Layoffs or Work-Sharing



With all the change going on in the world these days, there is uncertainty in many sectors.

Some organizations continue to thrive while others are simply struggling to survive.

For those struggling, I suspect one of the things you are looking at is where to cut costs. With labour costs generally one of the highest, if not the highest expense for a company, some of you may be asking:

  • Is it time to lay off some of our workforce?
  • If I do, will it be a long-term or short-term layoff?
  • How will I manage the workload if I don’t have enough employees to do the work I need to complete?
  • What if I lay off employees today and we get a big contract tomorrow?

All of these questions are necessary, and another question I would like you to consider is:

  • Would the EI Work-Sharing Program benefit my employees and my company?

As you are considering your next steps, I want to make you aware of this program. It has been in existence for many years, with enhancements made as recently as February 2009 to reflect the current economic reality.

Read more about the EI Work-Sharing Program.

3 Comments so far.

 

Laurie
23 Mar 2009

“The normal EI two-week waiting period is waived for employees participating in a work-sharing
agreement. Should an employee have to claim regular EI benefits after the work-sharing program has
ended, participation in the program does not reduce the amount or duration of regular EI benefits.”

Cori, what happens if the company still has to lay off the employee after the work sharing arrangement is over? Would the employee’s EI rate be calculated on the wage they made BEFORE the work share arrangement or would it be reduced because of the lower gross wage during the work share? Could you clarify? Thanks!

 

Cori
23 Mar 2009

Laurie,

What a great question.

According to the Service Canada/Employment Insurance office 1800.206.7218 the EI calculation would be based on your wages before the work share arrangement, and would not be reduced due to your participation in the work share program.

A two week waiting period would apply.

Cori

 
 

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