Hiring Foreign Nationals in Canada – An Immigration Overview
By: Bill MacGregor
The purpose of this article is to provide an overview of the immigration rules relating to hiring foreign nationals to work in Canada. There is a growing need in Canada for skilled workers. To fill skills shortages, companies may have to consider hiring foreign nationals. If you hire or use the services of a foreign national in Canada, you must consider immigration issues, and you must be prepared for the challenges of dealing with immigration authorities. The key is to deal with immigration issues on a proactive basis.
Canada's Immigration and Refugee Protection Act (IRPA)
IRPA and its Regulations affect your business operations, your human resource planning and your potential liability. For example, the legislation:
- Affects your ability to hire foreign workers for positions in Canada
- Has an impact on foreign service providers or business people wishing to come into Canada to deal with your company
- Exposes you and your company to liability for breaches of the Act
- Affects the ability of foreign national employees to acquire permanent resident status
Canadian Work Permit Rules
As a general rule, no person, other than a Canadian citizen or permanent resident, may work in Canada without valid authorization. So the first question to ask is whether or not a foreign national entering Canada requires a work permit.
"Work" is widely defined as "an activity for which wages are paid or commission is earned, or that is in direct competition with the activities of Canadian citizens or permanent residents in the Canadian labour market." If a foreign national is being hired to work in Canada, he or she will require a work permit.
After assessing the person and the purpose of the entry, and determining that a work permit is required, the next step is to determine whether there is any work permit category under IRPA, under an international agreement (such as NAFTA) or under any government programs (such as the IT Workers Program) that fits the situation. If there is not, the Canadian employer must first approach Service Canada (formerly HRSDC) to obtain a "confirmation" (or labour market opinion) allowing employment to be offered to someone other than a Canadian citizen or permanent resident. If a confirmation is obtained, it can then be used to obtain a work permit from Immigration Canada.
Generally, the goal is to avoid the confirmation process if possible. The reason for this is that it avoids the risk of Service Canada denying the confirmation request. Secondly, having to apply for a confirmation can delay the overall time frame for obtaining a work permit.
The application package for a confirmation is detailed and must be prepared with great care.
IRPA's Regulations set out the factors that Service Canada is to base its confirmation decision on, including:
- Whether the work of the foreign national is likely to result in direct job creation or job retention for Canadians or permanent residents;
- Whether the work is likely to result in the creation or transfer of skills and knowledge for the benefit of Canadians and permanent residents;
- Whether the work is likely to fill a labour shortage;
- Whether the wages and working conditions are sufficient to attract Canadian citizens or permanent residents;
- Whether the employer has made reasonable efforts to hire or train Canadian citizens or permanent residents.
Québec Bound Foreign Nationals
Foreign nationals hired to work in Québec may, in addition to a Service Canada confirmation, require a Certificate of Acceptance (CAQ) from Québec's Ministère de l'Immigration et Communautés culturelles (MICC) before a work permit can be obtained. This requires a separate application to MICC. Note that a CAQ is not required for Québec bound foreign nationals who qualify for NAFTA or intra-company transferee work permits (discussed below).
Other Work Permit Categories
There are a number of potentially useful confirmation exempt categories to consider when hiring a foreign national. These include:
1. NAFTA Professional Category
NAFTA may be used by American and Mexican citizens. There is also a similar provision in the Canada-Chile Free Trade Agreement.
NAFTA lists over 60 professions that may be eligible for a work permit. The foreign applicant must usually have a university degree related to a listed profession, and the applicant must be entering to apply the skills of that profession. A one-year work permit, which is renewable, may be obtained.
Some professions listed under NAFTA include: computer systems analysts, engineers, scientific technicians, management consultants, medical and some allied professions, and many scientific categories such as chemist, geologist and biologist.
2. Intra-Company Transferees
Both NAFTA and IRPA have intra-company transferee provisions, which may be useful in transferring managerial or specialized personnel to Canada from a related foreign entity. Note that there are time caps which may limit the overall length of time that a foreign national may hold a work permit under this category – the time caps vary depending on the position and whether the application is made under NAFTA or IRPA.
The basic rules are:
- the transferee must be an executive, manager or have "specialized knowledge" and must be transferring into such a position;
- the applicant must have been with the related foreign entity abroad for one year out of the previous three years prior to the application;
- there must be a proper relationship between the foreign entity and the Canadian entity receiving the transferee (for example, parent-subsidiary).
3. IT Workers Program
Service Canada has made a blanket determination that certain software workers are in short supply in Canada. If a prospective foreign worker qualifies, a work permit is applied for without first having to obtain a job specific confirmation from Service Canada.
Seven types of software occupations are eligible: software developer; MIS designer; software products developer; embedded systems software designer; senior animation effects editor; multimedia software developer; and telecommunications systems designer. Detailed descriptions of each job type are set out and include minimum educational criteria, work experience, technical knowledge and salary levels that must be met. For example, one of the criteria is that candidates must have at least two years relevant work experience.
4. Post-Graduate Work Permit Program
Foreign students who graduate from a Canadian post-secondary institution may apply for a post graduate work permit provided the employment is related to their post-secondary education. The application must be made within 90 days of written notification of graduation.
Work permits under this category will not be granted for a period of time longer than the length of the post-secondary program the foreign student was taking, which must be a minimum of eight months. The work permit may be valid for up to two years for students who have studied at and graduated from institutions outside of the greater Montreal, Toronto and Vancouver metropolitan areas, and who will be employed outside those areas. If those two criteria are not met, the validity period of the work permit under this program is limited to a maximum of one year.
Any extensions beyond the initial period would require a Service Canada confirmation or approval under another confirmation exempt category.
5. Spousal Employment Program
Spouses (including common law and same-sex spouses) of most foreign nationals working in Canada may apply for a work permit under the Spousal Employment Program. The principal foreign national must be working in a position that is at a higher skill level. Typically this includes management, professional occupations, and technical or skilled trades workers. This program may assist Canadian companies in their recruiting efforts, since accompanying spouses will generally be able to work in Canada.
Related Immigration Issues
Depending on the citizenship of the foreign national, an entry visa may also be required before the person may enter Canada. An entry visa must be obtained from a Canadian Visa Office outside Canada. If this is required, it may limit some of the processing options available as compared to foreign applicants who do not require an entry visa.
Foreign nationals who have lived in certain designated countries may require an immigration medical as a condition of entry. This requirement may delay the application process.
Beyond ensuring that the person is qualified for a particular work permit or immigration category, the foreign national must not otherwise be inadmissible for such things as a criminal conviction or prior entry refusals.
It is imperative to put together a strong application package when applying for a Service Canada confirmation or for a work permit. By ensuring that an application is well documented and complete, the likelihood of it being approved is significantly increased. The extent and content of the material included in the application package will depend on the work permit category and the particular circumstances of each situation.
Conclusion
Canadian companies may need to hire or engage foreign nationals to address their human resource needs. When recruiting foreign nationals, Canadian companies need to be aware of the applicable immigration rules, issues and options. When hiring a foreign national, it is also imperative to prepare strong application materials to support the immigration status being sought. Legal counsel can assist in assessing the work permit options and with preparing proper application packages.
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