Work-Sharing - Frequently Asked Questions
Additional Temporary Work-Sharing Extension
1. What is the temporary Work-Sharing measure?
The Government of Canada, under Budget 2011, put in place a temporary Work-Sharing measure to make it easier for Canadians to continue working while companies experiencing a temporary shutdown recover.
This temporary measure has been extended providing an additional 16 weeks to employers with an active, new, or recently ended Work-Sharing agreement.
2. Who qualifies for the additional 16-week extension under the Work-Sharing program?
Employers with an active, new or recently ended agreement may apply for an additional 16 weeks.
Employers with an active or new 26-week agreement must first obtain a 12-week extension before being eligible for a 16-week extension.
An employer with a recently ended agreement is someone whose previous agreement has ended and is currently serving the normal waiting period between agreements.
3. What is the deadline for applying for the 16 week extension?
While there is no deadline to apply, all extensions must end by October 27, 2012.
General Questions
4. What is Work-Sharing?
Work-Sharing is an adjustment program that helps 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. Under a Work-Sharing agreement, the employer shortens the work week by half a day to three days and pays reduced wages accordingly. For the hours, days, or shifts not worked, Service Canada arranges for Employment Insurance eligible workers to draw benefits, to help compensate for the lower wages they receive from the employer.
The program helps employers retain skilled employees and avoid the costly process of recruiting and training new employees when business returns to normal levels and it helps employees maintain their skills and jobs by supplementing their wages with employment insurance benefits for the days they are not working.
5. What is the objective of Work-Sharing?
The objective of the Work-Sharing program is to help employers and employees avoid layoffs during periods of temporary workload reduction and to ensure that all the participating employees return to normal working hours by the end of the agreement.
6. How long is a Work-Sharing Agreement?
The initial duration of a Work-Sharing agreement must be between a minimum of 6 consecutive weeks and a maximum of 26 consecutive weeks. Employers may request an extension of up to 12 weeks.
The length of the Work-Sharing agreement should be based on the expected duration of the work shortage and the time required for a return to normal working hours.
The temporary Work-Sharing measure has been extended providing an additional 16 weeks to employers with an active, new, or recently ended Work-Sharing agreement. These extensions must end no later than October 27, 2012.
Extensions are not automatic; all requests for an extension must be assessed and approved by Service Canada.
7. Who can apply for Work-Sharing?
The employer and employees must agree to participate in Work-Sharing and apply together.
Employers:
To be eligible, an employer must be in year-round business in Canada for at least two years. They must also be able to show that the need for reduced hours is temporary and beyond their control, and is not a seasonal situation.
As part of the application, the employer will submit a recovery plan outlining the steps being taken to return to normal working hours by the end of the agreement.
Employees:
Permanent full-time or part-time employees of a company may participate in the program. In order to receive Work-Sharing benefits, workers must be eligible to receive regular Employment Insurance benefits. A minimum of two employees is necessary for a Work-Sharing agreement.
8. What documents are needed to apply for a Work-Sharing Agreement?
Employers must complete:
- EMP 5100 Application for a Work-Sharing agreement
- EMP 5101 Attachment A (available in HTML, PDF and Excel format) - list of employees participating in Work-Sharing signed by each non-union employee and the employee and/or union representative; and,
- Recovery plan template (available in HTML and Word).
Please refer to the Applicant Guide for further information.
9. What documents are needed to apply for an extension to a Work-Sharing Agreement?
An employer needs to complete and submit:
- EMP 5103 Amendment to a Work-Sharing agreement;
- EMP 5101 Attachment A (available in HTML, PDF and Excel format) - list of employees participating in Work-Sharing signed by each non-union employee and the employee and/or union representative; and,
- Recovery plan template (available in HTML and Word).
Please refer to the Applicant Guide for further information.
10. What should a Recovery Plan include?
The recovery plan should include the following elements:
- a clear outline of activities that will be taken during the period of the agreement to return all employees to normal working hours;
- a brief synopsis of the industry or local community; and,
- a statement by the employer indicating whether or not all employees are expected to return to normal working hours by the end of the agreement.
The recovery plan should reflect the particular circumstances of the business, the cause of the work shortage and the conditions of the community/industry in which the employer operates.
Please refer to Section E of the Applicant Guide for further information.
11. Where can I apply for Work-Sharing?
Employers can get an application on the Web or in person by visiting any Service Canada Centre.
Employers can submit their completed application in person or by mail.
To support employers, the Work-Sharing Applicant Guide is available. It offers information on eligibility requirements and assessment criteria.