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Canada Extends Work Permit Grace Period for TFWP Applicants Waiting for LMIA Approval

Canada has extended the grace period for certain Temporary Foreign Worker Program (TFWP) applicants who submit their in-Canada work permit applications before receiving a positive Labour Market Impact Assessment (LMIA).

As of August 21, 2026, eligible applicants can now receive up to 90 days, instead of 60 days, to provide Immigration, Refugees and Citizenship Canada (IRCC) with proof of a positive or neutral LMIA.

The change could provide additional flexibility to foreign workers in Canada whose current work permits are approaching expiry while their employers are still waiting for an LMIA decision.

What Has Changed for TFWP Applicants?

Under Canada’s updated concurrent processing rules, eligible foreign workers may submit a TFWP work permit application while their employer’s LMIA application is still being processed.

Previously, applicants had a 60-day period to provide the required LMIA documentation after submitting their work permit application.

That period has now been increased to 90 days.

This additional 30 days can be particularly important because LMIA processing may take several months, depending on the type of application and circumstances.

Key Update at a Glance

  • Previous period: 60 days
  • New period: 90 days
  • Effective from: August 21, 2026
  • Program: Temporary Foreign Worker Program (TFWP)
  • Purpose: Give eligible in-Canada applicants more time to provide their LMIA result
  • LMIA result required: Positive or neutral

What Is Concurrent Processing?

Concurrent processing is a mechanism that can allow an eligible foreign worker already in Canada to apply for a TFWP work permit before the employer receives the final LMIA decision.

Normally, an employer must obtain the required LMIA before the foreign worker can submit a TFWP work permit application.

However, waiting for the LMIA first can create a difficult situation for workers whose existing permits are about to expire.

Concurrent processing helps address this timing issue by allowing the work permit application and LMIA process to move forward at the same time.

The work permit application is then held while the applicant waits for the employer’s LMIA decision.

Why Is the LMIA Important?

A Labour Market Impact Assessment (LMIA) is used to determine whether hiring a foreign worker is likely to have a positive, neutral or negative impact on Canada’s labour market.

For many positions under the TFWP, an employer needs a positive or neutral LMIA before a work permit can ultimately be issued.

The LMIA generally helps demonstrate that the employer was unable to find a suitable Canadian citizen or permanent resident for the position.

Therefore, submitting a work permit application without the required LMIA does not mean that the work permit will automatically be approved.

The applicant must still meet all applicable requirements and provide the required documentation within the permitted timeframe.

Who May Qualify for Concurrent Processing?

Not every TFWP applicant can use concurrent processing.

According to the updated instructions, the situation generally needs to meet specific conditions.

An applicant may qualify when:

  • Their current work permit is due to expire within two weeks or less.
  • Their employer has already submitted a complete LMIA application.
  • A decision on the LMIA application has not yet been made.
  • The LMIA application was submitted sufficiently early that a decision could reasonably have been expected before the worker’s permit expiry.

Meeting these conditions does not guarantee approval. Immigration officers will assess the application according to the applicable rules and documentation.

How Does the 90-Day Period Work?

When an eligible applicant submits a TFWP work permit application through concurrent processing, the immigration officer can place the application on hold.

The applicant then has up to 90 days to provide evidence of the employer’s positive or neutral LMIA.

Once the relevant period has passed, the application can proceed to a decision based on the documentation available.

This gives eligible foreign workers additional time to obtain the required LMIA evidence without having to wait for the LMIA decision before submitting their work permit application.

What Happens to Your Right to Work?

One of the biggest concerns for temporary foreign workers is what happens when their existing work permit expires while their new application is being processed.

Eligible workers who apply to extend their work authorization before their current permit expires may benefit from maintained status, provided they continue to meet the applicable requirements and remain in Canada.

Maintained status can allow an eligible applicant to continue working under the conditions of their previous work permit while IRCC processes the new application.

However, applicants should carefully review their individual circumstances because maintained status and work authorization depend on factors such as the type of permit, application timing and the conditions attached to the existing authorization.

Why This Change Matters

The extension from 60 to 90 days gives eligible applicants an additional month to provide their LMIA documentation.

This may be especially useful in situations where:

  1. A worker’s current work permit is close to expiry.
  2. The employer has already submitted the LMIA application.
  3. The LMIA decision is still pending.
  4. The worker needs to protect their ability to remain authorized to work while the new application is being processed.

The additional time does not remove the LMIA requirement. Instead, it provides more time for the required documentation to become available.

Important: The 90-Day Extension Is Not a Guarantee of Approval

Applicants should not assume that submitting a TFWP application through concurrent processing automatically gives them a new work permit.

The LMIA must still receive the required result, and the applicant must satisfy the relevant work permit requirements.

If the required LMIA evidence is not provided or the application does not meet the applicable requirements, the work permit application may be refused.

For this reason, applicants should ensure that their employer has properly submitted the LMIA application and that all information provided to IRCC is accurate and complete.

What Should Employers and Foreign Workers Do?

Foreign workers approaching the expiry of their current work permits should not wait until the last moment to assess their options.

Employers should also ensure that the LMIA application is complete and submitted with sufficient time for processing.

Before submitting a work permit application, applicants should consider:

  • The expiry date of their current work permit.
  • Whether their employer has submitted a complete LMIA application.
  • Whether they meet the requirements for concurrent processing.
  • Whether they can benefit from maintained status.
  • What documents must be submitted to IRCC.
  • The deadline for providing the LMIA result.

Because Canadian immigration rules can change, applicants should rely on the latest official instructions and seek professional advice where their circumstances are complex.

Canada Work Permit Opportunities in 2026

Canada continues to use different immigration and work permit pathways to address labour market needs.

For foreign workers already in Canada, changes such as the extension of the concurrent processing period can be significant because timing is often critical when an existing work permit is nearing expiry.

However, eligibility depends on the individual’s circumstances, employer, occupation, immigration status and the specific work permit pathway being used.

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