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Obtaining a Canadian Work Permit through Intra-Company Transfer

Updated: Mar 1


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For foreign nationals seeking employment in Canada within their international employer's Canadian branch, parent company, subsidiary, or affiliate, the Intra-Company Transfer (ICT) work permit is a valuable option. This program facilitates temporary transfers, making it easier for employees to contribute their expertise and skills to their employer's Canadian operations. In this blog post, we will delve into the ICT program, its key features, eligibility criteria, and the pathways for employees, established companies, and start-ups to obtain ICT work permits in Canada.



Understanding the ICT Program


Before embarking on the journey to obtain an ICT work permit, it's essential to grasp two fundamental aspects of the program:

  1. LMIA Exemption: ICT work permits are exempt from the Labor Market Impact Assessment (LMIA) requirement. This means that employers transferring eligible employees to Canada do not need to demonstrate that the foreign hire will have a neutral or positive impact on Canada's labor market. This exemption streamlines the process for both employers and employees.

  2. Eligible Positions: To qualify under the ICT program, the nature of the applicant's work in Canada must fall under the categories of "managerial, executive, or involving specialized knowledge." These definitions are crucial for determining eligibility:

  • Managerial Positions: Divided into two sub-genres, senior managers and functional managers. Senior managers oversee the enterprise and supervise other managers or professional employees. Functional managers manage specific functions essential to the company's goals but may not necessarily supervise employees.

  • Executive Positions: These involve directing the management of an entire corporation or a significant portion of it.

  • Positions Involving Specialized Knowledge: These positions require advanced expertise and proprietary knowledge of the enterprise's products, services, processes, and procedures.


Eligibility for an ICT Work Permit


To be eligible for an ICT work permit, applicants must meet specific criteria at multiple levels, including employees, established companies, and start-ups:


Employee Eligibility:

  • The applicant must be employed by a foreign multi-national company (MNC) seeking to transfer employees to Canada.

  • The transfer must be to a Canadian company that is a branch, parent company, subsidiary, or affiliate of the foreign employer.

  • Employment must be at a legitimate and continuing establishment of the Canadian company.

  • The applicant must meet all temporary entry requirements for immigration to Canada.

  • They must have worked full-time for a minimum of one continuous year (within the last three years) in a role comparable to the one they will assume in Canada.


In certain situations, the one-year full-time work criterion may not apply. Exemptions are considered for ICT work permit applicants in the following scenarios:


A. If the employee worked part-time for the foreign MNC, other factors, such as years of employment, comparability of positions, extent of part-time work, and the potential for program abuse, may be considered by Immigration, Refugees and Citizenship Canada (IRCC).


B. When a recent corporate acquisition or merger related to the foreign MNC has occurred, the "one continuous year" of employment requirement can be bypassed if the employee has worked for one of the new corporation's affiliates for at least one year in the previous three years.


Established Company Eligibility:

  • The foreign MNC must have a Canadian company, subsidiary, branch, or affiliate.

  • The Canadian company should be operational, actively conducting business, and providing goods and services on an ongoing basis.

  • The companies must have a qualifying business relationship.

Start-Up Company Eligibility:

  • The start-up must demonstrate the financial capacity to cover start-up costs, including employee compensation.

  • A comprehensive business plan outlining staffing and business operations in Canada is required.

  • The start-up must secure or actively pursue a physical location in Canada.

  • The company's size should be sufficient to support the transferring employees' functions.

  • The start-up must show an expectation of conducting business in Canada, with Canadian management responsible for directing operations.

Successful start-up ICT work permit applicants receive a one-year temporary work permit, with the possibility of renewal as long as the company maintains a qualifying relationship with a Canadian entity, continues active business operations in Canada, and staffs the new Canadian operations.



Conclusion


The Intra-Company Transfer (ICT) work permit is a valuable pathway for foreign nationals temporarily transferring to Canada to work for their international employer's Canadian entities. This program, exempt from the Labor Market Impact Assessment (LMIA), provides opportunities for employees in managerial, executive, or specialized knowledge roles. With specific eligibility criteria for employees, established companies, and start-ups, the ICT program contributes to the diversity and expertise in Canada's workforce, fostering economic growth and innovation. For those considering an ICT work permit, understanding the program's nuances and requirements is the first step towards a successful work experience in Canada.

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