Major New Limits – Intra-Company Transfer Work Permits, Low-Wage LMIAs, Post-Graduation Work Permit Eligibility

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Immigration, Refugees and Citizenship Canada (IRCC) have announced major changes regarding eligibility for intra-company transfer (“ICT”) work permits, low-wage Labour Market Impact Assessments (“LMIAs”), and Post-Graduation Work Permits (“PGWPs”) which will further reduce the number of workers in Canada. Here’s what you need to know:

Limits to Intra-Company Transfer Work Permits

The changes to ICT work permits are now in effect. These significant changes encompass ICTs that are not subject to free trade agreements. . The free trade agreement ICTs remain unaffected.  These include free trade agreements that Canada has with other countries, including but not limited to the United States, Mexico, the European Union, the UK, Ukraine, Peru, Colombia, Chile, South Korea, Australia, Brunei, Japan, New Zealand, and Malaysia. The changes below refer to the general ICT work permit provisions that are not part of free trade agreements.

  • The prevailing wage for the occupation (the median wage for the occupation in the area where the foreign national will work) must now be met for executives, managers, and specialized knowledge workers. This was previously only required for specialized knowledge workers.
  • The company transferring the workers must meet the definition of “multinational corporation” (“MNC”). IRCC defines an MNC as a company which has at least two (2) entities outside of Canada that are actively engaged in business.
  • The worker must be transferring to Canada in the same capacity as the position they held abroad. This language is vague and not well-defined, but we believe it to mean that the worker must hold the same duties in Canada that they held overseas, but do not know if the job title must be identical or just within the same national occupational code.
  • The worker’s position in the foreign enterprise must remain available to them to return to once they leave Canada. The particulars of this requirement are again unclear, especially considering that workers will often progress in their careers, and that the foreign company the worker was employed at may close and they may need to transfer to another affiliate in the organization. In practice, in the past this has meant the transferring company must continue to carry on business at all times while the foreign worker is in Canada and be in a position to transfer the worker from Canada to the original company outside Canada to a largely similar position. Given that IRPA provides for dual intent, and allows foreign workers to have both a temporary and permanent intend, it is puzzling why IRCC have chosen to emphasize this criteria.
  • The employment location in Canada must be a physical commercial premises. It cannot be a co-shared premises, virtual business that only has a mailing address, or a residential location. Businesses should have a leased office, industrial, or other commercial premises to meet this requirement. This requirement seems unrealistic given the shift to many companies offering hybrid remote work and downsizing or sharing physical premises.
  • When entering to do project-based work, either at the company or client sites, a maximum work permit of one (1) year can be issued. This will affect workers who enter Canada for a specific project, such as delivering training sessions; inspecting, maintaining, or installing equipment at a client site; or operating specialized equipment for an infrastructure project.

Limits to Low-Wage LMIAs

Low-wage LMIAs are now further restricted, which will further limit the number of foreign workers in Canada. Low-wage LMIAs are defined as LMIAs for positions in which the wage offered for the job is below the overall median wage for all positions in that province or territory of Canada. The median wages are listed here: https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage.html. If the wage offered is above the median wage, the LMIA would be a high-wage LMIA.

  • IRCC will refuse to process low-wage LMIA applications in areas where the unemployment rate is 6% or higher. Unemployment rates by census metropolitan area can be located here: https://www.canada.ca/en/employment-social-development/services/foreign-workers/refusal.html. It should be noted that the unemployment rates for many large metropolitan areas in Canada, including Toronto, London, Windsor, Calgary, Edmonton, Vancouver, and Halifax, are over 6%.
    • Exemptions to the refusal to process include occupations in primary agriculture; construction; food manufacturing; hospitals; nursing and residential care facilities; educational services; caregiving services including registered nurses and registered psychiatric nurses, licensed practical nurses, home childcare providers, and personal support workers including live-in caregivers.
    • LMIAs solely to support an application for permanent residency are also exempt from the refusal to process.
  • IRCC will not process low-wage LMIAs where more than 10% of the workers at the same work location are low-wage temporary foreign workers (“TFWs”). However, for the following industries, this cap on TFWs at the work location is 20%:
    • Construction; food manufacturing; hospitals; nursing and residential care facilities; educational services; caregiving services including registered nurses and registered psychiatric nurses, licensed practical nurses, home childcare providers, and personal support workers including live-in caregivers.

Limits to Post-Graduation Work Permits

On November 1, 2024, the following will take effect for those who wish to apply for PGWPs:

For study permits issued before November 1, 2024:

  • Applicants must complete a designated English or French language proficiency test, which includes CELPIP, IELTS, PTE Core, TEF Canada, or TCF Canada, and achieve a minimum level of language proficiency.
    • Graduates of universities will need to achieve a Canadian Language Benchmark (CLB) level of 7, which is roughly equivalent to an adequate intermediate level.
    • Graduates of colleges will need to achieve a CLB level of 5, which is roughly equivalent to an initial intermediate level.

For study permits issued after November 1, 2024, in addition to having to meet language requirements, there are additional requirements as noted below that must be met:

Further reduction in the number of temporary residents can be expected based on the Minister Miller’s announcement of September 18, 2024 where he indicated changes to the eligibility criteria for Open Spousal Work Permits.

The government’s changes to these programs are significant and will make it more difficult for many people to come to Canada and for many people to stay in Canada. Many employers and workers who are intra-company transferees, on low-wage LMIA-based work permits, and recent graduates will be affected by these measures. These measures will significantly impact foreign businesses make it difficult for companies to establish and expand in Canada.  Clearly these are very challenging times in the Canadian immigration landscape. If you have questions about these changes, or about coming to or remaining in Canada for yourself or an employee, you can reach out to us for a consultation. Our Canadian immigration legal professionals can be reached by phone (416-368-1111) or via email: caruso@cilf.ca; fagan@cilf.ca; bonisteel@cilf.ca; ali@cilf.ca; mukherjee@cilf.ca; garciafialdini@cilf.ca.