MFOR Eligibility: Requirements for Quebec Employers and Workers

Eligible businesses and organizations

The official program guidelines in section 2.4.1.9 of the Guide des mesures et des services d’emploi establish the qualifying legal structures for the Workforce Training Measure (MFOR) delivered by Services Québec:

• For-profit private businesses
• Groupings of for-profit private businesses
• Municipal administrations
• Indigenous band councils and communities
• Non-profit organizations
• Co-operatives
• Self-employed workers
• Groupings of self-employed workers

All candidate organizations must hold an active Quebec Enterprise Number (NEQ) issued by the Registraire des entreprises. The organization must also maintain a physical establishment in Quebec where genuine economic activities take place.

The grant primarily targets Quebec small and medium-sized enterprises with 6 to 99 employees. However, businesses with fewer than 6 employees or more than 99 employees can be supported with written authorization from the regional Services Québec manager. An enterprise with a single employee can submit a project if the professional skill requirement is documented.

Non-profit organizations and co-operatives apply under the same general terms as private businesses. They must demonstrate adequate financial solvency to cover the non-subsidized portion of training expenses. Unlike private corporations, the non-reimbursed portion of sales taxes constitutes an eligible project expense for non-profit entities.

For self-employed workers, funded training must relate directly to conducting or consolidating their professional business practice.

MFOR is not an automatic tax credit. It is a discretionary grant negotiated with a business advisor at your regional Services Québec office. Baseline legal eligibility is a mandatory prerequisite, but does not guarantee the approval or execution of a funding agreement.

Excluded businesses and organizations

Section 2.4.1.9 of the ministerial guide formally excludes several categories of entities from the business component of MFOR. Ineligible organizations include:

• Government departments and bodies of the Government of Quebec subject to Chapter III of the Public Administration Act whose staff falls under the Public Service Act
• Federal government departments and agencies subject to the Public Service Employment Act
• Political parties and officially recognized political associations
• Entities listed on the public contracts exclusion register (Registre des entreprises non admissibles aux contrats publics, RENA)
• Businesses with an unsettled debt owed to the Ministère de l’Emploi et de la Solidarité sociale, unless honoring a formal written repayment agreement
• Employers that defaulted on contractual commitments to the Ministère after receiving a formal demand letter (mise en demeure) concerning past financial assistance
• Businesses engaged in controversial activities with which it would be unreasonable to associate the name of the Ministère
• Covered businesses that fail to comply with enterprise francization requirements under Title II, Chapter V of the Charter of the French Language

Before approving a file, Services Québec verifies corporate status against the enterprise registry and government databases. Any active listing on RENA or any unresolved financial arrears with the Ministry triggers an immediate file refusal.

Businesses employing 25 or more workers in Quebec must also remain in good standing with the Office québécois de la langue française to secure a certificate of francization or an attestation of program implementation.

Special cases: groupings, designated representatives, and large projects

Ministerial guidelines set rigorous conditions for multi-employer initiatives and large-scale workforce projects under sections 2.4.1.4, 2.4.1.5, and 2.4.1.8 of the guide.

Employer groupings and designated representatives

When multiple employers identify shared skill shortages across their workforces, they can pool training investments through a collective application:

• Internal designated representative (mandataire interne): One participating company is appointed to sign the funding agreement on behalf of the consortium. Partner companies execute a formal grouping and mandate agreement (Accord de regroupement et mandat) defining operational roles and financial contributions, which forms an integral schedule of the official agreement.
• External designated representative or delegated body (mandataire externe ou organisme délégué): If no participating business wishes to manage group administrative obligations, an eligible third party, such as an industry sector council or employer association, can act as representative.
• Conflict-of-interest restriction: An external designated representative or delegated body cannot deliver the instructional sessions. Training delivery must be contracted to an independent third-party provider.

