valid status needed during PR application process?

[imsamazing]

My husband applied for his PR application under CEC last July 20, 2011. I arrived in Canada last Sept. 2011 with Open Work Permit. My husband decided to end his contract with his employer last Oct. 17. The HR of his employer inform us last 2nd week of december that his work permit was already cancelled by the employer. IS IT POSSIBLE THAT WORK PERMIT CAN BE CANCELLED BY THE EMPLOYER? we already filed a new LMO last first week of November 2011 with the new employer but until now we dont have any news about the LMO. if his work permit was cancelled last Nov. 2011 so we need to apply for a new work permit before 90 days, RIGHT?  but we need his LMO first before applying for a work permit... what is the best thing to do? PLEASE HELP!