If your employee’s Canadian Permanent Resident (PR) status is officially revoked following an unsuccessful appeal to the Immigration Appeal Division (IAD), they instantly lose their legal authorization to work in Canada. Employers must immediately terminate or suspend employment to avoid massive fines under the Immigration and Refugee Protection Act (IRPA).
Managing human resources in Canada requires strict compliance with federal immigration laws. 💼 A Permanent Resident (PR) card provides an employee with the unrestricted right to work for any employer. However, PR status is not an absolute guarantee. An employee can lose their PR status due to serious criminal convictions, misrepresentation, or failing to meet the residency obligation (living outside Canada for too long).
When an employee is stripped of their PR status, the transition is abrupt. They revert to being a “foreign national” with no underlying work permit. For employers, continuing to employ someone without authorization is a severe federal offence. This B2B guide outlines the critical steps HR departments must take when an employee faces a removal order and the loss of their status.
Step-by-Step HR Process for Revoked PR Status
Handling the loss of an employee’s PR status bridges the gap between federal immigration law and provincial employment law. 📋 HR teams must act decisively while mitigating the risk of wrongful dismissal suits.
Step 1: Monitoring Status and Legal Appeals
An employee does not lose PR status the moment Immigration, Refugees and Citizenship Canada (IRCC) begins an investigation. If a Departure or Deportation Order is issued, the employee usually has the right to appeal to the Immigration Appeal Division (IAD). While the appeal is active, they legally retain their PR status and can continue working. HR should request documentation proving the appeal has been formally filed.
Step 2: Confirming the Final Legal Decision
If the IAD dismisses the appeal, the loss of PR status is immediate. 📰 The employee will be issued an enforceable Removal Order. As an employer, you must require the employee to provide the final written decision from the IAD. Once this document is issued, their Social Insurance Number (SIN) becomes invalid for work purposes.
Step 3: Immediate Cessation of Employment
Under IRPA Section 124(1)(c), it is an offence to employ a foreign national who is not authorized to work. You must immediately remove the employee from the schedule and cease their employment. Allowing them to work even one extra shift while they “sort things out” exposes your corporation to massive federal liability.
Step 4: Issuing the Record of Employment (ROE)
You must issue a Record of Employment (ROE) to Service Canada within the standard provincial deadlines. 📝 The reason for separation on the ROE is typically coded as “K” (Other) with a note indicating “Loss of legal authorization to work in Canada.” The employee will likely be ineligible for Employment Insurance (EI) since they are no longer legally available to work in the country.
Step 5: Consulting an Employment Lawyer Regarding Severance
Provincial employment law still applies. Frustration of contract generally occurs when an employee loses their legal right to work, meaning severance or termination pay is usually not required. However, if your HR team mishandles the termination, you could face civil litigation. Always consult a Canadian employment lawyer to draft the final termination letter.
How Much Can Non-Compliance Cost the Employer?
Ignoring immigration status changes is disastrous for a business. The Canada Border Services Agency (CBSA) actively audits employers suspected of hiring undocumented workers. 💵 Here are the potential costs in Canadian dollars (CAD):
- Federal Fines: Under the IRPA, corporations found guilty of employing unauthorized foreign nationals can face fines up to $50,000 CAD per violation.
- Criminal Charges: In severe cases of willful blindness or exploitation, corporate directors can face up to 2 years in prison.
- LMIA Bans: Employers caught violating IRPA can be permanently banned from the Temporary Foreign Worker Program, completely cutting off your ability to hire international talent.
How Long Does the Legal Process Take?
The timeline of PR revocation is long, but the employer’s required response time is instantaneous. ⏳ An employee fighting a PR revocation at the IAD may be involved in litigation for 1 to 3 years. During this entire period, they are fully legal to employ.
However, the moment the final negative IAD decision is handed down, the timeline drops to zero. The employer has no grace period. Employment must be terminated on the exact day the company becomes aware that the legal appeals have been exhausted and the PR status is officially void.
Comparing Employee Status During Revocation
| Stage of Revocation | Legal Status in Canada | Right to Work for Employer? |
|---|---|---|
| Investigation & Initial Removal Order | Permanent Resident | Yes. Status remains intact pending appeal. |
| Active IAD Appeal | Permanent Resident | Yes. Fully authorized to work. |
| Appeal Dismissed (Final Decision) | Foreign National (Unauthorized) | No. Must be terminated immediately. |
Frequently Asked Questions (FAQ)
Can the employee keep working if they apply for Judicial Review?
No. Applying for Judicial Review at the Federal Court does not automatically stay (pause) the loss of PR status or the Removal Order. Unless a federal judge specifically grants a stay that restores their working status, they cannot be employed.
Can we just apply for an LMIA to rehire them?
In theory, you can apply for a Labour Market Impact Assessment (LMIA). In practice, because the individual has an active Removal Order, IRCC will almost certainly refuse to issue them a standard Work Permit until they leave Canada and resolve their inadmissibility.
How does HR know if an employee lost their PR?
Employers should conduct periodic audits of SIN numbers, especially those starting with a ‘9’ (temporary workers) or expired PR cards. If an employee cannot produce a renewed PR card or proof of a pending appeal, HR must investigate.
Do we owe termination pay under the Employment Standards Act?
Generally, no. When an employee legally loses their ability to fulfill their contract (by losing immigration status), the contract is considered “frustrated” by law, which typically absolves the employer from paying statutory notice or severance. However, confirm with an employment lawyer first.
Can we put the employee on an unpaid leave of absence instead?
Yes, you can place them on an administrative unpaid leave rather than terminating them entirely, giving them a brief window to seek emergency legal counsel. However, they absolutely cannot perform any work or receive compensation during this time.
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