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4 New Canada EI Rules Now In Effect Amid U.S. Tariffs

4 New Canada EI Rules Now In Effect Amid U.S. Tariffs

Last Updated On 9 September 2026, 3:50 PM EDT (Toronto Time)

4 temporary Employment Insurance measures designed to support Canadian workers affected by U.S. tariffs and economic disruption are now in effect across Canada.

These measures change how quickly workers can start receiving EI, how severance and other separation payments interact with benefits, how many weeks of benefits certain long-tenured workers can collect, and how employers can use an expanded Work-Sharing program to avoid layoffs altogether.

Not all four measures started at the same time, and they do not all share the same expiry date.

The waiting-period waiver and separation-earnings measure have applied since March 30, 2025, while the long-tenured-worker measure applies to qualifying claims starting June 15, 2025.

All three currently run through October 10, 2026. The measures were extended once to April 2026 and then extended again through October 10, 2026.

The Work-Sharing tariff special measures operate on a separate timeline and currently run through March 31, 2028.

Here is what each measure does, who qualifies, and what workers and employers need to know right now.

Measure 1: Temporary Waiver Of The EI Waiting Period

Under normal Employment Insurance rules, new claimants must serve a one-week unpaid waiting period before benefits become payable.

The government describes this waiting period as comparable to a deductible on other types of insurance.

Under the temporary measure, the waiting period is waived for all new EI claims that start between March 30, 2025, and October 10, 2026.

In practical terms, a worker who loses their job and files an EI claim within this window may begin receiving payable benefits sooner rather than forfeiting the first otherwise-payable week to the waiting period.

There is one exception: a claimant may still choose to serve the waiting period if doing so is to their advantage because of a top-up from a Supplemental Unemployment Benefit plan provided by their employer.

Measure 2: Temporary Suspension Of Separation Earnings Allocation

When an employee is permanently or temporarily separated from employment, the employer may pay out various amounts related to the end of the working relationship.

Under normal EI rules, these separation earnings are allocated starting from the week of separation, which can delay or reduce the start of EI benefit payments.

What Counts As Separation Earnings

The temporary measure covers the following types of separation earnings: severance pay, vacation pay, pay in lieu of notice, closure bonuses, and sick leave credits.

What The Temporary Rule Does

For claims or allocations that start between March 30, 2025, and October 10, 2026, earnings from separation are not deducted from EI benefits.

This is a significant change for workers who receive a lump-sum severance package or accumulated vacation payout at the time of layoff.

Under the normal rules, such payments could push the start of EI benefits out by several weeks, since the separation earnings would be allocated to cover the weeks immediately following the job loss.

Under the temporary measure, those same payments do not create a delay or reduction in EI benefit payments for qualifying claims within the eligible window.

Workers should not assume that receiving a severance package prevents them from applying for EI during this period.

Measure 3: Up To 20 Extra EI Weeks For Long-Tenured Workers

The third temporary measure provides qualifying long-tenured workers with up to 20 additional weeks of EI regular benefits, potentially increasing the maximum entitlement from the standard 45 weeks to 65 weeks.

Who Qualifies

To receive the additional weeks, a worker must meet all three conditions.

  • Condition 1: The EI claim must start between June 15, 2025, and October 10, 2026.
  • Condition 2: The claimant must have received at least one week of EI regular benefits on their claim.
  • Condition 3: The claimant must meet the definition of a long-tenured worker.

Long-Tenured Worker Definition

Service Canada considers a claimant a long-tenured worker if they received fewer than 36 weeks of EI regular or fishing benefits in the three years before the start of their current claim and paid at least 30% of the annual maximum EI premiums for at least 7 of the 10 years before the year their claim starts.

This definition targets workers with a long, consistent history of EI contributions who have not relied heavily on EI benefits in recent years.

How The Extra Weeks Work

The 20 additional weeks are not automatically given to every EI claimant.

Only workers who meet all three qualifying conditions receive the extension.

If a worker qualifies, Service Canada adds the extra weeks automatically and extends the period during which benefits can be received by 20 weeks as well.

Regional unemployment-rate requirements and insurable-hours thresholds continue to apply for the initial EI claim eligibility determination.

The extra weeks add to whatever entitlement the claimant already qualified for under the standard rules.

Measure 4: Expanded Work-Sharing For Tariff-Affected Businesses

The fourth measure is fundamentally different from the first three because it is not a standard EI regular-benefit claim.

Work-Sharing is an EI-supported program that helps employers and employees avoid layoffs when a business experiences a temporary decrease in its normal level of activity that is beyond the employer’s control.

