How does job loss impact your residence permit?
You have a visa and a work permit which allow you to reside in the host country legally and to have professional activity there. But in case you lose your job in that country, does it mean you automatically lose your rights as per your documents?
The short answer is no. The right to remain in that country depends on many factors. First, what document did you use for immigration? You will recall that the visa facilitates entry into the country. The work permit allows you to work, and the residence permit to reside in the country. Note that some visas double as residence permits. In any case, the provisions of your legal documents will guide you through the process. You should immediately contact the immigration services where you live, bringing all the documents pertinent to your situation.
The case of France
In France, for example, the holders of a residence permit intended for “private and family life” who lose their job won't be bothered by the authorities. They can renew their residence permit and continue to reside in the country. Indeed, the residence permit entitled “private and family life” means you have family ties in France. This residence permit allows you to work without the employer having to ask for a work permit. This is because work is not the primary reason for your presence in France: you are there to live with your family.
On the contrary, if you have a residence permit entitled “employee” or “temporary worker”, your main reason for coming to France is to seek employment. To renew your residence permit, you will have to be employed. French law protects you if you involuntarily lose your job (in case the company goes bankrupt or you are terminated for economic reasons). In these cases, your residence permit can be renewed. But if your job loss is voluntary (you resigned or terminated your contract) and you are still unemployed at the time your residence permit is to be renewed, you run the double risk of not having it renewed and having to leave the French territory at the earliest. To avoid this, you can opt for a change of status depending on your situation.
The case of the United States
In 2022, the huge wave of redundancies that hit the Tech industry impacted thousands of expats worldwide. The United States was particularly struck, with international workers making up 20 to 30% of the sector. For these expats, who possess the H-1B work permit, a job loss compromises their right to reside in the US. Many have expressed their concerns while redundancies are still ongoing.
In the United States, job loss does not automatically mean you have to leave the American territory. Non-immigrant workers can stay an additional 60 days in the country. This grace period concerns those with the H-1B visa and those with the E-1, E-2, E-3, L-1, O-1, or TN visas.
During this period, you have several recourses at your disposal to avoid deportation. The first option is to go for a change of status. Like in the case of France, a change in status (if you are eligible) can allow you to stay in the country. During the time that your request for change in status is examined, you won't be considered as an illegal alien even if the 60 days' limit is over. Another option is to find a new employer. Holders of the H-1B visa can already start to work for a new employer as soon as the latter has submitted a request to that effect at the US Citizenship and Immigration Services (USCIS). The expat needs not to wait for the approval of that request to start working.
Getting a new job is more complex than that. The crash of the California-based Silicon Valley Bank (March 10, 2023) – a financial institution specialized in funding start-ups – illustrates the shortcomings of the whole sector. The expats concerned find the grace period authorized by the visas to be too short. It is quite difficult for them to jump into the legal arena to fight for their residence permit in such a short time (finding a lawyer specialized in immigration laws, looking for a new job, etc.). The psychological impact on expats is also to be reckoned with, but it is rarely acknowledged.
Job loss while abroad: what about dependents?
Generally, the members of your family who come and stay with you in your host country under the provisions of your visa are provided with a dependent visa. Holders of such visas are thus under your responsibility. A job loss will definitely impact them, and this can result in them being compelled to leave the country. In the United States, for instance, the grace period you are granted is also extended to your family members. But suppose the situation remains unchanged at the end of the 60 days period (no change in status and no new job). In that case, you and your family will be obligated to leave the American territory.
To apply for a dependent visa for your relatives, you need to show proof that you have the required financial resources to sustain them and cater to their needs during the whole period of their stay. A job loss would thus put the entire family in jeopardy. But here also, your situation doesn't automatically mean the end for the visas of your relatives. In some instances, it is possible to work or study with a dependent visa. In that case, the relative can compensate for the financial loss or even manage to secure a change in status to be the responsible party for the whole family. Each situation has its own merits, depending on the law of the country. You are advised to get all the necessary information from the associations specialized in protecting the rights of expats and also to talk to the immigration services of your area.
What about health insurance?
Whether you have secured a local contract or an expat package, you will be governed by the host country's laws. As a foreign employee, you are subject to the health insurance policies of the host country. In Canada, for example, the employer is under the obligation to help you by setting up health insurance coverage for you, as required by your province or territory. There are similar incentives in some other countries.
In Canada, healthcare is considered an essential service. Employment insurance, driven by the Federal government, offers protection in case of job loss. If you are a European Union (EU) citizen residing in another EU country, you can also claim social security aid under certain conditions. Spain, for instance, offers you sanitary assistance even if you no longer have a job. This help can be extended to your close ones. However, several conditions are attached: to be entitled to a regular social security benefit, to have spent all your unemployment benefits, or not to have any medical cover. But be careful about medical expenses. Depending on the country, it is possible that a job loss can help put in place urgent assistance, but at the same time, it does not cover the benefits you had when you were working.
Are you eligible for unemployment benefits?
In countries proposing unemployment benefits, your rights to get them will be respected. However, keep in mind that unemployment benefit is not a universal right as many States don't provide it. The global health crisis has highlighted the substantial disparities among the various economies. Countries that don't have an unemployment benefits policy are not necessarily among the poorest ones. For example, the United Arab Emirates (UAE) only launched its unemployment benefits scheme in 2022. In force since January 1, 2023, it is intended for locals and expats.
Unemployment benefits in case of job loss in a non-EU country
It will depend on the local context. For example, if the host country has put in place an unemployment benefits program open to all, you may be entitled to it depending on the criteria set by the local authorities.
In the UAE, for example, unemployment benefits have a 3-month period and can cover 60% of the last-known salary to the limit of 20,000 Emirati dirhams each month (around USD 5,450). You must subscribe to the Involuntary Loss of Employment Scheme (ILOE) to benefit from that scheme. However, registration should be done before June 30, under penalty of fines. You can also contribute to the ILOE as an employee (40 to 100 Emirati dirhams per year for the basic cover, which is between 11 and 27 USD).
Unemployment benefits for European expats residing in the EU
If you are a European national residing in another country of the EU, you can subscribe to the unemployment benefits of your host country. But here also, all depend on the rules set by the various member states.
Your unemployment benefits are released after a minimum period of employment. This period varies according to the country: a mere 3 months in Italy but 6 months in Sweden, Luxembourg, or the Netherlands, and at least 12 months in other member states. Calculating the time during which unemployment benefits are paid depends on the country. The amount to be paid is usually capped (except in Finland). Depending on the country in which you have submitted your claim, your age and family situation will be taken into consideration. In Spain or Belgium, for example, your unemployment benefits will fluctuate depending on the number of children under your care.
Job loss abroad: Should I leave or should I stay?
For some people, losing a job when you are an expat can be interpreted as a sign. You can decide to stay in your host country or move to another country. Whatever your decision, make sure you have all the desired information to be able to fight for your rights. The associations defending the rights of international workers are here to help you. If need be, do seek the help of a lawyer specialized in immigration matters. Do not lose time. Start looking elsewhere as soon as you sense things are going wrong in your company.
Useful links:
France: how to register with Pôle Emploi (finding work, unemployment benefits)
United States: options-for-nonimmigrant-workers-following-termination-of-employment
