Canada has rolled out significant reforms to the Intra-Company Transferee (ICT) work permit framework, which enables multinational corporations to transfer employees to their Canadian branches without requiring a Labour Market Impact Assessment (LMIA). These are part of Canada’s comprehensive strategy to control the influx of temporary foreign workers, ensuring the program is utilized correctly and not exploited for workforce expansion.

What Are the New Regulations

One of the key changes is that foreign companies seeking ICTs must now demonstrate that they are genuine, revenue-generating multinational corporations (MNCs). Under the revised guidelines, these firms must show they generate operational revenue in at least two different countries prior to opening a branch or affiliate in Canada. This measure is intended to prevent companies from using the program to sidestep standard immigration and work permit procedures.


Moreover, there are stricter criteria governing the types of positions eligible for ICT transfers. Only those in executive, managerial, or specialized knowledge roles may apply. The new rules further define "specialized knowledge" to ensure that only individuals with unique skills not readily available in Canada receive permits.

Duration Limits and Remote Work Regulations

Another significant modification involves the introduction of time limits for ICT work permits. For executive and managerial roles, the permits will be granted for up to three years initially, with the option to renew, totaling a maximum of seven years. For specialized knowledge employees, the permit length is restricted to five years.


The rise of remote work has also been factored into these new regulations. Companies must now provide justification for the physical presence of an employee in Canada if the role can be performed remotely. This adjustment seeks to avoid unnecessary immigration when the job does not necessitate being physically present in Canada.

The Wider Implications on Canada's Immigration Policies

These changes to the ICT program are consistent with Canada’s broader immigration reforms. Immigration, Refugees, and Citizenship Canada (IRCC) is focused on managing the flow of temporary residents as part of its aim to reduce the share of temporary foreign workers in the nation. Immigration Minister Marc Miller has voiced concerns about the increasing number of temporary work permits issued in recent years, leading to a government initiative to tighten various programs.


As an extension of this strategy, the government is also looking to reduce other forms of temporary work permits, including those associated with study permits, post-graduate work permits, and spousal open work permits. The ultimate goal is to decrease the share of temporary residents from the current 6.5% of the population to 5% within the coming years.

What Does This Mean for Multinational Corporations?

For companies that depend on intra-company transfers to support their global workforce, these new regulations introduce fresh challenges. Businesses will now be required to supply more comprehensive documentation to demonstrate their operations are legitimate and compliant with the newly imposed criteria established by the Canadian government.


Additionally, organizations will need to thoughtfully adjust their staffing strategies to comply with the new rules. This includes substantiating that their employees possess genuine specialized knowledge not easily found in Canada and justifying the requirement for their physical presence in the country.


The updated restrictions on Intra-Company Transferee work permits reflect Canada's ongoing efforts to regulate temporary foreign worker programs and prevent misuse. These modifications are anticipated to significantly impact multinational corporations attempting to transfer staff to their Canadian operations. With enhanced eligibility criteria and new limits on permit durations, companies will need to be more meticulous in their applications to ensure they meet Canadian immigration regulations.


For those affected by these changes, it is advisable to seek guidance from immigration professionals to effectively navigate the new requirements.