When considering working in Canada as a temporary worker, one of the critical steps is understanding the type of work permit you'll need. A work permit is a crucial document that grants a foreign national the legal right to work in a Canada.
Typically, work permits can be broadly categorized into two types: open work permits and closed work permits. While both enable individuals to engage in employment opportunities, they have distinct differences that could significantly affect a worker’s mobility and job choices.
In this article, we will explore the essential distinctions between an open work permit and a closed work permit and when it might be more advantageous to choose one over the other, depending on your employment situation and long-term goals.
Key Takeaways
- Open work permits offer greater flexibility, allowing the holder to work for any employer without specific restrictions.
- Closed work permits are employer-specific, meaning they tie the holder to a particular employer and position.
- Both work permits are essential tools for temporary residents seeking employment opportunities in Canada but differ in their level of flexibility and associated conditions.
- Choosing between an open or closed work permit depends on factors such as eligibility, job security, career goals, and the desire for freedom in changing jobs.
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What is an Open Work Permit?
An open work permit is a type of work authorization that allows the holder to work for any employer, in any location, and in almost any job, without being tied to a specific employer or position. Open work permits provide significant flexibility to the holder, as there are limited restrictions on the type of work they can pursue. For this reason, they are seen as more desirable than closed work permits.
What is a Closed Work Permit?
A closed work permit (also known as an employer-specific work permit) is a type of work authorization that limits the holder to working for a specific employer, often in a specific role and at a specific location. Closed work permits are more restrictive than open work permits and often come with more employer obligations concerning wage requirements, and compliance reporting.
Key Differences Between Open and Closed Work Permits in Canada
There are some key differences between and Open and Closed Work permit, some of which are listed below:
| Feature | Open Work Permit (OWP) | Closed Work Permit (CWP) |
|---|---|---|
| Employer Flexibility | Can work for (almost) any employer | Restricted to a specific employer. |
| Job Offer Required? | No | Yes, the permit is tied to a specific job, employer, and often location. |
| Eligibility Requirements | Limited circumstances a holder may be eligible for an OWP | Many streams offer a CWP. |
| Is a labour Market Impact Assessment (LMIA) needed? | No | This depends on the type of closed work permit. In some cases an LMIA will be required to get a CWP unless the position is LMIA exempt. |
| Freedom to Change Jobs | Holder can move between jobs or employers. | Limited; changing jobs often requires a new permit. |
| Duration and Renewal | Limited duration and limited renewal options | Tied to the duration of the employment contract but often renewable. |
| Restrictions | Minimal; may exclude certain jobs (e.g., security-sensitive roles). | Significant; employment is strictly limited to terms listed in the job offer associated with the permit. |
| Employer Compliance | Employers of OWP holders must comply with Federal and Provincial labour laws. | Employers of OWP holders must comply with Federal and Provincial labour laws, as well as additional obligations to foreign workers. |
| Cost | Holders must pay an additional $100 CAD for an OWP | There are no additional fees for the permit holder however their employer will incur some processing fees depending on the type of CWP applied for. |
Common Examples of Open and Closed Work Permits
To better understand the distinction between open and closed work permits, let’s look at specific examples of each.
Examples of Open Work Permits
Post-Graduate Work Permit (PGWP) – Allows recent graduates of eligible educational institutions/ programs to work for any employer.
Family Work Permit – Issued to the spouse or common-law partner of eligible skilled workers and international students.
Bridging Open Work Permit – Granted to individuals who are transitioning to permanent residency and need continued work authorization.
Working Holiday Permit – Under the International Experience Canada (IEC) program, young adults from participating countries to work for any employer in Canada for a limited duration
Examples of Closed Work Permits
LMIA Supported Work Permit – Issued to a worker with a job offer for a specific company, which is supported by a LMIA.
Intra-Company Transfer Permit – Allows employees of multinational corporations to transfer to another branch in Canada.
Young Professional Permit – Also under the IEC program, young professionals with a job offer can apply for a closed work permit. Unlike the working holiday permit, holders of a Young Professional permit can only work for the employer stated in their permit.
Francophone Mobility Permit – Allows French- speaking workers with a job offer for a specific company without the need to get an LMIA.
Application Process for Open and Closed Work Permits
The applications process for both open and closed work permits is identical, however the supporting documents needed to support the application will depend on the type of permit you are applying for.
General application steps include:
Step One: Determine eligibility for either an open or closed work permit.
Step Two: Gather the supporting documentation.
Step Three: Submit the application.
Step Four: Wait for processing
Step Five: Receive work permit approval.
When to Choose an Open Work Permit vs Closed Work Permit
The decision between an open and closed work permit depends on your circumstances and the type you are eligible for. Here’s a guide to help you decide:
Explore an Open Work Permit if:
- You want the freedom to explore multiple job opportunities.
- You’re accompanying a skilled worker or student as a spouse or partner.
- You’re an international student seeking work experience after graduation.
- You prefer not to be tied to a single employer.
Explore a Closed Work Permit if:
- You’ve secured a specific job offer from an employer willing to sponsor your work permit.
- You are being transferred within your company to another branch in the host country.
- Your country agreement allows you to do a second International Experience Canada participation AND the working holiday category is either not available to you or it has a high number of candidates in the pool and low odds of selection.
Understanding the difference between an open work permit and a closed work permit is essential for anyone looking to work in Canada.
If you’re interested in exploring your Canadian work permit options, take our immigration quiz to discover the best pathways available to you.
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