When an employee leaves for military service, your business still has bills to pay. The Compensation for Employers of Reservists Program (CERP) helps cover some of those costs when a reservist is deployed on full-time duty. It’s a federal program run by Employment and Social Development Canada (ESDC) and is open to employers across Canada.
CERP provides one-time, non-repayable financial support to help offset operational costs when a reservist employee is away on deployment. The goal is to reduce the financial impact on civilian employers and self-employed reservists while supporting Canada’s military commitments.
Two closely related federal listings describe the same program under ESDC administration, both currently open to applications.
Funding is calculated using a federal formula:
This means compensation scales with the length of the deployment rather than the employee’s actual salary.
You may be eligible if you meet all of the following conditions:
The reservist must:
If any of these conditions are missing, the application will be declined.
The CERP application is submitted after the reservist returns to work. Here’s how the process typically works:
Obtain official confirmation that the deployment was:
This usually comes from the Canadian Armed Forces.
You’ll need records that show:
Applications are submitted through the Government of Canada / ESDC CERP portal. Ensure all fields are complete and supporting documents are attached.
If approved, you receive a single payment based on the federal formula. There is no repayment requirement, but the amount is generally treated as business income for tax purposes.
If you want to check your eligibility for CERP or compare it with other programs, tools like GrantHub’s eligibility matcher can help you quickly find the best fit for your business.
Applying before the reservist returns
Applications are only accepted after the employee completes their deployment.
Missing the 30-hour work requirement
The reservist must have worked at least 30 hours per week for three straight months before leaving.
Assuming any deployment qualifies
Only Chief of Defence Staff–directed operations are eligible. Training exercises usually do not qualify.
Incorrect income reporting
CERP payments are typically taxable as business income. Speak with your accountant before filing.
Q: Is the Compensation for Employers of Reservists Program repayable?
No. CERP provides non-repayable financial support when eligibility criteria are met.
Q: Can small businesses apply for CERP?
Yes. Businesses of any size can apply, as long as all employment and deployment conditions are satisfied.
Q: Do self-employed reservists qualify?
Yes. Self-employed reservists deployed on eligible operations can apply directly under the program.
Q: What counts as a Chief of Defence Staff–directed operation?
These are officially authorized domestic or international deployments approved by the CDS. Your reservist can provide confirmation.
Q: Is there a deadline to apply?
Applications must be submitted after the reservist returns from duty. Check the federal guide for current timelines, as they may change.
CERP is just one of many federal programs designed to support employers during workforce disruptions. GrantHub tracks hundreds of active grant and wage support programs across Canada—including federal, provincial, and sector-specific options—so you can see which ones match your business in minutes and plan your funding strategy with confidence.
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