Navigating a Layoff on a Work Permit: What This Means for Your Canadian Immigration Plans

The impact could vary based on the type of work permit you hold, how much Canadian work experience you already have, and your chosen path to permanent residence (PR).  

How a Layoff Affects Your Immigration Status in Canada 

Losing your job does not immediately impact your immigration status. You can remain in Canada until your work permit expires. However, depending on your work permit type, you may or may not be authorized to work for a different employer. 

Losing Your Job While on an Employer-Specific Work Permit 

If you’re in Canada on an employer-specific work permit (or closed work permit), you are only authorized to work for the employer named on your work permit. If you get laid off, terminated, or if you resign, you cannot legally work for a different employer in Canada on that permit. 

You can, however, stay in Canada until your work permit expires. In this case, you do not need to inform IRCC about losing your job (unless you already have an Express Entry profile — in that case it is your responsibility to keep it up to date).  

The remaining time on your work permit may give you a window to network and search for a new job before your status expires. Your prospective employer will likely also need a Labour Market Impact Assessment (LMIA) before they make you an offer. You can then use that job offer and LMIA to apply for a new work permit. 

That said, current processing times for work permit applications made from within Canada are high (212 days, or over 7 months, as of May 12, 2026). This does not account for the LMIA processing time for the employer (50-60 days for the low-wage and high-wage streams). 

If your work permit expires before you’re ready to apply for a new one, you can either change your status to visitor or leave Canada and apply for a fresh work permit from outside the country. 

Getting Laid Off While on a PGWP or Other Open Work Permit 

Unlike an employer-specific work permit, an open work permit, such as a Post Graduation Work Permit (PGWP), allows you to work for (almost) any employer in Canada. Plus, the employer does not need an LMIA to hire you. This means it is easier for you to find a new job after a layoff. 

But a layoff on a work permit can still impact your path to permanent residence by shortening your Canadian work experience. 

Losing Your Job While on an IEC Work Permit 

Under the International Experience Canada (IEC) program, applicants can get three different types of work permits: a Working Holiday work permit, Young Professionals or International Co-op. 

A Working Holiday work permit is open, so you can look for alternative employment and start working for a different employer on the same permit. 

On the other hand, the Young Professionals and International Co-op permits are employer specific. If you’re on one of these permits and lose your job, you cannot work for another employer unless you get a new work permit. 

The complication is that IEC work permits are generally not renewable. Depending on your country of citizenship, your permit is valid for 12 or 24 months. Only some countries allow a second IEC participation. 

Any gap in employment reduces the time you have to accumulate qualifying Canadian work experience for PR. For instance, if you’re on a 12-month IEC work permit, a layoff could prevent you from getting the one year (1,560 hours) of Canadian work experience required for the Canadian Experience Class (CEC). 

Your options in such a situation would be to a) find another job as quickly as possible if you’re on a Working Holiday permit, or b) find an alternate employer and get an employer-specific work permit. 

How a Layoff Can Affect Your Path to Permanent Residence 

Depending on where you are in the immigration process, a layoff can impact your eligibility for PR. An employment gap can make it harder to gain qualifying work experience, affect your Comprehensive Ranking System (CRS) score, or complicate an application that’s already in progress. 

A Layoff Can Impact Your Eligibility for Immigration Programs 

One of the most common PR pathways for people already working in Canada is the Canadian Experience Class (CEC). To be eligible for CEC, you must have at least one year of skilled Canadian work experience — 1,560 hours in a NOC TEER 0, 1, 2, or 3 occupation — within the three years before you apply. 

Depending on how long it takes you to find another job and the duration of your work permit, a prolonged period of unemployment delay or prevent you from getting that required one year of experience. 

A few things to keep in mind: 

Part-time or not to part-time?  

While a part-time job can help you cover expenses during an employment gap, not all work counts toward CEC eligibility. Only roles in TEER 0, 1, 2, or 3 occupations qualify. So, a part-time retail or food service job would not contribute to your 1,560 hours requirement. 

