Author: Azadeh Haidari-Garmash, RCIC
Policy Change Targets Loophole
Learn about Canada's new rules to stop the misuse of dummy work permit extensions, impacting many foreign workers and students
On This Page You Will Find:
- Changes in Maintained Status for Work Permit Applications
- Understanding Dummy Extension Applications
- How Dummy Work Permit Extensions Exploit the System
- Implications of the New Immigration Rule
- Canada's Efforts to Address the Issue
Summary:
Canada has introduced major changes to its immigration policy to stop the misuse of work permit dummy extension applications. In the past, foreign workers could apply multiple times to extend their stay under maintained status, even without real job offers. This practice, common among temporary residents awaiting permanent residency, is now under review. The new rules, effective June 2025, aim to stop fraudulent applications by enforcing stricter criteria and immediately ending maintained status upon the first refusal. These changes could significantly impact international workers and students, especially those from India, possibly leading to more asylum claims due to stricter rules.
In a bold move to tighten immigration controls, Canada has changed its rules around work permit dummy extensions. This change directly affects thousands of temporary foreign workers, especially from India. Announced in June 2025 by Immigration, Refugees, and Citizenship Canada (IRCC), the policy aims to stop the misuse of "dummy" extension applications, which allowed people to stay in Canada under false conditions.
Changes in Maintained Status for Work Permit Applications
The main issue is the practice of submitting multiple work or study permit extensions without genuine job offers. These applications acted as a loophole, letting foreign nationals stay while waiting for permanent residency or other immigration decisions. These "dummy" applications have long exploited the maintained status provision, allowing applicants to stay in Canada under previous terms while their new application is processed.
Understanding Dummy Extension Applications
A "dummy" application is filed without a genuine job offer, mainly to buy time in Canada. This tactic is common among temporary residents who use the processing period to secure employment, Provincial Nominee Program (PNP) nominations, or await Express Entry draws. With an average processing time of 158 days for work permit extensions as of June 2025, the system was vulnerable to manipulation.
Zubin Morris, a partner at Little & Co., notes that these procedural changes significantly affect international workers and students, particularly those from India. The new rules state that if an initial application is refused, any later applications, even if submitted while the first is under review, will not be considered. This effectively ends maintained status as soon as a refusal is issued.
How Dummy Work Permit Extensions Exploit the System
The dummy application strategy exploits several aspects of the Canadian immigration process:
- Maintained status eligibility: Allows applicants with a valid permit and a timely extension application to stay under previous terms.
- Open work permits: Do not require a Labour Market Impact Assessment (LMIA) or a confirmed job offer, making fraudulent intentions harder to detect.
- Delays in processing: Extended processing times offer a window for applicants to firm up their immigration or employment status.
- Risk of misrepresentation: Filing without genuine intent risks application rejection and a potential five-year ban on Canadian visa applications.
Morris emphasizes the new risks: "A mistake, missing document, or delay can now lead to immediate legal status loss for students and job loss for workers, requiring status restoration or exit from Canada."
Implications of the New Immigration Rule
The rule change has raised concerns about unintended consequences. Darshan Maharaja, a Canada-based immigration analyst, suggests the crackdown could lead to a rise in asylum claims as individuals seek alternative ways to stay in the country. With nearly 500,000 temporary foreign workers entering Canada in the first four months of 2025 and over 300,000 asylum claims pending by the end of 2024, the new rule's impact may be limited and could face legal challenges.
Canada's Efforts to Address the Issue
In response to these challenges, IRCC is implementing stricter application screening and considering feedback to improve the process. Recommendations include rejecting ineligible applications upfront to minimize processing delays for legitimate cases. From January to April 2025, IRCC processed 491,400 work permits, reducing the backlog to 35% of the total inventory, showing progress in addressing the issue.
As Canada navigates these policy changes, temporary foreign workers and international students must adapt to the new landscape, ensuring compliance with the revised regulations to maintain their immigration status.
Conclusion
The move to end the misuse of work permit dummy extensions marks a significant shift in Canada's immigration policy. By closing this loophole, Canada aims to ensure a fair and transparent system. For those affected, understanding and adapting to these changes is crucial.
References
- Canada Immigration and Citizenship
- IRCC Newsroom
- CBC News - Immigration
- The Globe and Mail - Immigration
- Toronto Star - Immigration
