Frequently Asked Questions

1. What is Work-Sharing?

Work-Sharing is an adjustment program that enables employers to deal with business cutbacks and still avoid layoffs. Under a Work-Sharing Agreement, the employer shortens the work-week by one 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.

2. 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 remain viable during the period of the agreement, in order that the business may recover and employees may return to normal hours of work.

3. How long is a Work-Sharing Agreement?

The minimum duration of a Work-Sharing Agreement is 6 weeks.  For applications received as of February 1, 2009, the maximum Work-Sharing Agreement duration is 52 weeks.  This new maximum is one of the provisions included in Budget 2009, and will be in effect until April 3, 2010.  (Normally, the duration of a Work-Sharing Agreement is up to 26 weeks, with a possible extension of up to 38 weeks.)

4. Who can apply for Work-Sharing?

Management and workers must agree to participate in Work-Sharing and apply together.

Employers:

To be eligible, an employer must have been 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 unavoidable, and is not a seasonal situation.

As part of the application, the employer will produce a recovery plan outlining the steps being taken to ensure the viability of the business during the period of the agreement and to recover as the economy strengthens.

Employees:

Permanent full-time or part-time employees of a company may participate.  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.

5. What documents are needed to apply for Work-Sharing?

An employer needs to complete:

• EMP 5100 B Application for a Work-Sharing Agreement;
• EMP 5101 B Work-Sharing Unit (list of those who will be participating in Work-Sharing signed by each employee for non-union agreements or by a union representative; and a
• Recovery Plan.

Please refer to the Applicant Guide for further information.

6. What should a Recovery Plan include?

The Recovery Plan should include the following elements.

• a general history of the business;
• comparisons of sales, business and/or production levels, and operating costs over the past two years;
• information on the cause of the work shortage specific to the business and economic downturn;
• a description of any measures taken by the employer before applying for the WS program to remain viable during the downturn in business;
• a statement that the employer plans to resume normal business levels in the future;
• a description of activities considered important to the continued viability of the business; and
• a description of any employee skills enhancement/upgrading to take place during the life of the agreement.

Due to the uncertainties arising from the current economic downturn, it is accepted that not all employers will be able to provide all the elements listed above or be able to articulate specific timelines or benchmarks related to recovery. However, employers should provide as much information as possible to support the application.

Please refer to the Applicant Guide for further information.

7. 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.

8. How will applications be assessed?

The criteria to assess applications focus on:

• an employer who is experiencing a temporary, unexpected and unavoidable reduction in business activity;
• an employer who has tried to prevent employee layoffs through other means;
• the community context in which the employer is operating; and
• a Recovery Plan that demonstrates that the business can be maintained during the period of the Work-Sharing Agreement.

9. What are the changes to the Work-Sharing Program as a result of Budget 2009?

• Through Canada’s Economic Action Plan, Work-Sharing Agreements may now extend for a full 52 weeks and access to Work-Sharing has been increased through greater flexibility in the qualifying criteria.

• Employers who submit a new Work-Sharing application after February 1, 2009, may be eligible to immediately enter into a Work-Sharing Agreement of up to 52 weeks.

• Employers who participated in a Work-Sharing Agreement which ended prior to February 1, 2009, are immediately eligible to apply for a new agreement with a possible maximum duration of 52 weeks (i.e. no wait time to submit a new application).

• Employers with an active Work-Sharing Agreement which started prior to February 1, 2009, will continue to their approved end date.  When the end date is reached, employers may immediately apply to enter into a new Work-Sharing Agreement with a possible maximum duration of 52 week (i.e. no wait time between agreements).

• As well, flexibilities have been introduced to the employer Recovery Plan which will focus more on the steps the employer will take to remain viable during the agreement in order that the business can recover as the economy strengthens.

• Employees who may have been recently laid off may be rehired to participate in Work-Sharing Agreements if they are necessary to maintain the viability of business during the agreement.