By Urshita Grover and Martin U. Wissmath

Non-profit and charitable organizations experiencing a decline in revenues due to the direct or indirect result of U.S. tariffs may be eligible for support through the Government of Canada’s Work-Sharing Program.

In response to the threat or potential realization of U.S tariffs, the Government of Canada announced temporary special measures for the Work-Sharing Program to provide additional support for impacted businesses, including non-profit and charitable organizations, to recover and avoid layoffs. The Work-Sharing U.S. tariffs special measures are effective from March 7, 2025, to March 6, 2026.

Overview of the Work-Sharing Program

The Work-Sharing Program helps avoid layoffs when there is a temporary decline in the normal level of business activity that is beyond the employer’s control. The Work-Sharing Program operates through a three-party agreement involving employers, employees and Service Canada. Eligible employees on a Work-Sharing agreement must agree to a reduced schedule of work, and to share the available work equally over the term of the agreement.

Under normal circumstances, Work-Sharing agreements must have a minimum duration of 6 weeks and can extend up to 26 weeks, with the possibility of a 12-week extension, bringing the maximum period to 38 weeks. Once the agreement has ended or been terminated, a mandatory cooling-off period must be served, which would be equal to the number of weeks utilized under the previous agreement.

Work-Sharing Special Measures due to U.S. Tariffs

Certain employers experiencing a decline in business activity due to the threat or potential realization of U.S. tariffs during the specified period of time (i.e. March 7, 2025, to March 6, 2026) may be eligible for Work-Sharing special measures if they:

• are operating in Canada for a minimum of one year;
• have a minimum of two Employment Insurance eligible employees who agree to a reduction in hours and to share any available work; and
• are new to the Work-Sharing program or have an existing Work-Sharing agreement or are serving a mandatory cooling-off period.

Work-Sharing agreements approved under the U.S. tariffs special measures must have a minimum duration of 6 weeks, and may be extended to a maximum total of 76 weeks. There is no required cooling-off period while the special measures are in place, and businesses can focus their recovery measures on supporting their ability to maintain viability related to the threat or potential realization of U.S. tariffs.

The Work-Sharing U.S. tariffs special measures have expanded the employer eligibility to include, among others, non-profit and charitable organizations experiencing a reduction in revenue levels as a direct or indirect result of the U.S. tariffs. Under normal circumstances, only non-profit organizations (as defined in paragraph 149(1)(l) of the Income Tax Act (Canada)) engaging in activities where they retain the profit to support the goals of the organization would be eligible for the Work-Sharing Program. Registered charities would otherwise not be eligible. Also, temporary layoffs in a non-profit organization due to a reduction in revenue levels alone (such as reduced grants, donations, memberships, investment income or other disruptions in funding streams) would normally not meet the Work-Sharing eligibility criteria if the special measures are not in place.

The employee eligibility has also been expanded under the Work-Sharing U.S. tariffs special measures to include employees who are assisting the employer’s recovery efforts, as well as seasonal or cyclical employees.

Questions regarding the Work-Sharing U.S. tariffs special measures can be directed to the Work-Sharing Employer Unit at edsc.dgop.tp.rep-res.ws.pob.esdc@servicecanada.gc.ca.

​Read the March 2025 Charity & NFP Law Update