Work permit applicants in Canada will no longer face a fixed waiting limit when the government has not yet decided on their employer’s Labour Market Impact Assessment (LMIA).
On October 28, 2026, Immigration, Refugees and Citizenship Canada (IRCC) updated its instructions for immigration officers. Officers must now wait for an LMIA decision before deciding on a work permit application submitted under the Temporary Foreign Worker Program (TFWP).
Previously, officers could hold these work permit applications for a maximum of 90 days while waiting for an LMIA decision.
The change applies to applications submitted through concurrent processing, which allows eligible workers already in Canada to apply for a TFWP work permit while their employer’s LMIA application is still under review.
Who Qualifies For Concurrent Processing?
To qualify, a worker’s existing work permit must expire within two weeks or less. Their employer must also have submitted the LMIA application early enough to reasonably expect a decision from Employment and Social Development Canada (ESDC) before the existing permit expires.
Workers who apply to extend their work permits before the current permits expire can benefit from maintained status. This allows them to continue working under the conditions of their existing permits while IRCC considers their extension applications.
On August 21, 2026, IRCC extended the waiting period for concurrent processing from 60 days to 90 days. The latest update removes that fixed limit, allowing officers to wait for the LMIA decision before deciding on the related work permit application.
Why Is An LMIA Required?
Employers generally need a positive or neutral LMIA before a foreign worker can receive a new work permit or extend an existing one under the TFWP.
ESDC issues an LMIA to confirm that hiring a foreign worker will not negatively affect the Canadian labour market. A positive or neutral assessment indicates that no qualified Canadian citizen or permanent resident is available to fill the position under the relevant assessment.
LMIA Restrictions In Several Canadian Cities
The change comes as employers in 30 urban areas face restrictions on LMIA applications for certain low-wage jobs.
From October 9, 2026, to January 7, 2027, employers in affected census metropolitan areas cannot submit LMIA applications for non-exempt positions paying less than 120% of the provincial or territorial median wage.
The affected areas include Toronto, Vancouver, Montreal, Edmonton, Calgary, Ottawa-Gatineau, Halifax, Fredericton and Regina.
These restrictions apply to areas with unemployment rates of 6% or higher. The federal government introduced the measure in September 2024 to limit access to the low-wage stream of the TFWP in selected labour markets.
ESDC maintains an official list of affected regions and updates it quarterly.
Separate Restrictions Remain In Montreal And Laval
Montreal and Laval are also subject to a separate restriction introduced by ESDC at the request of the Quebec government in September 2024. The measure was extended in November 2025.
These restrictions operate separately from the wider federal rules affecting urban areas with higher unemployment.
Employers planning to hire foreign workers should therefore check the applicable restrictions before submitting an LMIA application.
The latest IRCC update changes how pending work permit applications are handled when an LMIA decision is outstanding. However, it does not remove the general requirement for employers to obtain a positive or neutral LMIA when one is required under the TFWP.
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