A small business with fewer than 10 employees can now hire one or two low-wage foreign workers per work location instead of being limited by company-wide staffing numbers. That is one of two important LMIA updates that took effect in August 2026, and it could make a real difference for employers operating multiple locations.
Another change gives certain workers already in Canada more time to keep their work permit application moving while waiting for a new LMIA. If you’re an employer using the Temporary Foreign Worker Program (TFWP) or a worker relying on an LMIA-backed work permit, these updates are worth understanding.
What changed in August 2026?
| Update | Effective Date | Who It Affects |
|---|---|---|
| New low-wage LMIA hiring cap for small work locations | August 18, 2026 | Employers with fewer than 10 employees at a work location |
| LMIA validity for certain in-Canada work permit applications increased from 60 to 90 days | August 2026 | Eligible foreign workers applying from within Canada |
LMIA Update #1: Small employers can hire more low-wage workers
The biggest LMIA change announced by Employment and Social Development Canada (ESDC) affects businesses that operate small workplaces.
Previously, employers hiring through the Low-Wage Stream of the Temporary Foreign Worker Program were often constrained by workforce limits that made hiring difficult for businesses with multiple small locations. Under the updated policy, the hiring cap is now calculated per work location, giving qualifying employers more flexibility.
What is the new rule?
If a specific work location has fewer than 10 employees, the employer can now hire:
- 1 low-wage temporary foreign worker in most sectors.
- Up to 2 low-wage temporary foreign workers if the work location belongs to an eligible in-demand sector, such as healthcare, construction, or food production.
Why this change matters
This adjustment can help businesses that operate multiple branches, storefronts, restaurants, or clinics. Instead of treating the company as one large employer, each qualifying location is assessed separately.
For example, if a company has three different locations with eight employees at each site, each location may now qualify to hire eligible low-wage foreign workers under the revised rules.
Existing workforce caps still apply
The change does not remove Canada’s broader workforce limits under the Low-Wage Stream.
Employers generally remain subject to:
- a 10% cap on low-wage temporary foreign workers in most sectors, and
- a 20% cap for eligible in-demand sectors like healthcare, construction, and food production.
The new policy simply makes those calculations more practical for smaller workplaces.
Practical takeaway for employers
One mistake many employers make is assuming that every location automatically qualifies for additional hires. The new flexibility applies only if the individual work location meets the employee threshold and the employer continues meeting all LMIA requirements, including recruitment efforts and wage obligations.
Before submitting a new LMIA application, it’s worth confirming the employee count at each work location rather than relying on company-wide staffing numbers.
LMIA Update #2: Workers now have 90 days instead of 60
The second August 2026 update benefits certain foreign workers who are already in Canada.
Immigration, Refugees and Citizenship Canada (IRCC) has extended the period during which eligible applicants can use a pending LMIA for an in-Canada work permit application—from 60 days to 90 days.
What changed?
| Previous Rule | New Rule |
|---|---|
| 60 days | 90 days |
This gives eligible applicants an additional 30 days to complete the process.
Who benefits?
The longer validity period is especially useful for workers who:
- are already living in Canada,
- need a new employer-specific work permit,
- are waiting for LMIA-related processing, or
- are trying to avoid unnecessary delays while their application moves through the system.
Why the extra 30 days matters
Anyone who has followed LMIA timelines knows that document collection, employer paperwork, and processing can take longer than expected.
That extra month provides a larger buffer for completing applications without rushing through important documents.
If your employer is preparing a new LMIA-backed work permit application, keeping employment records, passport validity, and supporting documents ready early can help avoid last-minute issues.
How these changes fit Canada’s Temporary Foreign Worker Program
The Labour Market Impact Assessment (LMIA) remains a key part of Canada’s Temporary Foreign Worker Program.
A positive LMIA confirms that:
- the employer needs to hire a foreign worker, and
- no Canadian citizen or permanent resident is available to fill the position.
Employers must still meet existing program requirements, including recruitment obligations, wage rules, and application fees where applicable. The August 2026 updates change specific operational rules rather than replacing the overall LMIA process.
What these LMIA changes mean for you
The impact depends on whether you’re an employer or a worker.
If you’re an employer
- Check employee counts for each work location.
- Confirm whether your sector qualifies for the two-worker allowance.
- Continue following all existing LMIA recruitment and wage requirements.
If you’re a foreign worker
- Take advantage of the extended 90-day window if you’re eligible.
- Keep your documents updated before submitting your application.
- Stay informed about any additional IRCC processing updates.
Frequently Asked Questions (FAQ)
The low-wage employer update took effect on August 18, 2026, while the work permit-related LMIA validity update also became effective during August 2026.
No. The new rule allows qualifying small work locations to hire one or two low-wage workers, but broader workforce caps under the Temporary Foreign Worker Program still apply.
Eligible in-demand sectors include healthcare, construction, and food production, provided the work location has fewer than 10 employees.
Eligible foreign workers applying for certain LMIA-backed work permits from within Canada now have 90 days instead of 60 days under the updated IRCC policy.
Yes. Unless the position qualifies for an LMIA exemption, employers must continue obtaining a positive LMIA before hiring through the Temporary Foreign Worker Program.
Fact Check: Based on official Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC) policy updates published in August 2026.
Disclaimer: This article is for general informational purposes only and is not legal or immigration advice. Always verify the latest requirements through official Canadian government sources before making immigration or employment decisions.
