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LMIA 90-Day Waiting Limit Removed - What Changes for Work Permit Extensions?

Writer
SK
Date of issue
2026-10-29
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22

On October 28, 2026, Immigration, Refugees and Citizenship Canada (IRCC) announced an important update to its instructions for processing work permit extension applications from foreign workers.

IRCC removed the previous 90-day waiting limit for eligible work permit applications submitted while a Labour Market Impact Assessment (LMIA) is pending. Under the revised instructions, officers are to hold a decision until the LMIA decision is issued.

The change does not establish a new work permit program or relax LMIA approval requirements. It is significant, however, because it addresses the risk that workers already legally employed in Canada could be disadvantaged by delays in government LMIA processing.

After several years of policies focused on reducing temporary resident numbers and tightening rules for foreign workers, this administrative adjustment is worth examining.

■ Can you extend a work permit before receiving an LMIA decision?

In many cases, Canadian employers seeking to hire foreign workers must obtain a Labour Market Impact Assessment (LMIA).

LMIAs are assessed by Service Canada, under Employment and Social Development Canada (ESDC), to evaluate the potential labour market impact of hiring a foreign worker. IRCC, by contrast, is responsible for deciding work permit applications and extensions.

Ordinarily, a worker applies for a work permit after an employer receives a positive LMIA. A different challenge arises when someone is already working in Canada and the existing permit is about to expire.

The employer has submitted a new LMIA application, but the government has not yet made a decision.

This is the situation addressed by Concurrent Processing.

Under this process, an eligible in-Canada applicant may submit a work permit extension application before receiving the LMIA result. Where the requirements are satisfied, IRCC can defer a decision on the work permit while the LMIA is pending.

Concurrent Processing is not available to every applicant. The expiry date of the existing work permit and the timing of the employer's LMIA application are particularly important.

■ Why was the previous 90-day limit a problem?

On August 21, 2026, IRCC extended the waiting period applied to Concurrent Processing from 60 to 90 days.

At first, the extra 30 days appeared beneficial. However, one fundamental question remained: What happens when the government's LMIA assessment takes longer than 90 days?

Under the earlier instructions, a decision on an eligible work permit application was held for up to 90 days after receipt. If the LMIA had still not been issued, the work permit application could be assessed and potentially refused before the employer received an LMIA decision.

An employer or worker cannot directly control government processing delays. Even after following the necessary steps, they faced uncertainty over the work permit extension.

A refusal could affect not only the worker's ability to continue working but also the employer's staffing and operations.

■ Average LMIA processing times already exceeded 90 calendar days

ESDC's published processing figures illustrate why the previous time limit could create difficulties.

The average LMIA processing times reported for September 2026 were:

LMIA streamAverage processing time
High-Wage Stream98 business days
Low-Wage Stream82 business days
Permanent Resident Stream79 business days

※ Source: ESDC, average LMIA processing times for September 2026.

These figures are measured in business days rather than calendar days.

Excluding weekends and statutory holidays, 98 business days is approximately four and a half months, while 82 business days approaches four months.

The date an employer files an LMIA and the date a worker applies to extend a work permit are not necessarily the same, so the two periods cannot be compared directly. Still, the long average LMIA processing times meant that a fixed waiting limit could create a practical burden for some applicants.

Employers also need to complete recruitment advertising and prepare documentation before submitting an LMIA. That preparation time is not included in ESDC's reported LMIA processing period.

As a result, even employers who planned ahead could not eliminate the risks created by government processing delays.

■ What changed on October 28, 2026?

Under its updated processing instructions, IRCC stated that officers should hold a decision on a work permit application that qualifies for Concurrent Processing until an LMIA decision has been made.

The fixed 90-day waiting limit was removed.

Consider an employer that submitted an LMIA well in advance, but whose application takes five months or longer to process. Under the former 90-day approach, the worker risked a work permit refusal before the LMIA decision arrived.

Under the revised instructions, if the work permit application meets the Concurrent Processing requirements, IRCC is to hold the final work permit decision until the LMIA outcome is available.

The key change is a reduced risk of an otherwise eligible work permit extension being refused solely because the LMIA assessment has taken longer than expected.

It does not guarantee a positive LMIA or work permit decision. A negative LMIA or failure to meet other work permit requirements can still result in refusal.

■ Who qualifies for Concurrent Processing?

The eligibility requirements for Concurrent Processing remain in place. IRCC's published guidance identifies the following key conditions:

1. The existing work permit must be due to expire within two weeks.

2. The employer must already have submitted a complete LMIA application.

3. The LMIA should have been submitted sufficiently early, taking estimated government processing times into account.

4. The LMIA decision must still be pending when the work permit extension application is submitted.

Submitting an LMIA immediately before a worker's permit expires does not automatically make the work permit extension eligible for Concurrent Processing.

IRCC may assess such cases on an exceptional basis, which makes the employer's LMIA submission date especially relevant.

