With the decrease in economic activity in the wake of COVID-19,
some businesses are resorting to layoffs to reduce operating
expenses. But there is an alternative to layoffs that many
businesses are not aware of – and one which may reduce some
of the traditional
risks of layoffs: the Work-Sharing program.
Work-sharing is a three-party agreement between an employer, a
group of employees, and the Employment Insurance Commission. If all
three parties agree, the program provides income support to
employees who would be eligible for EI benefits and who work a
temporarily reduced work schedule during a specified period of
reduced business. The goal of the program, per the Commission, is
"to avoid layoffs when there is a temporary reduction in the
normal level of business activity that is beyond the control of the
employer".
