If an employee’s closed work permit expires while waiting for a delayed LMIA, they can legally continue working in Canada under “maintained status” provided they applied for a new work permit before the old one expired. Employers must ensure the worker’s payroll, duties, and workplace conditions remain exactly the same during this waiting period.
Managing foreign talent in Canada requires strict attention to expiry dates and federal processing times. It is a common and stressful scenario for a business when a crucial employee’s closed work permit is approaching its expiry date, but Service Canada has not yet approved the renewal Labour Market Impact Assessment (LMIA). Employers often fear they must terminate the employee or face legal consequences for employing someone without valid status.
Fortunately, Canadian immigration law provides a safety net known as “maintained status” (formerly referred to as implied status). ✅ This federal provision allows foreign workers to continue their employment legally while Immigration, Refugees and Citizenship Canada (IRCC) processes their extension. To ensure you do not disrupt your business operations or violate IRCC regulations, it is highly recommended to consult a knowledgeable local lawyer from our directory to manage the extension process flawlessly.
Step-by-Step Process for Handling Delayed LMIAs in Canada
Whether your business operates in Montreal, Ottawa, or Edmonton, federal rules dictate how you must handle an expiring closed work permit. Most employers follow these specific steps to ensure their workforce remains compliant and legally authorized to work.
Step 1: Monitoring Expiry Dates and Processing Times
Employers should track work permit expiry dates meticulously. Service Canada generally recommends applying for a new LMIA at least six months before the current work permit expires. 🕐 Because LMIA processing times can fluctuate wildly, early preparation is your best defence against bureaucratic delays.
Step 2: Submitting the Work Permit Extension Early
To benefit from maintained status, the employee must submit their work permit extension application to IRCC before midnight (UTC) on the day their current permit expires. Even if the LMIA is not yet approved, the worker can submit the extension application by attaching proof that the LMIA application was received by Service Canada (such as the LMIA file number). This critical step secures their legal right to remain employed.
Step 3: Issuing the Maintained Status Acknowledgment
Once the work permit extension is submitted online, IRCC will generate an Acknowledgement of Receipt (AOR) letter. 📝 The employer must keep a copy of this letter in the employee’s HR file. This document acts as your legal proof that the worker is authorized to continue their duties without a physical work permit card.
Step 4: Freezing Payroll and Employment Conditions
Under maintained status, the employee is only authorized to work under the exact same conditions as their expired closed work permit. You cannot give them a promotion, change their job title, transfer them to a different provincial branch, or alter their wages. Their duties and compensation must remain frozen until the new LMIA and work permit are officially approved.
Step 5: Handling the Final Decision
If the delayed LMIA is eventually approved, IRCC will finalize the work permit processing and mail the new document. 🏢 However, if the LMIA is rejected, the maintained status instantly ends. In that unfortunate scenario, the employer must immediately remove the worker from the payroll, as continuing to employ them becomes a federal offence.
How Much Does the Extension Process Cost?
Extending a worker’s status while waiting for an LMIA involves several standard government fees in Canadian dollars (CAD). Most applicants in this province expect the following costs:
| Application Type | Current Fee (CAD) | Who Typically Pays? |
|---|---|---|
| LMIA Renewal Processing Fee | $1,000 CAD | Employer (Mandatory) |
| Work Permit Extension Fee | $155 CAD | Foreign Worker |
| Lawyer / Legal Representation | $2,000 – $4,500 CAD | Shared / Varies |
| Restoration of Status (If late) | $229 CAD | Foreign Worker |
How Long Does Maintained Status Last?
Maintained status begins the moment the current work permit expires and lasts indefinitely until IRCC makes a formal decision on the pending extension application. In Canada, a standard online work permit extension can take anywhere from 90 to 150 days to process. If the worker leaves Canada for travelling or a vacation during this waiting period, they forfeit their maintained status and cannot resume work upon returning until the new permit is issued.
Frequently Asked Questions (FAQ)
Can the employee travel outside Canada while on maintained status?
If the employee leaves Canada while under maintained status, they lose their right to work immediately. They may be allowed to re-enter Canada as a visitor, but they cannot legally resume their employment until the new work permit is officially approved and issued.
Do we need to issue a Record of Employment (ROE) when the permit expires?
No. If the worker applied for their extension before the expiry date and continues working under maintained status, there is no interruption of earnings. Therefore, the employer does not need to issue an ROE to the Canada Revenue Agency or Service Canada.
What happens if the worker forgot to apply before the expiry date?
If the work permit expires before the extension is submitted, the worker completely loses their legal status. They must stop working immediately. The worker has 90 days to apply for a “Restoration of Status,” but they cannot work during this restoration processing period.
Can we give the employee an annual raise while waiting for the LMIA?
No. Under maintained status, the conditions of the expired closed work permit still apply exactly as written. Raising their salary or changing their job duties before the new LMIA and work permit are approved is a violation of federal immigration law.
Can an employee switch to a different employer while waiting?
Maintained status only allows the employee to continue working for the specific employer listed on their original closed work permit. If they wish to change employers, they must wait for the new employer’s LMIA and the new work permit to be fully approved before switching.
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