Instead of laying off workers, the employer temporarily reduces working hours for a group of employees, and EI provides income support for the hours those employees are not working.

How Work-Sharing Differs From A Regular EI Claim

In a standard layoff scenario, the worker files an individual EI claim and receives benefits while looking for new employment.

In a Work-Sharing arrangement, the worker remains employed at the same business, works reduced hours, and receives EI benefits to partially replace the lost income from those reduced hours.

All employees participating in the agreement must experience a minimum 10% reduction to their normal weekly earnings.

What The Tariff Special Measures Changed

The tariff-related special measures, originally implemented in response to the U.S. tariff situation, have been extended and now remain in effect through March 31, 2028.

Under the normal Work-Sharing rules, agreements can last up to 26 weeks with a possible 12-week extension, for a maximum of 38 weeks.

Under the tariff special measures, agreements can be extended to a maximum total of 152 weeks.

The minimum agreement duration has been shortened from 6 weeks to 4 weeks.

Mandatory cooling-off periods between successive Work-Sharing agreements are waived while the special measures remain in place.

Expanded Employer Eligibility

Under the tariff special measures, businesses that have been operating in Canada for one year can qualify, compared with the normal Work-Sharing requirement for a year-round business to have operated in Canada for at least two years.

Non-profit and charitable organizations experiencing a reduction in revenue as a direct or indirect result of the tariffs are now included.

Cyclical and seasonal employers are eligible.

Employers experiencing a decrease in work activity over the past six months of less than 10% may qualify, and utilization of Work-Sharing may exceed 60% in those circumstances.

Expanded Employee Eligibility

Seasonal and cyclical employees who are not year-round permanent staff can now participate in Work-Sharing agreements under the tariff special measures.

Employees assisting the employer’s recovery efforts are also eligible.

All participating employees must still be eligible for EI benefits, and the employer needs a minimum of two EI-eligible employees who agree to reduced hours.

Why These Measures Matter Now

Canada’s ongoing trade dispute with the United States has affected multiple sectors of the Canadian economy, including steel, aluminium, automotive, lumber, agriculture, and consumer goods.

The latest round of Canadian counter-tariffs took effect in September 2026, adding further uncertainty to supply chains and businesses on both sides of the border.

Payroll employment data from Statistics Canada showed a combined decline of nearly 70,000 payroll jobs in February and March 2026, with notable losses in accommodation, food services, construction, and retail.

The federal government has extended these temporary EI measures as part of its response to economic uncertainty and tariff-related disruption.

Working in a tariff-exposed sector does not by itself make a worker eligible for EI benefits; standard EI eligibility requirements, including insurable hours and the circumstances of job loss, continue to apply.

Another New EI Support Measure Is Coming

The federal government has announced the Workforce Retention and Retraining Program, which will combine the Work-Sharing Program and the existing Worker Retention Grant into a single program.

Under the proposed WRRP, participating EI-eligible workers whose hours are reduced will receive income support equivalent to 70% of their lost earnings, compared with the standard calculation under current Work-Sharing.

Participating employers may receive up to $1,000 per worker for eligible training and administrative costs.

The WRRP page on canada.ca, published September 4, 2026, uses future-tense language throughout, indicating the program has not yet officially launched.

Until the WRRP comes into effect, the existing Work-Sharing Program and Worker Retention Grant will continue to operate with additional flexibilities, including eligibility for employers that need to transform, retool, or diversify.

The WRRP is not counted among the four measures currently in effect because it has not yet been implemented as of this article’s publication date.

What Canadian Workers Should Do If Their Hours Are Cut Or They Lose Their Job

Apply for EI as soon as employment stops.  Do not wait for your Record of Employment; Service Canada says you can apply even if you have not yet received it.

Do not assume severance prevents you from applying.  Under the temporary separation-earnings measure, severance pay, vacation pay, and other qualifying separation payments are not deducted from EI benefits for claims within the eligible window.

Check whether your employer participates in Work-Sharing.  If your hours are being reduced rather than eliminated, Work-Sharing may allow you to keep your job while receiving EI support for the hours you are not working.

Determine whether you qualify as a long-tenured worker.  If you have paid at least 30% of the annual maximum EI premiums for at least 7 of the 10 years before the year your claim starts, received fewer than 36 weeks of EI regular or fishing benefits in the 3 years before your claim, and meet the other conditions, you may receive up to 20 additional weeks of regular benefits.

Complete biweekly reports on time.  Missing a report can interrupt or delay your benefit payments regardless of whether you qualified under a temporary measure.

Gather documentation.  Have your Social Insurance Number, banking details, and information about any severance or separation payments ready before you apply.

