--- title: "Canada's Work-Sharing Program: What It Requires from Your Payroll Setup" description: EI Work-Sharing agreements can now run up to 152 weeks. Here's what Canadian employers need from their payroll system to access the program. image: https://blog.payworks.ca/hubfs/blogHeader_Tariff_WorkSharingWRRP_2026_555122498.jpeg --- [Skip to main content](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#maincontent) [Skip to footer](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#footer-en) ![Woman standing at desk in a stockroom, smiling at computer ](https://blog.payworks.ca/hubfs/blogHeader_Tariff_WorkSharingWRRP_2026_555122498.jpeg) # Canada's Work-Sharing Program: What It Requires from Your Payroll Setup Oct 29, 2026 [Resources](https://blog.payworks.ca/tag/resources) ![Payworks](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/inTheLoop-ring-150px.png) Payworks Share this article [![Share this on Facebook.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](https://www.facebook.com/sharer/sharer.php?u=https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup) [![Share this on Twitter.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](http://twitter.com/share?text=A%20great%20article%20from%20Payworks!&url=https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup) [![Share this on LinkedIn.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](https://www.linkedin.com/shareArticle?mini=true&url=https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup&title=&summary=&source) Key takeaways - EI Work-Sharing allows Canadian employers to reduce employee hours instead of laying people off, with employees receiving EI benefits for the hours not worked. - Under the proposed Workforce Retention and Retraining Program (WRRP) announced August 25, 2026, the program would include up to $1,000 per participant for training costs and has been expanded to include non-profits and charitable organizations. - Accessing the program requires your payroll system to record each employee’s actual hours worked each week, produce accurate ROEs, and export the data as a weekly report for Service Canada. **What we’ll cover in this article** - [What is Work-Sharing and why does it matter right now?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#what-is-work-sharing) - [What changed under the August 2026 package?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#august-2026-package-changes) - [What does your payroll system need to handle?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#payroll-system-requirements) - [How does Payworks support Work-Sharing and the WRRP?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#payworks-work-sharing-wrrp) - [What should you do right now?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#what-to-do-now) - [Frequently asked questions: how does EI Work-Sharing affect your payroll setup?](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup#faq-ei-work-sharing-payroll) EI Work-Sharing is one of the most effective (and misunderstood) tools in the federal government's tariff relief package. The concept is straightforward: instead of laying people off when business slows, you reduce hours across your team and your employees receive EI benefits for the time they're not working. Everybody stays employed. You preserve the team you've built. And when business picks up, you're ready. But Work-Sharing isn't just a policy decision, it's a payroll data commitment. The program requires your system to track hours at the individual employee level, calculate pay accurately for every participating employee, and easily export data so you can submit weekly reports to Service Canada . Under the new Workforce Retention and Retraining Program (WRRP) announced August 25, 2026, the stakes — and the opportunity — are bigger than ever. If you manage payroll or HR for a Canadian business, this article breaks down exactly what the program requires and what your payroll system needs to handle. ## What is Work-Sharing and why does it matter right now?   | **EI Work-Sharing** is a [federal program funded by Employment Insurance](https://www.canada.ca/en/employment-social-development/services/work-sharing.html) that helps employers and employees avoid temporary layoffs when there's a slowdown in business activity beyond the employer's control. Instead of letting people go, employers reduce hours across their team, and employees receive EI benefits for the hours they don't work. | | --- |   It's not new, but it's never been more relevant. Work-Sharing applications roughly [doubled in 2025](https://www.canada.ca/en/employment-social-development/news/2026/02/backgrounder-on-worker-retention-grant-for-work-sharing-employers.html) compared to the year before, with approximately 80% citing tariffs as the reason. Over 56,000 employees have participated in Work-Sharing agreements since January 2025, and those agreements are estimated to have helped prevent approximately 21,000 layoffs across Canada. That's a program doing real work for Canadian businesses and their people — and, while applicants must meet [eligibility criteria](https://www.canada.ca/en/employment-social-development/services/work-sharing/eligibility.html), it just got more accessible. ## What changed under the August 2026 package? The federal government has announced the proposed consolidation of Work-Sharing and the Worker Retention Grant into a single offering called the Workforce Retention and Retraining Program ([WRRP](https://www.canada.ca/en/employment-social-development/services/workforce-retention-retraining-program.html)). Here's what that means in practice. All of the Work-Sharing flexibilities introduced in 2025 continue, including expanded eligibility for non-profit and charitable organizations experiencing any level of revenue decrease as a direct or indirect result of tariffs. The proposed WRRP would extend these further with a [maximum agreement duration of 152 weeks (up from the standard 38)](https://www.canada.ca/en/employment-social-development/services/work-sharing/eligibility.html#tarrifs), and continued waiving of cooling-off periods between agreements. On top of that, employers participating in the WRRP are now eligible for up to $1,000 per participant to cover training costs. That's new funding designed to help employers use the period of reduced hours productively to upskill employees rather than waiting for business to return. ## What does your payroll system need to handle? Work-Sharing and the WRRP aren't just policy — they require specific, accurate data from your payroll system. Here's what needs to be in place before you apply: **Hours worked per employee, recorded weekly.