IRCC Extends LMIA-Pending Work Permit Grace Period to 90 Days

IRCC Extends LMIA-Pending Work Permit Grace Period to 90 Days

Important Update for Temporary Foreign Workers and Canadian Employers – August 2026

Immigration, Refugees and Citizenship Canada (IRCC) has announced an important update affecting certain temporary foreign workers in Canada who need to extend their work permits while waiting for a Labour Market Impact Assessment (LMIA) decision.

Effective August 21, 2026, IRCC has extended the concurrent-processing period for eligible in-Canada work permit extension applications from 60 days to 90 days.

This change may provide additional protection and flexibility for temporary foreign workers whose work permits are approaching expiry while their employers are still waiting for Service Canada to make a decision on an LMIA application.

What Changed?

Normally, when a work permit requires an LMIA, a positive LMIA is a required document for the work permit application.

However, IRCC recognizes that LMIA processing can sometimes take longer than expected. In limited circumstances, an eligible foreign worker in Canada may submit a work permit extension application before the employer receives the final positive LMIA.

Under the updated policy, IRCC may now hold an eligible work permit application for up to 90 days from the date the application is received, allowing additional time for the applicant to provide the positive LMIA.

Previously, this period was 60 days.

This is particularly significant given the current LMIA processing environment, where some high-wage, low-wage and permanent-residence-stream LMIA applications may take several months to process.

Who May Benefit from the 90-Day Concurrent Processing Period?

The new 90-day period does not mean that every foreign worker can submit a work permit application without an approved LMIA.

According to IRCC’s updated instructions, concurrent processing may be available for an in-Canada work permit application under section R199 where the applicant can demonstrate that:

• Their current work permit will expire in two weeks or less;
• Their prospective employer has already submitted a complete LMIA application;
• The LMIA application was submitted with sufficient lead time for Service Canada to process it based on published processing times; and
• Service Canada has not yet made a decision on the LMIA application.

IRCC specifically cautions employers against submitting an LMIA immediately before the worker’s work permit application and simply expecting concurrent processing to be granted. These situations may only be considered on an exceptional basis.

A Pending LMIA Does Not Mean Automatic Work Permit Approval

This distinction is extremely important.

The 90-day policy does not remove the LMIA requirement.

IRCC’s instructions confirm that an LMIA is normally a mandatory document for an LMIA-based work permit application. The concurrent-processing procedure simply creates a limited exception that allows certain eligible applicants to submit their extension application while the LMIA decision is still pending.

IRCC may hold the work permit application for 90 days before making its final determination.

The applicant must therefore provide the positive LMIA once it becomes available.

If the LMIA is refused, or if the required positive LMIA is not provided within the applicable period, the work permit application may also be at risk of refusal.

Why This Change Matters

The timing of this change is particularly important for temporary foreign workers and employers.

According to Service Canada’s published processing times for July 2026, average LMIA processing times were:

• High-Wage Stream: 88 business days
• Low-Wage Stream: 73 business days
• Permanent Resident Stream: 86 business days
• Global Talent Stream: 10 business days

These are average processing times and can change from month to month.

For workers whose current work permits are approaching expiry, waiting for the LMIA decision before taking action on their immigration status may therefore create significant risk.

The extension from 60 to 90 days gives eligible applicants additional time, but careful planning remains essential.

Maintaining Legal Status in Canada

Timing is especially important when a foreign worker’s current work permit is approaching expiry.

Generally, a worker who submits an eligible work permit extension application before their current work permit expires may remain legally in Canada while IRCC processes the application.

Depending on the circumstances and the type of application submitted, the worker may also be authorized to continue working under the conditions permitted by Canadian immigration law while awaiting a decision.

However, maintained status and authorization to work should never be assumed simply because an application has been submitted. The worker’s existing permit, application type, timing of submission and employment circumstances should all be reviewed carefully.

Employers Should Start the LMIA Process Early

IRCC’s updated instructions make advance planning even more important.

Employers should not wait until the employee’s work permit is about to expire before starting the LMIA process.

Service Canada advises employers to consider current processing times and allows an LMIA application to be submitted up to six months before the expected job start date, depending on the applicable program requirements.

Starting early can reduce the risk that a foreign worker reaches the expiry of their work permit without an LMIA decision.

New IRCC Process for Identifying Concurrent Processing Applications

IRCC has also introduced a new process to help identify work permit applications that require concurrent LMIA processing.

IRCC’s operational instructions indicate that applicants requiring concurrent processing are encouraged to follow the applicable application instructions so that the tracking code CPTS2026 appears in the intended occupation field.

IRCC states that this code is used for tracking purposes and that an officer’s decision should not be affected solely by whether the code appears.

Because this is a newly implemented process, applicants should make sure that they are following the most current IRCC instructions when preparing their application.

Is Your Work Permit Expiring While Your LMIA Is Still Pending?

If your work permit is approaching expiry and your employer has already submitted an LMIA application, it is important to review your options before your current status expires.

Depending on your circumstances, you may have options to protect your temporary resident status and, where legally permitted, your authorization to continue working while your application is being processed.

However, concurrent processing is not automatic, and submitting the wrong type of application—or submitting an LMIA too late—can have serious consequences for your immigration status and ability to work in Canada.

Atlantic Summit Immigration Consulting Can Help

At Atlantic Summit Immigration Consulting Inc., we assist both Canadian employers and temporary foreign workers with:

• LMIA applications
• LMIA-based work permit applications and extensions
• Maintained status assessments
• Employer-specific work permits
• LMIA-exempt work permit options
• Atlantic Immigration Program (AIP)
• Provincial Nominee Programs (PNP)
• Express Entry and permanent residence strategies

If your work permit is expiring and your LMIA is still pending, contact Atlantic Summit Immigration Consulting as early as possible. We can review the timing of your LMIA and work permit applications and determine the appropriate immigration strategy based on your individual circumstances.

Don’t wait until your work permit expires. Early planning can make a significant difference.