Employment and Social Development Canada announced the launch of an online application form for the Workforce Retention and Retraining Program (WRRP) on October 22, 2026.
ESDC says the program is open to eligible businesses across all sectors and is part of the federal government’s $3.5 billion Rapid Response Supports for Workers and Employers, first announced in August. The program is being positioned as a response to economic pressure from tariffs and broader business adjustment, and is scheduled to run until March 31, 2028.
What the program offers
Under the program, eligible employers may receive a maximum of $1,000 per participating employee to offset eligible training and related administrative costs. Participating employees can also keep earnings closer to their regular levels through EI Work-Sharing benefits and an income top-up while taking approved training.
The federal government estimates the WRRP will help prevent about 20,000 layoffs and support more than 2,300 employers. A government backgrounder also says as many as 66,000 workers are expected to benefit, including approximately 50,000 workers expected to receive retraining supports.
Training options are broad. Canada.ca lists technical training, foundational skills, digital and AI literacy, workplace safety, linguistic proficiency, problem-solving, numeracy, on-the-job training and peer-to-peer learning as examples that may fit, depending on the employer’s plan and program rules.
The training requirement is central
WRRP combines Work-Sharing with the Retraining Grant, formerly the Worker Retention Grant. Canada.ca eligibility pages say employers seeking the Retraining Grant must have an active WRRP Work-Sharing retention support agreement and offer training to all eligible employees in the Work-Sharing unit for at least 40 per cent of the grant agreement weeks.
Employees must participate in eligible training during their non-working hours. For businesses facing a temporary slowdown, that structure can turn part of a reduced-hour period into a skills-building period while keeping employees connected to the employer.
That design is relevant for employers whose challenge is not only weaker demand, but a changing business model: new equipment, new markets, digital workflows, AI literacy or operational changes caused by tariff pressure.
Who may qualify
Standard Work-Sharing eligibility still applies in many cases. The Canada.ca Work-Sharing eligibility page says an employer generally must be a year-round business operating in Canada for at least two years, have at least two eligible employees in the Work-Sharing unit, show a decrease in overall work activity of at least 10 per cent in the past six months, and have recovery measures in place.
The tariff special measures broaden some rules. Employers experiencing a decline in business activity attributable to the threat or potential realization of tariffs may qualify if they have operated in Canada for at least one year and have at least two EI-eligible employees who agree to reduced hours and sharing available work. The same page says flexibilities can include businesses that need to transform, retool or diversify even if they do not already have reduced business activity.
The rules still exclude some employers. Canada.ca lists self-employed applicants and employers operating solely to administer a government program or activity as ineligible, and the Retraining Grant page says employers must declare any amounts owing and in default to the Government of Canada.
How employers apply
Employment and Social Development Canada says employers are strongly encouraged to submit WRRP Work-Sharing applications through Grants and Contributions Online Services. The online system lets applicants submit forms, upload supporting documents, track application status and manage agreements.
Employers need to verify identity to complete account setup, and ESDC advises creating the account early to avoid delays. Employers must submit their Work-Sharing application at least 10 business days before the requested Sunday start date. Those seeking retraining funding must also complete the Retraining Grant component through GCOS, including a training plan and the required Grant Calculator. The grant component is mandatory for employers applying to transform, retool or diversify without an existing reduction in business activity.
The application package requires the Work-Sharing Unit Attachment A form. Once submitted through GCOS, employers should receive a tracking number and acknowledgement email; without those, Canada.ca says the application has not been successfully submitted.
Active Work-Sharing agreements and existing Worker Retention Grant support will transition into the WRRP, so employers already in those programs do not need to submit a new application only because of the launch.
Federal support also includes EI measures
The WRRP is being launched alongside temporary Employment Insurance measures. The government says those measures include waiving the one-week waiting period, adding 20 weeks of EI for long-tenured workers, temporarily suspending rules on monies on separation, and simplifying some separation rules for workers whose most recent job loss was through no fault of their own.
Those measures sit beside other tariff-related supports, including the Regional Tariff Response Initiative for small and medium-sized businesses.
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