Canada Extends LMIA Grace Period for TFWP Work Permit Applications to 90 Days

Canada has extended the amount of time certain in-Canada work permit applicants have to submit proof of a positive or neutral Labour Market Impact Assessment (LMIA).

Under the updated rules, eligible applicants under the Temporary Foreign Worker Program (TFWP) can now receive up to 90 days, instead of the previous 60 days, to provide the required LMIA after submitting their work permit application.

The federal government introduced this change on August 21, 2026, by updating its instructions on concurrent processing for in-Canada work permit applications.

What Has Changed?

Previously, eligible foreign workers using concurrent processing were given up to 60 days to submit proof of their employer's positive or neutral LMIA.

This period has now been increased to 90 days, giving applicants an additional 30 days.

This change can be especially helpful for foreign workers whose current work permits are close to expiring while their employer is still waiting for a decision on an LMIA application.

What Is Concurrent Processing?

Normally, a foreign worker applying for an LMIA-based work permit under the TFWP must have a positive or neutral LMIA before submitting the work permit application.

Concurrent processing provides an exception for certain workers already in Canada.

If they meet the eligibility requirements, they may submit their work permit application while their employer's LMIA application is still being processed.

The applicant can then provide proof of the approved LMIA after submitting the work permit application.

With the latest change, eligible applicants now have up to 90 days to provide this proof.

Why Is This Extension Important?

LMIA applications can sometimes take several months to process.

Without concurrent processing, a foreign worker whose work permit is about to expire could face a difficult situation. They might be unable to apply for a work permit extension because their employer has not yet received an LMIA decision.

This could potentially result in the worker losing their authorization to work and having to stop working in Canada.

The extension from 60 to 90 days gives employers and foreign workers more time for the LMIA application to be finalized before a decision is made on the work permit application.

How Maintained Status Can Help Workers

Concurrent processing may also help eligible foreign workers benefit from maintained status, previously known as implied status.

When an eligible foreign national submits an in-Canada work permit application before their existing work permit expires, they may be allowed to continue working under the same conditions while Immigration, Refugees and Citizenship Canada (IRCC) processes the new application.

To benefit from maintained status, the applicant must continue to meet the applicable requirements and generally remain in Canada.

This can help reduce interruptions in employment while the new work permit application is under review.

Who Can Qualify for Concurrent Processing?

According to the updated IRCC instructions, a situation may qualify for concurrent processing when:

• The foreign worker's current work permit will expire within two weeks or less.
• The employer has already submitted a complete LMIA application.
• A decision has not yet been made on the LMIA application.
• The employer submitted the LMIA application early enough that a decision could reasonably have been expected before the worker's work permit expiry.
  
  

Meeting these conditions does not automatically guarantee approval of the work permit. The LMIA and work permit applications must still satisfy all applicable requirements.

What Happens After the Work Permit Application Is Submitted?

When an eligible TFWP work permit application is submitted under concurrent processing, the officer may place the work permit application on hold while waiting for the LMIA result.

The applicant now has up to 90 days to update the application with proof of a positive or neutral LMIA.

After the 90-day period, the officer can return to the work permit application and make a decision based on the information available.

A positive or neutral LMIA is generally required before an LMIA-based work permit can be approved under the Temporary Foreign Worker Program.

What Is an LMIA?

A Labour Market Impact Assessment is a document issued by Employment and Social Development Canada (ESDC).

In most cases, an employer seeking to hire a foreign worker under the TFWP must first obtain a positive or neutral LMIA.

The assessment considers whether hiring a foreign worker is expected to have a positive or neutral impact on Canada's labour market, including whether qualified Canadian citizens or permanent residents are available for the position.

What This Means for Temporary Foreign Workers

The new 90-day period provides additional flexibility to certain temporary foreign workers who are already in Canada and whose employers are waiting for LMIA decisions.

For workers approaching the expiry date of their current work permit, the extra 30 days may provide more time for the LMIA process to be completed and reduce the risk of an interruption in their authorization to work.

However, concurrent processing is available only in specific circumstances. Foreign workers and employers should carefully review the eligibility requirements and submit applications within the required timelines.

Key Takeaway

Effective August 21, 2026, Canada increased the concurrent processing period for eligible in-Canada TFWP work permit applications from 60 days to 90 days.

The change allows qualifying foreign workers to submit a work permit application while their employer's LMIA is still pending and gives them more time to provide proof of a positive or neutral LMIA.

For temporary foreign workers whose work permits are close to expiring, this extension may provide important additional time to maintain legal authorization to work in Canada while waiting for the LMIA process to be completed.