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Work-Sharing

Work-Sharing. What is Work-Sharing?. Work-Sharing assists employers and employees facing lay-offs due to a decline in production. During the Work-Sharing agreement, available work is redistributed through a voluntary reduction in hours worked by all employees within one or more work units.

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Work-Sharing

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  1. Work-Sharing

  2. What is Work-Sharing? Work-Sharing assists employers and employees facing lay-offs due to a decline in production. During the Work-Sharing agreement, available work is redistributed through a voluntary reduction in hours worked by all employees within one or more work units. This enables the employer to retain a full work force on a reduced work week, rather than laying off part of their work force. Eligible workers receive Employment Insurance (EI) benefits for the hours they do not work in each Work-Sharing week.

  3. It is a WIN-WIN situation Work-Sharing benefits employees: • maintain their employment; • retain their work skills; • are compensated for the days when no work is available. Work-Sharing benefits employers: • valued employees are retained; • staff morale is strengthened; • expensive rehiring and retraining costs are avoided.

  4. Work-Sharing is: • for employers whose need to reduce their normal level of business activity is beyond their control. Work-Sharing is NOT: • to support declining establishments, • to retain seasonal workers during slow seasons

  5. A Temporary Measure Employees must sign agreement to participate. Projects can go from 6 – 26 weeks with 20–60% reduction in weekly hours. ** Feb 1’09 – Apr 3’10 projects can go for up to 52 weeks.** Work-Sharing Agreements do not affect workers’ rights to regular EI Benefits if they happen to be laid off after the agreement ends. 5 8/14/2014

  6. How do employers qualify? To be eligible, an employer: • must have been in business in Canada for at least two years. • must have a minimum of 2 eligible employees. • must be able to show that the need for reduced hours is temporary and unavoidable, and is not a seasonal situation.

  7. How do employers qualify? (cont’d) • management and workers must both agree to participate in Work-Sharing. • must complete a detailed Recovery Plan. (outlining steps being taken to ensure the viability of the business during the period of the agreement and to recover as the economy strengthens). • if applicable, union concurrence and involvement is required.

  8. Who can participate? • Permanent full or part-time employees of a company may participate. • Eligible employees willing to reduce regular working hours in order to share available work. • Note: Employees must qualify for regular EI benefits and must voluntarily agree to take part in the program.

  9. How Does An Employer Apply? To apply for Work-Sharing an Employer must provide: • A completed application form, including attachments and signatures of both employer representative and employee representative(s) • A description of the business • A description of the employees • A description of the plan for recovery

  10. Work-Sharing week • A week is counted as a Work-Sharing week when the claimant has worked at least a half hour in the Work-Sharing agreement A Non Work-sharing week A non Work-Sharing week consists of: • 5 sick days, • 5 non available for work days or, • a 5 day scheduled plant shut down

  11. Applying for EI benefits • A special Work-Sharing agreement reference number will be assigned. • Each employee is responsible for completing an EI application (and must use the reference number). • Each employee on a Work-Sharing agreement will receive a Record of Employment (ROE). • Employees can file on-line from home, community access points such as the public library or from their local Service Canada Centre. • Employees must ensure they provide accurate personal and employment information.

  12. Qualifying Conditions for Employment Insurance • The eligibility requirements for Work-Sharing are the same as those for regular EI benefits. • In the last 52 weeks (or since their last EI claim) employees must have worked for the required number of insurable hours before the effective date of the agreement. • The hours are based on where they live and the unemployment rate in their economic region at the time of filing their claim for benefits.

  13. Waiting Period • Participants do not have to serve a two-week waiting period for Work-Sharing Benefits. • Benefits are processed through the EI payment system, which means that there will be a delay of 3-6 weeks between the time all the required forms are received and the first cheques are received. Note: The 2 week waiting period must be served if the employee starts collecting regular benefits at the end of the Work-Sharing period.

  14. Benefit Rate Employment Insurance pays 55% of the normal weekly earnings up to a maximum of $447/week.

  15. Allowable earnings • Employees may earn up to 40% of the EI benefit rate from outside employment before deductions are made from WS benefits. • Example: weekly Work-Sharing EI rate is $447, then $179 may be earned from other employment before Work-Sharing benefits are reduced.

  16. Call1-866-945-7342 Clickwww.servicecanada.gc.caVisit A Service Canada Centre near you

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