Updated August 2026 · Verified against Employment and Social Development Canada (ESDC) guidelines
✨ New Program ✓ First-Timer Friendly Milestone-Based Est. 2026
Grant Federal Active

Worker Retention Grant for Work-Sharing Employers

Employment and Social Development Canada (ESDC)
Maximum Funding
Weekly per-worker income top-up (boosts replacement from 55% to...
Application period: February 16 to December 31, 2026 at 3 PM EST
Visit Official Program →
Difficulty
Moderate
Payment
Milestone-Based
Trend
New Program
First-Timers
Friendly ✓
Co-Funding
Varies
Worker Retention Grant for Work-Sharing Employers provides up to Weekly per-worker income top-up (boosts replacement from 55% to ~70%); the employer portion of EI/CPP/QPP on the supplement is also covered. Training costs are not. 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. Application period: February 16 to December 31, 2026 at 3 PM EST. Approval odds: ~40% (GrantCompass analysis)

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Eligibility & Details

What this program funds and who can apply

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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, but the grant covers only the income supplement and the employer portion of EI/CPP/QPP on it — the cost of designing or delivering that training is not eligible.

Eligibility Requirements

  • Employers with an approved AND IMPLEMENTED Work-Sharing agreement through Service Canada — you cannot apply before your agreement is implemented
  • Work-Sharing Program requirement (inherited): at least two eligible employees in the Work-Sharing unit, sharing the available work equally
  • Work-Sharing Program requirement (inherited): must have experienced a decrease in overall work activities of at least 10% in the last 6 months
  • Must commit to training for at least 40% of covered weeks (at the employer's own cost)
  • Work-Sharing Program requirement (inherited): the business must have operated year-round in Canada for at least 2 years
  • Project may not exceed 76 weeks and may not be longer than the Work-Sharing agreement
  • Work-Sharing Program requirement (inherited): the employer must have recovery measures in place to return employees to normal staffing levels and regular work hours by the end of the Work-Sharing agreement.
  • Alberta and Quebec applicants: if your training proposal is selected for funding, you may be required to obtain provincial government approval before you can accept the ESDC funding.
  • Training must be offered to ALL eligible employees in the Work-Sharing unit(s), not a selected subset.
Provinces
All Provinces
Industries
All
Business Stage
Growth Established Expansion

Quick Assessment

Difficulty
Moderate
Competition
Low
First-Timer
Friendly

Funding Details

Amount
Weekly per-worker income top-up (boosts replacement from 55% to ~70%); the employer portion of EI/CPP/QPP on the supplement is also covered. Training costs are not.
Type
Grant
Level
Federal
Deadline
Application period: February 16 to December 31, 2026 at 3 PM EST

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Dec 31, 2026
Approval
Good
Approval Rate
~40%
Accessibility
3/5

Moderate — standard application process

Competition
2/5

Below average competition

Difficulty
3/5

Moderate — standard requirements

Processing Time
Budget Trend
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How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

This is brand new (launched February 2026) as part of Canada's tariff response package.

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Success Profile

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Evaluation Criteria

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Premium The pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓

How Worker Retention Grant for Work-Sharing Em... judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Written answers7≈1.5k words from the funder’s limits
Judged on4 criteria
Can reject you16 rules
Decision45 days
To attach2 documents

Distilled from 6+ source documents on canada.ca, condensed into one brief. Sources as of 2026-09-04.

6 of the sources

What Worker Retention Grant for Work-Sharing Em... favours

Training need not be formal; informal and on-the-job learning qualifies◦

“Training does not need to be formal, credential based or delivered by a third-party provider. Eligible training may include informal, on the job, facilitator led, peer to peer, online, or in person learning.”

2 more, in their words

The form2 prompts shown

Prerequisites1 section
  1. 1Prerequisite: an approved AND implemented Work-Sharing agreement (separate programme)yes/no + writtenno limit

    Employers cannot apply for the Grant before implementing their Work-Sharing agreement.

Eligibility3 sections
  1. 2Worker Retention Grant eligibility - eligible employerscheckboxesno limit
  2. 3Worker Retention Grant eligibility - eligible employeescheckboxesno limit
  3. 4Worker Retention Grant eligibility - eligible project (training)checkboxesno limit
Organization information9 sections · ≈500 words
  1. 1Legal name (Question 1)short answerno limit
  2. 2Operating (common) name (Question 2)short answerno limit
  3. 3Year established (Question 3)short answerno limit
  4. 4Organization type (Question 4)selectionno limit
  5. 5Organization category (Question 5)selectionno limit
  6. 6Canada Revenue Agency (CRA) Business number (Question 6)short answerno limit
  7. 7Organization legal address (Question 7)short answerno limit
  8. 8Mailing address (Question 8)yes/no + writtenno limit

    This question is mandatory. State "yes" or "no" to the question of whether your mailing address is the same as the primary address. If no, state the mailing address of your organization.

