New Update on Intra-Company Transferees (ICT) – 2024

IRCC has recently announced new rules for ICT work permits, effective from October 3, 2024. These rules tighten the conditions for issuing work permits that are exempt from the Labour Market Impact Assessment (LMIA).

Before diving into the key updates, SICON will provide an overview of some essential terms to help newcomers to ICT understand the information more easily!

1. What is an Intra-Company Transferee (ICT) in Canada? 

An Intra-Company Transferee is a foreign employee transferred from an overseas branch, subsidiary, or affiliate of a multinational corporation to a Canadian office. This transfer typically applies to executives, managers, or employees with specialized knowledge and is exempt from LMIA requirements.

2. How do ICT employees come to Canada?

 ICT employees apply for a work permit through the International Mobility Program (IMP). This program allows multinational companies to transfer executives, managers, or skilled employees to Canada without an LMIA. The company must demonstrate a qualifying relationship between its foreign and Canadian entities.

3. What is the International Mobility Program (IMP)? 

The IMP is a program that allows Canadian businesses to hire foreign workers without an LMIA in cases where the hire benefits Canada’s economic, social, or cultural interests, including ICT employees.

4. Key Changes to ICT Requirements in 2024 👇👇👇 

Highlights of the new updates include:

– Multinational corporations must have revenue-generating operations in at least two countries, including their home country, before setting up a branch in Canada. This program cannot be used to establish a company’s first foreign enterprise in Canada.

– The ICT program is not open to international companies operating outside of Canada in a single jurisdiction that want to establish new operations in Canada.

– Employees must have at least one year of continuous employment within the past three years to qualify for a transfer to Canada.

– Transfers to Canada must be temporary.

– The Canadian enterprise must engage in regular, ongoing business activities, providing goods or services to ensure stable employment for ICT employees.

– The Canadian business must maintain a valid relationship with the parent company, such as a branch, subsidiary, or affiliate.

– The role of the employee at the new Canadian office must be essential and not possible to perform remotely. Their relocation to Canada must be necessary to independently manage Canadian operations apart from the foreign company.

– Employees transferring to the Canadian entity must receive wages that align with the region and the position title in Canada.

– Businesses without physical commercial premises, such as those operating from residential addresses, are not eligible for the ICT program.

– Foreign employees or immediate family members with a controlling interest in the foreign company looking to enter Canada to start a new Canadian business are not eligible unless they meet the requirements of a multinational corporation (MNC).