On March 11, 2026, the Federal government announced that the temporary Work-Sharing Program measures have been extended until March 31, 2027. This extension provides employers with additional time to stabilize operations and recover from economic uncertainty, while helping employees maintain employment and avoid mass layoffs.
As of February 28, 2026, the temporary special work-sharing agreement measures prevented nearly 20,000 layoffs across Canada.
Under the new temporary extension, the work-sharing program includes the following measures.
- Longer agreement duration (from 38 weeks to up to 76 weeks).
- Removal of the cooling-off period between successive agreements.
- Expanded employer eligibility to the program, including:
- Organizations operating in Canada for one year (previously two years);
- Non-profit and charitable organizations experiencing reduced revenues;
- Seasonal employers; and
- Employers experiencing a decrease in business activity over the past six months of less than 10 per cent or greater than 60 per cent.
- Expanded employee eligibility to:
- All employees, including permanent, full-time, part-time and seasonal workers; and
- Employees assisting in the employer’s recovery efforts.
Employers experiencing a temporary reduction in business activity should:
- Determine whether reduced work hours could be implemented through a Work-Sharing agreement;
- Consult payroll and HR teams to evaluate program eligibility and operational impacts; and
- Prepare applications early, as Work-Sharing agreements require coordination between employers, employees, and the government before the program concludes on March 31, 2027.
As previously shared by the Institute on February 20, 2026, through the Late Breaking payroll News, the government also introduced a worker retention grant for work-sharing employers.