Employing a foreign national whose visa has expired and who lacks legal “maintained status” violates the Immigration and Refugee Protection Act (IRPA). Even if a former employee is waiting for a Pre-Removal Risk Assessment (PRRA) decision, they generally cannot work without a specific open work permit. Employers failing to verify this can face massive corporate fines of up to $100,000 CAD per unauthorized worker.
Operating a business in Canada requires strict adherence to federal labour and immigration laws. Whether you manage a booming tech firm in Calgary, a construction company in Edmonton, or a busy restaurant in Halifax, keeping reliable staff is your top priority. 💼 However, when an international employee’s work permit nears its expiration date, confusion often sets in for both the worker and the HR department.
As of May 2026, the Canada Border Services Agency (CBSA) fiercely pursues employers who utilize unauthorized labour. A common misunderstanding occurs when an employee facing deportation applies for a Pre-Removal Risk Assessment (PRRA). Many employers mistakenly believe that because the deportation is paused, the employee’s right to work is automatically extended. This is a dangerous legal error. If your corporation is currently undergoing a CBSA audit or you are unsure of your staff’s status, contacting a corporate immigration law firm from our directory is essential.
Step-by-Step Process in Canada
Employer compliance is a strict liability issue in Canada. You cannot simply claim ignorance if your employee loses their legal status. 📋 Here is the process every HR department must follow to protect the corporation from federal penalties.
Step 1: Audit All Employee Expiry Dates
Your business must maintain an active tracking system for all temporary foreign workers. Record the exact expiry date of every work permit. Under federal law, it is the employer’s absolute duty to ensure that no one is scheduled for a single shift after their work authorization expires.
Step 2: Understand “Maintained Status”
If your employee submits a valid application to extend their work permit before their current permit expires, they benefit from “maintained status” (formerly known as implied status). Under maintained status, they can legally continue working for you under the exact same conditions while IRCC processes their new application. 📂
Step 3: Recognize the Limits of a PRRA
A Pre-Removal Risk Assessment (PRRA) is a last-resort application for individuals facing imminent deportation, allowing the government to evaluate if sending them home will result in torture or death. Crucially, applying for a PRRA only pauses the removal order; it does not grant maintained status to work. When their original work permit expires, their right to work immediately vanishes.
Step 4: Demand Proof of an Open Work Permit
While awaiting a PRRA decision, the individual might be eligible to apply for a specialized open work permit to support themselves. However, you cannot legally put them on the payroll until they physically show you the approved work permit document. A simple PRRA acknowledgement letter from IRCC is not sufficient authorization to work. 👤
Step 5: Suspend or Terminate Employment
If the employee’s visa has expired and they only hold a PRRA application receipt, you must immediately remove them from the work schedule. Continuing to employ them, even paying them in cash or calling it “volunteer training,” constitutes an offence under IRPA. You must formally suspend them until they obtain legal work authorization.
Step 6: Prepare for CBSA Employer Compliance Audits
If CBSA receives a tip that you are employing unauthorized foreign nationals, they will conduct an unannounced audit. They will demand your payroll records, T4 slips, and copies of all employee work permits. Maintaining perfectly organized immigration files is your only defence against severe corporate sanctions. ⚔
| Immigration Situation | Can They Legally Work? | Employer Action Required |
|---|---|---|
| Applied for Extension Before Expiry | Yes (Maintained Status) | Keep on payroll; retain proof of the extension application. |
| Visa Expired, Awaiting PRRA Decision | No | Suspend employment immediately until a new permit is issued. |
| PRRA Approved, Granted Protected Status | Yes, with new permit | Rehire once they present their new protected person work permit. |
How Much Does it Cost in Canada?
Failing to verify immigration status can bankrupt a small business through aggressive federal fines. 💰
- CBSA Corporate Fines: Employing an unauthorized worker can result in Administrative Monetary Penalties (AMPs) of up to $100,000 CAD per violation under the Immigration and Refugee Protection Regulations (IRPR), depending on the severity and business size, with a cumulative annual cap of up to $1,000,000 CAD.
- Criminal Fines: Under IRPA section 125, a criminal conviction can lead to fines of up to $50,000 CAD (and up to two years of imprisonment) on indictment, or up to $10,000 CAD on summary conviction.
- Corporate Immigration Audit: Hiring a law firm to proactively audit your HR records and fix compliance issues typically costs $2,000 to $5,000 CAD.
- Loss of LMIA Privileges: Non-compliant employers can be banned from the Temporary Foreign Worker Program for 1 to 10 years, drastically affecting future hiring.
How Long Does the Process Take?
Understanding timelines helps businesses manage their workforce expectations during immigration crises. ⏱
- Maintained Status Duration: An employee on maintained status can legally work for the 3 to 6 months it typically takes IRCC to process the extension.
- PRRA Processing Time: A PRRA assessment is highly complex and usually takes 6 to 12 months, during which the employee generally cannot work for you.
- CBSA Audit Notice: If selected for a compliance audit, employers are usually given just 30 days to produce all requested documents.
Frequently Asked Questions (FAQ)
Can I pay an unauthorized worker as an independent contractor?
No. Attempting to bypass the rules by classifying an unauthorized worker as an independent contractor or paying them “under the table” in cash is highly illegal. CBSA looks at the reality of the working relationship, and this evasion tactic will heavily multiply your corporate fines.
What if they applied for Humanitarian and Compassionate (H&C) grounds?
Simply submitting an H&C application does not restore an expired visa or grant work authorization. Just like a PRRA, the employee must wait for specific stage approvals (like initial approval in principle) and apply for a separate open work permit before they can return to your payroll.
Can corporate directors go to jail for this?
Yes, in extreme scenarios. While most first-time offences result in heavy monetary fines, section 124(1) of IRPA makes it a criminal offence to knowingly employ unauthorized foreign nationals. Directors involved in deliberate exploitation or human smuggling can face federal prison sentences of up to 2 years.
Can the employee volunteer at the company while waiting?
No. Under Canadian immigration law, “work” is defined very broadly as any activity for which wages are paid, OR any activity that takes a job away from a Canadian citizen. Having a foreign national do unpaid work that a Canadian would normally be paid to do is considered unauthorized work.
Leave a Reply