Canada has revised its immigration instructions to prevent eligible temporary foreign workers from having their work permit applications decided before their employers receive a Labour Market Impact Assessment (LMIA) decision, addressing a problem that could arise when government processing takes longer than expected.
The change was introduced by Immigration, Refugees and Citizenship Canada (IRCC) on October 28, 2026, and applies to applications submitted under the concurrent processing provisions of the Temporary Foreign Worker Program (TFWP).
Under the revised instructions, immigration officers are directed to wait for a decision on the employer’s pending LMIA before deciding the associated work permit application. Previously, officers were instructed to hold such applications for up to 90 days while waiting for the labour assessment.
The update is intended to reduce the risk of applications being refused simply because the employer’s LMIA has not been processed within the prescribed period.
Who Can Benefit From the Updated Canadian Work Permit Rules?
The change concerns workers already in Canada who are applying for a work permit under the TFWP while their employer’s LMIA application remains under review.
To qualify for concurrent processing, a worker’s existing permit must be due to expire within two weeks or less. The employer must also have submitted the LMIA application early enough that a decision could reasonably have been expected before the current permit expired.
These conditions mean the revised instructions do not automatically apply to every foreign worker applying for a Canadian work permit or extension.
IRCC increased the concurrent processing time limit from 60 days to 90 days on August 21, 2026. The October update changes how officers are instructed to handle applications when the employer’s LMIA decision remains outstanding.
What Happens When a Work Permit Expires?
Workers who submit an eligible extension application before their existing permit expires may benefit from maintained status, provided they meet the relevant requirements.
Maintained status generally allows eligible applicants to remain in Canada while IRCC processes their extension request. They may also continue working under the conditions of their previous permit until a decision is made.
However, maintained status does not give applicants unrestricted permission to work. The conditions attached to the existing permit continue to matter, and applicants should check their individual circumstances before changing jobs or employment conditions.
Applicants should also ensure that their extension application is submitted correctly and that they meet the requirements of the applicable immigration stream.
Why the Labour Market Impact Assessment Matters
A Labour Market Impact Assessment is issued by Employment and Social Development Canada (ESDC) and evaluates the potential effect of hiring a temporary foreign worker on Canada’s labour market.
For most jobs covered by the TFWP, employers need a positive or neutral LMIA before a foreign worker can receive a new work permit or extend an existing one through the program.
The assessment generally considers whether qualified Canadian citizens or permanent residents are available for the position and whether hiring a foreign worker is justified.
The LMIA decision and the work permit decision are separate stages. ESDC assesses the employer’s request, while IRCC reviews the worker’s application and determines whether the applicant meets the relevant immigration requirements.
The revised instructions address the timing of these decisions. They do not remove the LMIA requirement or guarantee that a work permit will be approved.
LMIA Restrictions Continue in Several Canadian Cities
The procedural change comes as Canada maintains restrictions on certain Labour Market Impact Assessment applications in areas with relatively high unemployment.
From October 9, 2026, to January 7, 2027, some applications for low-wage positions in census metropolitan areas with unemployment rates of at least 6% will not be processed. The restrictions generally apply when the offered wage falls below the applicable provincial or territorial threshold, subject to exemptions for specified occupations and sectors.
Affected areas include Toronto, Vancouver, Montreal, Edmonton, Calgary, Ottawa-Gatineau, Halifax, Fredericton and Regina, among other metropolitan regions.
The federal government introduced the broader restrictions in September 2024 as part of measures targeting low-wage hiring in areas where local labour market conditions may reduce the need for additional temporary foreign workers.
Workers and employers should therefore distinguish between the updated rules for pending work permit applications and the separate restrictions governing whether an employer’s LMIA application can be processed in the first place.
Applicants can consult the official IRCC work permit extension guidance, while employers can review the government’s LMIA processing information and rules on LMIA applications in restricted areas.
The practical effect of the October 28 update will depend on the applicant’s eligibility, the status of the employer’s LMIA and the outcome of the required immigration assessments.
