Updated August 2026 · Verified against Employment and Social Development Canada (ESDC) guidelines
✨ New Program ✓ First-Timer Friendly Advance Payment 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
Advance Payment
Trend
New Program
First-Timers
Friendly ✓
Co-Funding
70%
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

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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 approved Work-Sharing agreements through Service Canada
  • At least two eligible employees in the Work-Sharing unit, sharing the available work equally
  • 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)
  • Business must be at least 2 years old
  • Project may not exceed 76 weeks and may not be longer than the Work-Sharing agreement
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
Co-Funding
Up to 70% of eligible costs
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
--/5
Competition
--/5
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What's in this Playbook

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

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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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Application Playbook

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

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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 5

Approved Work-Sharing agreement from Service Canada
Worker Retention Grant application submitted through Grants and Contributions Online Services (GCOS)

Eligible Expenses 6

Ineligible Expenses 5

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

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Program Amount Difficulty Payment Deadline
Worker Retention Grant for Work-Shari... Weekly per-worker income top-up Moderate Advance Payment 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.) Applications accepted...
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, you must have an approved Work-Sharing agreement with Service Canada before applying. This is a mandatory prerequisite for the grant.
What's the realistic grant amount per worker?
$5,000–$15,000 per worker retained over the agreement period. This top-up boosts wage replacement from 55% to ~70%.
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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