If your Permanent Residence (PR) application is refused, it does not automatically terminate your Maintained Status on the same day. Under federal regulations, your legal authorization to work continues under Maintained Status until Immigration, Refugees and Citizenship Canada (IRCC) makes a final decision on your pending work permit extension application (such as a Bridging Open Work Permit).
Navigating Canadian immigration law can be incredibly stressful, especially when your ability to work is tied to a pending application. Many temporary workers in Canada rely on Maintained Status (formerly known as implied status) to continue working while Immigration, Refugees and Citizenship Canada (IRCC) processes their PR application. However, if that application is refused, the legal landscape shifts overnight.
For employers, allowing a staff member to continue working without valid legal authorization is a severe federal offence. Whether you are employed in a corporate office in Toronto, a tech firm in Vancouver, or the energy sector in Calgary, the rules regarding work authorization are strictly enforced nationwide. Additionally, losing your status means you may also lose provincial healthcare coverage, such as OHIP in Ontario or MSP in British Columbia.
Step-by-Step Process in Canada After a PR Refusal
When a PR application is rejected, both the employee and the employer must act quickly to comply with federal immigration laws and provincial employment standards.
Step 1: Assessing the Refusal Notice
📝 While receiving a PR refusal is a significant setback, it does not automatically end your Maintained Status. Under Section 186(u) of the Immigration and Refugee Protection Regulations, your authorization to work continues as long as you have a pending work permit extension application, such as a Bridging Open Work Permit (BOWP). You must review your IRCC portal to confirm whether both applications have been decided or if your work permit application remains in progress.
Step 2: Action Upon Work Permit Decision
Your employer is only legally required to suspend or terminate your employment once IRCC officially rejects your work permit extension application. If that application is refused, your Maintained Status officially ends, and continuing to work becomes a federal offence. In most provincial jurisdictions, this is treated as a frustration of contract, meaning the employment relationship must be placed on unpaid leave or ended immediately due to a lack of legal authorization.
Step 3: Exploring Restoration of Status
If you have lost your status, you generally have a strict 90-day window to apply for Restoration of Status. However, you cannot work while waiting for this restoration. You must apply for a new work permit-often requiring your employer to secure a new Labour Market Impact Assessment (LMIA) from Service Canada-while simultaneously paying the federal restoration fee.
Step 4: Leaving Canada or Changing Status
If restoration is not possible, or your employer cannot support a new work permit application, you must either apply to change your status to a visitor or leave the country. 🚪 Overstaying after a refusal can lead to a removal order from the Canada Border Services Agency (CBSA), which will severely damage any future immigration applications to Canada.
How Much Does it Cost to Fix Status in Canada?
Losing your work authorization incurs immediate financial costs. Here are the current standard fees involved if you attempt to restore your status in 2026:
- Restoration of Status Fee: $246.25 CAD paid directly to IRCC (bringing the total to restore status and obtain a new work permit to $401.25 CAD, which includes the $155 CAD permit fee).
- New Work Permit Fee: $155 CAD (plus an $85 CAD biometrics fee if required).
- Employer LMIA Application: $1,000 CAD (paid by the employer, never the employee).
- Law Firm Fees: Hiring a Canadian immigration lawyer to handle a complex restoration typically ranges from $2,000 to $5,000 CAD depending on the complexity of the case.
How Long Does the Process Take?
Time is of the essence. ⏱ The loss of work authorization is immediate on the exact day the refusal is issued. If you apply for a Restoration of Status alongside a new work permit, processing times in Canada generally take between 3 to 5 months. During this entire waiting period, you are legally prohibited from engaging in any productive labour for your employer.
Frequently Asked Questions (FAQ)
Am I entitled to severance pay if I am fired for losing my status?
Generally, no. Under Canadian labour laws, losing your legal authorization to work usually results in a frustrated contract. Because it is a legal impossibility for you to continue working, employers are rarely required to pay standard severance or termination pay.
Can I volunteer for my company while I wait for a new work permit?
No. The IRCC definition of work is very broad. Even unpaid tasks that compete directly with the Canadian labour market are considered illegal work. You cannot volunteer to do your old job just to help out your employer.
Will my employer face penalties if they do not fire me?
Yes. Employers caught employing undocumented workers can face fines up to $50,000 CAD, imprisonment, and a permanent ban from hiring foreign workers through the Temporary Foreign Worker Program.
Can I fight the PR refusal in court?
If there was an error in law by the immigration officer, you may be able to apply for leave and judicial review at the Federal Court of Canada. You should consult a local immigration lawyer immediately, as you only have 15 days to file if you are inside Canada.
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