Worker Retention Grant for Work-Sharing Employers
Eligibility & Details
What this program funds and who can apply
Program Description
New federal grant (launched February 2026) providing weekly per-worker income top-ups that boost wage replacement from 55% to approximately 70% for employers with approved Work-Sharing agreements. Part of Canada's tariff response package. Employers must commit to training for at least 40% of covered weeks. Includes training cost subsidies alongside the wage top-up.
Eligibility Requirements
- Employers with approved Work-Sharing agreements through Service Canada
- Must commit to training for at least 40% of covered weeks
- Business must be at least 2 years old
- Must demonstrate temporary business decline
Quick Assessment
Funding Details
- Amount
- Weekly per-worker income top-up (boosts replacement from 55% to ~70%) + training subsidies
- Type
- Grant
- Level
- Federal
- Co-Funding
- Up to 70% of eligible costs
- Deadline
- Until March 31, 2027
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win Worker Retention Grant for Work-Sharing Em... — $19
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 4-document checklist with what each reviewer is actually checking
- 6-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 5-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
Applying for Worker Retention Grant for Work-Sharing Employers? Our Grant Proposal Template ($19) mirrors the section structure Canadian reviewers actually score on. Or get all 4 templates in the Founder Pack ($59 · saves $27) →
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThis is brand new (launched February 2026) as part of Canada's tariff response package. You need an active Work-Sharing agreement first — apply via Service Canada. The training commitment is key: at least 40% of weeks must include training activities. This effectively pays you to upskill workers during a downturn rather than laying them off.
Success Profile
An auto parts manufacturer in Ontario with 50 employees facing reduced demand due to US tariffs, activating a Work-Sharing agreement and using the Worker Retention Grant to fund retraining in EV component manufacturing during reduced hours.
Evaluation Criteria
This is NOT a competitive program — it is designed for broad uptake. Applications are assessed on compliance: (1) Active approved Work-Sharing agreement in place, (2) Training commitment covering at least 40% of agreement weeks, (3) Training plan attestation describing the approach, (4) Disclosure of any outstanding government debts. If you meet the requirements, you qualify.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 4
Eligible Expenses 6
- Weekly per-worker income top-up payments (calculated automatically, boosting replacement from 55% to ~70%)
- The grant covers the wage supplement only — not training design, delivery, materials, or provider fees
- Employer must provide or arrange training at own cost, or leverage other programs (Workforce Tariff Response, provincial training grants)
- Eligible training includes: skills development specific to employer operations, digital/AI literacy, workplace safety, linguistic proficiency, problem-solving, numeracy
- Informal training formats accepted: on-the-job training, peer knowledge sharing, mentoring
- Online, in-person, part-time, flexible delivery formats all qualify
Ineligible Expenses 5
- Training design and delivery costs (must be self-funded by employer)
- Training provider fees, course materials, and platform subscriptions
- Employee salaries beyond the grant-funded top-up amount
- Capital equipment or infrastructure investments
- Costs incurred before the grant agreement is in place
Intake Periods
Applications accepted from February 17, 2026 through the program's duration. ESDC enquiry window: February 16, 2026 to December 30, 2026. Grant agreements run until March 31, 2027. Continuous intake — no fixed deadlines beyond the program end date.
Deadline Notes
Program runs from February 2026 to March 31, 2027 ($102.7 million over 2 years). Requires an active Work-Sharing agreement with Service Canada as a prerequisite.
Ineligible Organizations
- Employers without an active approved Work-Sharing agreement
- Businesses less than 2 years old
- Organizations unable to demonstrate a temporary decline in business activity
- Employers not committing to the 40% training threshold
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskHow Worker Retention Grant for Work-Sharing Em... Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Worker Retention Grant for Work-Shari... | Weekly per-worker income top-up | Moderate | Advance Payment | Until March 31, 2027 |
| Canada-Manitoba Job Grant | Up to 75% of costs | Easy | Reimbursement | Ongoing |
| B.C. Employer Training Grant | Up to $10,000 per employee | Easy | Reimbursement | Ongoing |
| Sustainable Jobs Training Fund (SJTF) | $8,000,000–$15,000,000 | Hard | Reimbursement | Between intakes —... |
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Frequently Asked Questions
Quick answers to the questions founders most often ask about Worker Retention Grant for Work-Sharing Em...