Expiry of the employment contract : Possible scenarios
Whether under the Foreign Worker Program (TFWP) or the International Mobility Program (IMP), a temporary work permit always bears an expiry date, which can be approached in several ways.
For the Temporary Foreign Worker (TFW), the expiry of the work permit does not necessarily mean the end of employment. The worker’s legal status determines the possible scenarios available to both the worker and the employer.
There are essentially three possible scenarios when the TFW permit expires:
- Scenario 1: The contract ends upon the expiry of the work permit — either by mutual agreement between the employer and the worker, or because the permit itself is non-renewable.
- Scenario 2: The employer decides to extend/renew the employment contract, either under the current conditions or under different terms.
- Scenario 3: The worker has begun the process of settling permanently in Quebec.
Each scenario offers specific courses of action, both for the employer and for the worker.
End of employment for a TFW
A temporary work permit has a defined expiry date, meaning that beyond this date, the worker can no longer legally work in Québec.
This date may coincide with the natural end of the employment relationship between the TFW and their employer. However, the termination of employment can occur at any time: the permit’s expiry date does not require the employer to maintain the employment relationship with the TFW until then.
The early termination of a employment contract with a temporary foreign worker, that is, before the work permit’s expiry, follows the same rules and procedures that apply to all workers. In particular, the provision of notice and payment of any amounts owed. Similarly, when the TFW is the one ending the employment, the notion of a “reasonable notice period” applies, though it is less formal.
A contract that ends when the worker’s work permit expires generally means the TFW’s return to their country of origin. Several important points should be noted here:
Duration of the main temporary work permits
Work permit (high-wage): up to 3 years
Work permit (low-wage): 1 year
Agricultural stream: up to 2 years
Seasonal Agricultural Worker Program (SAWP): up to 8 months
International Experience Canada (IEC): 1 to 2 years, depending on the stream (WHV, Young Professionals, international Co-op internship) and bilateral agreements
Post-graduation work permit (PGWP): up to 3 years
Accompanying spouse (if eligible): same duration as principal applicant’s permit
IMP+ and Exemption codes for holders of a CSQ: valid until permanent residency is granted (typically 2 years)
Open Work Permit for Vulnerable Workers (OWP-V): 1 year
- In principle, foreign nationals residing in Canada must hold a valid residence permit. When a temporary foreign worker’s work permit expires, and no steps have been taken to maintain their status in the country, they lose their status. Consequently, they may no longer work, but still have 90 days to restore their legal status in Canada. After this period, they will have to leave the country.
- For low-wage TFWs, the employer is responsible for covering transportation and repatriation costs to the worker’s country of origin.
TFW Special
A low-wage temporary foreign worker may refuse to return to their country of origin immediately after the end of their employment. This may be the case, for example, when they wish to secure a new job offer before their work permit expires.
In such cases, the worker must clearly inform the employer they are leaving. Once this is done, the employer is released from its obligation.
TFWs who have earned income in Quebec are subject to income tax, which must be filed by April 30, covering the period from January 1 to December 31 of the previous year. As this process can be completed remotely for TFWs who have returned home, it is recommended to plan ahead before departure, ideally with the help of a certified accountant.
Closed work permit still valid: what if I lose my job?
TFWs holding a valid closed work permit at the time of job loss have several options if they wish to remain in Quebec.
Firstly, because the permit is employer-specific, the worker cannot freely work for another employer. They must find a new employer willing to hire them and undertake the necessary immigration procedures, starting with a Labour Market Impact Assessment (LMIA), in order to obtain a new closed work permit.
Secondly, accompanying family members retain their status as long as the principal permit remains valid (spouse’s work permit, children’s study permit, etc.). However, all permits affiliated with the main permit must be renewed when a new principal work permit is obtained, for a new employer and, if the latter expires, they expire with it.
Thirdly, if the TFW is unable to secure new employment before their work permit expires, they must restore their legal status within 90 days, or leave Canada, along with any accompanying family members whose status is also terminated.
Even though a TFW’s stay is temporary, a portion of their salary is automatically deducted at source to cover various contributions, such as employment insurance and retirement funds, regardless of how long they have been employed.
A TFW is entitled to employment insurance under the same conditions as a Quebec worker. If eligible, it is advisable to apply as soon as possible, ideally immediately after job loss.
Concerning retirement benefits (or disability pensions, for example), bilateral social security agreements may exist between Canada and the TFW’s country of origin, allowing them to transfer or combine their pension entitlements earned in Quebec. Specific conditions may apply.
Extension and renewal of a temporary work permit
The expiry of a TFW’s work permit does not always mean the end of employment. Indeed, the employer and the temporary foreign worker may also wish to continue or develop their collaboration beyond the initial work permit.
There are two possible scenarios in this case:
- In the first case, the worker’s status is extended beyond the expiry date of the current work permit. Before the current work permit expires, both parties agree to apply to extend the temporary foreign worker’s current status, under the same conditions as the initial hiring (duties, job title, salary, etc.);
- The second case is that of the renewal of a valid work permit, either when the parties agree to introduce changes to the position (salary increase, broader responsibilities, new job title, internal promotion, etc.), or when the worker More information on reinstating a status after the initial permit has expired: already holds a valid work permit, whether or not they are still working for another business.
In both cases, the procedure is identical, and should be initiated well before the current permit expires. IRCC requires the application to be submitted 30 days in advance. But this is often too short to ensure receipt of the new permit before the previous one expires.
The procedure will, however, be subject to special arrangements. A distinction will also be made according to whether the worker is in the:
- The Temporary Foreign Worker Program (TFWP), which will always require a positive Labour Market Impact Assessment (LMIA) and a new work permit, or
- The International Mobility Program (IMP).
The notion of maintained status
n theory, if a temporary foreign worker (TFW) applies for a renewal or extension of their work permit, and it expires before a decision has been made, they may, under the Immigration and Refugee Protection Regulations (IRPR), continue working under the same conditions until a decision is rendered on their application. However, certain conditions apply.
The rule of principle is that a TFW with maintained status, who lives and works in Quebec, loses their status as soon as they leave Canada. Their return is then subject to strict criteria and entry may not be guaranteed.
In the case of IMP, it’s one of two things.
Either the worker holds a closed permit, and extension of the permit is possible with simplified conditions (LMIA exemption). Or the worker holds an open permit (OWP).
However, most open work permits cannot be renewed or extended. This is the case, for example, with the Working Holiday Visa (WHV). When the WHV expires, the holder must be rehired by their employer, either on a closed work permit via the TFWP, or an open permit as the spouse/common-law partner of a principal applicant who holds a closed permit. The same applies to the Post-Graduation Work Permit (PGWP). For the spouse/partner holding an OPW tied to a closed permit, the renewal of their status will necessarily be dependent on the principal applicant’s permit.
It is not possible to extend or renew a temporary work permit at the port of entry, i.e. at a land border crossing. Applications must be submitted online, via the Immigration Refugees and Citizenship Canada (IRCC) website – or, in some cases, at the airport of entry, upon arrival at an international airport in Canada.
