Feds also extending flexibility for work-sharing program
Employers and workers in tariff‑affected sectors may see extended income support and greater job protection thanks to recent changes announced by Ottawa.
The government of Canada is extending temporary Employment Insurance (EI) measures for workers affected by United States tariffs, providing an additional six months of enhanced income support and job protection tools for employers and employees across the country.
Employment and Social Development Canada (ESDC) has announced that three EI measures – first introduced in March 2025 – will now remain in place until October 10, 2026. The measures are aimed at workers in sectors and regions hit by tariff‑related disruptions.
“The world of work is changing and bringing new challenges, and workers are part of the solution,” says Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario. “The EI program remains a critical safety net, designed to be there when Canadians need it most. As we navigate uncertain times, these measures will help workers access the income support they need. Together, we will support Canadian workers and build a stronger, more resilient Canada.”
In February, the U.S. Supreme Court struck down President Donald Trump’s sweeping emergency tariffs. In a 6–3 ruling, the Court concluded it was not legal for Trump to use the International Emergency Economic Powers Act, better known as IEEPA, for his “Liberation Day” tariffs and fentanyl‑related duties on Canada, Mexico and China.
Following the ruling, Trump, in a lengthy social media post responding to the decision, claimed the Court had “accidentally and unwittingly” handed him, as president, “far more powers and strength” than he had before what he calls a “ridiculous, dumb, and very internationally divisive ruling.”
Details of the three EI measures
The first extended measure from Ottawa waives the one‑week EI waiting period for eligible workers, allowing claimants to receive benefits from the first week of their claim. This applies to claims established between March 30, 2025 and October 10, 2026.
The second suspends the usual treatment of monies paid on separation – such as severance payments – so that workers do not have to use up these payments before receiving EI. This measure applies to claims established, or allocations commencing, between March 30, 2025 and October 10, 2026.
The third measure provides 20 additional weeks of regular EI benefits for long‑tenured workers who may require more time to secure new employment. This applies to claims starting on or after June 15, 2025, until October 10, 2026.
Expected impact on claims
According to ESDC, the extension is expected to have a broad impact:
- 632,000 additional claims are projected to benefit from the waived waiting period;
- 136,000 additional claims from the suspension of the treatment of separation monies;
- 43,500 additional claims from the extra 20 weeks of benefits for long‑tenured workers.
ESDC says the six‑month extension will ensure that “reliable and timely EI support will continue for workers in sectors and regions across Canada impacted by the economic impacts of tariffs.”
Work‑Sharing flexibilities
In addition to the EI measures, the federal government is also extending temporary flexibilities in the Work‑Sharing Program introduced in March 2025. These flexibilities – now in place until March 31, 2027 – are intended to allow more businesses and employees affected by tariffs to participate in Work‑Sharing arrangements that reduce hours instead of cutting jobs.
As of March 14, 2026, roughly 1,500 Work‑Sharing applications had been approved for tariff‑affected businesses, covering over 54,000 workers and helping prevent an estimated 20,000 layoffs, according to ESDC.
Employers with active Work‑Sharing agreements can also apply for the new Worker Retention Grant, a temporary tariff measure first announced by Prime Minister Mark Carney in November 2025. The grant allows employers to top up the income of participating employees so they can maintain earnings closer to their normal wages while taking training during non‑work hours, up to approximately 70 per cent of their reduced income.
ESDC says these measures form part of the Government of Canada’s broader Workforce Tariff Response, a $570‑million federal investment to protect, build and transform Canadian industries most affected by tariffs and global trade disruptions. The funding – which comes from EI contributions by workers and employers – is being used by provincial and territorial governments to deliver targeted training and employment services aimed at helping workers return to the labour market more quickly and strengthening community resilience.
As part of this response, six Workforce Alliances are being established to bring together industry leaders, workers and training institutions around a common skills agenda. The Alliances will focus on:
- housing and construction
- transportation and supply chains
- advanced manufacturing
- energy and electricity
- mining and minerals
- the care economy.
ESDC frames the extended EI measures, Work‑Sharing flexibilities and new grant as key elements of a strategy to support workers through tariff‑related shocks while equipping them for longer‑term economic change.
