I was fired in Canada and I have a closed work permit! What will happen to my status and my rights?

Eddy Ramirez
July 28, 2026

Losing a job in Canada is an extremely difficult experience for an immigrant, especially if the work permit is restricted—that is, “tied” to a single employer. 

In this situation, it's normal to feel that typical fear: "I lost my job—what am I going to do now?"

And when you add to this the uncertainty of not knowing what will happen with their immigration status, the feeling of vulnerability only gets worse.

But let's keep those two things separate! 

While it is true that being fired raises two distinct issues that you must resolve at the same time—your immigration status and your labor rights—it is also true that you are not completely unprotected.

As a Canadian immigration lawyer, I want to reassure you that you have options for continuing in the workforce. Read this blog post with me all the way through and evaluate those options based on your specific situation. 

 

First, the most urgent thing: Your permit is not automatically canceled!

Just because they are fired doesn't mean their status in Canada ends that very same day. 

Yourclosed work permitremains valid until the original expiration date printed on it, even if you are no longer working for that employer. This gives you some time to look for other options; it’s not unlimited, but it’s there, and you should take advantage of it.

IMPORTANT! You need to understand the following: a closed work permit authorizes you to work only for the employer, in the specific position, and at the specific location indicated in the document. 

WARNING: Working for someone else without proper authorization—even temporarily, or under the pretext of “just to get by until I find something else”—puts your immigration status at risk. This justification is not a gray area. There are no mitigating circumstances based on financial need, nor is there any legal basis for relying on the worker’s good faith.

Options for returning to work

Your general options, depending on your situation, typically include:

  • Apply for a new work permit with another employer while in Canada, if your status is still valid
  • In some cases, request permission to start working while your new application is being processed
  • If your termination was related to exploitative conditions, abuse, or a risk of abuse by your employer, you may qualify for a Vulnerable Worker Open Work Permit, a document that allows you to work for any employer while you resolve your situation

Each of these paths has its own specific conditions, so before making any decisions—and especially before starting to work for a new employer—it’s worth confirming exactly which option applies to your situation.

Second: Your labor rights do not disappear simply because your leave is closed-ended.

Pay close attention here, because this is a detail that many people aren't aware of (and that your former employer probably won't explain to you): 

  • Just because your work permit is tied to that company doesn't mean the employer is in control of the situation or that it can fire you according to its own rules

In Canada, the labor laws of the province of Ontario are clear: they protect Canadian citizens and foreign workers equally. 

His immigration status does not give the company the right to break the law or leave him without support. 

When you are terminated, you have the same rights under labor law. This means that, depending on your situation, you may be entitled to:

  • Notice of termination or severance pay, depending on how long you have been employed by the company, under the Employment Standards Act (ESA).
  • Severance Pay (Severance pay), which in some cases may differ from and be higher than the ESA minimum under common law (law based on judicial precedents), especially if the employee had been in the position for a considerable amount of time.
  • Payment of outstanding wages, overtime, vacation pay, or commissions that have not been paid to you
  • A discrimination review, to determine whether your termination was related to your place of origin, citizenship, pregnancy, a disability, or any other protected characteristic under the Human Rights Code.
  • Additional protection if you were fired in retaliation for asking about your rights, refusing to perform work that made you feel physically or emotionally unsafe, or reporting abuse.

The most common pitfall: Signing quickly out of fear of losing your status

When a foreigner works with a restricted work permit, the fear of losing a valid job may lead them to accept the first offer an employer makes just to "get it over with quickly." 

This offer usually takes the form of an immediate check, a document to sign on the spot, or a simple verbal promise. Although feeling that sense of urgency is completely understandable given the pressure, giving in to it due to a lack of advice is a serious mistake.

At that very moment, giving in to panic is the quickest way to lose your money and forfeit your labor rights.

Before signing any settlement document or release (Liability Release Agreement or Settlement Agreement), you should carefully review the following:

  • The total amount: Determine whether the amount of money offered to you in the document actually covers everything that Ontario law guarantees you as a legal minimum.
  • Common Law Severance Pay: Check whether you are entitled to a severance payment calculated based on legal precedents—an amount that is typically much higher and that employers almost never offer on their own initiative.
  • Validity of the Contract: Determine whether the termination clause in your original employment contract was actually valid under the Employment Standards Act (ESA), since if it is poorly drafted, it is void and the company must pay you a higher amount of compensation.
  • Discrimination or retaliation: Determine whether your dismissal was based on discrimination or retaliation for asserting your rights, which would completely change the legal landscape in your favor.

Why is it so dangerous to sign a release in a hurry? 

Because signing a release means, literally, signing a waiver agreement. By signing it, you legally guarantee to the company that you waive your right to sue or claim additional money in the future, regardless of whether you later discover that the severance pay was miscalculated or that the termination was unlawful. 

Therefore, this is a final decision that must be made without time pressure or the stress of the moment.

Recommendations

If you are terminated from your job while holding a closed work permit, keep in mind that you are facing two separate situations, each with its own deadlines: the immigration process (to maintain the legality of your stay in Canada) and the employment claim process (to demand your final pay and financial compensation). 

Solving the first one quickly doesn't mean you have to solve the second one under pressure, nor does it mean you have to settle for less than what the law entitles you to. 

  • Don't rush to sign any settlement document just because you're feeling anxious in the heat of the moment.
  • Don't confuse the end of your employment with the end of your legal status. Seek legal advice to find out how to change your immigration status.
  • Do not accept a new job without the proper authorization.

Were you laid off, and is your work permit tied to a specific employer?

‍Please fill out this form and provide us with the details so we can determine whether we can represent you.

At Immiland Law, we're here to help you settle in Canada legally and protect your rights.

I hope this information gives you peace of mind and helps you know how to proceed correctly.

With love,

‍Immiland Law Professional Corporation