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Unemployment Insurance - Worksharing Program - Massachusetts

Companies may use the Worksharing Program as an alternative to employee layoffs when they experience major slowdowns in business. Worksharing allows employers to retain trained, skilled workers rather than exercising layoffs during business downturns. It also helps them avoid the time and expense of hiring and training new workers when business improves.

All workers in a department or unit share reduced work hours under the Worksharing Program. Eligible employees can collect a percentage of their UI benefits equal to the reduction in their hours. If, for example, production must be cut by 20%, rather than laying off 20% of the workforce, the employer may reduce work hours for all affected workers by 20%. Eligible employees would then receive 20% of their UI benefits to help offset their lost earnings and the employer’s UI account is charged for these benefits.

Most private and public sector employers are eligible for the Worksharing Program. Seasonal layoffs are not covered, however. If employees are unionized, the union must agree with the terms of the Worksharing application. An employer participating in Worksharing is also responsible for providing health insurance coverage and pension contributions.

Additional Information

More information about the Worksharing Program is available through the Division of Employment and Training (DET) at (617) 626-5510.

DET also maintains a WorkSharing website at:
https://ipasssecurity.detma.org/ipass/login_workshare.asp

WorkSharing applications and publications, for both employers and employees, are available at:
http://www.detma.org/WorkshareGetApps.htm

See also:

Unemployment Insurance - Eligibility for Partial Benefits - Massachusetts

Unemployment Insurance - Eligibility - Massachusetts

Unemployment Insurance (UI) - Overview - Massachusetts

Source

http://www.detma.org/WorkshareHow.htm

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