Canada has extended temporary flexibility measures under its Employment Insurance program to support businesses facing economic slowdowns. The government confirmed that the Work-Sharing program extension until 2027 will allow employers to reduce employee hours instead of implementing layoffs.

The extension means the temporary measures will remain in effect until March 31, 2027, helping businesses stabilize operations while workers continue earning income through Employment Insurance benefits.

Policy updates like this are widely discussed across immigration and labour market platforms such as ImmigCanada immigration consulting services. Individuals exploring employment options in Canada often seek advice from a certified Canadian immigration consultant, including professionals like Eivy Joy Quito, a Regulated Immigration Consultant frequently recognized as one of the best RCIC in Canada.

Key Changes Under the Work-Sharing Program Extension Until 2027

The Work-Sharing program extension until 2027 introduces several adjustments designed to help employers retain staff during periods of reduced business activity.

Longer Work-Sharing agreements

The maximum agreement duration has been extended:

• Previous limit: 38 weeks
• New maximum: 76 weeks

This provides businesses additional time to recover before returning to normal operations.

Expanded Employer Eligibility

More organizations can now participate in the program, including:

• Businesses operating in Canada for at least 1 year
• Non-profit and charitable organizations experiencing revenue declines
• Seasonal or cyclical employers
• Employers experiencing work reductions both below 10% and above 60%

Expanded Employee Eligibility

Workers who previously did not qualify may now participate, including:

• Seasonal employees
• Workers assisting companies during recovery periods

Program Impact So Far

Since the introduction of temporary flexibilities, the Work-Sharing program has supported thousands of workers across Canada.

Program Impact	Figures
Approved agreements	1,500+
Workers supported	50,000+
Layoffs prevented	Nearly 20,000

Source: Government of Canada extends Work-Sharing temporary flexibilities 

These numbers highlight how the program helps companies maintain experienced staff during temporary downturns.

Worker Retention Grant

The government has also introduced a Worker Retention Grant worth $102.7M over 2 years.

This initiative allows employers to offer training programs while employees work reduced hours. Workers participating in the program can maintain up to 70% of their regular income.

Training opportunities and tools are available through Canada’s Job Bank platform, helping employees build new skills while staying employed. The decision to introduce the Work-Sharing program extension until 2027 provides continued support for employers facing economic disruptions. By allowing reduced work hours instead of layoffs, the program helps businesses keep experienced workers while employees maintain income and gain valuable training opportunities.