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I am a PGWP holder in Ontario, I have a permanent full time job at a Retail Store but my permit expires on September 1st. I won’t be able to extend my work permit so my employer will have to terminate my contract. Would I be eligible for severance pay?

If your contract of employment requires you to be legally able to work within Canada and you cannot, your employment may be frustrated and you would not be entitled to severance pay.
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