Worker Retention Grant for Employment Insurance Work-Sharing Employers Announced

The Government of Canada recently announced the introduction of a new Worker Retention Grant (Grant) for employers actively participating in the Employment Insurance Work-Sharing Program (Program). The Grant will be available until March 31, 2027.

A criteria for Grant eligibility is for employers to commit to provide training opportunities for EI Work-Sharing eligible employees. The Government has stated that “income replacement of Work-Sharing employees who take training may increase from 55% to approximately 70% of their reduced income.”

Grant Eligibility Criteria

Employers with an approved and implemented Work-Sharing agreement under the Program will be eligible for the Grant if they meet the following criteria:

The employer “commit[s] to fostering training opportunities for EI Work-Sharing eligible employees.”
The employer provides detailed information about its approach to training.
The employer attests to fostering access to training opportunities.
Training opportunities are available for at least 40% of the grant agreement period (e.g., a minimum of 15 weeks of training opportunities for a 38-week agreement).
The employer declares any amounts owing and in default to the Government of Canada.

Program Agreement Extensions

Employers requesting extensions to their underlying Program agreements must re-commit to providing training opportunities “in a similar proportion” for the extension period.

Financial Supports Available

The employer’s costs associated with the design or delivery of eligible training offerings are not reimbursable under the Grant. Employers must fund relevant training offerings at their own expense. Financial supports for training is also available through recent investments under the Workforce Tariff Response, as are low and no cost training options.

Eligible Training

Examples of eligible training include skills development specific to the employer’s operations, widely-applicable skills such as “digital and AI literacy,” workplace safety, linguistic proficiency, problem-solving, and numeracy. The Government of Canada also notes that informal training, such as “on-the-job training and peer-to-peer knowledge transfer that builds meaningful skills”, can be eligible.

Eligible Training Format

Eligible training can be offered online, in person, or part-time, and through flexible formats (e.g., facilitator-led or peer-to-peer training provided in the workplace during non-work hours).

How to Apply for the Grant

Eligible employers can apply for the Grant by email. The email must include the following information:

organization name
contact information (email and phone number)
Work-Sharing agreement number
an attestation to fostering access to training opportunities with details of the approach
an indication (yes or no) of any amounts owed and in default to the Government of Canada

Provided the employer meets the eligibility requirements, such an email with complete responses, will serve as its formal application.

More information on the financial supports, training supports and email requirements, is available in the Government of Canada’s announcement of the Grant’s availability.

Conclusion

This Grant will improve the attractiveness of Work-Sharing agreements for employers by supporting workforce retention and skills development. This will enable employers to maintain a more skilled, adaptable, and engaged workforce while minimizing operational and retention risks. The enhanced income replacement available to participating employees will soften the financial impact of Work-Sharing on your employees. Hicks Morley’s Pensions, Benefits and Compensation team can assist you in assessing how the Grant can intersect with your existing compensation and benefit arrangements and navigating the compliance considerations.

For an overview of the general eligibility requirements for the Program, see Managing Temporary Workplace Disruptions: Supplemental Unemployment Benefit Plans and the Employment Insurance Work-Sharing Program.

For details regarding the special measures introduced to the Program in response to the economic impact of U.S. tariffs, see Significant Special Measures for the Employment Insurance Work-Sharing Program Introduced for Businesses, Non-Profits Impacted by U.S. Tariffs.

The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©

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