Arshdeep Singh kahlon

The Intra-Company Transfer (ICT) Work Permit allows multinational companies to relocate key employees from foreign offices to their Canadian branches, subsidiaries, or affiliates. This program enables businesses to bring executives, senior managers, and specialized knowledge workers to Canada without requiring a Labour Market Impact Assessment (LMIA), making the process faster and more streamlined.

However, with recent changes to IRCC guidelines, ICT applications now face greater scrutiny. At Kahlon Law Office, we provide strategic legal guidance to help businesses navigate these evolving requirements and maximize their chances of a successful application.

Who qualifies for an ICT work permit?

To qualify for an ICT Work Permit, the following conditions must be met:

1. Employer eligibility:

The foreign company must have a qualifying relationship with the Canadian entity, meaning it must be a parent, subsidiary, branch, or affiliate.
The foreign company must be actively engaged in business and not just exist on paper.
As of October 2024, the foreign company must be a multinational corporation (MNC), meaning it must already operate in at least two countries before expanding to Canada.

Key Update: Companies that operate in only one country cannot use the ICT program to set up their first international operation in Canada.

2. Employee eligibility:

The transferee must have been continuously employed with the foreign company for at least one year in the last three years in a full-time role.
The transferee must be coming to Canada in one of the following roles:
- Executives: Responsible for directing a company or major business unit.
- Senior Managers: Managing significant company functions or overseeing employees.
- Specialized Knowledge Workers: Possessing unique and advanced expertise essential to the company’s services, products, or operations.

Important Update: Specialized knowledge workers must now meet a stricter two-part test, demonstrating both advanced proprietary knowledge and high-level expertise that is rare within the company.

The employee must work at a physical commercial premises in Canada—remote work arrangements are no longer eligible under the ICT program.
The employee’s foreign position must remain available so they can return after their temporary assignment in Canada.

What are the key changes to ICT work permit rules (2024-2025)?

On October 3, 2024, Immigration, Refugees and Citizenship Canada (IRCC) implemented major changes, tightening ICT work permit eligibility. Here’s what you need to know:

1. Stricter definition of specialized knowledge:

Employees must prove that they hold both advanced proprietary knowledge and an advanced level of expertise.
Officers will closely scrutinize job duties, salary levels, and unique qualifications to ensure the worker cannot be easily replaced by someone in Canada.

Legal Precedent: In Shams v. Canada (2023 FC 2023), the Federal Court upheld the refusal of an ICT application because the applicant failed to prove significant economic benefit to Canada, reinforcing the need for solid documentation.

2. The Multinational Corporation (MNC) requirement:

The foreign entity must already have revenue-generating operations in at least two countries before using the ICT category to expand to Canada.
A company cannot use an ICT work permit to establish its first international office in Canada.

Example: A $500 million company operating only in Brazil is now ineligible to use the ICT work permit to transfer key personnel to Canada unless it already operates in a second foreign country.

3. Mandatory prevailing wage for all ICT applicants:

Previously, only specialized knowledge workers were required to meet the prevailing wage in their industry and location.
New Rule: Managers and executives must also earn at least the prevailing wage for their occupation.
Applications with salaries below the median industry standard are likely to be refused.

Legal Case: In Rahimi v. Canada (2024 FC 70), the Federal Court upheld an officer’s decision to refuse an ICT work permit due to the applicant’s salary being below the industry standard, confirming the importance of competitive wages.

4. Restrictions on remote work & business premises:

ICT workers must work at a physical commercial premise in Canada.
Businesses that operate remotely, from co-shared spaces, or only have a virtual mailing address do not qualify under the ICT program.
If a foreign company is launching a new operation in Canada, it must secure a physical office location before applying.

Note: Free Trade Agreement (FTA) ICT applicants may have more flexibility on this rule, but IRCC has not explicitly confirmed this.

5. Limits on changing job roles in Canada:

If an ICT transferee enters Canada as a specialized knowledge worker, they cannot be promoted to a managerial role unless they held one year of prior managerial experience in the last three years before the transfer.

Companies must carefully plan long-term career progression to avoid compliance issues.

What happens after an ICT work permit is approved?

Initial Duration & Extensions:

ICT work permits are initially valid for one year (for new office setups) or up to three years for established businesses.
Extensions are granted in two-year increments, with a maximum stay of:
- Seven years for executives and senior managers.
- Five years for specialized knowledge workers.
After reaching the maximum limit, the worker must leave Canada for at least one year before reapplying under the ICT category.

2. Permanent Residency Pathways

ICT work permit holders may qualify for Canadian permanent residency through pathways such as:
- Express Entry (Canadian Experience Class or Federal Skilled Worker Program)
- Provincial Nominee Programs (PNPs)
- Business Immigration Streams

How can Kahlon Law Office help?

With increasing scrutiny on ICT work permit applications, it is crucial to get expert legal guidance. At Kahlon Law Office, we help businesses and professionals navigate Canada’s complex immigration system by:

Ensuring compliance with the latest ICT policy changes.
Preparing strong documentation and legal arguments.
Mitigating risks of refusals due to wage issues, eligibility concerns, or business premises requirements.
Providing tailored strategies for permanent residency options.

Intra-company Transfer Work Permit

Who qualifies for an ICT work permit?

What are the key changes to ICT work permit rules (2024-2025)?

What happens after an ICT work permit is approved?

How can Kahlon Law Office help?

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