6/23/ Work-Sharing

6/23/ 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.

6/23/ 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.

6/23/ 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

6/23/ 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.

6/23/ 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.

6/23/ 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.

6/23/ 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.

6/23/ 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

6/23/ 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

6/23/ 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.

6/23/ 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.

6/23/ 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.

6/23/ Benefit Rate Employment Insurance pays 55% of the normal weekly earnings up to a maximum of $447/week.

6/23/ 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.

6/23/ Call Click Visit A Service Canada Centre near you

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