Sorry for the late reply. I have not been here for a while. The reasoning why you must be in Canada to apply for UI (if you are a Canadian whose temporary work permit in the US is no longer valid) is that you are supposed to be looking for work. If you are in the US, you cannot legally be loking for work, as you are not able to legally work in the US, even if you could easily get another visa.
As for the required layoff notice, that is only relevant to UI if they challenge your eligibility based on the reasons you are no longer working in that place.
My take on this is that rumours or innuendo about shutting down your project do not constitute a legal notice of layoff. Usually those notices have to be explicit and in writing. Even if there were good relations the last three years, they are strying to stiff you of some money now. Call the State Department of Labor and ask them about this. If it turns out that they owe you money, you can tell them that innuendo does not constitute a legal notice of layoff, that you want your money or you will be contacting the State Department of Labor to follow up on this.





