Federal Support Available to Help Employers Avoid Layoffs
Local employers experiencing temporary business slowdowns, economic uncertainty, or challenges related to changing trade conditions may be eligible for federal support through the Work-Sharing Program (WSP) and, for eligible Work-Sharing employers, the Worker Retention Grant (WRG).
Work-Sharing Program: Helping Employers Avoid Layoffs
The Work-Sharing Program helps eligible employers and employees avoid layoffs during temporary reductions in business activity. Through a Work-Sharing agreement, employers can reduce employees’ working hours, while eligible employees may receive Employment Insurance (EI) benefits to help offset lost income.
Work-Sharing helps:
• Employers retain skilled employees and avoid the costs of hiring and training new workers when business activity improves;
• Workers maintain their employment, skills, and connection to the labour market during challenging periods; and
• Communities by helping preserve local employment and reduce the impacts of temporary economic challenges.
Temporary special measures introduced in response to the impact of U.S. tariffs have expanded access to the Work-Sharing Program and are in effect until March 31, 2027. These measures provide additional flexibility for eligible employers facing temporary reductions in business activity.
Employers interested in applying for the Work-Sharing Program can learn more here.
Worker Retention Grant: Additional Support for Work-Sharing Employers
The Worker Retention Grant (WRG) is an additional support available to eligible employers who already have an approved and implemented Work-Sharing agreement. Employers must first establish a Work-Sharing agreement before they can apply for the WRG.
The WRG helps employers support their workforce by providing income top-ups for eligible employees who are working reduced hours under a Work-Sharing agreement and participating in training opportunities.
Through the Worker Retention Grant:
• Employers can invest in employee training and skills development;
• Workers can build skills while maintaining employment; and
• Communities can benefit from a stronger and more resilient workforce.
Training options may include online learning, facilitator-led training, peer-to-peer learning, and other flexible approaches that meet the needs of employers and employees.
Learn more about the Worker Retention Grant:
Worker Retention Grant for Work-Sharing Employers
Information Sessions and Support
Service Canada is available to provide virtual or in-person information sessions for employer groups, chambers of commerce, business associations, economic development organizations, and other stakeholders interested in learning more about these programs.
For questions or support:
• Email: edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca (for WSP); edsc.dgop.dmpj.smet-wrg.wdy.pob.esdc@servicecanada.gc.ca (for WRG)
• Employer Contact Centre: 1-800-367-5693; TTY: 1-855-881-9874
These programs help employers retain skilled workers, support employees through periods of uncertainty, and strengthen our local economy.