My friends husband got laid off today, he is on an LMO from july 2012 until july 2014,
An LMO is not an authorization to work in Canada. It is a required part of the application for a temporary work permit (TWP) for most temporary foreign workers, the TWP is what allows a foreign worker to live and work in Canada. I shall assume you mean that he has a 2 year LMO-approved TWP. If this assumption is wrong - if he never applied for or obtained a work permit - then he has been working without authorization.
they have an application in under the CEC and have their AOR. They are in a panic as to what his status is? The LMO work permit is tied to the company. Does he need to change to visitor before midnight or something? Will he still be able to apply for BOWP?
He is permitted to remain in Canada until the expiration date of on the work permit. He does not need to change to a visitor's permit. However, he cannot work for another employer until he receives a new work permit.
Yes, he can still apply for the BOWP, which is faster and more flexible than a TWP, because it does not require an LMO first, and it is "open," it is not tied to a specific employer.
So my friends husband has been told by his old company that they are "cancelling the LMO work permit."
No such thing. An (ex-)employer cannot cancel a work permit, it is issued by CIC to the individual permit holder, not a company. Only CIC can cancel a work permit. So no matter what the employer says, he can remain in Canada until the expiry of the work permit.
Where does this leave him in regards to applying for the BOWP?
It does not affect his eligiblity for the BOWP. I might be a little concerned, however, about the CEC application, because it may require employer verification.
Is there anyway the spouse can get a work permit from the LMO after it has been activated? If they went to the border could she gain one?
This is unclear. Technically, the ability of a spouse to obtain a spousal open work permit (SOWP) is tied to the TWP holder's employment. If he cannot provide current proof of employment, then the spouse is unlikely to be able to obtain the SOWP. Some have nonetheless succeeded.
A better option is to appy for the SOWP at the same time that the principal applicant applies for the BOWP. The two applications can be submitted together.
