Work-Sharing
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Work-Sharing. 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.

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Work-Sharing


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.


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.


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


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.

5

8/14/2014


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.


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.


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.


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


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


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.


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.


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.


Benefit Rate

Employment Insurance pays 55% of the

normal weekly earnings up to a maximum of

$447/week.


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.


Call1-866-945-7342

Clickwww.servicecanada.gc.caVisit A Service Canada Centre near you


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