On March 7, 2025, as a result of the newly imposed tariffs on Canada, the federal government introduced temporary flexibilities to the EI Work-Sharing Program to expand access and extend the maximum agreement duration.
The Work-Sharing Program provides EI benefits to employees working reduced hours due to business declines (the average reduction within the range of 10 per cent to 60 per cent). This helps employers retain staff and allows employees to maintain jobs, preserve skills, and supplement wages.
The specifications for Work-Sharing agreements are as follows:
- The Program lasts between six to 26 weeks, with a possible 12-week extension, for a maximum of 38 weeks.
- Extensions are not automatic; applications must be submitted at least four weeks before the agreement ends.
- A cooling-off period equal to the previous agreement’s length (up to 38 weeks) applies after termination.
- Agreements must start on a Sunday to align with EI payment cycles, so plan accordingly when applying.
Employers should:
- Evaluate their business needs
- Communicate with employees and explain how reduced hours and EI benefits will work
- Ensure the agreement starts on a Sunday