Canada Tightens Requirements for Intra-Company Transfer Visa

Canada has revealed significant updates to the Intra-Company Transfer (ICT) program. The updates released on October 3, 2023, will impact the process by which multinational companies transfer employees to their Canadian branches.

The updated regulations impose more stringent obligations on employers and employees participating in the ICT program. The International Mobility Program includes these changes, allowing certain foreign workers to obtain work permits without the requirement of a Labour Market Impact Assessment (LMIA).

More Rigorous Standards for Global Companies

One significant change is that IRCC officers will now verify whether companies are genuinely multinational. They must establish revenue-generating operations in a minimum of two countries prior to setting up in Canada under the ICT program. This aims to prevent companies lacking a genuine international presence from exploiting the program.

Refined Definition of Specialized Knowledge

The updates further elucidate what is considered “specialized knowledge” for ICT visas. IRCC now provides clearer guidance on assessing whether an individual possesses this knowledge and determining if the job genuinely requires that expertise. This adjustment aims to ensure that only genuinely skilled and essential workers are moved.

Enhanced Eligibility Criteria for Foreign Nationals

The updated regulations further refine the eligibility requirements for foreign nationals seeking ICT visas. While specifics remain vague, this indicates a more comprehensive evaluation process for candidates.

The regulations now emphasize that ICTs must not be utilized to transfer a company’s overall workforce to Canadian affiliates. The update highlights the necessity for officers to incorporate all evidence related to ICT applications within the Global Case Management System (GCMS).

Effects on Free Trade Agreements (FTAs)

Canada has revised regulations for several free trade agreements (FTAs) with nations such as the United States, Mexico, Korea, Peru, Colombia, Chile, the European Union, the United Kingdom, and participants in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The modifications create uniformity in the instructions for these FTAs, integrating ICT guidance into separate pages for each work provision. This seeks to enhance the application process, ensuring it is more streamlined and uniform across various agreements.

IRCC has also revised staff documentation for these FTAs:

• Canada-United States-Mexico Agreement
• Canada-Korea Free Trade Agreement
• Canada and Peru Trade Agreement Without Tariffs
• Canada and Colombia Trade Agreement Without Tariffs
• Canada-Chile Free Trade Agreement
• Canada-European Union: Comprehensive Economic and Trade Agreement
• Canada-United Kingdom Trade Continuity Agreement
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The updates establish a consistent format by:

• Integrating all recommendations for evaluating ICTs into the directives for each FTA
• Developing separate pages for each temporary work arrangement
• Incorporating an overview page

Broader Context of Immigration Reforms

The revisions to the ICT program are a component of a larger effort by IRCC to enhance Canada’s temporary resident programs. Immigration Minister Marc Miller intends to lower the percentage of temporary residents in Canada from 6.5% to 5% within the next three years. This is in accordance with the plans to reduce study permits, post-graduation work permits, and spousal open work permits.

The government has suspended the processing of the low-wage stream of the Temporary Foreign Worker Program in regions experiencing high unemployment rates.

Implications for Companies and International Employees

The new ICT visa requirements will make it more challenging for certain businesses to relocate employees to Canada. Companies are required to adhere to a more stringent definition of a multinational corporation and demonstrate that their transferees have genuinely specialized knowledge that is essential for their operations in Canada. Foreign workers are required to show that their specialized skills and expertise are relevant to their roles in Canada, necessitating more thorough evidence.

The forthcoming Immigration Levels Plan, scheduled for release on November 1, 2024, will be an important document to monitor. This plan will, for the first time, incorporate targets for temporary residents, offering additional clarity on Canada’s approach to overseeing its temporary foreign worker demographic.

Changes to the Intra-Company Transferee Program

Updated definition of multinational corporations

One of the main changes focuses on what constitutes a “multinational corporation.” Previously, the guidelines were imprecise, making it difficult for businesses to determine whether they qualified for the program. With the updated definition, businesses will have a better grasp of the relationship between a foreign organization and its Canadian subsidiary. This includes demonstrating joint ownership or direct collaboration, which will assist prevent organizations that do not satisfy the criteria from making use of the ICT program.

Businesses should ensure that their organizational structure and documentation are compliant with the new criteria to avoid delays or denials during the transfer process.

Specialized Knowledge Requirements

The Intra-Company Transferee Program (ICT) is developed for employees who specialize in ensuring the smooth operation of the company in Canada. The most recent modifications provide a clearer definition of “specialized knowledge.” Employees applying for the ICT program must now demonstrate special expertise that cannot be found in the Canadian labour market.

This is especially important for organizations that want to transfer staff with technical or specialist skill sets.

Restrictions on general workforce transfers.

To prevent misuse of the ICT program, the most recent guidelines specify that it should not be utilized to transfer the general workforce to Canada. This modification is consistent with Canada’s wider immigration policy, which emphasize bringing in individuals with specialized skills and knowledge above filling general labor shortfalls that can be addressed by local workers.

This upgrade requires firms to be more selective in hiring people with specific skills that are difficult to find in the local labor market.

Global Case Management System (GCMS) Documentation

One of the most significant operational changes is the implementation of the Global Case Management System (GCMS) to ensure that all ICT applications are correctly documented. Currently, IRCC has strict documentation standards, requiring enterprises to submit accurate information when making applications under the ICT program.

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