No More 90-Day Cap: What Canada’s LMIA Wait Change Means for Your Work Permit

Work permit applicants in Canada will no longer be refused just because their employer’s Labour Market Impact Assessment (LMIA) is taking longer than expected. On October 28, 2026, Immigration, Refugees and Citizenship Canada (IRCC) updated its guidance so officers hold the work permit application until a decision is made on the LMIA, with no maximum waiting period.

If you are a foreign worker with a permit about to expire, or an employer waiting on Employment and Social Development Canada (ESDC), this change removes a real source of stress. Here is what happened, who it affects, and what still needs your attention.

What Changed on October 28, 2026

IRCC updated its public web page, “Labour Market Impact Assessment Review – Temporary Foreign Worker Program.” The page is a public version of the instructions given to immigration officers.

The new instruction is simple. Officers are directed not to make a decision on a Temporary Foreign Worker Program (TFWP) work permit application until a decision has been made on the LMIA.

The earlier version told officers to hold the application for a maximum of 90 days while the LMIA was pending. That cap is now gone.

Who This Change Affects

The update applies to work permit applications submitted under IRCC’s concurrent processing rules. Concurrent processing lets a worker already in Canada submit a TFWP work permit application while the employer’s LMIA application is still pending.

To use concurrent processing, two conditions need to be met:

• The worker’s existing permit expires in two weeks or less.
• The employer submitted the LMIA application with enough lead time to reasonably expect ESDC would process it before the existing permit expired.

If you do not fit those conditions, this update does not change your situation.

Why the 90-Day Limit Mattered

Before this change, an application could be refused if the LMIA was not finalized within the window, even when the delay had nothing to do with the worker or the employer. A worker could do everything right and still face a refusal because of ESDC processing times.

The time limit had also moved recently. On August 21, 2026, IRCC raised the concurrent processing limit from 60 days to 90 days. Two months later, the limit was removed entirely. For workers and employers, the direction of travel is clear: IRCC is giving more room for LMIA delays.

How Maintained Status Fits In

Maintained status is what protects many workers during the wait. When a worker in Canada applies for a new permit before their current one expires, they can keep working under the conditions of their existing permit until a decision is made on the extension application.

That is why the removal of the time limit matters in practice. A longer wait no longer puts the application at risk of refusal, and the worker can generally continue under maintained status while they wait. Workers should still keep their application confirmation and confirm that their job, employer, and location match their current permit conditions.

Why an LMIA Is Still Required

The time limit is gone, but the LMIA requirement is not. An employer must have a positive or neutral LMIA for a foreign worker to receive a new work permit or an extension through the TFWP.

ESDC issues a positive or neutral LMIA to confirm that no qualified Canadian citizen or permanent resident is available to fill the position. The work permit decision still depends on that outcome. If the LMIA is refused, the work permit application will not succeed.

Current LMIA Restrictions Employers Should Know About

Employers should also check whether their location is under an LMIA processing restriction. As of the time of writing, employers in thirty urban areas cannot apply for an LMIA for non-exempt jobs that pay less than 120% of the median provincial or territorial wage.

Census metropolitan areas under this ban from October 9, 2026 to January 7, 2027 include Toronto, Vancouver, Montreal, Edmonton, Calgary, Ottawa-Gatineau, Halifax, Fredericton, and Regina.

The ban applies to areas with an unemployment rate of 6% or higher, under a moratorium the federal government established in September 2024. ESDC keeps a list of affected regions on its page “Refusal to process a Labour Market Impact Assessment application” and updates it every quarter.

Montreal and Laval are also covered by a separate moratorium that ESDC established at the request of the Quebec government in September 2024. It was extended in November 2025.

Check the ESDC list before you start a low-wage LMIA application. The list changes quarterly, so an area that was open last quarter may not be open now.

Filing an LMIA the Right Way: How Foothills Immigration Supports Employers

LMIA-based work permits involve two applications moving on different timelines, with a government department behind each one. A small mistake in timing, wage level, or job location can cost months.

Foothills Immigration can help workers and employers review whether concurrent processing applies, check that an LMIA application was filed with enough lead time, and confirm that a role is not caught by a regional processing restriction. If your permit is close to expiring, a review of your dates and documents before you apply is a practical first step.

Every case is different, so it is worth getting advice on your own facts rather than relying on general updates alone.