Canada immigration authorities have announced now restrictions on Intra-Company Transferee work permits.
The new policies, effective October 3, substantially restrict the conditions for the issuance of work permits under the Labour Market Impact Assessment (LMIA)-exempt provisions [R205(a) (C61, C62, C63)] of the immigration regulations.
The new rules seek to ensure the ICT provisions are used for their intended purpose – to facilitate the admission of executive personnel of multinational corporations (MNCs) on a temporary basis, seeking to expand operations in Canada.
What Is An Intra-Company Transferee in Canada?
An Intra-Company Transferee in Canada is a foreign worker transferred from an overseas branch, subsidiary, or affiliate of a multinational company to a Canadian office. This transfer is typically for executives, managers, or specialized knowledge workers and is facilitated through an LMIA-exempt work permit under specific regulations.
How Do Intra-Company Transferees Come To Canada?
Intra-Company Transferees apply for a work permit through the International Mobility Program (IMP). This program allows multinational companies to transfer executives, managers, or specialized knowledge workers to Canada without requiring a Labour Market Impact Assessment (LMIA). The employer must demonstrate a qualifying relationship between the foreign and Canadian entities.
What Is The International Mobility Program?
The International Mobility Program (IMP) is a Canadian immigration program that allows employers to hire foreign workers without the need for a Labour Market Impact Assessment (LMIA). It facilitates work permits for specific categories, such as Intra-Company Transferees, where the hiring benefits Canada’s economic, social, or cultural interests.
The latest restrictions are consistent with recent initiatives to reduce the number of foreign workers in Canada, which have accelerated to record numbers since the Covid pandemic.
Here are 10 objectives of the new rules:
1. MNCs must demonstrate active, revenue generating operations in at least two (2) countries including the home country, before establishing presence in Canada and cannot access the program to build their first foreign enterprise in Canada.
2. The ITC provisions are not open to international companies operating outside Canada in a single jurisdiction that wish to launch new operations in Canada;
3. Relocation to Canada of executive, managerial or specialized knowledge personnel, who have at least 1-year of continuous employment during the past 3-years;
4. Relocation to Canada must be of a temporary duration.
5. The new Canadian enterprise must be doing business on a regular and systematic basis and continuously providing goods or services, thus ensuring it provides stable employment for the work permit holder.
6. The new Canadian enterprise must maintain a qualifying relationship with the parent, as a branch, subsidiary or affiliate.
7. Foreign nationals transferring to establish a new qualifying enterprise in Canada, must ensure their functions cannot be carried out remotely, and that there is a need for them to relocate to Canada to manage the Canadian business operations, independently of the foreign company.
8. Foreign workers being assigned to work for the Canadian business must be earning wages that are commensurate with the region in Canada and the title of the position they will retain in the business.
9. Business operations with no physical commercial premises, such as residential location, co-sharing, virtual businesses using a mailing address, are not eligible to transfer to ICT’s to Canada.
10. Foreign nationals and or immediate family members who own controlling interest in the foreign enterprise seeking entry to Canada to start a new Canadian business are not eligible unless they can demonstrate the enterprise meets the requirements of an MNC.
FAQ: New Intra-Company Transfer (ICT) Rules for Work Permits
What are the new ICT work permit restrictions?
The new rules restrict the issuance of work permits under the LMIA-exempt Intra-Company Transfer provisions. They aim to ensure the program is used only for multinational corporations (MNCs) transferring executive personnel for temporary, legitimate business expansion in Canada.
Can companies use the ICT provisions to launch new operations in Canada?
No, companies operating outside of Canada in a single jurisdiction cannot use the ICT program to start new operations in Canada. MNCs must demonstrate active, revenue-generating operations in at least two countries, including their home country.
What are the employment requirements for personnel being transferred to Canada?
Transferred personnel must have at least one year of continuous employment with the company during the past three years. Additionally, their relocation to Canada must be of a temporary nature, and their roles should be integral to the Canadian business operations.
Are there specific requirements for the new Canadian enterprise?
Yes, the Canadian enterprise must engage in regular, systematic business operations, continuously providing goods or services, and maintain a qualifying relationship (e.g., branch, subsidiary, or affiliate) with the foreign parent company to be eligible for the ICT program.
Are business operations without physical premises eligible for the ICT program?
No, businesses operating without physical commercial premises, such as those using residential addresses, co-sharing spaces, or virtual mailing addresses, are not eligible for the ICT work permit provisions under the new rules.
