The Canadian Intra-Company Transfer Program (ICTP) has undergone significant changes, effective October 3, 2024, impacting how multinational companies (MNCs) transfer employees to Canada. These changes aim to tighten the requirements and better align the ICTP with Canada’s broader immigration policies, focusing on attracting high-skilled workers while limiting the scope for lower-level transfers. Below is an overview of the recent changes to ICTP to help businesses assess the best way to transfer employees under this program.
New Definition of a Multinational Corporation (MNC)
A major update to the ICTP is the revised definition of a multinational corporation. To qualify for an ICTP transfer, the foreign entity must now be an MNC, meaning it must have operations in at least two countries outside of Canada before establishing an entity in Canada. Previously, a business with operations in just one country could qualify. This change excludes companies looking to establish their first foreign operation in Canada, effectively limiting the ICTP category to companies with broader international operations.
Enhanced Experience and Specialized Knowledge Requirements
Another key update is the strengthened requirements for employees seeking to qualify under the specialized knowledge category. While the rule still stipulates at least one year of experience with the foreign entity, the new guidelines suggest that workers with less than two years of experience may only qualify if they can demonstrate extensive proprietary knowledge. This shift emphasizes the need for applicants to possess advanced knowledge that is crucial to the Canadian entity’s operations.
Wage and Employment Conditions
The new guidelines also extend prevailing wage requirements to all ICTP applicants, including executives and senior managers, whereas previously, this was only mandatory for specialized knowledge workers. The expectation is that these employees should receive compensation that aligns with their level of expertise, especially for specialized knowledge workers whose skills typically demand above-average wages.
Additionally, companies must show that the ICTP worker’s position will remain available in the foreign entity after their assignment in Canada, ensuring continuity for both the employee and the organization.
Physical Location and Remote Work
The ICTP now has stricter rules regarding the physical location of employees. ICTP workers must be based at a physical commercial premise in Canada, meaning businesses cannot use shared office spaces or virtual setups. This change aims to ensure that the transfer is aligned with genuine business operations in Canada, and not just a remote working arrangement.
Shorter Service Personnel Permits
For companies sending service personnel to Canada for temporary client support, the new rules limit their permits to one year. This is a response to the growing concern that ICTP permits were being used for longer-term staffing solutions, rather than temporary, specialized assignments.
How to Navigate These Changes
If your company plans to transfer employees under the ICTP, it’s important to ensure that:
- The foreign entity is a multinational corporation with operations in at least two countries.
- The employee has sufficient experience (typically two or more years for specialized knowledge workers).
- Wages align with the prevailing wage requirements for the position in the Canadian market.
- The transfer is for a legitimate business purpose, with a clear position to return to in the foreign entity after the Canadian assignment.
- The work will be conducted from a physical commercial premise in Canada.
With these changes, businesses need to demonstrate that the transfer will generate significant economic, social, or cultural benefits to Canada, reinforcing the temporary nature of the assignment.
Conclusion
By preparing in advance to meet these updated requirements, employers can better navigate the ICTP process and successfully transfer key employees to Canada.
