Employment insurance access is being expanded alongside a new federal program designed to help employers avoid layoffs while workers train for changing economic conditions.
Employment and Social Development Canada announced the Workforce Retention and Retraining Program on October 22, 2026, saying its online application form is now available to eligible employers.
Table of Contents
What the new workforce program offers
The program combines the existing Work-Sharing system with a retraining grant.
It is intended for employers dealing with economic disruption, including tariff-related pressures, while they retain employees and provide skills training.
Eligible employers can receive up to $1,000 per participating employee to help cover training and administrative costs.
Training can include technical instruction, digital and foundational skills, peer-to-peer learning and on-the-job training.
Employees work reduced hours under an approved Work-Sharing agreement and may receive Employment Insurance benefits along with an income top-up while participating in employer-provided training.
The program also gives employers greater flexibility to schedule and distribute working hours.
The government says the equal-sharing requirement can be temporarily removed in qualifying tariff-related situations.
Successive agreements may be used for up to 152 cumulative weeks of support.
After that period, employers must serve a mandatory 38-week cooling-off period under the program’s tariff special measures.
Who may qualify for the program
Under the expanded tariff-related rules, eligible employers generally must be operating in Canada and have at least two Employment Insurance-eligible employees who agree to reduced hours and work-sharing.
The special measures can apply to businesses that are new to Work-Sharing, already have an agreement or are serving a mandatory cooling-off period.
They also expand eligibility to some non-profit and charitable organizations, seasonal or cyclical employers and businesses that need to transform, retool or diversify.
The regular Work-Sharing framework requires participating employees to experience at least a 10 per cent reduction in normal weekly earnings.
Employees must also qualify for EI and agree to a reduced schedule under the agreement.
The program is in place from October 2026 until March 31, 2028.
The separate Retraining Grant application period runs until December 31, 2027, at 3 p.m. Eastern time.
Employment Insurance measures extended
The federal government also extended temporary Employment Insurance measures for workers who lose their jobs or face difficult employment transitions.
- The usual one-week waiting period is waived for new EI claims beginning between March 30, 2025, and October 9, 2027.
- Separation earnings, including severance pay, vacation pay and pay in lieu of notice, are temporarily not deducted from benefits when the relevant claim or allocation begins between March 30, 2025, and October 9, 2027.
- Long-tenured workers may receive 20 additional weeks of regular EI benefits, up to a maximum of 65 weeks, if they meet the program conditions.
- For claims beginning between October 11, 2026, and October 9, 2027, only the most recent reason for separation will be reviewed in certain cases involving a recently changed job.
The simplified separation rule means a worker who voluntarily left an earlier job or was dismissed for misconduct may still have earlier insurable hours considered if the worker’s most recent job ended through no fault of their own.
What workers need to know
Workers should apply for EI as soon as they stop working rather than waiting for a decision about their eligibility.
Service Canada will determine whether the person qualifies based on the claim and employment record.
The extra 20 weeks are not available to every claimant.
The current federal rules require a claim start date within the specified period, at least one week of regular benefits and long-tenured-worker status.
A long-tenured worker generally must have received fewer than 36 weeks of regular or fishing benefits during the previous three years and paid at least 30 per cent of the annual maximum EI premiums in at least seven of the preceding 10 years.
Workers participating in Work-Sharing must also understand that the program is not the same as a permanent wage replacement.
Their hours and earnings are reduced under an agreement intended to help the employer recover and return staff to regular schedules.
Expected reach and next steps
The government estimates that the Workforce Retention and Retraining Program could help prevent about 20,000 layoffs and support more than 2,300 employers.
It says approximately 1,790 employers could receive income to offset training and related administrative costs.
Employers already participating in Work-Sharing or receiving support through the former Worker Retention Grant do not need to submit a new application, according to the government.
Those employers are expected to transition to the new program.
Businesses considering an application should review the official eligibility rules, identify the employees who would participate and prepare details about reduced work activity, recovery plans and proposed training before applying.
The program and EI changes are temporary measures.
Their practical effect will depend on the employer’s approved agreement, the worker’s EI eligibility and the applicable claim dates.
Frequently Asked Questions
What is the Workforce Retention and Retraining Program?
It is a federal program that combines Work-Sharing and a retraining grant to help eligible employers retain workers, reduce layoffs and provide training.
How much retraining funding is available?
Eligible employers can receive up to $1,000 per participating employee for training and administrative costs, subject to program requirements.
How long can support continue?
Successive agreements can provide up to 152 cumulative weeks of support under the tariff-related special measures, followed by a mandatory 38-week cooling-off period.
Who can receive the extra 20 weeks of EI?
Eligible long-tenured workers with claims in the applicable period may receive 20 additional weeks, up to a maximum of 65 weeks, if they meet the required benefit and premium-history conditions.
Do workers still need to apply for EI?
Yes. Workers should apply as soon as they stop working, and Service Canada will determine eligibility based on the claim and employment record.
Fact-Checked: Key program dates and Employment Insurance measure periods were checked against current Employment and Social Development Canada and Service Canada information. The Workforce Retention and Retraining Program is in place until March 31, 2028.
Disclaimer: Eligibility and payment outcomes depend on the worker’s claim dates, employment history and the employer’s approved program agreement.