Hi,
This is confusing.
CIC states that "if you send your OWP and you continue working for the employer mentioned on your current work permit while the application is being processed then you do not have to extend your work permit, even if it expires during the processing of your application for permanent residence."
http://www.cic.gc.ca/english/information/applications/guides/5290EA.asp
Based on your readings, is the person under live-in caregiver program? Do all programs the same under this scenario? Sorry, but I am not familiar with other program's guidelines.