Restrictions on large-scale projects (MFOR-E)

For training initiatives requesting a provincial grant of $100,000 or more, the submission is evaluated by the Direction des mesures et services aux entreprises under the MFOR-E stream. Strict public-sector exclusions apply. The following bodies cannot receive MFOR-E subsidies for their own employees:

• Municipal and paramunicipal administrations, including cities, regional county municipalities (MRCs), transit corporations, and local economic development agencies
• Crown corporations and parapublic bodies, including Investissement Québec, Hydro-Québec, SÉPAQ, and Parks Canada
• Public and private educational institutions, including school service centres, elementary schools, high schools, colleges, and universities
• Public health and social services institutions, including CISSS, CIUSSS, CHSLDs, and Family Medicine Groups (GMF)

These public organizations may only participate as delegated bodies or service providers to coordinate and deliver training for private-sector workers.

Eligible employees and target workers

MFOR funding focuses exclusively on upgrading skills and supporting job retention for workers who are already employed. Participant criteria are detailed in sections 2.1, 2.2, and 2.2.1 of the guide.

Required employment status

To qualify under the approved grant budget, participating workers must satisfy explicit employment conditions:

• Active employment relationship: Trainees must hold active, paid employment with the applicant organization throughout the training period. Unpaid interns, job applicants, and independent subcontractors are strictly ineligible.
• Quebec operational base: Participants must reside in Quebec or perform their regular employment duties at an operating establishment located within Quebec.
• Quebec telework rule: Remote employees domiciled in Quebec are eligible if their employing company is situated in Quebec and its primary operational decision-making centre is located in the province.
• Out-of-province exclusion: Teleworkers stationed outside Quebec are expressly excluded from large-scale MFOR-E projects. In standard regional MFOR files, 0% of instructional costs can be claimed for an employee working outside Quebec.

Qualifying training activities

Funded instruction must address direct operational requirements and target capabilities tied to active employment duties:

• Technical instruction required by the introduction of new equipment, production machinery, or software systems
• Professional, technical, trade, or managerial skills development
• Train-the-trainer programs designed to structure internal skills transfer
• Workplace francization, literacy, and foundational numeracy instruction
• Structured workplace apprenticeships under the Programme d’apprentissage en milieu de travail (PAMT)

Informal activities such as employee onboarding sessions, conferences, congresses, conventions, and seminars are ineligible. For allowable expense items and reimbursement calculations, consult our guide to MFOR eligible costs.

Quick 5-question eligibility check

Before contacting your regional Services Québec office, this five-point diagnostic helps evaluate your initial readiness:

1. Is your organization registered with the Registraire des entreprises? Your business must hold an active NEQ and maintain a verifiable operating establishment in Quebec.

2. Are participating trainees active employees based in Quebec? Instruction must target paid employees working in Quebec, excluding external consultants and remote personnel living outside the province.

3. Is your organization clear of administrative disputes and compliance holds? Your company must not be listed on RENA, must have no outstanding unpaid debts to the Ministry, and must comply with provincial language legislation.

4. Is your project scheduled to begin strictly after agreement execution? No training expenditures incurred before the formal signing of the agreement can be reimbursed retroactively. Review application steps in our guide on how to apply for MFOR.

5. Have you assessed your obligations under the Quebec 1% training law? If your annual Quebec payroll exceeds the regulatory threshold of $2 million, expenses recognized under your MFOR agreement count toward your training obligation under the Act to promote workforce skills development and recognition.

What Canadian Funding Partners does

We verify your eligibility before contacting Services Québec: legal structure, NEQ validity, RENA clearance, employee status, and territorial rules for hybrid staff. For multi-employer projects, we structure grouping and mandate agreements that satisfy ministerial requirements.

We also assist English-speaking employers throughout the provincial process. Discussions with regional Services Québec business advisors are almost always conducted in French. While vendor quotes, syllabi, and invoices may remain in English, the formal training plan (plan de formation) is best submitted in French to avoid review delays. Canadian Funding Partners prepares French documentation and manages advisor communications while working with your team in English.

Canadian Funding Partners is an independent advisory firm. We are not Services Québec and cannot guarantee grant outcomes. We ensure your application is complete, methodologically sound, and defensible before the regional advisor. To evaluate your project without obligation, request a free grant assessment.