Low-Wage TFWP Work Permit Duration: Canada Introduces a Two-Year Maximum

The most important benefit is that employers may be able to request a longer employment period for eligible low-wage positions. If ESDC approves an LMIA for up to two years, the foreign worker may use it to support a work permit application covering the approved employment period, subject to IRCC's assessment and any applicable restrictions.

For employers, a longer LMIA duration can provide greater workforce planning stability. Businesses may have more time to retain experienced foreign workers without repeating the entire LMIA process every year.

For foreign workers, the change may mean fewer interruptions associated with annual work permit renewals, provided they continue to meet the applicable immigration requirements.

The announcement is part of the federal government's broader efforts to make the Temporary Foreign Worker Program more responsive to labour market needs while maintaining safeguards for Canadian workers.

Official announcement: Government of Canada Announces Targeted Reforms to the Temporary Foreign Worker Program.

Who Qualifies for the New Two-Year Low-Wage LMIA Duration?

The revised policy applies to eligible employers and foreign workers using the low-wage stream of the TFWP.

However, not every job or employer automatically qualifies. The position must meet the programme's classification requirements, and the employer must satisfy the relevant LMIA conditions.

The main considerations include:

1. The LMIA application must be submitted on or after November 6, 2026

The effective date is important because the new maximum duration applies to LMIA applications submitted on or after November 6, 2026.

Applications submitted before this date remain subject to the rules that applied when they were submitted.

For example, if an employer submitted a low-wage LMIA application on October 30, 2026, the application would not automatically qualify for the new two-year maximum simply because ESDC issued its decision after November 6.

Employers planning to hire foreign workers should therefore consider the application submission date when preparing their recruitment and immigration plans.

2. The position must fall under the low-wage stream

The TFWP classifies positions into different streams based on the offered hourly wage and the applicable provincial or territorial wage threshold.

A position generally falls under the low-wage stream when the offered wage is below the applicable threshold. The classification is not determined by the job title alone.

For example, two employees performing similar duties in different provinces may fall under different TFWP streams because the applicable wage thresholds vary by location.

Employers should check the current ESDC requirements before submitting an LMIA application.

3. The employer must meet LMIA requirements

Canadian employers must demonstrate that their job offer is genuine and that hiring a foreign worker is necessary to address their labour needs.

Depending on the position and applicable programme requirements, this may involve:

• Meeting recruitment and advertising requirements.
• Demonstrating that qualified Canadian citizens and permanent residents were considered.
• Offering wages that meet the applicable prevailing wage requirements.
• Providing acceptable working conditions.
• Demonstrating business legitimacy.
• Meeting applicable workplace safety and employment standards.
• Complying with TFWP employer obligations.

An employer must also satisfy any applicable restrictions involving the proportion of temporary foreign workers employed at a particular work location.

Meeting the two-year duration requirement alone does not guarantee a positive LMIA decision.

4. The worker must qualify for a Canadian work permit

An approved LMIA does not automatically give a foreign national permission to work in Canada.

The worker must submit a separate work permit application to IRCC and satisfy the applicable requirements.

These may include providing a valid job offer, an LMIA decision letter, identity documents, evidence of qualifications, and other supporting documents depending on the circumstances.

IRCC assesses the application and determines whether the foreign national can receive the requested work permit.

How Does an LMIA Determine the Duration of a Canadian Work Permit?

A Labour Market Impact Assessment is an important part of the Temporary Foreign Worker Program because it allows the Canadian government to assess the potential effects of hiring a foreign national on the country's labour market.

An LMIA is issued by Employment and Social Development Canada. It generally confirms that an employer has demonstrated a genuine need to hire a temporary foreign worker and that no qualified Canadian citizen or permanent resident is available to fill the position.

For most employer-specific work permits under the TFWP, a positive LMIA is required before a foreign worker can apply for a work permit. Certain situations may involve a neutral LMIA assessment.

The LMIA and work permit are separate documents issued through different government processes.

Here is how they work together:

Step 1: The employer identifies a genuine labour shortage.

A Canadian business determines that it needs to hire a foreign worker because it cannot find an available and qualified Canadian citizen or permanent resident for the position.

Step 2: The employer submits an LMIA application.

The employer submits the required documentation to ESDC, including information about the business, job duties, offered wages, recruitment efforts, and proposed employment period.

Step 3: ESDC assesses the application.

ESDC reviews the application and determines whether the employer meets the applicable programme requirements.

If the assessment is positive, the employer receives an LMIA decision letter.

Step 4: The foreign worker applies for a work permit.

The foreign worker uses the LMIA and supporting employment documents to apply to IRCC for an employer-specific work permit.

Step 5: IRCC makes the work permit decision.

