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I agree with the comments that we should not misuse the implied status...but I am not able to find any information on whether the experience gained during implied status will not be counted if the extension is rejected...Definition of implied status as per CIC:

Implied status - If a visitor, student or temporary worker applies to extend their status, prior to the expiry of that status, they may legally remain in Canada until a decision is made on the application. In this situation, the person has implied status.

Also the CIC says that you should continue working in the same conditions as you were working before extension:

http://www.cic.gc.ca/english/helpcentre/answer.asp?q=189&t=17
 
I'm guessing the OP is on an IEC, in which case there is no implied status and that time will not count.
 
ABS_1382 said:
I agree with the comments that we should not misuse the implied status...but I am not able to find any information on whether the experience gained during implied status will not be counted if the extension is rejected...

As I understand it, this is more to do with convention than anything else. It's hard to find anything definitive (from the Act, regulations, operational bulletins, and so on). The question really is: were you entitled to the implied status in the first place?

We do know from the guide (http://www.cic.gc.ca/english/information/applications/guides/5553ETOC.asp) that "if your application is returned as 'incomplete', it is considered to have never been submitted and therefore you would not benefit from 'implied status' or the ability to continue working until a decision is made."

My question is, are they returning invalid applications as though they were incomplete?