New IRCC Rule: In-Canada LMIA Work Permit Extensions Get Longer Grace Period

On August 21, 2026, Immigration, Refugees and Citizenship Canada (IRCC) extended the grace period for eligible work permit extension applications that require concurrent processing. Before – you could submit your work permit extension, request concurrent processing with your employer’s Labour Market Impact Assessment (LMIA) application, and be granted a 60-day grace period where IRCC would hold your application and await the results of your employer’s LMIA.

However, with LMIA processing times inching higher, the government has now extended that grace period from 60 days to 90 days. This gives you 30 extra days for IRCC to receive the results of your employer’s LMIA application.

Yes, this is a pretty technical update, but the takeaway is simple: you’ve now got an extra 30 days for IRCC to wait for your employer’s LMIA applications to be processed before they make a decision on your work permit extension.

Quick Explainer: LMIAs, Work Permit Extensions and Concurrent Processing

Before getting into the change, let’s break down a few of the key parts of this update:

A Labour Market Impact Assessment (LMIA) is a document that most Canadian employers require before they can hire (or continue to employ) a foreign worker under the Temporary Foreign Worker Program (TFWP). The employer applies for the LMIA, and Employment and Social Development Canada (ESDC) assesses whether hiring that worker is justified based on Canada’s labour market.

Only after receiving a positive LMIA can an employer support an LMIA-based work permit application. An LMIA is typically for a specific time period, and the work permit the employee receives will usually match the length mentioned on the LMIA.

A work permit extension is exactly what it sounds like: a temporary foreign worker already living and working in Canada applies to extend their existing work permit before it expires so they can continue working legally. For LMIA-based work permits, this also involves a fresh LMIA application by the employer.

The complication is that LMIAs and work permits are processed by different government departments – IRCC handles work permits, while ESDC handles LMIAs – and sometimes the timelines don’t line up perfectly.

That’s where concurrent processing comes in handy. In select situations, a temporary worker whose work permit is about to expire can submit their work permit extension application while their employer’s LMIA application is still being processed instead of waiting for the LMIA decision first.

As long as the applicant meets the requirements for concurrent processing, IRCC will essentially “hold” the work permit application while they wait for the LMIA result.

Note: This is not a blanket extension available to everyone applying for an LMIA-based work permit. Concurrent processing is only available to specific in-Canada work permit extension applications where the applicant meets IRCC’s eligibility conditions and their employer has already submitted a complete LMIA application.

Grace Period Is Now 90 Days Instead of 60

Before August 21, 2026, IRCC would hold eligible concurrent processing applications for up to 60 days while waiting for the employer’s LMIA decision. If the LMIA still hadn’t been processed, the work permit extension could be refused.

Now – IRCC has increased that period to 90 days. According to the update from IRCC, work permit extension applications that are eligible for concurrent processing will not receive a final decision until 90 days have passed from the date the application was received. This gives ESDC an extra 30 days to process the employer’s LMIA and for the applicant to submit this to IRCC.

In the context of recent LMIA processing times, this update makes perfect sense. As of July 2026, ESDC reported average LMIA processing times of:

• 88 business days for high-wage LMIAs
• 73 business days for low-wage LMIAs
• 86 business days for LMIAs supporting permanent residence applications

Bear in mind that these are averages and they’re measured in business days. So – even with the new 90-day grace period, certain work permit extension applications may still not have enough time, but the change will enable most LMIAs to be processed within the grace period.

Who Is Eligible for Concurrent Processing

To be eligible for concurrent processing of your in-Canada work permit extension application, you must meet the following criteria:

• Your work permit expires in two weeks or less
• Your employer submitted a complete application for an LMIA (or, in Quebec, a Quebec Acceptance Certificate or CAQ)
• You submit all required documents within 90 days of when you submit your work permit extension application

If you don’t submit the LMIA or CAQ results within 90 days, your application may be refused for being incomplete.

New Process to Notify IRCC of Concurrent Processing

IRCC has also updated the process for notifying them you are opting for concurrent processing when you submit your work permit extension application. If you meet the eligibility requirements, follow these steps when you complete your application:

• Type code “CPTS2026” in the “Job Title” field of the IMM 5710 form
• Include proof of your valid job offer
• Provide either of these documents, depending on how your employer applied:
  • Copy of the LMIA receipt confirmation number (online applications)
  • Copy of the application (paper applications)
• Indicate all of the following in the “Details of intended work in Canada” section:
  • the date the LMIA or CAQ request was sent
  • the office it was sent to
  • the employer’s name
  • the confirmation number for the submission, if available

If you’re unsure about your application and would like to speak with an expert, we recommend booking a consultation with a regulated Canadian immigration consultant. You can book a consultation with our in-house consultant here.

What This Means for Temporary Foreign Workers

If you’re a temporary foreign worker in Canada on an LMIA-based work permit, this is good news. It’s not a big change, but it gives more breathing room to workers applying for their extensions.

That being said, you still need to be vigilant in submitting both work permit extensions and LMIA applications. Encourage your employer to apply as early as possible, once they know their employment needs.