Canada ends dummy work permit trick used by Indian, other foreign workers

Business Standard

09-06-2025

Now, thousands of temporary foreign workers, including Indians, will not be able to rely on multiple applications to legally remain in Canada under the pretext of work permit extensions.
Canada's immigration department last week changed the rules around 'maintained status' to crack down on so-called dummy extension applications, which have been on the rise. The move, announced in the June 2025 IRCC update, affects temporary residents who submit more than one work or study permit extension while remaining in the country.
What are dummy extension applications?
These are often filed without genuine job offers, allowing foreign nationals to extend their stay while waiting on a decision—even if they are unlikely to qualify. The term 'dummy' refers to the lack of intent to actually work under the applied conditions.
Many such applications are submitted as placeholders, giving temporary residents—especially those awaiting permanent residency invitations—a way to buy time. They remain in Canada under 'maintained status' while their files remain in processing.
As of June 2025, IRCC's average processing time for work permit extensions stands at 158 days.
'This change, which appears procedural on the surface, has major ramifications for international students and workers, notably those from India,' Zubin Morris, partner at Little & Co told Business Standard.
How dummy work permit extensions work
According to IRCC, the dummy application loophole exploits several aspects of the system:
Maintained status eligibility: Anyone with a valid permit who applies before expiry gains maintained status, which allows continued stay and work under the previous conditions.
No LMIA or offer number required: Open work permits don't need a Labour Market Impact Assessment (LMIA) or an offer of employment. These applications are harder to detect as fraudulent at the intake stage.
Processing delays: With processing times running up to five months, applicants often use this period to find jobs, seek PNP nominations, or wait for Express Entry draws.
Risk of misrepresentation: Applications filed without genuine intent could be rejected and trigger a five-year ban on applying for Canadian visas.
'According to IRCC's clarification, if the initial application is refused, any second application, even if submitted in advance, will not be considered. Maintained status ends the moment the first refusal is issued,' said Morris.
Crackdown comes with higher risks for applicants
Until now, many applicants filed a second application to safeguard their stay if the first was at risk. The new rule removes that cushion.
Morris explained, 'Students whose permits are near expiry must be precise with their first extension application. A mistake, missing document, or even a delay can now end their legal status, despite a second application being filed. For workers, it could mean immediate job loss and the need to apply for status restoration or leave Canada.'
Darshan Maharaja, a Canada-based immigration analyst, said the new rule could have knock-on effects.
'The unintended effect might be more people rushing to file asylum claims within the one-year deadline,' he told Business Standard. 'We saw nearly 500,000 temporary foreign workers enter Canada in just the first four months of 2025. By the end of 2024, over 300,000 asylum claims were pending. So this new rule may have limited impact—and could face legal challenges.'
What IRCC accepts in absence of LMIA
1. The employer has submitted an LMIA application
2. The LMIA is expected to be decided in 1–3 months
3. The applicant is eligible to apply from within Canada
Dummy applications often rely on open work permits or incomplete job details to bypass these requirements.
Canada's move to tackle the issue
Stricter triaging and cancellations: IRCC is introducing tighter screening of applications, especially those missing proof of employment or clear eligibility.
Stakeholder feedback: Employers, consultants and advocacy groups have raised concerns about dummy applications distorting the system.
Proposed intake filters: Some experts have recommended rejecting ineligible applications at the intake stage itself to speed up processing for genuine cases.
From January to April 2025, IRCC processed 491,400 work permits. The overall backlog has now reduced to 35% of the total inventory, according to the latest update.