On February 17, 2026, the Government of Canada announced that applications are now open for a new Worker Retention Grant for Work-Sharing Employers. The Grant enables employers with active Work-Sharing agreements to top-up the income of employees working reduced hours while participating in employer-supported training.
The new Grant helps address employee retention by increasing income replacement for participating employees who undertake training, from 55% to approximately 70% of reduced earnings.
To qualify, employers must:
- Have an approved and implemented Work-Sharing agreement; and
- Commit to providing essential skills training for at least a portion of the agreement period, or until the Grant concludes on March 31, 2027 (whichever comes first).
Employers should:
- Review their existing or planned work-sharing agreements to ensure eligibility;
- Identify essential skills training their employees can begin during the agreement period; and
- Submit their application as early as possible before the program concludes on March 31, 2027.