Federal program offers up to $1,000 per worker for training as employers face slowdowns

What the program offers

The Workforce Retention and Retraining Program (WRRP), launched October 22, 2026, combines two federal initiatives into a single application. Employers can provide training to workers on reduced hours, while employees receive income support through Employment Insurance (EI) Work-Sharing benefits plus a top-up for eligible training.

The program covers technical, digital and foundational skills training, peer-to-peer learning and on-the-job training. Training must be offered for at least 40% of the agreement period, taken in non-working hours. Agreements run a minimum of four weeks and can extend to 152 cumulative weeks before a 38-week cooling-off period applies.

• Work hour reduction: 10% to 60% under standard rules; special measures allow above 60%
• Training funding: up to $1,000 per participating employee, paid to the employer
• Income support: EI benefits for reduced hours plus a top-up while in eligible training (rate not published)
• Equal sharing requirement temporarily removed; hours can be split in different proportions

Who is eligible

Under standard rules, an employer must have operated in Canada for at least two years, show at least a 10% drop in work activity over the past six months due to reasons beyond its control, and have a plan to restore normal hours by agreement end. Only private businesses, publicly held companies and certain non-profits qualify; public sector employers and Crown corporations are excluded.

Temporary special measures, in place until March 31, 2028, expand eligibility significantly. Employers need only one year of Canadian operation and at least two EI-eligible employees. The measures also include employers with less than a 10% activity drop, non-profits and charities with tariff-related revenue losses, seasonal and cyclical businesses, and those needing to transform, retool or diversify.

• Employees must be year-round, permanent, full-time or part-time core staff, eligible for EI, and available to work normal hours
• Seasonal and cyclical employees and those helping with recovery can participate under special measures
• People on long-term leave are excluded

How to apply

Employers apply through the Work-Sharing application page online. The first step is to register for Grants and Contributions Online Services (GCOS) and verify identity early, as registration can take time. Employers already in the EI Work-Sharing Program or the Worker Retention Grant move over automatically and do not need to reapply.

Complete the application in GCOS (or request a paper process from a regional Work-Sharing unit if unable to use the online system). Upload Attachment A (EMP5101) listing each participating employee's occupation, hire date and normal weekly hours. Obtain written confirmation from employer and employee representatives agreeing to the application. Choose a start date that falls on a Sunday at least 10 business days after submission; retroactive start dates are not allowed.

For the training grant portion, employers must complete a Grant Calculator spreadsheet, provide each employee with a copy of the Employee Annex, sign the declaration and attach the calculator to the online application. Grant weeks cannot exceed the weeks remaining on the Work-Sharing agreement. Employees do not apply separately; their EI eligibility is determined when they file for EI.

• Register early for GCOS; contact the Employer Contact Centre if you don't receive a tracking number and acknowledgement email
• Retraining Grant applications must be submitted by December 31, 2027, 3 p.m. ET

Key dates and context

The WRRP is part of a broader $3.5 billion Rapid Response Supports package announced August 25, 2026. The government expects the program to prevent approximately 20,000 layoffs and support more than 2,300 employers. Since January 2025, temporary Work-Sharing flexibilities have helped avert around 25,000 layoffs through approximately 1,600 agreements.

The program ends March 31, 2028. The latest date Retraining Grant weeks can run to is March 25, 2028.