Employment Insurance

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Work-Sharing
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What is Work-Sharing?
Work-Sharing assists employers and employees
facing lay-offs due to a decline in production.
During the Work-Sharing agreement, available
work is redistributed through a voluntary
reduction in hours worked by all employees within
one or more work units. This enables the
employer to retain a full work force on a reduced
work week, rather than laying off part of their
work force. Eligible workers receive Employment
Insurance (EI) benefits for the hours they do not
work in each Work-Sharing week.
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It is a WIN-WIN situation

• Work-Sharing benefits employees
• maintain their employment
• retain their work skills
• are compensated for the days when no work is
  available.
• Work-Sharing benefits employers
• valued employees are retained
• staff morale is strengthened
• expensive rehiring and retraining costs are
  avoided.

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• Work-Sharing is
• for employers whose need to reduce their normal
  level of business activity is beyond their
  control.
• Work-Sharing is NOT
• to support declining establishments,
• to retain seasonal workers during slow seasons

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A Temporary Measure

• Employees must sign agreement to participate.
• Projects can go from 6 26 weeks with 2060
• reduction in weekly hours.
• Feb 109 Apr 310 projects can go for up to
  52 weeks.
• Work-Sharing Agreements do not affect workers
  rights to regular EI Benefits if they happen to
  be laid off after the agreement ends.

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11/19/2009
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How do employers qualify?

• To be eligible, an employer
• must have been in business in Canada for at least
  two years.
• must have a minimum of 2 eligible employees.
• must be able to show that the need for reduced
  hours is temporary and unavoidable, and is not a
  seasonal situation.

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How do employers qualify? (contd)

• management and workers must both agree to
  participate in Work-Sharing.
• must complete a detailed Recovery Plan.
• (outlining steps being taken to ensure the
  viability of the business during the period of
  the agreement and to recover as the economy
  strengthens).
• if applicable, union concurrence and involvement
  is required.

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Who can participate?

• Permanent full or part-time employees of a
  company may participate.
• Eligible employees willing to reduce regular
  working hours in order to share available work.
• Note Employees must qualify for regular EI
  benefits and must voluntarily agree to take part
  in the program.

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How Does An Employer Apply?

• To apply for Work-Sharing an Employer must
  provide
• A completed application form, including
  attachments and signatures of both employer
  representative and employee representative(s)
• A description of the business
• A description of the employees
• A description of the plan for recovery

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Work-Sharing week

• A week is counted as a Work-Sharing week when the
  claimant has worked at least a half hour in the
  Work-Sharing agreement

A Non Work-sharing week

• A non Work-Sharing week consists of
• 5 sick days,
• 5 non available for work days or,
• a 5 day scheduled plant shut down

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Applying for EI benefits

• A special Work-Sharing agreement reference number
  will be assigned.
• Each employee is responsible for completing an EI
  application (and must use the reference number).
• Each employee on a Work-Sharing agreement will
  receive a Record of Employment (ROE).
• Employees can file on-line from home, community
  access points such as the public library or from
  their local Service Canada Centre.
• Employees must ensure they provide accurate
  personal and employment information.

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Qualifying Conditions for Employment Insurance

• The eligibility requirements for Work-Sharing are
  the same as those for regular EI benefits.
• In the last 52 weeks (or since their last EI
  claim) employees must have worked for the
  required number of insurable hours before the
  effective date of the agreement.
• The hours are based on where they live and the
  unemployment rate in their economic region at the
  time of filing their claim for benefits.

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Waiting Period

• Participants do not have to serve a two-week
  waiting period for Work-Sharing Benefits.
• Benefits are processed through the EI payment
  system, which means that there will be a delay of
  3-6 weeks between the time all the required forms
  are received and the first cheques are received.
• Note The 2 week waiting period must be served if
  the employee starts collecting regular benefits
  at the end of the Work-Sharing period.

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Benefit Rate

• Employment Insurance pays 55 of the
• normal weekly earnings up to a maximum of
• 447/week.

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Allowable earnings

• Employees may earn up to 40 of the EI benefit
  rate from outside employment before deductions
  are made from WS benefits.
• Example weekly Work-Sharing EI rate is 447,
  then 179 may be earned from other employment
  before Work-Sharing benefits are reduced.

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Call1-866-945-7342 Clickwww.servicecanada.gc.ca
Visit A Service Canada Centre near you
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