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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 20–60%reduction in weekly hours. ** Feb 1’09 – Apr 3’10 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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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? (cont’d)

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 thenormal 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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