Canada’s “Work-Sharing” program is an adjustment program, which may offer relief and an alternative to employers financially impacted by COVID-19, including those experiencing a slow down in business, but who continue to operate at some level.
The program is intended to assist employers to avoid layoffs, particularly during this pandemic, if the employer experiences a temporary reduction in the usual amount of business activity that is beyond the control of the employer, as may be the case with COVID-19.
The program involves a three-party agreement between the employer, the employees and Service Canada.
Work-sharing allows employees to work reduced hours and share work equally between one another.
The other key aspects of the program are:
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the employer must apply to the program at least thirty days in advance of the start date of the program;
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the employees will be eligible for benefits through the program if they agree to work reduced hours;
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there must be at least two employees willing to share job duties;
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the employer must be: a publicly-held company; a private enterprise or a non-profit organization, which must in business for at least one year, reduced from 2 years due to COVID-19;
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the employer must demonstrate a temporary work shortage, beyond their control, of 10% or more;
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the employees undergoing work shortages must be “core employees” (i.e., not seasonal, casual employees);
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the mandatory “cooling-off” period, where an employer cannot re-enter a work sharing agreement with the same employees, has been waived temporarily due to COVID-19; and
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the maximum duration of the work sharing has been increased from 38 weeks to 76 weeks due to COVID-19.
Employees who participate in the program who do the same, or substantially similar, work will become part of the "Work-Sharing unit".
Employees in a Work-Sharing unit can have their hours reduced by up to 60%.
To apply to the program, employers must submit:
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the application for work sharing;
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the attachment to the application (PDF or Excel); and
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a recovery plan, which must demonstrate that the employer will implement activities during the period of the work-sharing agreement to alleviate the work shortage in order to return the work-sharing unit(s) to normal working hours by the end of the agreement.
Employees eligible to participate are those who:
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are "core" employees, meaning they are permanent full-time or part-time employees who are required to carry out the everyday functions of normal business activity, and not seasonal or casual employees/students;
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are eligible to receive EI benefits; and
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agree to a reduction in their normal working hours in order to share work.
More information is available here:
https://www.canada.ca/en/employment-social-development/services/work-sharing.html
