On March 7, 2025, the Government of Canada expanded the Employment Insurance Work-Sharing Program to support Canadian workers and businesses in response to the threat or potential realization of tariffs. Temporary special measures are available from March 7, 2025 until March 6, 2026.
Overview of the Work-Sharing Program
Service Canada’s Work-Sharing Program is designed to help employers avoid layoffs when there is a temporary decrease in business activity for reasons beyond the employer’s control. These types of work-sharing agreements were previously implemented by many employers during the COVID-19 pandemic.
A work-sharing agreement is a three-party agreement between employers, employees (or their unions) and Service Canada. The Work-Sharing Program allows employers and employees to agree to a temporarily reduced work week and to share available work, while eligible employees receive Employment Insurance (“EI”) benefits to supplement their reduced income.
To participate, employees must generally experience a minimum 10% reduction to their normal weekly earnings. Under ordinary circumstances, work-sharing agreements can last between six weeks to 26 weeks, and if needed, can extend for a total duration of 38 weeks.
Temporary Special Measures
Employers facing a temporary decline in business activity because of the potential or actual implementation of tariffs may qualify for the Work-Sharing Program’s special measures if the employer: (i) has a minimum of two eligible employees who agree to a reduction in hours and to share any available work; and (ii) has been operating in Canada for at least one year.