  9. 9Organization's primary activities (Question 9)written answer · 500 words
Contacts2 sections
  1. 10 to 13Primary contact information (Questions 10 to 13)short answerno limit
  2. 14 to 17Secondary contact information (Questions 14 to 17)short answerno limit
Amounts owed1 section
  1. 18 and 19Does your organization owe any amount to the Government of Canada? (Questions 18 and 19)tableno limit
Project (training)9 sections · ≈1000 words
  1. 20Project title (Question 20)short answerno limit
  2. 21 and 22Planned project start and end dates (Questions 21 and 22)short answerno limit
  3. 23Amount requested from ESDC (Question 23)short answerno limit
  4. 24Project summary - the training plan (Question 24)written answer · 500 words
  5. 25Project objectives (Question 25)written answer · 500 words
  6. 26Project activities and timelines (Question 26)tableno limit
  7. 27Delivery locations (Question 27)yes/no + writtenno limit
  8. 28Official language minority communities (Question 28)selectionno limit
  9. 29Is your project targeting vulnerable groups? (Question 29)checkboxesno limit
Costs and funding3 sections
  1. 30Project costs (Question 30)tableno limit
  2. 31Funding sources (Question 31)tableno limit
  3. 32Budget details (Question 32)written answerno limit
Program-specific questions and attestation2 sections
  1. Part 4Part 4 - Program Specific Questionscheckboxesno limit
  2. Part 5Part 5 - Attestationcheckboxno limit
Attachments and declarations3 sections
  1. 31Grant Calculator workbook (the only required supporting document)spreadsheetno limit
  2. 32Grant Calculator - Declarationcheckboxno limit
  3. 33Employee Annex - to be given to every participating employeeshort answerno limit

bar = length the funder allows, from its stated limits

31 more prompts, in the funder’s words

Judged against3 questions · 4 criteria

  1. 1

    Is the organization eligible?

    Show them Show an approved and implemented Work-Sharing agreement, an eligible employer type, and that you are not a government body or municipality.◦

    In the funder’s words · 1
    • Organization is eligible
  2. 2

    Is the training project eligible?

    What to show, and the funder’s 1 criterion behind it in Premium

  3. 3

    Is the application complete and on time?

    What to show, and the funder’s 2 criteria behind it in Premium

5 questions the reviewer answers about you, in Premium.

Where applicants failin Worker Retention Grant for Work-Sharing Em...’s words

“If your application is incomplete, we'll send you an email. You'll have 5 business days to submit the missing information. If your application isn't complete by that time, we may reject it.”
“Any costs incurred prior to the establishment of a Grant agreement are incurred solely at your risk without obligation of reimbursement by ESDC.”

7 more, in the funder’s words

Premium · the rest of this brief

See all 16 rules that can reject you and every criterion you are judged on. Then we draft your application for you.

13 more rules that can reject you · 3 more criteria · 31 more prompts

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Do you pass?16 checks

Each one can rule you out. Tick the ones you meet.

Your business

  • Training in 40% of grant weeks

    Attest to fostering access to training opportunities and provide details on their approach, ensuring that training is offered for at least 40% of the Grant agreement period

The project

  • No longer than 76 weeks or agreement

    Not exceed 76 weeks duration and be no longer than the Work-Sharing agreement

  • Completed by March 27, 2027

    Be completed by Saturday, March 27, 2027, at the latest

13 more checks

1 thing this funder says you do NOT need, in Premium.

Documents to attach2

Ticks are kept on this device.

The money

Payment installments50% start, 40% mid, 10% final

50% of the approved funding is issued at the start of the agreement; 40% is issued following the submission and acceptance of a validation report (Payment Installment 2); and 10% is issued following the submission and acceptance of a final attestation progress report

Income replacement rate55% to about 70%

This additional top-up support will help workers keep their income closer to their normal wages while they participate in training opportunities. It will boost their income while on Work-Sharing, increasing their income replacement rate from 55% to about 70%.

StackingEmployers can self-fund and draw other support

However, employers can self-fund relevant training for their workers and draw on other financial support for training, including recent investments under the Workforce Tariff Response to provide training and employment supports to workers affected by tariffs.

