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Not sure what you mean by pending. She will have implied status. If the LMIA is approved in time and the work permit is approved, no issues. If the LMIA is not approved in time or if the LMIA is refused, the application will most likely be rejected (due to not having an approved LMIA) which will then put her out of status in Canada effective the day her current work permit expired.
Also, I have one more question.
I understand that for EE, the job offer has to be valid for 1 year after becoming a PR . But if her employer is willing to give a permanent job offer, could she directly apply for OINP? She has gathered 2 years of Canadian Experience so far.
If eligible to apply, would applying for PNP allow her to work in any way?
 
Also, I have one more question.
I understand that for EE, the job offer has to be valid for 1 year after becoming a PR . But if her employer is willing to give a permanent job offer, could she directly apply for OINP? She has gathered 2 years of Canadian Experience so far.
If eligible to apply, would applying for PNP allow her to work in any way?

I don't know. She will need to research the OINP program requirements.
 
That actually triggers one more question.
I understood when you said that work experience gained while on implied status cannot be counted. But can she continue to work and earn if LMIA Application and WP Application are submitted before OWP expiry?
I understand that she would have to stop working if closed work permit application is refused. But until then, could she work inorder to manage her living expenses.

Just wanted to clarify that she can only keep working if LMIA has been approved before her WP expires and she has submitted her new WP application.