Canada Extends Work Permit Grace Period from 60 to 90 Days for In-Canada Applicants

Canada Extends Work Permit Grace Period from 60 to 90 Days for In-Canada Applicants

Policy Change

Canada’s immigration department has granted in-Canada work permit applicants an additional 30 days post-submission to provide proof that their employer cannot hire a Canadian citizen or permanent resident. This extension, from 60 days to 90 days, provides a lifeline to foreign workers applying for work permits through the Temporary Foreign Worker Program (TFWP), who might otherwise be at risk of losing their authorization to work in Canada.

The federal government implemented this extension on August 21, 2026, through publishing an update to the section “Concurrent processing for in-Canada work permit applications” on its webpage detailing instructions to officers, titled “Labour Market Impact Assessment Review – Temporary Foreign Worker Program.”

How Concurrent Processing Works

Concurrent processing gives a foreign national in Canada a better shot at being able to maintain their work authorization, by allowing them to apply for a TFWP work permit months sooner than they might otherwise be able to.

If a foreign national qualifies for concurrent processing, they can submit their application for a TFWP work permit while their employer still has pending the application for a Labour Market Impact Assessment (LMIA), for which a positive or neutral result is required in order for a work permit to be issued through the TFWP.

The applicant then has up to 90 days to update their application with proof of the employer’s positive or neutral LMIA, the document that shows that no qualified Canadian citizen or permanent resident could be hired for the role.

Without concurrent processing, a foreign national would require the completed LMIA in hand prior to being allowed to submit their application for a TFWP work permit.

Background and Impact

Since LMIA applications can take several months, a foreign national in Canada seeking a work permit through the TFWP could otherwise be left in limbo, facing imminent expiry of their work permit and being unable to submit an application for an extension during the period in which their employer is waiting for the LMIA application to be processed by Employment and Social Development Canada (ESDC).

In such cases, the employer could end up receiving a positive LMIA, naming the foreign national as the intended hire, that would prove of no use, since the foreign national could have lost the authorization to work in Canada, have been required to stop working, and if unable to apply for restoration of their status, could also be required to leave Canada.

Impact on Applicants

This policy change provides TFWP work permit applicants with a more generous time window:

• **Before:** 60 days to submit LMIA proof after work permit application

• **Now:** 90 days to submit LMIA proof after work permit application

The extra 30-day grace period gives foreign workers more time to wait for LMIA processing results, reducing the risk of losing work authorization in Canada due to tight timelines.

SOURCE: CIC News

Date: August 2026