The Work-Sharing (WS) Program in Canada is a government initiative designed to help businesses avoid layoffs during temporary downturns. In response to recent U.S. tariffs, the Canadian government has introduced special measures to provide additional support to affected businesses and non-profit organizations.
What is the Work-Sharing Program?
The WS Program allows employers to reduce employees’ working hours while affected workers receive Employment Insurance (EI) benefits to offset lost income. This helps businesses retain skilled workers and recover more effectively.
Who is Eligible?
- Businesses facing a temporary reduction in workload beyond their control (e.g., economic downturn, supply chain disruptions, U.S. tariffs).
- Companies operating in Canada for at least one year (previously two years).
- Non-profits and charitable organizations affected by revenue declines due to tariffs.
- Seasonal and cyclical employers, now included under the special measures.
- Employees must be permanent, year-round staff, but new measures also allow for some seasonal and cyclical workers.
Key Enhancements Due to U.S. Tariffs
To support businesses impacted by U.S. tariffs, the Canadian government has implemented several temporary enhancements, effective March 7, 2025, to March 6, 2026:
- Extended Program Duration – Work-Sharing agreements can now last up to 76 weeks (previously capped at 26 weeks), providing long-term support for recovery.
- Waived Cooling-Off Period – Businesses can immediately reapply for WS without waiting between agreements.
- Broader Employee Eligibility – Seasonal and cyclical employees, as well as those assisting with business recovery efforts, can now participate.
- Eased Business Eligibility Requirements – Companies with only one year in operation can now qualify, making the program more accessible.
Why Should Business Owners Consider Work-Sharing?
- Avoid layoffs and retain skilled employees.
- Offset wage costs with EI benefits.
- Maintain business continuity while navigating tariff-related economic challenges.
- Plan for long-term stability with extended program duration.
How to Apply
Business owners can apply for the Work-Sharing Program through the Government of Canada’s official website: Work-Sharing Program. Given the complexity of the impact of U.S. tariffs, consulting with trade and employment specialists can help tailor an approach best suited for your business.
These enhancements ensure that Canadian businesses have the flexibility and support needed to adapt to economic shifts, remain competitive, and protect their workforce during uncertain times.
To read more details about this Program please see the briefing note from Sherrard Kuzz LLP.
If you have questions about this program please Book a Meeting
