Citizenship and Immigration Canada (CIC) issued new guidelines yesterday, detailing its new method of assessing Intra-Company Transfers based on Specialized Knowledge. This provision is an important vehicle for many companies seeking to bring/send personnel to Canada, and its new limitations could have significant impact on many companies who indeed seek to bring/send specialized personnel to Canada.

Among other new considerations, the new guidelines indicate that an Intra-Company Transferee must:

  • (a) show a high degree of BOTH proprietary knowledge AND advanced expertise
  • (b) be paid at least prevailing wage (with an exemption for NAFTA and other Free Trade Agreement applicants), and
  • (c) be supervised in Canada (not the home country).

These elements represent significant departures from previous considerations, and will narrow the available pool of personnel that employers can send/bring to Canada.

Previously (again, among many issues):

  • Intra-Company Transferees could be paid and supervised from a foreign country (though this has been changing in recent years). This new provision disallows that, so that if an employee is coming for a short stay, and will remain under the control of a 'home' supervisor, he may no longer qualify as an Intra-Company Transferee.
  • Intra-Company Transferees needed to provide evidence of only one of 'proprietary knowledge' or 'advanced expertise'. The new requirement for both elements of the test will certainly eliminate a large pool of prospective applicants who may have previously qualified.

What is the impact of the changes:

The impact of these changes is significant. Many companies rely on these Intra-Company Transfer provisions to allow effective global operation. With restricted criteria, it is certain that many employees who could previously be considered 'routine' Intra-Company Transfers, will suddenly need to find another Labour Market Opinion (LMO) exemption (of which there are very few), or indeed seek an LMO, which could take considerable time and expense, and which is not assured of success.

Who should consider the impact of the changes:

The impact of these changes should be considered by any corporation that seeks to send/bring personnel to Canada, as well as relocation or global mobility organizations assisting such companies, and counsel advising such companies. As well, the employee him/herself will obviously be impacted by a restriction on the ability to quickly secure a work permit for Canada.

Actions to take:

Corporations, as well as counsel and relocation advisors, need to ensure that they recognize who may or may not qualify for Intra-Company Transfer status moving forward. Preventative measures such as seeking LMOs early may be in order, to compensate for this new development. Further, the new pronouncements are not clear on the fate of Intra-Company Transferees already in Canada, and the prospect for renewal. As such, corporations must also consider the need to replace those people already in Canada as their work permits being to expire.

Given the impact of the pronouncements, it is strongly suggested that corporations consider their options forthwith.

Further News:

These provisions take effect immediately. Further information can be seen at http://www.cic.gc.ca/english/resources/manuals/bulletins/2014/ob575.asp.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.