Employment Insurance Work-Sharing Program (work-sharing)

(As of May 5, 2020)

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What 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). 

ReductionLaid off10%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.