A little-known fact is that Canada issues thousands of temporary work permits each year. While many foreigners are granted open work permits (which provide permission to work for almost any employer), most permits are for “closed” employment, meaning that foreign workers are limited to one employer and often in a specific location.
Foreign workers with closed work permits face additional complications if their employment is terminated. This is because foreign workers with restricted work permits can’t easily switch jobs like Canadians, permanent residents, or those with open work permits can.
This is an increasingly relevant issue in today’s dynamic labour market, given the ongoing economic challenges and shifts in various industries.
The following is accordingly intended to address relevant employment issues for foreign workers (particularly those with closed work permits), including immigration rules, termination, severance pay, and what to do if a foreign worker feels that they have been wrongfully dismissed.
DO I NEED TO LEAVE CANADA?
Assuming the temporary foreign worker holds a valid work permit when their employment is terminated, they will not need to leave the country immediately. Temporary foreign workers are permitted to remain in Canada pursuant to the terms of their existing permit.
If a temporary foreign worker has a closed work permit (meaning the permit is tied to employment with a specific employer), the worker cannot engage in any work except with the employer listed. Temporary foreign workers holding open work permits can immediately look for work with new employers if they abide by the terms of their valid work permit.
HOW CAN I GET A NEW WORK PERMIT?
A temporary foreign worker who has a closed work permit and gets terminated from their job must first apply for a new work permit—open or closed—that lists their new employer before they may start working for that employer.
An employee may obtain a new work permit in various ways. It is important for the temporary foreign worker to consult with a lawyer to ensure that all potential work permit options are considered.
HOW LONG WILL IT TAKE TO GET THE NEW WORK PERMIT?
Processing times for immigration applications are determined based on several factors, including the specific office in which the application is being processed and the volume of applications at any given time. As of 2024, the average processing time for work permit applications submitted from within Canada is approximately 109 days, though this can vary.
Immigration, Refugees and Citizenship Canada (IRCC) have implemented policies to allow eligible temporary foreign workers to submit an application for a new work permit and to transition to the new role without waiting for the new work permit first to be issued under certain conditions. Those wishing to take advantage of this policy must make a request to IRCC and wait for approval of that request before transitioning to new employment.
WHAT IF I WANT TO CHALLENGE THE TERMINATION OF MY EMPLOYMENT?
Employers in Ontario are permitted to terminate the employment of their employees as long as that termination is completed in a lawful manner. Employees in Ontario are entitled to notice and/or pay in lieu of notice of the termination of their employment. If a temporary foreign worker feels that the notice and/or pay in lieu of notice that they received upon the termination of their employment was inadequate, they should contact an employment lawyer to review their potential entitlements.
If a temporary foreign worker thinks that their employment was terminated for discriminatory reasons, they should contact an employment lawyer to have the circumstances of their employment reviewed, including, for example, reviewing relevant human rights legislation in Canada.
CAN I GET TERMINATION PAY?
Yes, foreign workers are entitled to the same rights as Canadians or permanent residents regarding termination of employment. This includes all rights under the Employment Standards Act 2000 in relation to termination and severance pay and entitlement to Employment Insurance (assuming basic eligibility is met).
HOW DO I KNOW IF I HAVE BEEN WRONGFULLY DISMISSED?
As a foreign worker, you have the same right to transition pay to assist you in finding alternative employment. This can include significant and often higher compensation than a Canadian or permanent resident because of the additional challenges of finding employment as a foreign worker (particularly if you hold a closed work permit). Courts have often granted foreign workers much higher notice payments to support them as they transition to another employer and deal with the additional immigration challenges.
Foreign workers whose jobs have been terminated should consider consulting with a lawyer experienced in employment and immigration law. This can help them understand whether their dismissal was wrongful and, if so, what compensation they may be entitled to receive.
Sultan Lawyers specializes in employment and immigration law in Toronto, serving foreign workers and employers. If you’re a foreign worker facing workplace discrimination, wrongful dismissal, severance issues, or have questions about your immigration status, we can help.
Employers seeking guidance on hiring temporary foreign workers or understanding the current labour market can also benefit from our expertise. For personalized assistance, contact Sultan Lawyers at 647-951-5925 or through our website. Our experienced team is ready to provide comprehensive legal support for your employment and immigration concerns in Toronto.