Objective
The objective of the Work-Sharing program is to help employers and employees avoid temporary layoffs when there is a temporary shortage of work that is beyond the control of the employer. There must be a reasonable expectation that recovery (i.e. a return to normal working hours for all participating employees) will be achieved within 26 weeks.
ii. Advantages
The Work-Sharing program enables:
- employers to retain staff and adjust their work activity during temporary work shortages;
- employers to avoid the expenses of hiring and training new staff once business levels return to normal; and
- employees to retain their skills and jobs while receiving Employment Insurance benefits for the days that they do not work.
iii. Applications
Completed applications (including the recovery plan and Attachment A) 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.
You may apply for Work-Sharing in-person at a Service Canada Centre or by mail. Service Canada will acknowledge in writing the receipt of the application.
[Footnote 1] For the purpose of the Work-Sharing program, a temporary layoff is defined as a severance of employment (i.e. ending an employment contract between employer and employee) for a minimum of six weeks to a maximum of six months due to a temporary reduction in work activity for which a Record of Employment is issued. (Return to footnote 1 source paragraph)
[Footnote 2] Business activity is defined as the selling of goods or services with an objective to earning profit. (Return to footnote 2 source paragraph)
[Footnote 3] See section C, subsection v for the definition of a Work-Sharing unit. (Return to footnote 3 source paragraph)