GrantFederalTraining

Worker Retention Grant (prerequisite: Work-Sharing Program)

The Worker Retention Grant (WRG) is designed to enable employers with an approved and implemented Work-Sharing agreement who commit to fostering training opportunities to provide additional income support to their Employment Insurance (EI) eligible employees who are working reduced hours and are on training. This Grant helps maintain employees’ income by keeping their earnings closer to their normal wages throughout the duration of the Work-Sharing agreement.

Offered by Employment and Social Development Canada (ESDC)

Amount

Training: up to $1,000 per eligible participant; income top-up raises income replacement from 55% to about 70%

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
Incorporated, partnership, non-profit, charity
Location
Federal

Who can apply

Employers in all sectors with an approved and implemented Work-Sharing agreement.

Eligible employers must:

  1. be eligible for the Work-Sharing program
  2. have an approved and implemented Work-Sharing agreement in place
  3. commit to fostering training opportunities for Employment Insurance (EI) eligible Work-Sharing employees
  4. 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 (for example a minimum of 15 weeks of training offerings for a 38 week Work-Sharing agreement)
  5. re-commit to providing training in a similar proportion for the period of the extension, if requesting an extension to the Work-Sharing agreement beyond 38 weeks
  6. declare any amounts owing and in default to the Government of Canada

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

Note to organizations located and operating in Alberta and Quebec:

If your project (training) proposal is selected for funding, you may be required to obtain approval from the Alberta or Quebec government before you can accept funding from ESDC.

  1. Alberta: Please consult the Provincial Priorities Act (Bill 18)
  2. Quebec: Please consult the Act respecting the Ministère du Conseil exécutif

Eligible employees

To be eligible to receive the income top-up, the employee must:

  1. meet the eligibility criteria for the Work-Sharing Program (including current Special measures)
  2. be participating in an active Work-Sharing agreement, and
  3. be in receipt of EI Work-Sharing benefits

Eligible project (training)

To be eligible, projects must:

  1. offer training opportunities for a minimum of 40% of the weeks covered by the Grant agreement
  2. offer the training to all eligible employees in the Work-Sharing Unit(s)
  3. not exceed 76 weeks duration and be no longer than the Work-Sharing agreement
  4. be completed by Saturday, March 27, 2028, at the latest

You can apply to start receiving the Grant (the latter of):

  1. the Sunday following the submission of your Worker Retention Grant application, or
  2. the implementation date of your Work-Sharing application

You can apply for projects that have already started, subject to certain conditions. However, you assume the risk of not being reimbursed if:

  1. the project is not approved
  2. the costs are deemed ineligible

Any costs incurred prior to the establishment of a Grant agreement are incurred solely at your risk without obligation of reimbursement by ESDC.

The design of the Worker Retention Grant takes a flexible approach to defining eligible training offerings. Employers can choose training most relevant to their business, including those related to business recovery and worker retention (upskilling/re-skilling).

Eligible training offerings can be provided using an online format, in person or part-time, and through flexible formats such as facilitator-led and/or peer-to-peer training provided in the workplace during non-work hours.

Examples of eligible training include:

  1. supporting skills development specific to an employer's operations
  2. widely applicable foundational skills such as digital and AI literacy, workplace safety, linguistic proficiency, problem-solving and numeracy
  3. informal training such as on-the-job training and peer-to-peer knowledge transfer that builds meaningful skills and knowledge that could be valuable for professional growth
  4. skills development that supports the growth of the sector and expansion into new markets

There is no set delivery format required for eligible training.

  1. It can be delivered online or in person, including sessions led by a facilitator arranged by the employer or conducted in the workplace during non-working hours
  2. Can be provided by different types of trainers (for example, in-house trainers, or external training organizations)

To assist with identifying training options, employers are encouraged to visit Job Bank, Canada's national employment service, which has a dedicated section for work-sharing employers. In this section, Work-Sharing employers can explore Job Bank's new Training Finder and connect to upskilling platforms from partner organizations for free to help their employees find training relevant to their industry and career goals. Thousands of courses of various durations are available.

Note:

You must commit to supporting upskilling and training opportunities for your eligible employees for at least 40% of the weeks covered by the Grant agreement (for example, 15 weeks of training offerings for a 38-week agreement, that is 40% x 38 = 15.2).

About the funding

Funding amounts will vary depending on the details of the Work-Sharing agreement, such as the number of participating employees, the duration, and the reduction rate.

Eligible costs are limited to the:

  1. income supplement paid to eligible employees, and
  2. Mandatory Employment Related Costs applicable on the supplement. This is limited to the employer portion only of the:
Show all funding details
  • EI premiums
  • Canada Pension Plan or Quebec Pension Plan contributions

The training supplement is not payable for any non-Work-Sharing weeks (for example, plant shutdowns, weeks of sick or vacation leave, etc.).

Businesses funded by this program

9 businesses funded since 2021

Most recent recipients

BusinessLocationYear
Peinture Industrielle DJ inc.Lévis, QC2026
MI CONCEPT + DESIGN INC.Toronto, ON2026
Fractal Communications Ltd.Toronto, ON2026
ARCH-TECH DESIGN GROUP INC.Bolton, ON2026
Brighton Custom Rubber MFG. Ltd.Brighton, ON2026
Deep Logic Solutions Inc.Almonte, ON2026
Investatech Inc.Toronto, ON2026
Rain Digital Communications Inc.Hamilton, ON2026
Bluewrist Inc.Markham, ON2026

Source: Government of Canada, Proactive Disclosure of Grants and Contributions.

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