IRCC assesses the application, including the worker's eligibility and admissibility, and determines whether to issue the work permit and its duration.

Under the new policy, an eligible low-wage LMIA can support an employment period of up to two years. However, IRCC retains responsibility for the final work permit decision.

This distinction is important because a two-year LMIA does not guarantee that the worker will receive a work permit valid for the entire two-year period.

Does the New Policy Apply to Existing Low-Wage Work Permits?

The new two-year maximum does not automatically extend existing low-wage work permits or previously approved LMIAs.

The November 6, 2026 announcement specifically applies to low-wage LMIA applications submitted on or after the effective date.

Workers who already hold a one-year work permit should not assume that their existing permit has been extended to two years.

For example, a foreign worker whose employer obtained a low-wage LMIA before November 6, 2026, and received a one-year work permit must continue following the expiry date and conditions printed on the issued permit.

If the worker wants to remain employed in Canada beyond the authorised period, the employer and worker must consider the appropriate extension process.

In situations where a new LMIA is required, the employer must submit a new application and meet the requirements in effect at that time.

Foreign workers should not continue working beyond their authorised period simply because the government has introduced a longer maximum duration for new LMIA applications.

When does a worker need a new LMIA?

For an employer-specific work permit supported by an LMIA, a new LMIA will generally be required when the worker needs a further period of employment and the existing LMIA no longer supports the requested employment period.

The employer must assess the applicable requirements and submit the necessary application.

A worker cannot independently extend an employer-specific work permit simply by requesting additional time from IRCC without the required supporting documents or an applicable exemption.

When should workers apply for an extension?

Foreign workers should avoid waiting until their work permits expire before preparing an extension application.

IRCC recommends applying before the current work permit expires. Applying early gives the worker and employer more time to gather documents, address missing information, and prepare for potential processing delays.

Employers should also consider LMIA processing times when planning an employee's extension.

According to ESDC's published September 2026 processing data, the average processing time for low-wage LMIA applications was 82 business days. Processing times change regularly and do not include all the preparation and recruitment time that may be required before submission.

Employers can check the latest figures through the official LMIA processing times page.

Can You Continue Working in Canada While Waiting for an LMIA Work Permit Extension?

Some foreign workers may be able to continue working in Canada while IRCC processes an eligible work permit extension application. This is generally possible through maintained status.

Maintained status allows a temporary resident to remain in Canada after their original permit expires while IRCC makes a decision on an eligible application submitted before the expiry date.

For workers, this may also include permission to continue working under the conditions of their previous work permit.

However, maintained status is not automatic simply because an employer has submitted an LMIA application.

The worker must submit the appropriate work permit extension application to IRCC before the existing permit expires.

Need Help With a Work Permit Extension or LMIA?

Understanding the new low-wage TFWP rules can be challenging, particularly for foreign workers whose permits are approaching expiry and Canadian employers navigating changing LMIA requirements.

The right approach depends on the worker's immigration history, current work permit conditions, occupation, employer, work location, and eligibility for available immigration pathways.

Foothills Immigration provides Canadian immigration guidance to individuals and employers navigating work permits, LMIA applications, and other immigration matters.

Depending on the circumstances, professional assistance may include:

• Assessing your eligibility: Reviewing your education, work experience, skills, and qualifications to identify possible Canadian immigration pathways.
• Finding an LMIA-supported pathway: Explaining how to approach Canadian employers who may be willing to hire and support a foreign worker through the appropriate immigration process.
• LMIA application guidance: Helping employers understand the applicable requirements and prepare the necessary documentation for an LMIA application.
• Work permit applications: Assisting with the supporting documents and application process after an LMIA is approved.
• Immigration guidance: Explaining immigration requirements, application procedures, and possible permanent residency pathways based on your circumstances.

For individuals and businesses in Calgary and elsewhere in Canada, Foothills Immigration can help clarify the available options and the steps involved in navigating the Canadian immigration system.

If you are considering an LMIA work permit extension or need guidance on the new two-year low-wage LMIA rule, contact Foothills Immigration to discuss your situation.

Final Takeaway

Canada's decision to double the maximum low-wage TFWP LMIA duration from one year to two years is an important change for employers and foreign workers who rely on the programme.

Effective November 6, 2026, eligible low-wage LMIA applications can support employment periods of up to two years, potentially reducing the need for annual LMIA applications and work permit renewals.

However, the change does not remove other TFWP restrictions. Employers must still meet the applicable wage, recruitment, workforce cap, and location requirements. Foreign workers must also obtain the appropriate work permit and comply with its conditions.

For employers, the longer duration may offer greater workforce planning stability. For foreign workers, it may provide more time to maintain employment and consider longer-term immigration options.

The most important step is understanding how the new rules apply to your specific employment situation before submitting an LMIA or work permit application.