To scale back on the number of temporary residents, Canada has taken yet another step – to make the regulations for intra-company transfers of employees more stringent. This step could hit medium-smaller companies hard, who only had operations in US, but were using Canada to house those immigrant workers who did not get an H-1B visa or were not sponsored for it. By using Canada as the base, the workers were more or less on the same time zone and could effectively cater to US clientele. However, immigrant workers who are citizens of countries with whom Canada has a free-trade agreement will not be impacted – this does not include India.
To sponsor workers for intra-company transfer (ICT) work permits, companies must have offices in at least two countries other than Canada. It must also have a physical office in Canada. While workers in Canada can continue with hybrid work and work at client premises, it is essential that they report to a physical office set up in Canada. Home-offices, shared co-working spaces and mailing offices are not sufficient. Plus, the company in Canada must be engaged in active business.
Envoy Global surveyed around 500 HR professionals in the US. In its report ‘Immigration Trends Survey (2023)’ it points out that when respondents who were asked: If you company transferred or relocated employees outside of the US due to visa-related issues, which countries were they sent to? 62% had selected Canada.
These changes are part of an update by the Immigration, Citizenship and Refugees Canada (IRCC) – it is a guidance on how IRCC staff should analyze immigration applications.
In addition to more stringent norms for companies, updated guidance has also been issued as regards the workers who would be deputed under the ICT program. They must have at least two years of ‘specialized knowledge’ experience with the foreign enterprise. Transfers must be temporary and for the ‘same’ position held earlier with the company. The workers will also need to demonstrate that their work will generate significant economic, social or cultural benefits, or opportunities for Canadian citizens or permanent residents during their employment in Canada. These more restrictive requirements for applicants were not previously required.
According to Ken Nickel-Lane, founder of an immigration services firm, “There are lots of nuances to the changes but one of the big ones is the need for the multinational company to have operations in two countries before being able to use the intra-company transfer category. So, if you are a company looking to expand into Canada, that just got more difficult to do. Presumably they are seeing what they perceive as abuse of this category, but is it enough to warrant blocking another means to build a business here in Canada?”
“This change in a series of policy changes by the government in response to increasing anti-immigration sentiment among the general public, all aimed at reducing the overall immigration levels into Canada for the foreseeable future. This backlash and subsequent policy changes are largely driven by housing shortages, reduced ability to access healthcare, K-12 schools and other concerns,” he adds.
In fact, for the first time the annual immigration levels plan, which is to be released in November, will also set down targets for temporary residents – which includes international students and temporary foreign workers.
The number of temporary residents in Canada has grown exponentially over the last few years from about 437,000 individuals in 2019 alone to about 1.2 million in 2023, the underlying objective behind the series of policy changes, be it for international students or temporary foreign workers is to achieve a decrease in the number of temporary residents from 6.5% of Canada’s total population to 5% by 2025.
To sponsor workers for intra-company transfer (ICT) work permits, companies must have offices in at least two countries other than Canada. It must also have a physical office in Canada. While workers in Canada can continue with hybrid work and work at client premises, it is essential that they report to a physical office set up in Canada. Home-offices, shared co-working spaces and mailing offices are not sufficient. Plus, the company in Canada must be engaged in active business.
Envoy Global surveyed around 500 HR professionals in the US. In its report ‘Immigration Trends Survey (2023)’ it points out that when respondents who were asked: If you company transferred or relocated employees outside of the US due to visa-related issues, which countries were they sent to? 62% had selected Canada.
These changes are part of an update by the Immigration, Citizenship and Refugees Canada (IRCC) – it is a guidance on how IRCC staff should analyze immigration applications.
In addition to more stringent norms for companies, updated guidance has also been issued as regards the workers who would be deputed under the ICT program. They must have at least two years of ‘specialized knowledge’ experience with the foreign enterprise. Transfers must be temporary and for the ‘same’ position held earlier with the company. The workers will also need to demonstrate that their work will generate significant economic, social or cultural benefits, or opportunities for Canadian citizens or permanent residents during their employment in Canada. These more restrictive requirements for applicants were not previously required.
According to Ken Nickel-Lane, founder of an immigration services firm, “There are lots of nuances to the changes but one of the big ones is the need for the multinational company to have operations in two countries before being able to use the intra-company transfer category. So, if you are a company looking to expand into Canada, that just got more difficult to do. Presumably they are seeing what they perceive as abuse of this category, but is it enough to warrant blocking another means to build a business here in Canada?”
“This change in a series of policy changes by the government in response to increasing anti-immigration sentiment among the general public, all aimed at reducing the overall immigration levels into Canada for the foreseeable future. This backlash and subsequent policy changes are largely driven by housing shortages, reduced ability to access healthcare, K-12 schools and other concerns,” he adds.
In fact, for the first time the annual immigration levels plan, which is to be released in November, will also set down targets for temporary residents – which includes international students and temporary foreign workers.
The number of temporary residents in Canada has grown exponentially over the last few years from about 437,000 individuals in 2019 alone to about 1.2 million in 2023, the underlying objective behind the series of policy changes, be it for international students or temporary foreign workers is to achieve a decrease in the number of temporary residents from 6.5% of Canada’s total population to 5% by 2025.
