After you apply

Service Canada will assess your application to make sure:

Service Canada will acknowledge in writing the receipt of the application.

A Program Officer will inform you of the status of your application by email. All decisions, whether approved or rejected, will be confirmed in writing.

The Program Officer will conduct a cost analysis (comparing the cost related to the temporary layoffs and the cost of the proposed Work-Sharing agreement). This is to establish the cost difference/effectiveness of suggesting or not a Work-Sharing application. As well, the Program Officer will consider a social/community impact assessment to determine the overall impact of the business on the community.

In order to recommend the application for approval, the Program Officer must conclude that:

If your agreement is approved

In this section

Employer obligations

Sign the agreement within 60 calendar days

A signed agreement will end if is not carried out within 60 calendar days of the agreement’s start date.

An agreement that is not implemented would be where employees would have not experienced a reduction in work hours. Sufficient reduction to make Work-Sharing payable under this agreement within 60 days of the beginning of this agreement.

In both cases, if you still wish to participate in the Work-Sharing program, you will need to submit a new application.

List of employer obligations during the agreement

Employees receiving benefits during the agreement

Receiving Work-Sharing benefits

The employee must apply for Employment Insurance using the Reference Code.

You do not have to serve a waiting period for Work-Sharing benefits. However, as these benefits are processed through the Employment Insurance payment system:

The benefits payable are based on the employee’s normal average weekly earnings, as calculated at the start of the agreement. If the employees work irregular hours:

During the Work-Sharing agreement, the employer may request an employee to work on a Work-Sharing day. The employee is required to report to work as it becomes available.

Earnings from Work-Sharing employment received in any week by an employee shall not be deducted from the Work-Sharing benefits. If a Work-Sharing participant has earnings from sources other than the Work-Sharing employment. Percentage of these earnings will be deducted from any Work-Sharing benefits payable the week in which the earnings occurred. Earnings are deducted in the following way:

The employer pays the wages to employees for the hours they worked, as per normal. The employer also completes the Utilization Report, so that Employment Insurance is aware of the work hours that employees missed.

The employees are paid directly from Employment Insurance:

Tax deductions for Work-Sharing benefits

Tax deductions for Employment Insurance Work-Sharing benefits are determined from the information the claimant provides. The information gave in the Income Tax section of the Employment Insurance application. The amount of tax deducted is specific to the claimant's province, personal tax situation and benefit rate.

The Employment Insurance benefits received by Work-Sharing participants are taxable. However, because of the weekly amount of benefits paid, taxes are not always withheld at source.

Participants may wish to have their income tax deductions increased. In order to avoid having to pay a large amount of income tax at year-end.

The employee can make this request by phone with Employment Insurance at the toll-free number: 1-800-206-7218, TTY: 1-800-529-3742.

At the time the participant files their income tax return, depending on their net income:

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