To work in Canada, the applicant must acquire a valid work permit, especially when applying for a closed work permit. Through the closed work permit, the holder is allowed to work only for a specific employer listed on the permit. But you may wonder, What happens if I lose my job on a Canada work permit? Technically, the permit holder can remain in Canada until the expiry date, whereas they are restricted to working under any other employer. You may wonder, what are the solutions to continue the work obligations without any legal struggle?
This blog is an insight into the critical steps and legal options of Canada work permit and to sort the unemployment issues in the uncertain period with clarity.
Let us know about Canada work permit system
What is a closed work permit Canada?
A Closed Canada work permit is the employer-specific work permit, which states that the permit holder can only work under the listed employer and specific job role. But, if the permit holder loses the job, the work permit will not get cancelled automatically, whereas the holder cannot legally be authorised to work in Canada unless they acquire a new permit. The holder can enjoy the legal stay in Canada until the expiry date, but is not subject to doing authorised work anywhere.
Learn the difference: Open work permit and Closed work permit.
The major difference between the two work permits is flexibility. Obtaining an open work permit allows the permit holder to work under any employer in varied sectors and industries. The closed work permit Canada allows the employee to stick only to the same employer listed on the permit. The holder can apply for open work permit Canada to work for another company if they lose their job.
Croyez Immigration is your trusted visa partner. We help you understand the nature and advantages of both the work permit and provide a smooth visa processing experience.
What to do after closed work permit job lose
Options after losing a job in Canada on a work permit
Holder under Legal status
When the permit holder loses the job on a closed work permit, they can still legally stay in Canada until the expiration of the permit. However, they have to take any action within the 90-day window, the permit holder can find a new employer to obtain a new permit, or they can change their visa status to visitor, etc. When the permit holder overstays the permit period without taking any steps, it is difficult to restore their status, and they may end up in a worse situation.
Don’t ever work illegally
As a closed Canada work permit allows to work only under the listed employer, it is illegal to work for a new employer without legal authorisation. If the holder works for another employer may get visa denials and a removal order.
Croyez Immigration emphasises maintaining legal compliance during the crucial period. This helps to ensure the authorities have a good standing for the profile while applying for another permit.
Options after a job loss on a closed work permit
Apply for a New LMIA-Based Job
The first option is to find a new employer to support with the Labour Market Impact Assessment. This is the general and legal step to obtain a new closed work permit. The LMIA acquisition states that hiring a skilled professional abroad will not affect the Canadian labour market. After obtaining a positive LMIA, the holder can apply for a new work permit under a new company.
Croyez Immigration assists the applicant in supporting the job search journey and helps to connect with employers who are ready to provide an LMIA.
Switch to an Open Work Permit (If Eligible)
If you wonder, can I convert my closed work permit to open work permit in Canada?
The permit can also switch their permit to an open work permit in some cases. Listed below are the eligible individuals:
- Spouses or common-law partners of skilled workers or students
- Recent graduates with a Post-Graduation work permit
- Permanent residency applicant to apply for a Bridging open work permit
In 2025, Canadian Immigration updated the eligibility rules for Spousal open work permits, where certain students and working professionals can only bring their spouse. In Croyez Immigration, we help the applicants to know about their eligibility to apply under the updated rules.
Apply for a Visitor Visa (If no Immediate work options)
If the permit holder is not able to find a job immediately, to secure the legal stay, they can change their visa status by obtaining a visitor visa. This provides an adequate amount of time to search for new opportunities or to prepare for leaving the country, completing all the paperwork. Securing a visitor visa does not allow the individual to work, but it provides a breathing period to find a job or prepare to leave the country.
Croyez Immigration helps the permit holder to maintain a legal stay by drafting strategies according to your goals.
Study Permit as an Alternative Path
The permit holder can choose the path to pursue a study in Canada, which is one of the long-term strategies for the legal stay. By enrolling under the DLI, the holder can apply for post post-graduation work permit after graduation. This can lead the path to permanent residency as well.
Croyez Immigration helps to offer academic support in selecting the right institution to secure your status.
Recent updates - Canada work permit news today
From May 2025, IRCC has extended the special policy where foreign nationals can work under a new employer, even before the new closed work permit is issued. This is possible only if they have applied and got interim work authorisation. Even if there is a 90-day breathing period, it is advised to act quickly after the job loss and even before the permit expires.
And the answer to the question, How to change employers on a closed work permit in Canada? The new update states that the permit holder can apply for a job within Canada without needing to leave the country just for the application.
Croyez Immigration helps with your Post?Job transition
Job Support Services
Croyez Immigration is a trusted Canada Work Visa Consultants having more than a decade of experience in the field. We help the applicant to draft a well-structured resume and with a job search by connecting with employers.
Work Permit restoration
Our expert team will help to restore the work permit and also reapply if the applicant is willing. We prepare all the documents required for Canada work permit accurately and keep track of the updates, which reduces the risk of delays and rejection.
Legal Consultation for Canada Work Permit Strategy
Our team offers personalised legal strategies for switching permit types, maintaining legal status, and mapping out long-term settlement plans in Canada.
In Croyez, we provide legal advice for switching permits and maintaining legal status. We help to sort out the problem.
Long?Term Immigration Goals after Work Permit Loss
Access to PR Pathways
Once your work status is restored or you secure a new permit, you may become eligible for permanent residency through Express Entry, the Provincial Nominee Program (PNP), or the Canadian Experience Class (CEC). These programs reward skilled work experience in Canada, and losing your job does not necessarily disqualify you if you're able to return to the workforce quickly.
Losing the job does not disqualify you from applying for Permanent residency. After securing a new work permit, the candidate can apply for permanent residency through Express Entry, the Provincial Nominee Program, or the Canadian Experience Class. Applicants who come under the legal workforce can apply for PR irrespective of past work history.
How to Prevent Work Permit Risks in the Future
The best option is to seek employment with LMIA-proven employers or shift to an open work permit if they are eligible. This does not affect any future risk or disruptions.
In Croyez, we help the applicant to tackle the risk factors, and our team will help to apply Canada - work permit and secure a desired visa from the eligible pathways.
Frequently Asked Questions
Can I stay in Canada after losing my job on a closed work permit?
Yes, you can stay in Canada even if you lose your status on a closed work permit until the permit expiry date. Within the stipulated period, you can apply to change your permit status or restore for long-term legal stay.
How do I apply for restoration of status?
You have 90 days for restoration after the permit expires or if the status is lost. The applicant must make a decision on the next step, like apply for a new job or for a new status, or to leave the country. The applicant must meet the eligibility conditions to restore the status.
Can I switch to a visitor visa or open work permit after job loss?
Yes, you may switch to any visa depending upon your circumstances. A visitor visa will give a longer period to decide your next plan, while the open work permit will give the eligibility to work again only if you fulfil Canada work visa requirements under some circumstances.
Book your first free consultation with us today to safeguard your status or seek our guidance to continue your Canadian journey.
