The Government of Canada has announced a proposed new Workforce Retention and Retraining Program (WRRP) to help employers retain and retrain employees during periods of economic adjustment.

The new program will combine the existing Employment Insurance Work-Sharing Program and Worker Retention Grant into a single framework, with additional flexibility for employers. While it’s in development, you can apply for one or both of the existing programs.

1. Work-Sharing Program

The Work-Sharing Program helps employers avoid layoffs when there is a temporary reduction in normal business activity that is beyond the employer’s control.

Under an approved Work-Sharing agreement, employees reduce their regular hours and receive Employment Insurance (EI) benefits for the days they do not work, allowing businesses to retain their workforce while activity recovers. Standard agreements generally last 6–26 weeks, with possible extensions

Eligible employers must:

  • Have operated year-round in Canada for at least 2 years
  • Be a private business, publicly held company, or eligible non-profit organization
  • Have experienced at least a 10% decline in work activity over the past 6 months
  • Show that the decline is due to factors beyond the employer’s control
  • Have a recovery plan to return employees to regular hours by the end of the agreement
  • Have at least 2 eligible employees participating in the Work-Sharing unit.

The Government has extended the tariff-related Work-Sharing Special Measures until March 31, 2028.

2. Worker Retention Grant

The Worker Retention Grant (WRG) provides additional support to employers with an approved Work-Sharing agreement that commit to training their employees during the Work-Sharing period.

Training can include digital and AI literacy, workplace safety, job-specific skills, on-the-job training, peer-to-peer learning, and skills development related to business recovery or expansion into new markets.

To qualify, employers must:

  • Be eligible for the Work-Sharing Program
  • Have an approved and active Work-Sharing agreement
  • Commit to providing training opportunities to eligible Work-Sharing employees
  • Offer training for at least 40% of the Grant agreement period
  • Continue providing training at a similar level if the Work-Sharing agreement is extended
  • Be in good standing with the Government of Canada with no amounts owing in default

The current WRG application period is open until December 31, 2027, at 3:00 PM EST, subject to program requirements.