Canada opens applications for workforce retention and retraining program

Canada opened online applications for the Workforce Retention and Retraining Program (WRRP) on October 22. Employment and Social Development Canada said it is intended to help employers avoid layoffs, keep staff working reduced hours and provide skills training. The government had introduced WRRP on August 25 within a broader $3.5 billion Rapid Response Supports package. That amount covers the wider package; the release does not identify its currency or state a separate total WRRP budget, and the October launch opened intake.

WRRP combines the Work-Sharing program and a retraining grant in one application route. Employees can receive Employment Insurance Work-Sharing benefits plus an income top-up for taking employer-provided training while their hours are reduced. Temporary tariff measures allow more flexible scheduling and suspend equal sharing of work. Employers may receive up to $1,000 per participating employee for training and administration; official announcements do not identify that dollar figure’s currency.

Training may cover technical, digital or foundational skills, peer learning or on-the-job instruction. The program backgrounder requires employers to offer training opportunities during at least 40% of an agreement period. Businesses seeking to transform, retool or diversify can use the adaptation stream even before activity declines; the retraining grant is mandatory in that stream. New applicants apply online, while existing Work-Sharing and Worker Retention Grant participants transition without a new application.

Eligibility depends on the stream. Standard Work-Sharing rules require at least two years of Canadian operations and a decline of at least 10% in overall work activity during the preceding six months. Temporary tariff special measures instead require at least one year operating in Canada and at least two EI-eligible employees who agree to reduce hours and share available work. The official eligibility page says businesses seeking transformation or diversification may qualify for special measures without an existing decline. The conditions are pathway-specific, not one rule for every applicant.

Some temporary Employment Insurance measures were also extended for up to one year: the one-week waiting period is waived, long-tenured workers can receive up to 20 additional weeks, and the rule on separation monies is suspended. A new temporary measure simplifies separation-reason rules for recently hired workers whose latest job loss was through no fault of their own. These are separate EI access measures, not WRRP training-grant payments.

The government forecasts that the program could help prevent about 20,000 layoffs and support more than 2,300 employers; close to 1,790 are expected to receive income to offset training and related administration. The backgrounder projects up to 66,000 workers could benefit, including approximately 50,000 receiving retraining support. These are projected effects, not results already achieved. Separately, the government says Work-Sharing flexibilities since January 2025 helped avert around 25,000 layoffs through about 1,600 agreements.

WRRP runs from October 2026 through March 31, 2028. Employers may enter successive agreements during tariff disruptions; official materials say cumulative support under the measures can reach up to 152 weeks. This is not automatic approval: applications remain subject to eligibility review and agreement terms. The October development was the opening of intake under the previously announced framework, making its combined retention and training support operational.