Remember that eligibility is case-specific.  Service Canada makes all EI entitlement decisions based on the individual facts of each claim, including regional unemployment rates, insurable hours, and the circumstances of the job loss.

Summary Of The 4 Temporary EI Measures

EI MeasureWhat ChangedWho May BenefitCurrent Effective Period
Waiting period waiverThe normal 1-week unpaid waiting period is waived.Claimants establishing a new EI claim within the eligible windowClaims starting March 30, 2025, to October 10, 2026
Separation earnings suspensionSeverance, vacation pay, pay in lieu of notice, closure bonuses, and sick leave credits are not deducted from EI benefits.Workers receiving qualifying separation paymentsClaims or allocation starting March 30, 2025, to October 10, 2026
Extra weeks for long-tenured workersUp to 20 additional weeks of regular benefits, to a maximum of 65 weeks totalLong-tenured workers meeting contribution and claim-history requirementsClaims starting June 15, 2025, to October 10, 2026
Work-Sharing tariff special measuresAgreements up to 152 weeks; expanded employer and employee eligibility; cooling-off periods waivedEmployers and EI-eligible employees in tariff-affected businessesMarch 7, 2025, to March 31, 2028
Source: Temporary Employment Insurance measures and Work-Sharing Program, Government of Canada.

As Canada continues responding to tariff-related economic uncertainty, these temporary EI measures can provide important income support for workers facing layoffs, reduced hours, or employment disruption.

Workers should check which measure applies to their situation, apply for EI promptly when eligible, and confirm whether their employer is using Work-Sharing before assuming reduced hours automatically qualify for regular benefits.

With several temporary EI measures currently scheduled to end on October 10, 2026, affected workers should stay informed about any further federal extensions or changes.

Frequently Asked Questions (FAQs)

Do I still have to wait one week before receiving EI in Canada?

Not if your claim starts between March 30, 2025, and October 10, 2026. The temporary measure waives the normal one-week waiting period for all new EI claims within this window, meaning you may start receiving payable benefits sooner.
The one exception is if you have a Supplemental Unemployment Benefit plan from your employer that makes it advantageous to serve the waiting period.

Will severance pay delay my EI benefits under the temporary rules?

For claims or allocations starting between March 30, 2025, and October 10, 2026, separation earnings, including severance pay, vacation pay, pay in lieu of notice, closure bonuses, and sick leave credits, are not deducted from your EI benefits.
Under normal rules, these payments are allocated from the week of separation and can push back the start of EI.
Under the temporary measure, that allocation is suspended, so these payments should not delay or reduce your benefits for qualifying claims within the eligible period.

Who can receive the additional 20 weeks of EI?

The extra 20 weeks are available to long-tenured workers whose claims start between June 15, 2025, and October 10, 2026, who have received at least one week of EI regular benefits, who used fewer than 36 weeks of EI regular or fishing benefits in the three years before the claim, and who paid at least 30% of the annual maximum EI premiums in at least 7 of the 10 years before the claim year.
Not every EI claimant qualifies; the measure targets workers with a long, consistent contribution history and limited recent EI use.

Can I receive EI if my employer reduces my hours because of tariffs?

If your employer has entered into a Work-Sharing agreement with Service Canada, you can remain employed at reduced hours while receiving EI benefits for the hours you are not working.
Your employer must apply and have the agreement approved by Service Canada, and all participating employees must agree to the reduced schedule and share the available work.
If your employer simply reduces your hours without an approved Work-Sharing agreement, that reduction alone does not necessarily make you eligible for EI regular benefits.
Under the general EI rules, a claimant normally needs an interruption of earnings, which generally requires at least seven consecutive days with no work and no earnings from that employer, along with the other eligibility requirements.

How long will Canada’s temporary EI tariff measures remain in effect?

The waiting-period waiver applies to new claims starting between March 30, 2025, and October 10, 2026.
The separation-earnings measure applies if the claim or the allocation starts within that period, while the extra-week measure applies to qualifying long-tenured-worker claims starting between June 15, 2025, and October 10, 2026.
The Work-Sharing tariff special measures run on a separate, longer timeline and are currently in effect through March 31, 2028.
No further extension beyond these currently published end dates has been announced as of publication.

Fact-checked against the Government of Canada’s Temporary Employment Insurance measures page (updated April 9, 2026), the Work-Sharing Program page (updated September 4, 2026), and the Workforce Retention and Retraining Program page (published September 4, 2026).

Disclaimer: This article is for informational purposes only and does not constitute legal, employment, or financial advice. EI eligibility is determined by Service Canada on a case-by-case basis. Contact Service Canada directly for assistance with your specific claim.


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