Do you know that Temporary skilled professionals in Canada should obey the rules of their Closed Work Permit?  Yes, because neglecting these rules is considered illegal when working for any other employee, in any other job role, and mainly at any location not specified on your work permit. 

If you quit or lose your current employer-specific work permit, you might be eligible to obtain a new one within Canada if your current one hasn’t expired. Additionally, you are also able to get permission from Immigration, Refugee and Citizenship Canada, and you can also initiate working while your application is being processed. 

We’ll outline your options in this post in case you lost your employment due to a closed work permit. However, let’s first clarify what a closed work permit is.

What is a Closed Work Permit? 

A closed work permit entitles foreign skilled professionals to work for a specific employee in Canada. In case the Canadian employer terminates your contract through layoff, firing, or bankruptcy, you lose legal authorisation to work in the specified company, even if your work permit hasn’t expired. 

It is important to note that your status of temporary residency remains valid until its expiration, and you can legally live in Canada during that period. 

Candidates cannot work for any new employers until they apply for and obtain a new employer-specific work permit, unless a specific policy exemption applies to their situation.

Which steps to consider if you lost your job on a Closed Work Permit 

Below, we have listed three major steps that you can consider if you lose your job on your closed work permit. 

Step 01: Confirm your legal status and timing 

Your status is still in force until the expiry date, and therefore, you are legally resident in Canada for that time frame—even without work, provided that you do not fall out of status. 

You lose the right to work on termination, but still have a lawful status until your permit expires. Use this window to make plans: find a new employer, apply to change your immigration status, or consider other options.

Step 2: Apply for a New Closed Work Permit Specific to Your Employer

It is still the most straightforward option if you wish to stay and work in Canada. What you’ll need:

• Job offer from a Canadian employer who’s willing to undertake LMIA or a known LMIA-exempt category.
• Signed contract and LMIA (or exemption number).
• Work permit application, usually made online.
• IRCC fee (at present, about $155) and perhaps new biometrics.

Timing is critical: Work permit processing from within Canada takes an average of more than 100 days, and sometimes much longer—often several months.

Public Policy: Interim Work Authorisation

As of May 27, 2025, IRCC has implemented a policy that lets eligible foreign workers start working for a new employer while processing their work permit application, as long as they meet specific requirements.

• You have a valid temporary or “maintained” status and are in Canada.
• You’ve filed a new employer‑specific work permit application.
• You ask and get interim approval to begin employment.

The normal rule is that IRCC will acknowledge receipt of your application—and issue interim approval within 10–15 business days. Once approved, you can begin working right away for your new employer, even before the final permit arrives.

Step 3: What If You Can’t Get a New Job Right Away

If the application is being delayed by the LMIA procedure or a new employer is not forthcoming:

Option A: Apply to become a visitor

Applying for a Visitor Record is possible as long as your work visa is still in effect. It allows you a legal stay in Canada (but not work rights) for up to six extra months. You will be on maintained status, providing room to keep looking for a job without risking losing status.

Option B: Restore Status (If You Fall Out of Status)

If your permit expires and you haven’t made any application for renewal or change, you can still apply to restore within 90 days—if you haven’t breached the conditions of your temporary stay

Option C: Work Remotely for a Foreign Employer

Canadian immigration laws permit you to work for a business that does not have a physical location in Canada, as long as you do not provide services to Canadian customers. In these cases, you do not need a Canadian work permit.

Additional considerations you should consider: If you lose your job 

You should consider the following additional considerations in case you lose your job. 

Employment Insurance (EI)

If you were let go, but you retain insurable hours, you may be able to claim Income Insurance benefits, provided your permit is still valid. You’ll need your Record of Employment and must remain in Canada during the claim period.

Severance and Employment Rights

Your severance, notice, or wrongful dismissal claim entitlements depend on provincial labour acts and your employment contract. Seek professional advice to ensure you’re not leaving any entitlements behind.

Mental Health and Poisonous Workplace Environments

If your new employer became abusive or violent, that is a valid reason to seek a new employer, as per Canadian law, more specifically, by the IRCC interim authorisation policy.

What’s next?

Losing your job while on a sealed work permit is frightening, but you do have choices. You have options, particularly if you take prompt action before your permit expires, such as changing your status, working for foreign customers, or applying for a new permit.

Here’s the catch: don’t procrastinate. Begin searching for another job, turn in your applications on time, and pursue your legal recourse for EI and working conditions.

In complex situations, especially in abusive employers, status lapse, or brutal deadlines, consultation from an immigration or employment lawyer can clarify and protect your rights.

Your permit can be closed, but your choices don’t have to. With proper planning and taking timely action, you can proceed with confidence in your next steps while still being legally in Canada.

But, if you’re still confused, contact Keymart Visa, the best immigration consultants in India, at +91 9911338722 or info@keymartvisa.com can clear all your doubts.