WORK-SHARING:
AVOIDING LAYOFFS IN TOUGH TIMES
Friday, June 19, 2009
Canada’s Economic Action Plan is strengthening benefits for workers by extending and easing access to Work-Sharing agreements so more Canadians can continue working while companies experience a temporary slowdown during these tough economic times.
Recognizing the current level of uncertainty faced by many businesses, the federal government has extended (over the next two years) Work-Sharing agreements to a maximum of 52 weeks. It has also increased access to Work-Sharing through greater flexibility in the qualifying criteria and streamlining processes for employers.
Eligible employers must:
- Have been in year-round business in Canada for at least two years;
- Show the need for reduced hours is unavoidable;
- Show the work shortage is temporary and unexpected;
- Demonstrate (through a recovery plan) how the business will be maintained for the duration of the agreement and return to normal working hours as the economy strengthens;
- Not be undergoing a labour dispute; and
- Have the agreement of the union (if applicable) and employees.
Eligible employees must:
- Be "core staff" (year-round permanent full-time or part-time employees who are required to carry out the functions that will lead to recovery);
- Be eligible to receive regular Employment Insurance (EI) benefits; and
- Not be participating in a labour dispute.
Additionally, a minimum of two employees is required for a Work-Sharing Agreement.
An element of the EI program, Work-Sharing can be instrumental in assisting business operators experiencing a temporary slowdown caused by factors beyond their control. It is designed to avoid layoffs by offering EI income benefits to qualifying workers willing to work a reduced work-week while their employer recovers. This benefits both business operators and workers; employers avoid expensive re-hiring and re-training costs while employees are able to continue working and keep their skills up-to-date. Workers laid off at the end of their participation in Work-Sharing may receive their full entitlement to regular EI benefits based on their rate of pay prior to participating in Work-Sharing.
In March 2009, there were almost 650 more Work-Sharing agreements started compared to the same period last year. That represents almost 21,000 more employees participating in new agreements than in March 2008. Currently, there are more than 2,200 active Work-Sharing agreements protecting more than 80,000 jobs across Canada.
For more information on the Work-Sharing program, go to www.servicecanada.gc.ca.