You can look beyond your NOC in category-based selection 

If you’re in a priority occupation (healthcare, social services, trades, etc.) and aiming for category-based draws, your hours don’t necessarily need to come from a single NOC code.  

As long as your experience is in an eligible NOC for the category and in a TEER 0, 1, 2, or 3 occupation, it can count. So, if you were working as a nurse practitioner (NOC 31302) and lost that role before reaching a full year, picking up work as a licensed practical nurse (NOC 32101) can still count toward your total hours. 

Returning home temporarily might help 

If you came to Canada to study and entered the workforce directly after graduation, or if you arrived here on a work permit but could not meet the one-year experience threshold due to a job loss, returning home to work is also worth considering.  

Foreign work experience does not count toward CEC eligibility, but it could help you qualify for the Federal Skilled Worker Program (FSWP) instead. 

Losing Your Job Can Affect Your CRS Score 

If you’re single, you can get 40 CRS points (human capital) points for one year of Canadian experience. Points increase with each extra year, until you have five years of Canadian experience (80 points).  

Canadian work experience also factors into skill transferability points, where you can get up to 100 CRS points based on a combination of factors (education, language skills, Canadian and foreign work experience). 

For instance, if you have one year of Canadian experience plus a master’s degree, you could get 25 skill transferability points. If you have a master’s degree and two years of Canadian experience, you could get 50 points instead. 

Foreign experience, too, can add to your points for skill transferability. 

If you also have one year of Canadian work experience, the combination of foreign and Canadian experience could add 13 points. If you have one year of foreign work experience in a skilled occupation and a CLB 7 or higher in all language abilities, you could gain 13 additional CRS points. You can get more points if you have more than one year of Canadian experience or a CLB 9 in all language abilities. Note that skill transferability points are capped at 100 across all factors. 

Getting Laid Off After You’ve Received an Invitation to Apply (ITA) for PR 

If you’ve been laid off after getting an ITA but before submitting your PR application, there are scenarios where your immigration application could be impacted. 

When you apply for PR, the work experience you declare must be accurate as of the date you submit your application. One complication is that, as time passes, IRCC automatically updates your work experience while you’re in the Express Entry pool. IRCC also sometimes rounds off your work experience to the next full month when issuing ITAs. This could mean you get points for an added year before you’ve actually worked for the full year. 

Let’s assume you received an ITA based on two years of Canadian work experience but were laid off at one year and eleven months and haven’t found new work, you only have one year and eleven months of qualifying experience at the time of submission. Claiming two years would be misrepresentation, and that carries serious consequences for your immigration history. 

What you should do will depend on your CRS score and situation: 

• If your actual CRS score (based on one year of work experience) still meets the cut-off for the draw in which you got an ITA, and you still meet the eligibility criteria for the immigration program, you can accept the ITA and submit a PR application. Ideally, include an explanation of your situation. 

• If your updated CRS score does not meet the original draw cut-off, you could potentially find alternate employment quickly and get that missing one month of experience. Keep in mind, however, that you only have 60 days to submit your PR application from the ITA date. 

• If your revised CRS score does not meet the draw cut-off and you cannot find alternate employment, your only option is to decline the ITA. 

What To Do After a Layoff: Next Steps 

Knowing where you stand can help you manage a layoff situation better. 

• Start by confirming your work permit expiry date and whether you’re authorized to work for a new employer.  

• Use the remaining time on your work permit to look for another job. Depending on your situation, you may need a new work permit.  

• Calculate your qualifying hours to date and how far you are from meeting the minimum eligibility requirements for your chosen immigration program. 

• If you’re opting for Express Entry or already in the pool, calculate your CRS score and assess whether you’re likely to meet a draw cut-off. 

• If you’ve received an ITA or are close to one, you may want to get professional advice before taking any action on your application. 

• If it looks unlikely that you’ll qualify for the immigration pathway you had in mind, explore alternative options or other ways to boost your CRS score. 

Being realistic about your chances can help reduce some stress. If needed, speak to an immigration consultant for advice on your specific situation.