(As of May 5, 2020)
READ MOREWhat is it?
- Work-sharing helps employers and workers avoid layoffs when there is a temporary business slowdown that is beyond the employer’s control (such as this pandemic).
- Workers and their employer agree to reduced hours and shared work. Employment Insurance (EI) pays a portion of the wages lost based on regular EI rules to ease the blow of reduced hours.
Why do it?
- Helps keep people working, maintains a higher level of income than if laid off or on EI or CERB.
- Helps employers retain qualified and experienced workers.
Who is eligible?
- Permanent, full-time and part-time employees needed for day-to-day functions. Employees essential to the recovery and viability of the business. Must be eligible for EI as well.
- Private companies, Government Business Enterprises, and not-for-profit organizations.
- Ineligible workers: seasonal, casual, on-call, temporary, self-employed, summer or co-op students.
Key features
- Equal sharing of work: all workers agree to reduce their hours by the same percentage.
- Hours must be reduced by 10% to 60%. Reduction can vary weekly and average over agreement.
- Duration: 6 consecutive weeks minimum to 38 weeks. If entering the agreement due to COVID-19 the maximum can be extended to 76 weeks for applications received until March 14, 2021.
- Mandatory cooling-off periods waived for employers who have already used the program.
- Eligibility has been expanded to businesses that have only been in business for one year.
- Employers requested to submit their application 10 calendar days before desired start date.
Potential work- sharing scenario: Worker earning $70,000 per year ($1,346.15/week gross).
Reduction | Laid off | 10% | 20% | 30% | 40% | 50% | 60% |
Gross weekly income retained | $0.00 | $1,211.54 | $1,076.92 | $942.31 | $807.69 | $673.08 | $538.46 |
Lost weekly income paid | $573.00 | $57.30 | $114.60 | $171.90 | $229.20 | $286.50 | $343.80 |
New weekly gross | $573.00 | $1,268.84 | $1,191.52 | $1,114.21 | $1,036.89 | $959.58 | $882.26 |
* Note, this example is strictly for illustrative purposes. Specific income amounts will vary case by case.