Work-Sharing: How Canadian Businesses Can Stay Afloat During Tariff Trouble – Without Letting Go of Staff

Written by: Robert Richler & Adriana Trichilo

If you’re a business owner feeling the squeeze from rising costs, economic uncertainty, or the impact of U.S. tariffs, you’re not alone. Fortunately, there’s some good news: the Government of Canada has stepped up with practical support, including an expanded work sharing program designed to help businesses keep their teams intact while riding out the storm.

What Is the Work Sharing Program (and Why Should You Care)?

Think of the work sharing program as a lifeboat in rough economic waters—it helps keep your team afloat without anyone having to jump ship. In a nutshell, the work sharing program allows you to reduce employee hours without resorting to layoffs, with the government helping to cover the gap in wages.

It allows businesses to temporarily cut back on employee hours (anywhere from 10% to 60%) during slow periods. Employees in the program receive employment insurance (EI) to supplement their lost income, and everyone keeps working, contributing, and staying ready for the bounce-back.

Why It’s a Win-Win

For employers:
You get to retain trained, experienced employees instead of spending time and money hiring and onboarding new ones when business picks back up. It’s a smart way to weather a slowdown without starting over from scratch later.

For employees:
They keep their jobs, stay engaged, and don’t lose out entirely on income. It’s a far better alternative to being laid off, especially when they know business conditions are temporary.

Special Help for Businesses Affected by U.S. Tariffs

From March 7, 2025 to March 6, 2026, the government has rolled out special work sharing measures for businesses hit by U.S. tariffs. If your revenue has taken a hit due to changes in trade policy, these updates make it easier to qualify for support.

Here’s what’s new:

• Longer support time – Agreements must be for a minimum of 6 weeks and can now run up to 76 weeks, compared to the usual 26. No cooling-off period is required between renewals.
• Broader eligibility – Non-profits, charities, and seasonal businesses (usually excluded) can now apply.
• Lower threshold to qualify – Even if your slowdown is under 10%, you may still be eligible if you need to reduce hours significantly (more than 60%).
• Fewer barriers – As long as your business has been operating for at least a year and you have two EI-eligible employees willing to participate, you’re likely good to go.

Want to Apply? Here’s the Process

Applying is a joint effort between employers and employees, and it’s done through Service Canada. You’ll need to prepare an agreement, including input from management and employee reps. If your situation involves U.S. tariffs, there’s a dedicated support team you can email directly for help.

It’s important to note that involved employees need to agree to a reduced schedule of work and to share the available work equally over the term of the agreement. The work-sharing arrangement can only begin once the agreement is submitted and approved by Service Canada.

Reach out to us today to see how you can take advantage of these government-backed supports and protect the team you’ve worked so hard to build.

contact@hrlawyers.ca

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