Canada Ends Dummy Work Permit for Foreigners

Canada’s Immigration, Refugees and Citizenship Canada (IRCC) has announced new regulations aimed at halting the misuse of temporary resident status through so-called “dummy” work permit extensions. The rule change, part of the June 2025 IRCC update, specifically targets foreign nationals—including thousands of Indian workers and students—who have been filing multiple permit applications without bona fide job offers to prolong their stay while awaiting permanent residency.

Key Changes to Maintained Status Rules

• One-shot extension only: Applicants can no longer submit a second permit application while the first is under review. If the first is rejected, any subsequent application will not grant maintained status or legal stay.
• Termination upon refusal: Maintained status ends immediately upon refusal of the initial application, eliminating the previous “safety net” for temporary residents.

Why the Crackdown?
This loophole enabled many applicants—especially those awaiting Express Entry draws or Provincial Nominee Program outcomes—to prolong their stay without genuine employment, often using open work permit applications that did not require a Labour Market Impact Assessment (LMIA) or confirmed job offers.

Implications for Temporary Residents

• Heightened vulnerability upon refusal: A rejection could now result in an immediate loss of legal status, forcing applicants to either restore status or exit Canada.
• Increased pressure to ensure complete, accurate filings: Immigrants must now be meticulous with their initial permit applications to avoid unintentional refusals or lapses.
• Potential shift toward asylum claims: Analysts warn of a possible uptick in asylum applications, with nearly half a million temporary foreign workers having entered Canada in the year's first four months.

Expert Commentary
Zubin Morris, immigration partner at Little & Co, emphasized the procedural nature of the change but acknowledged its significant impact:

“Students whose permits are near expiry must be precise with their first extension application… 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, added that while the move might reduce permit backlog, it risks unintended consequences and may face legal scrutiny.

IRCC’s Systemic Reforms
To reinforce this policy, IRCC will also:

• Tighten initial vetting procedures to reject applications lacking essential employment documentation,
• Increase screening measures to detect and deny ineligible extensions early in the process.

Background Context
From January to April 2025, IRCC processed approximately 491,400 work permit applications. With processing backlogs reduced to about 35% of total inventory, the agency is now focusing on improving system integrity and fairness.