Government of Canada extends Work-Sharing temporary flexibilities to help employers and workers avoid mass layoffs Français
GATINEAU, QC, March 11, 2026 /CNW/ - In a rapidly changing world, Canada's Government is focused on what we can control: building our strength at home. Through the new industrial strategy and workforce measures, we are transforming our economy – from one of reliance, to one that is more resilient, competitive, and protects workers from global disruptions.
As part of this work, temporary special measures were introduced under the Employment Insurance (EI) Work-Sharing program to help employers facing unexpected slowdowns avoid layoffs and maintain stability for workers. As of February 28, more than 1,500 Work-Sharing Agreements have been approved for businesses affected by tariffs, covering over 50,000 workers and helping prevent nearly 20,000 layoffs.
To give workers and workplaces continued stability, today the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario announced the extension of these work-sharing flexibilities until March 31, 2027. This extension provides employers the time they need to recover, while giving workers the supports they need during these uncertain times.
Under these temporary special measures, Work-sharing supports now include:
- Extending the maximum duration of Work-Sharing agreements from 38 weeks to up to 76 weeks.
- Waiving the requirement to serve a cooling-off period (equal to the length of the first agreement) between successive agreements established while temporary special measures are in place.
- Expanding employer eligibility to:
- Businesses having been in operation in Canada for just one year (rather than the regular two-year requirement).
- Non-profit and charitable organizations that are experiencing a reduction in revenue levels as a direct or indirect result of the tariffs.
- Cyclical or seasonal employers.
- Employers that have a decrease in work activity over the past six months of less than 10% or greater than 60%.
- Expanding employee eligibility to:
- Employees who are not year-round, permanent, full-time or part-time employees, specifically seasonal or cyclical employees.
- Employees assisting in the employer's recovery efforts.
- Simplifying the recovery measures reporting requirement to focus on maintaining business viability in the face of tariff measures (rather than the regular requirement which requires return to normal business levels).
To further support workers during reduced hours, the Government of Canada is also launching the new Worker Retention Grant for Work‑Sharing Employers, backed by an investment of approximately $102.7 million over two years. The Grant gives employers the ability to provide training opportunities so workers can upskill while maintaining up to 70% of their regular income during Work-Sharing. Through Job Bank, employers and workers can also access tailored tools such as a dedicated Training Finder and connections to courses.
By supporting our workers and industries, we are building Canada strong.
Quotes
"Canadian workers are the backbone of our economy, driving success in every corner of our country. With the extension of Work-Sharing temporary flexibilities, employers have more time to stabilize and build and ensure workers can stay on the job, protect their incomes, and build new skills for the future. By investing in skills, training, and growth, we are equipping workers with the tools they need to succeed today, and the confidence to lead tomorrow.
– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
Quick facts
- Work-Sharing Temporary flexibilities were introduced on March 6, 2025 for a one-year period in response to the threat or potential realization of tariffs, the EI Work-Sharing temporary special measures offer additional flexibilities beyond the standard EI Work-Sharing program.
- The EI Work-Sharing Program allows eligible employees to receive EI Work-Sharing benefits when they agree to work reduced hours due to a decrease in business activity beyond their employer's control.
- This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing their reduced wages with EI benefits for hours not worked.
- On September 5, 2025, the Government of Canada announced bold measures to protect, build and transform Canadian industries most affected by tariffs and global trade disruptions. As part of this response, six Workforce Alliances are being established to mobilize industry leaders, workers and training institutions around a shared national vision: building a workforce that is skilled, adaptable and ready to meet Canada's economic challenges.
The Alliances will focus on the following priority areas:- Housing and Construction
- Transportation and Supply Chains
- Advanced Manufacturing
- Energy and Electricity
- Mining and Minerals
- Care Economy
- Through the Government of Canada's $570 million investment in the Workforce Tariff Response, Provincial and Territorial governments are delivering targeted training and employment services funded through Employment Insurance contributions by workers and employers, helping workers return to the labour market more quickly and strengthening community resilience.
Associated links
Work-Sharing Program - Overview | Work-Sharing Program - Special measures
Work-Sharing Program statistics since March 30, 2025
Worker Retention Grant for Work-Sharing Employers
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SOURCE Employment and Social Development Canada
Contacts: For media enquiries, please contact: Jennifer Kozelj, Senior Communications Advisor and Press Secretary, Office of the Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, 343-540-6643, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]
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