If you are a business owner with a company outside of Canada and are looking to transfer an employee to a Canadian branch or subsidiary, the Intra-Company Transfer (ICT) program may be an option. This program allows you to transfer an eligible employee from one entity to a related entity inside Canada on a work permit.
A significant number of people who come to Canada on a work permit do so under economic programs like the Intra-Company Transfer (ICT) program. This occurs when a Canadian business requires employees with specific skill sets that it is unable to identify or secure within Canada. The business then relies on its employees located outside of Canada who have the skills required to help the Canadian business perform its functions efficiently.
How does the transfer process work?
For an employee to be transferred from a foreign company, they must have been employed with that company for a minimum of one year on a full-time basis. This employment must have occurred while the employee was physically located outside of Canada.
There must also be a legal relationship between the two entities. For example, if a business in India has employees with specialized knowledge of software that the Canadian entity will also use, those employees may be transferred to the Canadian branch. The entities must be legally related as a branch, a subsidiary, a parent company, or an affiliate.
What are the requirements for the Canadian entity?
Once the legal relationship is established and the employee meets the one-year employment requirement, the transfer is subject to specific Canadian regulations. The Canadian entity must agree to pay the employee the minimum prevailing wage inside Canada.
Additionally, the Canadian entity must prove that the employee possesses specific skill sets, categorized as either specialized knowledge or senior managerial knowledge.
What must the employer prove?
The burden is on the Canadian employer to prove that the employee possesses knowledge that is not readily available inside Canada. The employer must also demonstrate that bringing this person to Canada will lead to the improvement of the Canadian economy without having a negative impact on the Canadian labor force.
The Intra-Company Transfer (ICT) program is a viable option for employers wanting to bring foreign employees to work through their Canadian branch. It allows an employer to assist these employees in obtaining a temporary work permit to perform necessary duties inside Canada.
