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Canada Extends Work Permit Extension Submission Window and Emphasizes Prevailing Wage Compliance

Immigration, Refugees and Citizenship Canada (IRCC) have expanded from 60 to 90 days the period certain foreign workers have to provide a missing Labour Market Impact Assessment (LMIA) or Quebec Acceptance Certificate (CAQ) when applying to extend a work permit before obtaining the required document. The temporary measure applies when the worker’s current work permit expires within two weeks of the extension application, and the missing LMIA or CAQ must now be submitted within 90 days after IRCC receives the extension request or the application will be refused as incomplete. At the same time, employers must continue to ensure that foreign workers are paid at or above the applicable prevailing wage, including by reviewing wages annually to account for updated Canadian median wage thresholds and avoid refusals, audits, or penalties.

Key Points

• 90-Day Submission Window: IRCC has extended the temporary submission period for certain foreign workers from 60 days to 90 days when they apply for a work permit extension before obtaining a new LMIA or CAQ. The worker must provide the missing document within 90 days of the date IRCC receives the extension application, or the application will be refused as incomplete.
• Two-Week Expiration Requirement: The temporary measure is available only when the worker’s existing work permit is set to expire within two weeks of submitting the extension application. Employers should therefore monitor expiration dates closely and coordinate the LMIA or CAQ process with the work permit extension timeline.
• Prevailing Wage Requirement: Prevailing wages, also referred to as median wages, represent the standard wage paid to Canadian workers in the same occupation and region. Employers must meet or exceed the applicable prevailing wage when hiring foreign workers through an LMIA and in some non-LMIA categories, supporting permanent residence applications, and renewing existing work permits.
• Ongoing Wage Compliance: Meeting the prevailing wage at the time of the initial application is not necessarily enough to maintain compliance throughout the validity of a work permit. Employers should review foreign worker wages annually to ensure that compensation continues to meet current median wage requirements.

What Employers Need to Know

• Start LMIA Applications Early: Employers should begin LMIA requests as early as possible when a foreign worker’s work permit will require a new LMIA. Although the submission window has been extended to 90 days, employers remain responsible for ensuring that the required documentation is submitted before the deadline.
• Monitor Wage Thresholds: Employers should regularly review current prevailing wage levels for the occupations and regions in which their foreign workers are employed. Annual wage adjustments may be necessary to keep salaries aligned with updated Canadian median wage thresholds.
• Avoid Outdated Wage Information: Using an outdated wage when submitting an LMIA can lead to application delays or a negative decision. Immigration officers may also review previous applications to determine whether current foreign workers continue to receive wages that meet applicable requirements.
• Maintain Compliance Records: Employers should maintain records demonstrating that foreign workers are being paid the required prevailing wage throughout the relevant employment and immigration periods. Failure to maintain compliant wages can increase the risk of government audits, penalties, and restrictions on the employer’s ability to hire foreign workers.

Looking Ahead

• Continued Wage Reviews: Canadian employers should expect prevailing wage requirements to change as wage data is updated annually. Regular reviews of foreign worker compensation will therefore remain an important part of immigration and employment compliance.
• LMIA and CAQ Planning: The 90-day extension provides additional flexibility, but it does not eliminate the need for employers to plan LMIA and CAQ applications well in advance. Delays in obtaining the required document could still result in the work permit application being refused if the document is not submitted within the permitted period.
• Greater Compliance Scrutiny: Employers using outdated wage information may face increased government scrutiny, including inspections and audits. Noncompliance can result in fines of up to $100,000 and bans on hiring foreign workers.
• Potential Application Consequences: Failure to satisfy either the documentation or wage requirements can have significant consequences for both employers and foreign workers. Employers should therefore treat work permit extensions and prevailing wage reviews as ongoing compliance obligations rather than one-time filing requirements.

Canada’s temporary 90-day submission window gives certain foreign workers additional time to provide a required LMIA or CAQ after submitting a work permit extension application. However, the measure does not reduce employers’ responsibility to plan ahead or maintain prevailing wage compliance, and employers should continue to begin LMIA and CAQ processes early while reviewing foreign worker compensation regularly to account for updated wage thresholds and avoid application refusals, audits, and penalties.

The content of this article is intended only to provide a general guide to the subject matter. It should not be construed as legal advice. Please contact FGI at info@employmentimmigration.com or (+1) 248.643.4900 for guidance if you have specific questions.