Canada has changed an important rule for certain in-Canada work permit applicants under the Temporary Foreign Worker Program. Officers are now told to wait for an LMIA decision instead of refusing an application after a fixed holding period. The update may reduce unfair refusals for workers whose employers are still waiting on government processing.
Canada removes the fixed waiting limit for some LMIA-based work permit applications
Immigration, Refugees and Citizenship Canada (IRCC) has updated its guidance for officers handling certain in-Canada work permit files. The change affects foreign nationals applying under the Temporary Foreign Worker Program when their employer’s Labour Market Impact Assessment, or LMIA, has not yet been finalized.
Before this update, officers could hold a work permit application for only a limited period while waiting for the LMIA result. The previous instruction allowed a pause of up to 90 days. If the LMIA was still pending after that point, the work permit application could be refused, even when the delay was caused by government processing rather than by the worker or employer.
Now, that fixed deadline has been removed. In practical terms, officers are instructed not to decide the work permit application until the LMIA decision has been made. This is a meaningful policy shift for workers already in Canada who are trying to keep their status and continue working lawfully.
For many applicants, this change brings more fairness to the Canadian work permit process. It recognizes that LMIA processing times can move beyond an employer’s reasonable expectations, and applicants should not automatically lose their chance because of administrative delay.
Why this matters for workers and employers
LMIA-based applications are often time-sensitive. A worker may be close to the expiry date of an existing permit, while an employer still needs the LMIA decision to support a new permit or extension. When the government took too long, applicants were left in a stressful position. This update helps reduce that risk.
It may also give employers more confidence when planning staffing needs in sectors that rely on foreign talent. Businesses using the TFWP still need to meet the rules, but this change lowers the chance that a valid worker will be refused simply because another department has not completed its review in time.
How concurrent processing works in Canada
The updated instruction applies to what is commonly called concurrent processing. This allows an eligible worker inside Canada to submit a work permit application before the employer’s LMIA has been approved, as long as certain conditions are met.
Who may qualify
Concurrent processing is generally available when a worker’s current permit is about to expire and the employer already filed the LMIA with enough lead time that approval could reasonably have been expected before the permit expiry date. It is meant to address a narrow timing problem, not to bypass the LMIA requirement.
Workers in this situation should still make sure the application is complete and filed on time. If you are unsure whether your case belongs under an LMIA-based stream or another category, it can help to review broader LMIA-based work permit options and compare them with LMIA-exempt work permit pathways.
Maintained status remains very important
When a person in Canada applies to extend their work permit before the current permit expires, they may benefit from maintained status. This means they can usually remain in Canada and continue working under the same conditions as their existing permit while IRCC processes the new application.
That protection is often crucial. It helps workers keep earning income, remain compliant with immigration rules, and avoid disruption for their families. The latest IRCC update strengthens that protection in concurrent processing cases because it reduces the chance of refusal caused only by a pending LMIA.
For individuals thinking beyond temporary status, it is also wise to look at long-term planning. Some workers later move into permanent residence through programmes such as Express Entry immigration to Canada, a Provincial Nominee Program, or regional pathways. Building a strategy early can make a major difference.
What an LMIA does and why delays happen
An LMIA is issued by Employment and Social Development Canada (ESDC). In simple terms, it is an assessment of whether hiring a foreign national is likely to have a positive, neutral, or negative effect on the Canadian labour market. For many jobs under the TFWP, a positive or neutral LMIA is required before a new work permit can be issued.
The purpose of the LMIA
ESDC uses the LMIA process to confirm that an employer could not find an available Canadian citizen or permanent resident for the role, or that the hiring otherwise meets programme requirements. Employers must often show recruitment efforts, wage details, job conditions, and compliance with federal rules.
If you want to understand the framework in more detail, our guide to the Labour Market Impact Assessment in Canada explains how this part of the immigration to Canada process works.
Recent pressure on low-wage LMIA applications
This policy update comes at a time when LMIA processing is already under pressure in some parts of the country. Certain urban regions have faced restrictions on low-wage LMIA applications where unemployment is elevated. Areas such as Toronto, Vancouver, Montréal, Edmonton, Calgary, Ottawa-Gatineau, Halifax, Fredericton, and Regina have been affected by federal measures at different points.
There are also separate restrictions in parts of Quebec, including Montréal and Laval, tied to provincial concerns about low-wage temporary foreign worker intake. These measures do not remove the need for employers and workers to stay alert. Even though the 90-day waiting limit has been dropped, a work permit still cannot be approved without the required positive or neutral LMIA.
In other words, the new rule helps with timing, but it does not change the basic eligibility test.
What applicants should do now
Workers and employers should treat this update as helpful, but not as a reason to delay. The strongest cases are still the ones prepared carefully and filed early.
Practical steps for affected workers
- Check your current permit expiry date and do not wait until the last minute.
- Confirm that the employer has already submitted the LMIA application properly.
- Make sure the work permit application is complete and supported by the available LMIA filing evidence.
- Keep records showing that the employer filed with reasonable lead time.
- Monitor both IRCC and ESDC updates, especially if your job is in a region facing low-wage LMIA restrictions.
For many foreign nationals, temporary work is only one stage of a bigger plan. Skilled work experience gained in Canada can later support permanent residence through the Canadian Experience Class, other Express Entry streams, or provincial programmes. Some applicants may also need to think about language test results such as IELTS, CELPIP, TEF, or TCF, and educational credential assessments if they plan to transition to permanent residence.
Looking beyond temporary status
If your goal is to settle permanently, this is a good time to explore your Canadian immigration options. Depending on your occupation, location, language ability, and family situation, you may qualify under Express Entry, regional programmes, family sponsorship, or employer-supported pathways. A worker in Atlantic Canada, for example, may also wish to review the Atlantic Immigration Program as part of a long-term strategy.
Because immigration rules often overlap, many people benefit from a professional review before making decisions. A careful plan can help you avoid status gaps, missed deadlines, or choosing the wrong stream for your goals.
Immigration rules, LMIA policies, and IRCC processing instructions can change quickly, so readers should always verify the latest requirements directly with IRCC and ESDC or speak with a licensed immigration professional before acting. EverNorth Immigration is here to help with experienced, compassionate support at every stage of your journey toward a new life in Canada, and you can book your free immigration assessment to get a professional evaluation of your options.
