Work-Sharing Program Analysis ### 📋 Eligible Entities - Businesses of all sizes (small, medium, and large enterprises) - All industry sectors (manufacturing, services, retail, etc.) - Employers with employees eligible for Employment Insurance (EI) - Must be experiencing a temporary downturn in business activity - Must have a valid employer account with Service Canada - Businesses must demonstrate financial hardship or operational challenges (not permanent closure or bankruptcy) ### 💰 Funding Details - No direct grant payment to the business - Employee wage supplement: Employees receive EI benefits for reduced work hours (not wages from employer) - Employees continue earning partial wages from employer for reduced hours worked - Matching requirement: Employer must maintain reduced payroll (no government cost-sharing ratio; EI covers the income gap) - Non-repayable: EI benefits are not loans and do not require repayment - Duration: Typically 6 to 12 months, with potential for extension (up to 24 months in some cases) ### 🛠️ Approved Expenses - Payroll costs for reduced work weeks (employer responsibility) - Employee wages for hours actually worked - Note: Government EI benefits cover the income replacement for non-worked hours - Indirect benefit: Reduces employer payroll burden during business downturn - Can be used to retain skilled workforce without full layoffs ### ⚠️ Conditions & Milestones - Eligibility requirement: Employees must qualify for EI benefits - Work reduction: Employees must work a reduced work week (typically 40% reduction minimum) - Business justification: Must demonstrate a temporary downturn (not permanent restructuring) - Application process: Submit work-sharing agreement proposal to Service Canada - Approval timeline: Agreement must be approved before implementation - Record-keeping: Employer must maintain accurate payroll and attendance records - Compliance: Must comply with provincial labor laws and employment standards - Reporting: Regular reporting to Service Canada on participation and hours