Canada Removes 90-Day Limit for LMIA Work Permit Applications

Canada has removed the 90-day waiting limit for certain work permit applications linked to pending Labour Market Impact Assessments (LMIAs), offering relief to foreign workers facing government processing delays.

Immigration, Refugees and Citizenship Canada (IRCC) announced the change through updated instructions on October 28, 2026. Immigration officers must now wait for an LMIA decision before making a final decision on eligible work permit applications under the Temporary Foreign Worker Program (TFWP).

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Previous 90-Day Rule Removed

Under the earlier policy, immigration officers could hold eligible work permit applications for a maximum of 90 days while waiting for an employer's LMIA decision.

IRCC had increased this period from 60 to 90 days on August 21, 2026, giving applicants additional time during processing delays.

The latest change removes that fixed waiting period entirely. Eligible applications can now remain pending until Employment and Social Development Canada (ESDC) completes its assessment.

The revised policy reduces the risk of applicants being refused simply because their employer's LMIA remains undecided.

Who Qualifies for Concurrent Processing?

The updated instructions apply to certain foreign workers already in Canada who need to renew their work permits.

IRCC allows these workers to apply while their employers are still awaiting LMIA decisions, provided they meet specific conditions.

Their existing work permit must expire within two weeks or less. Their employer must also have submitted a complete LMIA application sufficiently early for ESDC to reasonably expect to process it before the permit expires.

Employers cannot normally submit an LMIA application immediately before a worker requests an extension and expect automatic eligibility for concurrent processing.

What Happens to Workers' Status?

Foreign workers who submit eligible extension applications before their current permits expire may benefit from maintained status.

This generally allows them to remain in Canada and continue working under their existing permit conditions while IRCC processes their applications.

However, removing the waiting limit does not guarantee work permit approval.

Employers still need a positive or neutral LMIA, and applicants must satisfy the remaining immigration requirements.

ESDC issues these assessments after examining whether hiring a foreign worker would have a positive or neutral effect on Canada's labour market.

LMIA Restrictions Remain in Place

Despite the processing change, Canada continues to restrict certain LMIA applications in areas with higher unemployment.

From October 9, 2026, to January 7, 2027, restrictions affect eligible low-wage applications in 30 urban areas, including Toronto, Vancouver, Montreal, Calgary, Edmonton, Halifax, Ottawa-Gatineau, Fredericton and Regina.

The restrictions generally apply where unemployment reaches 6% or higher, although some occupations and sectors are exempt.

The government introduced this measure in September 2024 to address labour market conditions.

Montreal and Laval also face separate restrictions introduced at Quebec's request in September 2024 and extended in November 2025.

What Applicants Should Know

Workers and employers should continue monitoring LMIA applications and ensuring all required documents are submitted.

IRCC's revised instructions provide greater flexibility during processing delays, but the eligibility requirements and final approval process remain unchanged.