The applicant should provide the required documents, including a valid job offer and evidence that the LMIA was submitted. IRCC also instructs applicants to enter the code CPTS2026 in the Job Title field of the IMM 5710 application to identify requests under this process.

The code is an administrative identifier; using it does not itself establish eligibility or guarantee approval. Once an LMIA decision is issued, the applicant must submit the relevant information through the IRCC web form.

■ Can you keep working under maintained status?

One important consideration is how these changes interact with maintained status.

A person who submits a valid extension application before their existing work permit expires may, if the applicable conditions are satisfied, remain in Canada legally while IRCC processes the application.

They may also be permitted to continue working under the conditions of the existing work permit until a decision is made.

For example, someone holding an employer-specific work permit generally must continue to respect the existing restrictions concerning the employer, occupation and location of work.

Submitting an LMIA application alone does not automatically create maintained status.

An eligible extension application must be submitted before the current permit expires. To continue working under the existing authorization, the worker must also remain in Canada and comply with the applicable permit conditions. A refusal of the extension application can end the work authorization that was being maintained.

The revised guidance should therefore not be interpreted as permission for every foreign worker to continue working indefinitely while an LMIA remains pending.

■ Does this signal a broader shift away from restrictions?

In recent years, Canada has introduced several measures to manage temporary resident numbers, including employer caps under foreign worker programs, higher wage thresholds and restrictions on LMIA processing in certain regions.

These policies have stated objectives relating to labour market protection and the management of temporary resident numbers. However, managing new arrivals and maintaining stability for workers already lawfully employed in Canada are distinct issues.

When administrative delays disrupt an established employment relationship, both workers and employers may face costs. Recruiting and training a replacement takes time, and staffing disruptions can particularly affect businesses already experiencing labour shortages.

From this perspective, the new instructions can be understood as an administrative adjustment that recognizes practical labour market conditions rather than simply adding further restrictions.

Nevertheless, a single processing change does not establish that Canada's overall immigration policy has shifted toward broader liberalization. LMIA eligibility rules, hiring restrictions and temporary resident management objectives remain in place.

It is more accurate to regard the October 28 announcement as a targeted improvement to a procedure that could produce unintended difficulties.

■ Practical implications for workers and employers

1) Less uncertainty caused by government processing delays

Eligible applicants face a reduced risk that a work permit decision will be made before an LMIA result becomes available solely because the earlier 90-day waiting period has expired. This is particularly important for workers whose permits are close to expiry.

2) Early employer preparation remains essential

Removing the 90-day limit does not mean employers can submit an LMIA at the last minute. IRCC still examines whether the application was submitted sufficiently in advance. Employers should plan around permit expiry dates and published LMIA processing times.

3) Maintained status and Concurrent Processing require separate assessments

Qualifying for Concurrent Processing and retaining the right to work after a permit expires are separate questions. Workers considering changing employers, changing occupations or travelling outside Canada should review how those decisions affect their authorization.

4) Final LMIA and work permit requirements remain unchanged

This update concerns how long IRCC waits for an LMIA decision. It does not relax the substantive requirements for LMIA approval or work permit eligibility. Applications must still accurately reflect genuine employment arrangements and include the necessary documentation.

■ Looking ahead: Reasonable administration matters as much as regulation

Canada has grown through immigration and will continue to adjust immigration levels according to economic conditions and labour market needs.

However, the effectiveness of immigration policy cannot be measured solely by the number of restrictions introduced. Workers and employers who follow the required procedures also need a reasonable degree of stability and predictability.

Removing the LMIA 90-day waiting limit is better understood as addressing a mismatch between an administrative deadline and actual government processing times, rather than creating a new benefit.

For foreign workers who are already legally employed and contributing to Canadian workplaces and communities, the greater potential for employment continuity is a meaningful improvement.

It will be important to watch how the government balances temporary resident management objectives with practical labour market needs.

We hope this update contributes to a more predictable and practical administrative process for both workers and employers.

SK Solutions assists with reviewing eligibility and procedures relating to Canadian work permit extensions, LMIA applications and maintained status, taking each client's individual circumstances into account.

If your work permit is approaching expiry or your employer is awaiting an LMIA result, it is advisable to review your options and required documentation well in advance.

※ This article provides general information based on IRCC's October 28, 2026 processing update and related government materials. It does not replace immigration advice tailored to individual circumstances.


Sources: Immigration, Refugees and Citizenship Canada (IRCC) / Employment and Social Development Canada (ESDC)

・IRCC - Program delivery update: Labour Market Impact Assessment Review – Temporary Foreign Worker Program (October 28, 2026)

・IRCC - Labour Market Impact Assessment Review – Temporary Foreign Worker Program

・IRCC - Extend or change the conditions on your work permit

・ESDC - Labour Market Impact Assessment application processing times (September 2026 data)