Changes for Intracompany Transfers in Canada

The IRCC has implemented stricter rules and elevated standards and many employers are still finding it challenging to adjust one whole year after the major changes to intracompany transfer (ICT) work permits were announced.

What is an ICT?

An Intracompany Transfer allows foreign companies the opportunity to facilitate the temporary movement of certain employees from a foreign branch of their company to a related business or company in Canada. These employees can be:

1. Workers that have specialized knowledge

2. Executives / senior managers

In order to obtain an ICT, employees are generally required to be employed at a multinational company seeking entry to Canada to work at the company’s parent, branch, subsidiary, or affiliate. Moreover, the employee should have been employed with the company full-time for at least one year within the last three years.

Contrary to most work permits, ICTs do not need a Labour Market Impact Assessment (LMIA), which is typically a requirement to hire foreign workers.

Certain ICTs are supported by trade agreements such as The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) or Canada-United States-Mexico Agreement (CUMSA). However, the category most affected by the new rules and changes by the IRCC is the general ICT category, which applies regardless of citizenship.

Significant Changes: Multinational Corporation Requirement

There is now a requirement for the foreign company already be a multinational corporation (MNC). This means the company must generate revenue beyond its borders and have business operations in at least one country other than its home country.

Specialized Knowledge

Employers need to show that the employee’s knowledge and expertise is unique in the industry as there is now an increased scrutiny on whether the applicant’s expertise is truly specialized. Therefore, the IRCC expects to see a strong case showing that the employee has advanced expertise and knowledge before the work permit is approved especially if they have worked less than two years for the company.

Position Availability

The applicant’s position in the foreign company and foreign country must remain available so they can return at the end of their work in Canada. According to the IRCC, these practices reinforce the temporariness of the ICT.

Employer-Employee Relationship

There must be a clear employer-employee relationship with the Canadian company. The Canadian company should have direct day-to-day activities for the transferred worker. This helps prevent employees from joining without a real connection to the Canadian business. The employment relationship should also be well documented.

Employment Location

Employers are required to explain why the employee needs to be in Canada if the work of the foreign employee can be done remotely. Further to this, while executives do not need to be in Canada full time, they must lead the Canadian company daily and hold a position. Workers with specialized knowledge, on the other hand, must be employed and supervised by the Canadian enterprise.

So far, the changes for intracompany transfers display the stricter enforcement of existing rules as well as the creation of new ones. These changes entail companies providing more detailed evidence when transferring employees to Canada and practices that were accepted before may now lead to refusals. Employers must carefully review the updated guidelines and remain informed about all the recent changes and be prepared to provide any required documentation to help support their employees.

Sources:

Major, R. (2025, March 14). Canada Intra-Company Transfers. Canadim.

Steinman , R. M., & Couture, C. (2025, September 26). What’s new for Intracompany transfers to Canada under the International Mobility Program. Lexology.