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Jason Kenney, the Minister of Employment and Social Development, negotiated terms of the funding program with provincial and territorial ministers in February 2014.[13][10] The deal required provinces to allocate 10% of the Labour Market Agreement to the training fund, and required an additional 10% of funding each subsequent year from any source of federal government transfers to the provinces (for example, the Labour Market Agreement or Labour Market Development Agreement).The deal also removed the requirement that the provincial and territorial governments provide matching funds.[10] Instead, the federal government assumed two-thirds of the cost to train each individual, with the other portion funded by the individual's employer.[10] An exception for small businesses was also introduced, reducing their required contribution to 15% of the cost (from 33%).[10] The federal government also agreed to perform a review by December 2015 to evaluate the effectiveness of the training program.
The program is expected to fund training for 130,000 individuals annually when it is fully operational.[7] Training must be provided by an eligible third-party training operator for employees of private and not-for-profit companies.[15] About one-third of the funding for each employee trained will be provided by the employer, and the remainder by the federal government.[15] The program is for short duration training of at least 25 hours completed within one year.[16] It may be provided in a classroom, online, or on-site, and will pay for tuition, examination fees, texts, and other training material.[15][17] Applications must be submitted by employers on behalf of individuals being sponsored, or by self-employed individuals, and the trainee must be a Canadian citizen, permanent resident, or subject to the Protected Persons Entitled to Work in Canada.
Six provincial governments signed agreements for funding training via the Canada Job Grant. These were the Government of Alberta, Government of British Columbia, Government of Manitoba, Government of New Brunswick, Government of Ontario, and the Government of Quebec.[13] These will be funded by Canada Job Fund agreements, which will replace the Labour Market Agreement the federal government had with each province
The Government of Ontario signed the Canada-Ontario Job Fund Agreement with the federal government on 28 March 2014, providing two pilot programs operated by the Ministry of Training, Colleges and Universities.[23] A customized training program for training specific to a company lacking the capacity to develop a training program, and a skills improvement program named UpSkill for sector-specific essential and technical skills training targeting occupations with lower-skill workers.Ontario will receive $115 million in transfers for the Canada Job Grant once the program is fully implemented, part of $192 million in transfers for the Canada-Ontario Job Fund Agreement that replaced the Labour Market Agreement between the federal government and the government of Ontario.
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