Canada · Gatineau, Quebec · Elections hub
Canada opens applications for a program that pays employers to retrain workers instead of laying them off
In brief
Jobs Minister Patty Hajdu launched the online application form for the Workforce Retention and Retraining Program (WRRP) on October 22, 2026. The program, part of a $3.5 billion package announced in August, helps employers hit by tariffs and other pressures keep staff on reduced hours and train them, instead of laying them off. It runs from October 2026 to March 2028, and Ottawa is also extending temporary Employment Insurance (EI) measures by up to a year.
How the program works
According to Employment and Social Development Canada, eligible employers can get up to $1,000 per participating employee to cover training and administration costs. They choose the training themselves, from technical and digital skills to peer-to-peer and on-the-job learning. Workers on reduced hours keep an income closer to normal through a mix of EI Work-Sharing benefits and an income top-up for taking part in training.
The rules are also more flexible for now: hours no longer have to be shared equally across a team, and employers and workers can sign successive agreements for up to 152 cumulative weeks of support. Businesses already in Work-Sharing or receiving the Worker Retention Grant do not need to reapply; they move over automatically. The government expects the program to prevent about 20,000 layoffs and support more than 2,300 employers.
EI changes for people who lose their job
Ottawa is extending several temporary EI measures by up to one year: no one-week waiting period, an extra 20 weeks of benefits for long-tenured workers, and access to EI right after a job loss even if a worker receives severance or vacation pay. A new one-year rule also means people who recently changed jobs are not penalized, as long as their latest job loss was not their fault.
VSH take: keeping people employed while they learn new skills is usually cheaper for everyone than layoffs followed by rehiring. For workers, the key question is how a reduced-hours schedule changes your pay, and our salary calculator and hours calculator can help you run the numbers.
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Why it matters
Workers at companies hit by tariffs may be able to keep their jobs on reduced hours with training and EI support, rather than being laid off.
People also ask
What is the Workforce Retention and Retraining Program?
A federal program that helps employers keep workers on reduced hours and train them, with up to $1,000 per employee for training costs plus EI Work-Sharing benefits for the workers.
How long does the program run?
From October 2026 until March 2028. Agreements can be renewed for up to 152 cumulative weeks of support.
Do employers already in Work-Sharing need to apply again?
No. Employers in Work-Sharing or receiving the Worker Retention Grant are moved to the new program automatically.
Related free tools: Salary & Hourly Wage Calculator, Hours Calculator
Sources
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