International graduates are employed across a wide range of industries in Canada. One of the key temporary work permit categories that enables international graduates to work in Canada is the Post-Graduation Work Permit (PGWP). Understanding how the PGWP works and the potential pathways to permanent residence that may be available to international graduates can help businesses make informed hiring decisions and develop appropriate employee retention strategies. While many international graduates hope to obtain permanent residence, eligibility depends on a range of factors, including the immigration program requirements in effect at the time of application.
What Is a Post-Graduation Work Permit (PGWP)?
The PGWP is an open work permit available to eligible graduates of certain Canadian designated learning institutions (DLIs). Unlike employer-specific work permits, a PGWP generally allows graduates to work for any employer in Canada.
To qualify, graduates generally must:
- Complete an eligible program at a qualifying DLI;
- Complete a program that is at least eight months in duration (or 900 hours for certain Quebec programs);
- Maintain full-time student status throughout their studies, subject to limited exceptions;
- Apply for a PGWP within 180 days of receiving confirmation that they have completed their program; and
- Have held a valid study permit at some point during the 180-day period following completion of their program of study.
For employers, one of the key features of the PGWP is that it is an open work permit. This means that employers can typically hire PGWP holders without obtaining a Labour Market Impact Assessment (LMIA) or submitting an offer of employment through the Employer Portal in support of a work permit application.
Recent Changes to PGWP Eligibility
In recent years, Immigration, Refugees and Citizenship Canada (IRCC) has introduced changes to PGWP eligibility requirements. Depending on an applicant’s level of study and the date on which they applied for their study permit, PGWP applicants may be required to provide proof of language proficiency meeting specified minimum thresholds. In addition, certain graduates of non-degree programs may be subject to field-of-study requirements.
As a result, eligibility for a PGWP may depend on factors beyond simply graduating from a Canadian educational institution. Because eligibility requirements continue to evolve, both employers and graduates should review the current program requirements before making employment or immigration-related decisions.
How Long Is a PGWP Valid?
The duration of a PGWP depends largely on the length and type of the graduate’s study program.
Generally:
- Graduates of programs that are at least eight months but less than two years in length may receive a PGWP valid for up to the same length as their program.
- Graduates of programs that are two years or longer may receive a PGWP valid for up to three years.
- Eligible master’s degree graduates may qualify for a three-year PGWP even if their master’s program was shorter than two years, provided the program meets applicable eligibility requirements.
The length of a PGWP may also be affected by the validity period of the applicant’s passport.
Employers should note that a PGWP is issued for a fixed period and is generally not renewable once the holder has received the full period of eligibility. Workforce planning considerations may therefore arise as an employee’s PGWP approaches expiry.
Employer Considerations When Hiring PGWP Holders
Employers hiring individuals with PGWPs should be aware of the work authorization associated with this permit category, as well as the potential immigration considerations that may arise during the employment relationship.
Work Authorization
Because the PGWP is an open work permit, holders are generally authorized to work for employers across Canada without requiring employer-specific work authorization. As a result, employers can typically hire PGWP holders without obtaining a Labour Market Impact Assessment (LMIA) or submitting an offer of employment through the Employer Portal in support of a work permit application. However, PGWP holders are generally not tied to a specific employer and may change employers during the validity of their permit.
Employers should also be aware that some graduates may be authorized to work while their PGWP application is being processed. Whether a graduate may work during this period depends on their individual circumstances and whether they meet IRCC’s applicable requirements at the time of application. Employers should verify that the individual is authorized to work in Canada and maintain appropriate records of their work authorization.
Temporary Status
The PGWP is a temporary work permit with a fixed validity period. Employers should monitor permit expiry dates and discuss plans with employees well in advance of expiration, particularly where continued employment is anticipated. Depending on the circumstances, an employee may pursue permanent residence, obtain a different work permit, or lose authorization to work in Canada if no further status is secured.
Permanent Residence Considerations
Many international graduates hope to become permanent residents of Canada. Depending on the employee’s circumstances, Canadian work experience gained while holding a PGWP may be relevant to eligibility under certain federal or provincial economic immigration programs. However, eligibility requirements and selection criteria are subject to change, and meeting the requirements of a particular program does not guarantee an invitation to apply for permanent residence.
Common Permanent Residence Pathways for International Graduates
The PGWP allows international graduates to gain Canadian work experience following the completion of their studies. While there are numerous pathways to permanent residence that may be available depending on an individual’s circumstances, some of the most common pathways pursued by former international students include the Canadian Experience Class (CEC) and various Provincial Nominee Program (PNP) streams.
- Canadian Experience Class (CEC)
The Canadian Experience Class, administered through the Express Entry system, remains one of the most common pathways for PGWP holders.
Generally, applicants must obtain at least one year of qualifying skilled Canadian work experience within the previous three years and meet applicable language requirements. For CEC purposes, qualifying Canadian work experience is generally obtained in occupations classified under TEER 0, 1, 2, or 3 of Canada’s National Occupational Classification (NOC) system.
As Express Entry is a points-based system, meeting the minimum eligibility requirements for the CEC does not guarantee an invitation to apply for permanent residence. An applicant’s competitiveness may be influenced by factors such as age, language proficiency, education, Canadian and foreign work experience, and whether they qualify for a category-based selection draw.
- Provincial Nominee Programs (PNPs)
Many provinces operate immigration streams specifically designed for international graduates.
Depending on the province or territory, a graduate may qualify through:
- International graduate streams;
- Employer-supported immigration streams;
- Regional immigration programs; or
- Specialized pathways targeting labour shortages.
In some cases, a provincial nomination may provide additional opportunities for permanent residence through either a PNP stream or an Express Entry-aligned stream.
Other permanent residence pathways may also be available depending on an individual’s circumstances, including certain regional, community-based, or occupation-specific immigration programs.
In some circumstances, an employer may play a role in a worker’s immigration process by providing supporting documentation, supporting a provincial nominee program application, or supporting a future work permit application where applicable. These considerations may become particularly important where a graduate’s PGWP is approaching expiry and additional immigration options are being explored.
Practical Considerations for Employers
When hiring employees who hold PGWPs, employers may wish to:
- Verify work authorization and work permit expiry dates at the time of hiring;
- Monitor permit expiry dates and maintain up-to-date records of employee work authorization;
- Discuss future immigration plans with employees well in advance of permit expiry, where continued employment is anticipated;
- Ensure any employment-related documentation provided in support of immigration applications is accurate and consistent with the employee’s role and working conditions; and
- Seek legal advice regarding work permit options, permanent residence pathways, and compliance with immigration-related obligations where appropriate.
Planning may help employers prepare for potential changes to an employee’s immigration status and avoid disruptions to the employment relationship.
Final Thoughts
The PGWP remains an important work permit option for many international graduates seeking to gain Canadian work experience following the completion of their studies. For employers, understanding the rights and limitations associated with the PGWP, as well as the potential immigration pathways that may be available to employees, can assist with workforce planning and compliance.
If you have questions about PGWPs, hiring international graduates in Canada, or permanent residence options that may be available to employees, our team would be pleased to assist. Please contact us to discuss your circumstances.
