Canada Ends 90-Day LMIA Wait Limit for Work Permits

Canada has removed a major processing deadline for certain foreign workers waiting for their employers' Labour Market Impact Assessment (LMIA) decisions. The change aims to prevent eligible work permit applications from being decided before the government completes the required employment assessment.

On October 28, 2026, Immigration, Refugees and Citizenship Canada (IRCC) updated its instructions for immigration officers handling applications under the Temporary Foreign Worker Program (TFWP).

Under the revised policy, officers must wait for an LMIA decision before making a final decision on eligible work permit applications submitted through concurrent processing.

Canada Removes Previous 90-Day Limit

Previously, IRCC allowed officers to hold qualifying work permit applications for a maximum of 90 days while employers awaited LMIA decisions.

The government had increased this waiting period from 60 to 90 days on August 21, 2026.

The latest update removes that fixed deadline entirely. Eligible applications will remain pending until Employment and Social Development Canada (ESDC) completes the employer's assessment.

This change offers greater protection against processing delays, although it does not guarantee work permit approval.

Who Qualifies Under the Updated Rules?

The revised instructions apply to certain foreign workers already living in Canada who need to extend their work permits.

To qualify for concurrent processing, applicants must hold an existing work permit that expires within two weeks.

Their employer must also have submitted a complete LMIA application sufficiently early for ESDC to have reasonably processed it before the worker's permit expired.

Employers who submit LMIA applications immediately before workers request extensions cannot automatically expect concurrent processing. IRCC assesses those situations individually.

Workers May Continue Employment Under Maintained Status

Foreign workers who apply to extend their permits before their existing authorization expires may qualify for maintained status.

This allows eligible applicants to remain in Canada and continue working under their existing permit conditions while IRCC processes their extension applications.

The removal of the waiting deadline may help workers avoid interruptions caused solely by outstanding LMIA decisions.

However, applicants must continue meeting all applicable immigration conditions.

Positive LMIA Still Required

The policy change does not remove the LMIA requirement.

Employers must still obtain a positive or neutral assessment before workers can receive LMIA-based permits.

ESDC uses this assessment to determine whether hiring a foreign worker would negatively affect Canada's labour market, including employment opportunities for Canadian citizens and permanent residents.

IRCC will make its final work permit decision after receiving the assessment.

LMIA Restrictions Remain in Major Canadian Cities

Separate restrictions continue affecting employers in several Canadian urban areas.

Between October 9, 2026, and January 7, 2027, employers in 30 urban areas face restrictions on certain low-wage LMIA applications.

Affected locations include Toronto, Vancouver, Montreal, Calgary, Edmonton, Ottawa-Gatineau, Halifax, Fredericton and Regina.

The restrictions generally target regions where unemployment reaches at least six per cent and apply to non-exempt positions paying below 120 per cent of the provincial or territorial median wage.

Montreal and Laval also remain subject to additional restrictions introduced through Quebec-specific measures.

The federal government reviews affected regions quarterly.

Although Canada has removed the concurrent-processing deadline, employers and foreign workers must still follow all existing LMIA eligibility requirements.