Canada is changing EI rules amid tariffs

If you're worried about job security during the Canada-U.S. trade war, the federal government is easing some employment insurance (EI) rules to support workers.

On Friday, Minister of Employment Steven MacKinnon announced new temporary work-sharing measures that come into effect immediately.

"The U.S. administration's repeated contradictions have brought more questions than answers," he said at a press conference in Ottawa. "Questions about possible job effects, the effect of tariffs on those jobs and employers, the certainty of paycheques and whether Canadians will still have work in a week's time, much less a month."

To address these uncertainties, the government is introducing temporary flexibilities to the EI Work-Sharing Program. It gives partial EI benefits to employees who agree to work reduced hours due to a decrease in business activity beyond the employer's control.

"The program allows employers to keep workers on their payroll, in their jobs without resorting to layoffs," explained MacKinnon. "EI work-sharing benefits would then cover most or part of the lost wages brought on by reduced working hours."

Employers in the not-for-profit and charitable sectors and employees working in cyclical or seasonal jobs are now eligible.

MacKinnon added that the temporary measures will increase access to the program and expand the maximum length of agreements from 38 weeks to 76 weeks.

He noted that the work-sharing program has helped employers across Canada avoid laying off as many as 100,000 employees since 2019.

"These measures will provide stability to our sectors at a time of great unrest and uncertainty, and more than anything else, they will help keep more workers in their jobs, more businesses running, and more factory floors humming," said the minister.

U.S. President Donald Trump officially slapped 25 per cent tariffs on all products from Canada and Mexico, including the 10 per cent tariffs on energy, on Tuesday.

Since then, on Thursday, the convicted felon paused tariffs on some Canadian goods until April 2, and then, on Friday, announced possible reciprocal tariffs on dairy and lumber.