Canada has announced major updates to the Intra-Company Transfer (ICT) program. These updates, which were released on October 3, 2023, will affect how multinational companies can transfer employees to their Canadian branches.

The new rules set stricter requirements for both employers and employees in the ICT program. These changes are part of the International Mobility Program, which lets some foreign workers get work permits without needing a Labour Market Impact Assessment (LMIA).

Stricter Criteria for Multinational Corporations

One of the big changes is that IRCC officers will now check if companies really are multinational. They need to have revenue-generating operations in at least two countries before they can set up in Canada under the ICT program. This is to stop companies without a real international presence from misusing the program.

Refined Definition of Specialized Knowledge

The updates also clarify what counts as “specialized knowledge” for ICT visas. IRCC now gives more detailed guidance on how to judge if someone has this knowledge and if the job really needs that expertise. This change is to make sure only truly skilled and necessary workers are transferred.

Enhanced Eligibility Criteria for Foreign Nationals

The new rules also tighten the eligibility criteria for foreign nationals applying for ICT visas. Though details are unclear, this suggests a more thorough vetting process for applicants.

The rules now stress that ICTs shouldn’t be used to move a company’s general workforce to Canadian affiliates. The update also emphasizes that officers must include all evidence for ICT applications in the Global Case Management System (GCMS).

Impact on Free Trade Agreements (FTAs)

Canada has updated rules for various free trade agreements (FTAs) with countries like the United States, Mexico, Korea, Peru, Colombia, Chile, the European Union, the United Kingdom, and partners in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The changes standardize instructions for these FTAs, combining ICT guidance into individual pages for each work provision. This aims to make the application process smoother and more consistent across different agreements.

IRCC also updated staff documentation for these FTAs:

• Canada–United States–Mexico Agreement
• Canada–Korea Free Trade Agreement
• Canada–Peru Free Trade Agreement
• Canada–Colombia Free Trade Agreement
• 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 standardize the format by:

• Combining all guidance on assessing ICTs into the instructions for each FTA
• Creating individual pages for each temporary work provision
• Adding an overview page

Broader Context of Immigration Reforms

The updates to the ICT program are part of a broader initiative by IRCC to reform Canada’s temporary resident programs. Immigration Minister Marc Miller aims to reduce temporary residents in Canada from 6.5% to 5% over the next three years. This aligns with plans to cut down study permits, post-graduation work permits, and spousal open work permits.

The government has also halted the processing of the low-wage stream of the Temporary Foreign Worker Program in areas with high unemployment rates.

Implications for Businesses and Foreign Workers

Stricter ICT visa requirements mean it will be harder for some businesses to transfer employees to Canada. Companies must meet the stricter definition of a multinational corporation and prove their transferees possess genuinely specialized knowledge crucial for their Canadian operations. Foreign workers must demonstrate their specialized skills and expertise’s relevance to their Canadian roles, requiring more comprehensive evidence.

The upcoming Immigration Levels Plan, set to be released on November 1, 2024, will be a critical document to watch. For the first time, this plan will include targets for temporary residents, providing further insight into Canada’s strategy for managing its temporary foreign worker population.

Take Professional Help from Licensed Consultants

Navigating these new regulations can be complex for employers and employees. If you’re considering applying for an ICT visa or need help understanding how these changes might impact your business, our team led by Keshav Sharma, a Regulated Canadian Immigration Consultant (RCIC), can provide tailored advice and support.