
Publication
Federal support available to avoid tariff layoffs
The federal government is expanding the Employment Insurance Work-Sharing Program in response to ongoing tariff disputes with the United States.
Author:
Canada | Publication | March 17, 2025
The federal government is expanding the Employment Insurance Work-Sharing Program in response to ongoing tariff disputes with the United States. These Work-Sharing “special measures” will be in place from March 7, 2025, to March 6, 2026.
The Work-Sharing Program assists employers in avoiding layoffs when they face a temporary decrease in business activity for reasons beyond their control. If program requirements are met, an employer, employees (or their unions, if any) and Service Canada enter into a multi-party Work-Sharing agreement under which:
In response to the current trade dispute with the United States, the federal government has expanded access to the Work-Sharing Program from March 7, 2025, to March 6, 2026.
Under the revised eligibility criteria, employers experiencing a decline in business activity due to the threat or application of US tariffs may be eligible for Work-Sharing special measures if they:
Employee eligibility has also been expanded. Normally, only “core” employees are eligible to participate, meaning permanent full-time or part-time employees. Under the tariff response rules, employees who are assisting in employer recovery efforts, or who are seasonal or cyclical employees, are also eligible.
Additionally, the normal 60% cap on utilization (the percentage of lost hours that will be eligible for EI payments) has been removed, meaning EI benefits can make up for more lost hours.
Finally, the maximum duration of Work-Sharing agreements has been extended. Normally Work-Sharing agreements must run between 6 to 26 weeks with a possible extension up to 38 weeks. There is a mandatory “cooling-off period” between successive agreements equal to the length of the prior agreement. Under the new rules, agreements may be extended up to 76 weeks and the cooling-off period has been waived.
The Work-Sharing Program has proved useful in times of economic disruption. During the COVID-19 pandemic, there was a huge increase in program uptake under similar special rules developed in response to pandemic-related business pressures. Similar usage may arise under the new tariff-related special rules.
Employers whose businesses have or may be impacted by US tariffs should consider whether the Work-Sharing Program and its new expanded eligibility may help avoid layoffs and retain staff until business conditions improve.
Publication
The federal government is expanding the Employment Insurance Work-Sharing Program in response to ongoing tariff disputes with the United States.
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