** Service Canada requires employers to maintain records of actual hours worked by each participating employee, week by week (Sunday to Saturday). That means your system needs to capture hours at the individual level — not just headcount or total hours across the team — and retain those records for six years beyond the end of the agreement, available on request for Service Canada audits. Timesheets are the foundation: employees submit their hours through Self Service or a web-enabled device, and that data flows directly into payroll without manual rekeying. **Scheduling for adjusted shifts.** When employees move to reduced hours, their schedules change. Your system should let you build and adjust shifts to reflect the new arrangement so managers and employees can both see what's expected. Employees seeing their updated schedule in real time through Self Service eliminates the "wait, am I working Tuesday?" conversations. **Weekly utilization reports — every week, no exceptions.** Work-Sharing agreements require a weekly report to Service Canada for every single week of the agreement — including weeks of shutdown, weeks with statutory holidays, and weeks where no Work-Sharing hours are missed. If your time data flows into payroll automatically, this information will be right at your fingertips. **Blended pay calculations.** Participating employees receive pay from two sources: their regular pay from you for hours worked, and EI benefits for hours not worked. Your payroll system needs to manage the employer portion accurately while the EI portion is administered separately by Service Canada. **Training documentation.** The proposed $1,000 per participant for training costs will need to be documented and reconciled. Employees would be able to sign training acknowledgements digitally, with signed documents stored in restricted, access-controlled folders — making it straightforward to produce records when you need to show how the funds were used. **ROEs when employees separate.** If a participating employee eventually separates, you'll need a correctly coded ROE. Your system should auto-populate insurable earnings and insurable hours from existing payroll data so you're not reconstructing records from scratch under time pressure. ## How does Payworks support Work-Sharing and the WRRP? Payworks is a proudly Canadian company — built here, serviced here, with local teams from coast to coast. We've spent over 25 years helping Canadian employers stay on the right side of compliance. When federal programs change, our team tracks the updates —Canadian payroll compliance is what we do. Here's how Payworks’ platform handles what Work-Sharing and the WRRP require: **Timesheets** capture hours worked per employee and flow directly into payroll. No rekeying, no spreadsheet reconciliation. Whether your team submits through the Self Service App, web punches, or POS imports, the data lands where it needs to be. **Scheduling** lets you build and adjust shifts for reduced-hour arrangements. Your team sees their updated schedule in real time, and coverage gaps are visible before they become problems. **Time off calendars** track all of your absence types in one shared view. Managers see who's working when, and employees can check their status submit time off requests from anywhere. **Document signing** via Employee Self Service lets you distribute training acknowledgements and reimbursement forms for digital signature. Signed documents are stored in restricted, access-controlled folders — ready when you need to reconcile training costs. **Workforce Analytics** surfaces attendance and overtime trends and provides direct export to PowerPoint or Excel — no separate system, no technical expertise needed. **ROE Manager** auto-populates insurable earnings and hours from your payroll data, validates entries in real time, and flags common errors before submission. ROEs are submitted directly to Service Canada on your behalf. And because everything runs on a single shared database — timesheets, schedules, payroll, ROEs — there's no duplicate entry and no data gaps between systems. The data you capture at the timesheet flows through to the pay calculation and the ROE without anyone touching it twice. ## What should you do right now? If your provider is headquartered outside Canada, ask whether their system is built for Canadian EI compliance — or adapted for it. There's a difference, and it tends to show up in exactly these moments. Getting Work-Sharing right starts well before you submit your first utilization report — it starts with having the right payroll setup in place. Recording hours per employee weekly, managing blended pay accurately, and producing documentation Service Canada requires — with a six-year documentation retention obligation — is a lot to manage on top of running a business. Payworks helps lighten the load by handling the data infrastructure so you can focus on your team and supporting your business. [Book a demo.](https://www.payworks.ca/landing-pages/campaigns/book-a-demo) ## Frequently asked questions: how does EI Work-Sharing affect your payroll setup? ### How does Work-Sharing affect my payroll? Work-Sharing requires your payroll system to record each employee's actual hours worked every week, manage the employer's portion of pay accurately, and provide the data for weekly reports to Service Canada. Timesheets, scheduling, and time-off calendars need to work together, and that data needs to flow into payroll without manual rekeying. ### What is the maximum duration of a Work-Sharing