There are many ways to establish residency in Canada, both on a temporary and permanent basis. Work permits, which are temporary by nature, provide individuals with the opportunity to gain Canadian work experience. This experience can later support an application for permanent residency, as it is a key factor strongly considered by Immigration, Refugees and Citizenship Canada (“IRCC”).

There are several pathways to work in Canada. While some categories of work do not require a permit, most foreign nationals need one. The two most common avenues for applicants wishing to work in the country include applying for a “closed work permit” or an “open work permit”. Understanding the difference can shape one’s career, rights, and future legal status in Canada.

What is a Closed Work Permit?

A closed work permit, also called an employer-specific permit, allows an individual to enter Canada under the premise of working for one employer, doing one job. Most temporary foreign workers in Canada receive this type of work permit.

A closed work permit application requires specific details, including the employer’s name, the duration of the work contract, and the location where the work will take place.

To apply for a closed work permit, there must be a valid job offer, supported by an employment contract. The employee must include this contract in their application package, and it must clearly state the salary and job duties. The information in the contract must also match the details provided in the work permit application.

The Canadian employer must also provide a valid positive Labour Market Impact Assessment (“LMIA”) from Employment and Social Development Canada (“ESDC”) confirming that hiring the foreign worker will not negatively affect the Canadian labour market and is necessary to fill the role. This ensures that employers are compliant with labour and immigration laws when hiring foreign workers.

Not every job requires an LMIA. Certain job positions are exempt when they clearly benefit Canada as a whole, or when an international agreement or public policy applies. In this case, instead of providing an LMIA, employers provide a valid offer of employment number.

Overall, closed work permits offer job security and may help accelerate the path to permanent residency, but if the job is lost, legal status in Canada may be jeopardized.

What is an Open Work Permit?

An open work permit is more flexible. Individuals can work for any employer, in any position, and do not need a valid job offer or a positive LMIA prior to applying.

There are some restrictions on open work permits. Individuals cannot work for employers who have been found non-compliant with Canadian immigration laws, or in occupations considered to be part of the adult entertainment industry.

Who Can Apply for an Open Work Permit?

Open work permits are only available to certain individuals who meet specific eligibility criteria.

• Spouses or common-law partners of skilled foreign workers, full-time international students, or those being sponsored for permanent residence while living in Canada may be eligible to apply. Eligibility can depend on the skill level of the foreign worker’s job and program and institution where the international student is enrolled.
• International students and recent graduates may also apply for an open work permit. Graduates of eligible programs at designated learning institutions can apply for a Post-Graduation Work Permit (“PGWP”). The length of the work permit is based on the duration of the study program, which must be a minimum of 8 months. Depending on the study program, the work permit can last for a maximum of 3 years. Gaining Canadian work experience through the PGWP can open doors to permanent residency in Canada.
• Open work permits are also available to people who have already applied for permanent residency under certain programs. These are called Bridging Open Work Permits (“BOWP”), and they allow applicants to keep working in Canada while waiting for a decision on their permanent residency. To learn more, visit our detailed guide on the BOWP.
• Lastly, refugee claimants, protected persons, and individuals participating in special programs or specific humanitarian or public policy measures may be eligible to apply for an open work permit.

Open work permits are a good option for individuals who need flexibility, but they often take longer to process and can make the path to permanent residency more challenging.

Workers’ Rights and Protections

One important consideration for foreign workers on a closed work permit is the risk of unsafe or unfair working conditions in their jobs and the inability to leave the unsafe situation in fear of losing their legal status. To address this, Canada introduced the Open Work Permit for Vulnerable Workers program, which gives employees the ability to leave abusive workplaces without losing their legal status in Canada. Any temporary foreign worker who is being abused or is at risk of abuse in their current job, as well as refugee claimants and protected persons may apply for the program.

Employer Considerations

The choice between open and closed work permits matters just as much for employers as it does for workers. A closed work permit often requires the employer to obtain an LMIA, which can involve advertising, long processing times, and significant resource costs. However, it offers stability, as the employee is tied to the company. Open work permits, by contrast, involve less paperwork and lower costs, but employers face the risk that the worker may leave at any time.

Immigration lawyers help employers navigate regulatory requirements, complete the necessary paperwork accurately, and provide legal advice to support informed business decisions.

Conclusion

An open or closed work permit can create valuable opportunities, but the application process is complex and leaves no room for error. Even a small mistake can lead to months of delays or an outright refusal. An immigration lawyer will assess your situation, determine the most appropriate course of action, and ensure it is accurate, complete, and fully compliant with all requirements.

Have further questions? Contact an immigration lawyer.

Benjamin Grubner is a Toronto lawyer who joined the immigration law team at Devry Smith Frank LLP (DSF) in 2023. He specializes in Canadian and U.S. immigration matters and has knowledge in family reunification, family class sponsorships, permanent and temporary residence, and citizenship matters. Benjamin can be reached at benjamin.grubner@devrylaw.ca and/or 416-446-3328.

This blog was co-authored by articling student Mariem Naem.

“This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique, and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situations and needs.”