Laid Off on an H-1B Visa? Your 60-Day Options (and the Canadian One)

What the 60-Day Grace Period Actually Is

The H-1B grace period gives you up to 60 calendar days of authorized stay in the U.S. after your last day of active work, so you’re not required to leave the country the same day you’re laid off. A few things worth knowing about how it actually works:

• It’s discretionary, not automatic. USCIS can decline to grant it in unusual cases, but in practice it’s granted almost universally.
• It’s calendar days, not business days. Weekends and holidays count toward the 60.
• You can only use it once per authorized stay. If you already used a grace period earlier in this H-1B period, a second one may not be available.
• You cannot work during the grace period itself, unless a new employer has already filed an H-1B petition on your behalf that qualifies for portability.

The same 60-day rule applies to H-1B, H-1B1, E, L-1, O-1, and TN status holders, not just H-1B.

When the Clock Actually Starts

This is the part most people get wrong. The 60 days start the day after your last day of active employment, not the day your severance pay or continued benefits run out.

If your last day of work is March 15, your grace period runs through May 14, even if your employer keeps paying you through May. Severance, PTO payout, and continued health coverage don’t extend the clock. Get your last day of active employment in writing, that document is what establishes when your 60 days actually began.

Your Four U.S. Options

Most people qualify for more than one of these. Which one makes sense depends on your timeline and your goals.

An H-1B transfer isn’t really a “transfer” in the literal sense, there’s no handoff between employers. It’s a brand new petition that uses your existing H-1B status, and it doesn’t require your previous employer’s permission or involvement.

What Your Employer Owes You

Under federal regulation, an employer can’t simply end your job and walk away. To legally close out your H-1B in a way that stops their wage obligations, they need to complete what’s called a bona fide termination, which generally means:

• Return transportation. Under 8 CFR § 214.2(h)(4)(iii)(E), if you’re terminated before your petition’s expiration date, your employer is responsible for the reasonable cost of a one-way, economy-class ticket to your last country of foreign residence. This doesn’t extend to dependents or belongings, and it doesn’t apply if you choose to stay and pursue a transfer instead.
• Full wages through your last day. U.S. Department of Labor rules prohibit “benching,” placing you on unpaid status due to lack of work. You’re owed your full required wage up to your actual last day of active work.
• Written notice. A formal separation letter stating your exact last day, which is also what establishes when your grace period starts.
• Notice to USCIS. Your employer needs to notify USCIS to withdraw your H-1B petition and cancel the associated Labour Condition Application. If they delay this, some case law has found the employer remains liable for your wages until they actually notify the government.

This is general information about U.S. federal rules, not legal advice, and enforcing these rights is a matter for a U.S. employment or immigration attorney, not something within an RCIC’s scope. Where Canada By Choice can help directly is the piece below: making sure your Canadian options are moving at the same time.

The Canadian Option: A Track That Isn’t Tied to the 60-Day Clock

Everything above depends on one thing happening inside a 60-day window: finding a new sponsor, getting a status change approved, or making a self-petition work. The Canadian route is different because it isn’t gated by any single employer’s decision on any particular deadline.

To be direct about what this can and can’t do for you: you cannot complete a full Canadian permanent residence application in 60 days. What you can do is start it now, so it’s progressing whether your U.S. situation resolves in week 2 or week 8, and in some cases get a faster, temporary landing spot in Canada sooner than that.

Federal Skilled Worker Program (Express Entry)

If you’ve been working in the U.S. on an H-1B with no Canadian work experience, the Federal Skilled Worker Program through Express Entry is the direct route. It accepts your U.S. work experience and education directly, no Canadian work history required, and no employer sponsor needed to apply.

Practical details:

• Your profile is scored under the Comprehensive Ranking System (CRS): age, education, language ability, and work experience.
• Express Entry draws happen roughly every two weeks.
• An Invitation to Apply (ITA) gives you 60 days to submit your full application, and profiles without an ITA expire after 12 months.
• Government fees: $1,525 CAD for a single applicant, $3,050 CAD for a couple, $260 CAD per dependent child.
• Budget for an Educational Credential Assessment (~$200), a language test (~$300), biometrics ($85 to $170), a medical exam ($100 to $500), and police clearances (~$250 per person).
• FSW applicants also need to show settlement funds, from $15,263 CAD for one person up to $40,392 CAD for a family of seven.

The point isn’t that this solves your 60-day problem by itself, it’s a multi-month process. The point is that starting it this week means it’s already moving by the time you know how your U.S. situation shakes out.

A Canadian Work Permit Can Move Faster Than a New H-1B Search

If you need a legal landing spot sooner than Express Entry can deliver one, a Canadian work permit is often the faster route, particularly an Intra-Company Transfer if your current or former employer has Canadian operations, or a Global Talent Stream permit if a Canadian employer wants to bring you on quickly. Work a year in Canada under one of these, and Canadian Experience Class opens up as a route to permanent residence that wasn’t available to you straight out of the U.S.

This path is worth exploring in the same week as your U.S. options, not after they’ve run out, since it depends on timelines you can start working on immediately.

If You Already Have a Green Card Case in Progress

If you have an approved or pending I-140, or a pending I-485, your U.S. green card progress and a Canadian application aren’t in conflict. Starting an Express Entry profile doesn’t affect your U.S. case, and a Canadian permanent residence application doesn’t require you to abandon a U.S. one. Some people use the Canadian route as their primary plan; others use it as insurance while their U.S. case works through backlogs. Either way, it’s a decision worth making with full information rather than by default.

A Provincial Nominee Program nomination adds 600 points to your CRS score, close to a guaranteed invitation, and is worth checking if you have any provincial connection: family, a past job offer, or a program aligned with your occupation.

What Happens to Your H-4 Spouse and Kids

Dependents on H-4 status get the same 60-day grace period tied to your status. If your spouse has an H-4 EAD, it stays valid through its printed expiration date, but becomes invalid once your grace period ends without a resolution. If you’re building a Canadian plan, it’s worth including your spouse and children in that plan from the start, since a Canadian application is assessed as a family unit for settlement funds and, in many cases, admissibility.

Common Mistakes to Avoid

• Waiting past the first week or two to start anything. Sixty days sounds like a lot until you’ve spent three weeks on job applications alone. Start the Canadian track and your U.S. options at the same time.
• Assuming severance extends your status. It doesn’t. Your grace period runs from your last day of active work, not your last paycheck.
• Traveling internationally without a clear re-entry plan. Re-entering on an old H-1B stamp from an employer you no longer work for is risky. Get advice before you book anything.
• Treating the Canadian option as an emergency-only fallback. Express Entry takes months to build properly. Starting it only after your U.S. options fail wastes the time you didn’t need to lose.
• Accepting 1099 or contractor work without proper authorization. It counts as unauthorized work in the U.S. and can affect future filings on both sides of the border.