Does he really needs a new LMO even he is still working with his current employer?Thank you. This is really a strange scenario. My aunt phoned CIC so many times before she applied her OWP/PR and asking CIC if she will include her husband as dependants even he is too under LCP and they said not only 4 CIC agents responded that yes she can include her husband but don't include on OWP applications since he is not qualified yet and they also said before that yes he can apply OWP if he will finish the 24 months. If only that we recorded that response from CIC so we can appeal to this refusal.
You can go to Service Canada and ask them but generally a new LMO is needed to extend a work permit.
Of course she
can include her husband in her PR application but it is not necessarily the best way of doing things in their situation because he qualifies to apply himself and there is the issue with the OWP's.
What they can do now:
1) They could try to talk to an immigration lawyer or appeal themselves. Maybe there is a loophole somewhere that says he can get an OWP even if he isn't the PR applicant because he also qualifies to apply under LIC but I wouldn't count on it.
2) He could apply for PR now himself and an OWP to be granted when he gets his first stage approval. This would mean he has to pay the processing fee for his PR and his OWP fee. He can list his wife as not accompanying on his application because she has already applied and he would therefore not have to pay the PR fees for her. However, as the processing time for first stage approval is around 18 months and the processing time for PR after first stage is 17 months, since she now has first stage approval from what you say, they will both have PR on her application around the same time he would get his first stage approval and OWP so it might not be worth it for him to apply.
In any case, if he wants to stay, he needs to apply to restore his status and extend his work permit.