Red Seal Support
A good and supportive employer encourages their employees to get professional development whenever they can. Professional development benefits everyone, but sometimes it can seem expensive or time-consuming, two big challenges for small businesses.
The Red Seal Program was originally established to support the mobility of apprentices and skilled tradespeople across Canada. Over the years, the Red Seal has become a nationally recognized standard for skilled trade workers in Canada. Having highly trained and certified employees on your team can make your business more competitive and efficient.
Here are some supports for employers who are looking to help their employees get their Red Seal designation. These supports can help you, the employer, or you can pass this information along to your apprentice to help support them continue their education.
Apprenticeship Job Creation Tax Credit
The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable investment tax credit (ITC) equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit.
An eligible apprentice works in a prescribed trade in the first two years of their apprenticeship contract. This contract must be registered with a federal, provincial, or territorial government under an apprenticeship program designed to certify or license individuals in the trade. A prescribed trade includes the trades currently listed as Red Seal Trades, such as carpentry or cabinetmaking.
You will be able to claim the AJCTC on your individual income tax return. Also, any unused credit may be carried back three years and carried forward 20 years.
Click here to learn more about AJCTC.
Venture for Canada
Venture for Canada (VFC) is a not-for-profit organization that helps connect students and new graduates to startups. Unlike the government’s Red Seal funding, this can apply to students from academic programs. This program can help connect companies to students from various programs – engineering, business, arts – to assist with any number of areas of the business. They have multiple programs that can be helpful to employers.
Finding, paying for, and integrating interns are just the sorts of activities startups and small businesses lack the resources or time to address. VFC offers Canada’s only Internship Program that exposes driven university and college students to entrepreneurial & work-readiness training so they can contribute from day one. VFC can provide up to $7000 in wage subsidies for eligible internships, helping small or new businesses afford to take on students to help with the workload.
Fellowship Partner Program:
Meet graduates selected to save you time, money, and hassle on your next entry-level hire. VFC Fellows are dynamic, adaptive, and selected into the program for their grit at a time when resilience is as important as technical skills. VFC screens their Fellows for entrepreneurial competencies like commitment to learning and growth mindsets. Your team reaps the benefits and avoids the financial, morale, and cultural costs of churn. VFC Fellows are startup candidates exposed to the challenges faced by new ventures. The valuable experience and role-specific training make them comfortable with independent problem-solving sooner. Fellows participate in soft skills and job-readiness training from educators and ecosystem leaders at successful startups. Plus, they’re prepped with role-specific knowledge to ease the onboarding process for you.
Click here to learn more about VFC.
Apprenticeship Incentive Grant (AIG)
AIG helps the apprentice pay for expenses while they train with your company in a Designated Red Seal Trade. The AIG is a taxable grant worth $1,000 per level, awarded to registered apprentices. The apprentice must complete their first year/level (or equivalent) to apply for the AIG and can apply for this grant twice during their training for a maximum of $2,000. Apprentices can apply for their second AIG after completing their second year/level (or equivalent) of training.
Click here to learn more about AIG.
Apprenticeship Incentive Grant for Women
The Apprenticeship Incentive Grant for Women (AIG-W) helps you pay for expenses while you train as an apprentice in a Designated Red Seal Trade where women are underrepresented. Within carpentry and cabinetmaking, less than 5% of Red Seal Tradespersons are women. The AIG-W is a taxable grant worth $3,000 per level, awarded to registered apprentices.
Apprentices must complete their first year/level (or equivalent) to apply for the AIG‑W. Like the AIG, apprentices can apply for this grant twice during their training, in this case, for a maximum of $6,000. Apprentices can apply for their second AIG-W after completing their second year/level (or equivalent) of training.
Click here to learn more about AIG-W.
Apprenticeship Completion Grant
The Apprenticeship Completion Grant (ACG) is a one-time taxable cash grant lifetime amount of $2,000 per person for registered apprentices. Registered apprentices who complete their apprenticeship training program and get their journeyperson certification in a Designated Red Seal Trade are eligible. The journeyperson certification or Certificate of qualification is given to tradespeople who complete an apprenticeship program or meet all the requirements of a trade and pass the certification exam.
The fulfillment of training requirements, both technical and on-the-job, by registered apprentices. Graduates of an apprenticeship program applicable to the trade and the province and territory will be issued a Certificate of Apprenticeship. The government confirms the apprentice’s completion through the supporting documents they include with their application.
Click here to learn more about ACG.