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Business Standard

Canada's new visa rule puts Indian students, workers at legal risk: Decoded

In a major policy update, Canada's immigration authority has redefined how maintained status applies to temporary residents filing multiple visa or permit applications. The move, announced by Immigration, Refugees and Citizenship Canada (IRCC) on May 28, could impact thousands of international students and workers — particularly from India. Until now, applicants could submit a second application to extend their stay if the first was at risk. Their legal status was protected during this time under a maintained status. That protection has now been removed. '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. '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,' he added. The same update also removed the option of applying for work or study permits at ports of entry, ending the practice of 'flagpoling'—where applicants briefly exit and re-enter Canada to fast-track permit renewals. 'Flagpoling has been a way for people to quickly change their status... This is inefficient and causes unnecessary congestion at border points,' said former immigration minister Marc Miller in December 2024. The clampdown aligns with broader efforts to reduce fraud and tighten controls. Last year, Canada scrapped Express Entry points for job offers backed by a Labour Market Impact Assessment (LMIA) and granted officials the power to cancel or amend documents in the public interest. Part of a wider reset Canada had already announced a 5 per cent cut in its temporary resident population earlier this year. The number has fallen from around 485,000 to 430,000 in 2025. Another reduction is expected by 2027. 'This rule comes in the context of bigger reforms,' Praneet Singh, AVP – University Partnership at upGrad told Business Standard. 'There's a broader reset underway around the Post-Graduation Work Permit (PGWP), which has been a major draw for students. This also follows the November 2024 decision to phase out the Student Direct Stream (SDS) category due to pressure on public infrastructure.' Will it reduce abuse—or create new risks? Darshan Maharaja, a Canada-based immigration analyst, linked the new rule to rising refugee claims among non-permanent residents. 'The unintended effect might be more people rushing to file asylum claims within the one-year deadline,' he said. '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.' Sharp rise in student asylum claims IRCC data released on May 13 shows a notable rise in asylum claims filed by international students: 5,500 claims in the first quarter of 2025, up 22 per cent year-on-year 20,245 claims in 2024, nearly double the number in 2023 Sixfold increase compared to 2019 levels According to Global News, most claims in 2024 came from India, Nigeria, Guinea, Ghana, and the Democratic Republic of Congo. What Indian students should watch for Morris warned that the revised rule leaves little room for error. '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.' Singh added that students globally are rethinking their destination choices. 'With the US pausing visa interviews, the UK capping international numbers, and Australia tightening entry, students now want flexibility,' he said. 'That's where hybrid, multi-country pathways come in. At upGrad, we've seen nearly 40 per cent growth in interest for EU programmes—in countries like Germany, Finland, and France—since March this year.' 'It's clear students want a model that lets them adapt as policies change.'