Costs before approvalStarted projects eligible, with reimbursement risk

You can apply for projects that have already started, subject to certain conditions. However, you assume the risk of not being reimbursed if: the project is not approved; the costs are deemed ineligible

What it pays for · 1
  • Eligible costs are limited to the: income supplement paid to eligible employees, and Mandatory Employment Related Costs applicable on the supplement. This is limited to the employer portion only of the: EI premiums; Canada Pension Plan or Quebec Pension Plan contributions
What it does not pay for · 3
  • The costs that may be associated with the design and/or delivery of training are not eligible under this Grant.
  • professional fees; management consulting; travel and accommodation; materials and supplies; venue or logistics; virtual platform licenses; printing participant materials
  • Ineligible training includes but is not limited to: attending conferences; training that employers are legally required to provide

From application to money

  1. Applications openFebruary 16, 2026Applications open February 16, 2026
  2. Deadline to applyDecember 31, 2026 at 3pm ESTApply before December 31, 2026, 3pm EST
  3. Funding decisionDecision within 45 days of application
  4. Sign the agreementSign agreement; prior costs may not qualify
  5. Project must endSaturday, March 27, 2027Project ends by March 27, 2027
  6. Final report dueFinal report within 21 days of end
In the funder’s words · 6
Applications open
You can apply from February 16, 2026 to December 31, 2026, at 3pm EST
Deadline to apply
Submit your application in the Grants and Contributions Online Services account before the intake closes at 3pm EST.
Funding decision
ESDC expects to make funding decisions within 45 days of receipt of a complete application. This timeline may be extended if you haven't implemented your Work-Sharing agreement at the time you apply.
Sign the agreement
Costs incurred before a funding agreement is signed by your organization and the Department may not be reimbursed and the project may no longer be eligible for funding.
Project must end
Your project must be completed by Saturday, March 27, 2027, at the latest.
Final report due
the final attestation progress report must be submitted no later than 21 calendar days following the project end date, as indicated on your WRG agreement (21 calendar days following the project end date)

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to win Worker Retention Grant for Work-Sharing Em...

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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Application Playbook

Step-by-step process, required documents, and expenses

Premium 6 steps 4 docs

Application Steps

1 Obtain a Work-Sharing Agreement Apply to Service Canada for a Work-Sharing agreement if you do not already have one. This is a prerequisite. The Work-Sharing program allows employees to work reduced hours while receiving EI benefits for the remaining hours.

Required Documents 4

✓ An approved AND IMPLEMENTED Work-Sharing agreement (a prerequisite, not a document you upload)
✓ Worker Retention Grant application submitted through Grants and Contributions Online Services (GCOS)

Eligible Expenses 6

Ineligible Expenses 11

Intake Periods

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Employment Insurance Work-Sharing Program Canada-Manitoba Job Grant BC Employer Training Grant Canada-Alberta Job Grant Sustainable Jobs Training Fund
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk
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How Worker Retention Grant for Work-Sharing Em... Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Worker Retention Grant for Work-Shari... Weekly per-worker income top-up Moderate Milestone-Based Application period:...
B.C. Employer Training Grant Up to $10,000 per employee Easy Reimbursement Ongoing
Industrial Research Assistance Progra... Up to $1M Moderate Reimbursement Ongoing
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Between intakes — the...
Youth Employment and Skills Program Up to $25K Hard Advance Payment 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...

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Do I need an active Work-Sharing agreement to apply?
Yes — and it must be implemented, not just approved. You cannot apply before implementing your Work-Sharing agreement: implementation means you have notified ESDC of the week in which every member of the Work-Sharing unit had at least a 10% reduction in hours. This is a mandatory prerequisite for the grant.
What's the realistic grant amount per worker?
GrantCompass estimates roughly $5,000–$15,000 per worker retained over the agreement period, based on the income-replacement boost from 55% to ~70%. ESDC does not publish a per-worker figure — funding amounts vary by number of participating employees, agreement duration and reduction rate. Use the published Grant Calculator for your exact figure.
Is training required for the grant?
Yes, you must commit to training for at least 40% of covered weeks. This is a key eligibility requirement.
Can I combine this with other training grants?
Yes, you can stack with provincial training programs like Canada-Manitoba Job Grant or BC Employer Training Grant during the work-sharing period.
When does the program end?
Applications close December 31, 2026 at 3 PM EST. Grant weeks cannot run beyond March 31, 2027, and the who-can-apply page states the project must be completed by March 27, 2027 at the latest. A project also cannot exceed 76 weeks or outlast your Work-Sharing agreement.

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