agreement? Under the proposed tariff-related special measures, extended to March 31, 2028, Work-Sharing agreements relating to tariffs could last up to 152 weeks — up from the standard 38. The mandatory cooling-off period between agreements has also been waived. ### Can non-profits use Work-Sharing? Yes. Under the 2025 tariff-related special measures, Work-Sharing eligibility was expanded to include non-profit and charitable organizations experiencing any level of revenue decrease as a direct or indirect result of tariffs. ### What is the WRRP training grant and how do I access it? The proposed Workforce Retention and Retraining Program would add up to $1,000 per participating employee to cover training and administrative costs during the period of reduced hours. Employers would need to document how funds are used — digital document signing and access-controlled storage make this straightforward to manage and produce when required. Work-Sharing and the WRRP are significant — but they're one part of a broader shift in Canadian employment legislation. From EI extensions to pay transparency requirements to occupational health and safety obligations, the compliance landscape is moving fast. Staying ahead of it means having the right systems in place before the deadline, not after. If you'd like to dig deeper into what's changing and what it means for your business, [reserve your spot at our HR Compliance Webinar](https://www.payworks.ca/landing-pages/webinars/canada-hr-compliance-webinars-2026). Key topics in this article: [Resources](https://blog.payworks.ca/tag/resources) These articles are produced by Payworks as an information service. They are not intended to substitute professional legal, regulatory, tax, or financial advice. Readers must rely on their own advisors, as applicable, for such advice. [![Canada's Work-Sharing Program: What It Requires from Your Payroll Setup](https://blog.payworks.ca/hs-fs/hubfs/blogHeader_Tariff_WorkSharingWRRP_2026_555122498.jpeg?width=300&name=blogHeader_Tariff_WorkSharingWRRP_2026_555122498.jpeg)](https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup) [Resources](https://blog.payworks.ca/tag/resources) | October 29, 2026 Canada's Work-Sharing Program: What It Requires from Your Payroll Setup Key takeaways [![Time's Up on the Clock Change: Your Province-by-Province DST Guide for 2026](https://blog.payworks.ca/hs-fs/hubfs/Blog%20Sizes-17-2.png?width=300&name=Blog%20Sizes-17-2.png)](https://blog.payworks.ca/times-up-on-the-clock-change-your-province-by-province-dst-guide-for-2026?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 28, 2026 Time's Up on the Clock Change: Your Province-by-Province DST Guide for 2… Key Takeaways [![More than time off: what better absence management means for Canadian nonprofits.](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_NFP_AM.png?width=300&name=BlogBanner_NFP_AM.png)](https://blog.payworks.ca/more-than-time-off-what-better-absence-management-means-for-canadian-nonprofits?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 27, 2026 More than time off: what better absence management means for Canadian no… Key Takeaways [![Daycare Scheduling, sick time, and absence management why they need to live in the same system](https://blog.payworks.ca/hs-fs/hubfs/Blog_Banner_Daycare%20Scheduling%2c%20sick%20time%2c%20and%20absence%20management%20why%20they%20need%20to%20live%20in%20the%20same%20system.png?width=300&name=Blog_Banner_Daycare%20Scheduling,%20sick%20time,%20and%20absence%20management%20why%20they%20need%20to%20live%20in%20the%20same%20system.png)](https://blog.payworks.ca/daycare-scheduling-sick-time-and-absence-management-why-they-need-to-live-in-the-same-system?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 20, 2026 Daycare Scheduling, sick time, and absence management why they need to l… Key Takeaways: [![2026 brought 24+ compliance changes. Is your payroll keeping up?](https://blog.payworks.ca/hs-fs/hubfs/Blog%20Sizes-11.png?width=300&name=Blog%20Sizes-11.png)](https://blog.payworks.ca/2026-brought-24-compliance-changes.-is-your-payroll-keeping-up?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 09, 2026 2026 brought 24+ compliance changes. Is your payroll keeping up? Key Takeaways [![Thanksgiving Statutory Holiday Rules for Canadian Businesses](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_Thanksgiving_September16.jpg?width=300&name=BlogBanner_Thanksgiving_September16.jpg)](https://blog.payworks.ca/thanksgiving-statutory-holiday-rules-for-canadian-businesses?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 07, 2026 Thanksgiving Statutory Holiday Rules for Canadian Businesses Key Takeaways [![How to deliver excellent customer service: five expert tips](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_October-1.jpg?width=300&name=BlogBanner_October-1.jpg)](https://blog.payworks.ca/how-to-deliver-excellent-customer-service-five-expert-tips?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | October 05, 2026 How to deliver excellent customer service: five expert tips Key Takeaways Excellent customer service is relationshi… ![ ](https://blog.payworks.ca/hubfs/Payworks%20Stock%20Photography/Cavan%20-%20Arlee.png) ## Seeing is believing! Curious what better Canadian workforce management looks like in action (and how much time you could reclaim in your day-to-day)? Book a pressure-free, get-to-know you demo today. [REQUEST A DEMO](https://www.payworks.ca/landing-pages/campaigns/book-a-demo) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Payworks", "url" : "https://blog.payworks.ca/author/payworks" }, "dateModified" : "2026-10-29T15:32:25.915Z", "datePublished" : "2026-10-29T15:24:43.000Z", "headline" : "Canada's Work-Sharing Program: What It Requires from Your Payroll Setup", "image" : [ "https://blog.payworks.ca/hubfs/blogHeader_Tariff_WorkSharingWRRP_2026_555122498.jpeg" ], "mainEntityOfPage" : { "@id" : "https://blog.payworks.ca/canadas-work-sharing-program-what-it-requires-from-your-payroll-setup", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.payworks.ca/hubfs/Payworks.png" }, "name" : "Payworks" } } ```