Canada is set to overhaul its work authorisation system with the introduction of a new employer-linked work licence framework starting January 2026. This reform will gradually replace the existing open work permit system, which currently allows foreign nationals to work for almost any employer in Canada without job-specific restrictions. Canadian authorities have cited gaps in labour market oversight and concerns about ensuring foreign workers fill genuine shortages as key reasons for the change.
The new Work Licence Framework will tie work authorisation to a specific employer, occupation, and wage range. Licences will typically remain valid for the duration of a job contract or a Labour Market Impact Assessment (LMIA), limiting the ability of workers to switch employers freely. Those wishing to change jobs will need to submit a new application under the updated system. The phased rollout is expected to continue through 2028, aligning immigration more closely with labour market demand and verified shortages.
International graduates are expected to face the most significant impact. Under the current system, graduates from eligible Canadian institutions can obtain a Post-Graduation Work Permit (PGWP), which allows unrestricted employment across Canada. Under the new framework, this will transition into a Post-Graduation Work Licence, with eligibility contingent on securing a job offer in an approved or high-demand occupation.
The Canadian government has stated that the reforms aim to ensure foreign workers contribute effectively to sectors with real labour needs while strengthening oversight of temporary employment and immigration pathways.
