Worker Retention Grant: New Support for Canadian Employers Using the Work-Sharing Program

Worker Retention Grant: New Support for Canadian Employers Using the Work-Sharing Program

The Government of Canada has introduced a new Worker Retention Grant aimed at supporting employers who are participating in the Employment Insurance (EI) Work-Sharing Program. The initiative encourages employers to retain skilled workers while also investing in training and workforce development.

The grant will remain available until March 31, 2027, providing Canadian businesses with additional support during periods of reduced operations.

For employers facing temporary work shortages, this program offers an opportunity to maintain their workforce, strengthen employee skills, and prepare for future growth.

Understanding the Work-Sharing Program in Canada

The Employment Insurance Work-Sharing Program is designed to help employers manage temporary declines in business activity without laying off employees.

Instead of terminating staff during slow periods, employers can temporarily reduce working hours across a group of employees. Workers then receive EI benefits for the days they do not work, helping them maintain income while staying connected to their workplace.

This approach benefits both employers and employees.

Employers can retain trained staff and avoid recruitment costs when business activity returns to normal. Employees avoid layoffs while maintaining their job skills and labour market connections.

What is the Worker Retention Grant?

The Worker Retention Grant builds on the Work-Sharing Program by encouraging employers to provide training opportunities to employees working reduced hours.

Through the grant, employers can provide income top-ups to employees who participate in training during non-working hours. This helps employees continue earning while developing new skills that support long-term career growth.

The program is designed to strengthen workforce stability and ensure businesses are better prepared for future economic changes.

Types of Training Supported by the Grant

The Worker Retention Grant takes a flexible approach to training so employers can select programs that best match their operational needs.

Training can be delivered in multiple formats, including:

• Online training programs
• In-person sessions or workshops
• Part-time training courses
• Facilitator-led training
• Peer-to-peer knowledge sharing in the workplace

Training is typically delivered during non-working hours, allowing employees to develop skills while businesses continue their operations.

Examples of eligible training activities include:

• Skills development related to the employer’s operations
• Digital skills and AI literacy
• Workplace safety training
• Language and communication skills
• Problem-solving and analytical skills
• Numeracy and foundational workplace skills
• On-the-job learning and peer knowledge transfer

Employers may also work with employees, unions (if applicable), and provincial or territorial representatives to identify suitable training opportunities.

Eligibility Requirements for Employers

To qualify for the Worker Retention Grant, employers must meet several requirements.

Businesses must:

• Be eligible for the Employment Insurance Work-Sharing Program
• Have an approved and implemented Work-Sharing agreement
• Commit to providing training opportunities for eligible employees
• Provide details about their training approach
• Offer training opportunities for at least 40% of the Work-Sharing agreement period
• Re-commit to training if requesting an extension to the Work-Sharing agreement
• Declare any amounts owed to the Government of Canada

For example, a 38-week Work-Sharing agreement would require a minimum of 15 weeks of training opportunities.

Training Costs and Additional Support

It is important to note that the Worker Retention Grant does not reimburse employers for the costs of training design or delivery. Employers must fund their own training initiatives.

However, additional financial assistance and training resources may be available through other federal programs, including initiatives linked to the Workforce Tariff Response, which supports workforce training and employment development.

Employers may also access low-cost or no-cost training resources available through various government and industry programs.

How Canadian Employers Can Apply

Employers who believe they meet the eligibility criteria can apply for the Worker Retention Grant by email.

The application email must include the following information:

• Organization name
• Contact information (email and phone number)
• Work-Sharing agreement number
• Confirmation that the employer will provide training opportunities, along with details about the training approach
• A statement indicating whether the employer has any amounts owing to the Government of Canada

Applications should be submitted to: edsc.dgop.dmpj.smet-wrg.wdy.pob.esdc@servicecanada.gc.ca

Once submitted, the email will serve as the formal application if all required information is included.

Why This Program Matters for Canadian Businesses

The Worker Retention Grant strengthens Canada’s workforce strategy by encouraging employers to combine employee retention with workforce development.

Instead of losing skilled workers during economic slowdowns, businesses can use this period to invest in training and build stronger teams.

For employees, the program provides additional income support while allowing them to improve their professional skills. For employers, it helps maintain operational stability and ensures their workforce is ready when business demand increases again.

Supporting Employers Across Canada

Programs like the Worker Retention Grant demonstrate the importance of workforce retention and skills development in Canada’s evolving labour market.

Employers looking to grow their teams can also benefit from broader recruitment opportunities through modern job platforms.

JobForce Canada connects employers with job seekers across Canada and provides a streamlined platform for posting and promoting job opportunities.

👉 Post your job today:
https://jobforcecanada.ca

Disclaimer This article is provided for general informational purposes only and summarizes publicly available information regarding the Government of Canada’s Worker Retention Grant and the Employment Insurance Work-Sharing Program. Program requirements, eligibility criteria, and application procedures may change over time. For the most accurate and up-to-date information, employers should consult the official Government of Canada website or contact Employment and Social Development Canada (ESDC) directly.