How can my foreign employees legally work in Canada?

How can my foreign employees legally work in Canada?

To avoid running afoul of Canadian authorities, you should ensure that any foreign employees you require to work in Canada are legally authorized to do so.

You have three main options:

  • Work permit exemptions;
  • The International Mobility Program (IMP); and
  • The Temporary Foreign Worker Program (TFWP).
Option Description Level of Effort Required Summary of Criteria Duration of Work Status
Work Permit Exemptions Various situations in which work permits are not required Lowest Temporary/short periods of work. Typically, employee cannot be entering the Canadian labour market. Less than 6 months of work (might allow multiple entries)
IMP Work permits for specific situations Medium Varies. More specific eligibility requirements than the TFWP. 1-3 years (can often be renewed – but important exceptions)
TFWP General work permits for foreign workers High Less restrictive than IMP. Labour market impact assessment (LMIA) required. Advertising the position to Canadians also generally required (there are some exceptions). 1-3 years (varies by stream – can be renewed)

In general, you will first want to check if any of the work permit exemptions may apply to your situation.

If no work permit exemption is applicable, you’ll want to consider the International Mobility Program (IMP), to see whether one of these work permits applies for your situation.

Lastly, if neither the work permit exemption nor IMP can suffice, you would next consider whether to move forward with pursuing a work permit through the Temporary Foreign Worker Program (TFWP).

Work permit exemption

In certain scenarios, foreign nationals do not require work permits to legally work in Canada.

Typically, these are scenarios in which the foreign nationals do not enter the Canadian labour market.

Here are two common examples:

  • After-sales service agreement: A foreign manufacturer sells specialized industrial equipment to a Canadian client. Foreign workers can be sent in to perform after-sales service on the equipment, so long as the services are related to the original sales contract.
    • For example, a Canadian manufacturing facility purchases an industrial robot from a US-based company. Installation services for the industrial robot are included in the sales price. The US-based entity sends a team of technicians to Canada to install the equipment. The workers install the equipment at the plant in Canada over the course of two weeks, and then return to the Unites States.
  • Film and TV Production: A foreign production company wishes to film its new project, which is entirely foreign-financed, on-site in Canadian locations. Provided all the finances remain outside Canada, the company can send in foreign workers and actors to film on location in Canada.

There are many work permit exemptions. Whenever you encounter a scenario where you would like to send foreign workers into Canada for a short-term or temporary basis for a specific purpose, you may consider consulting with a legal professional to see if a work permit exemption applies in your case.

For all work permit exemptions, the workers must not be entering the Canadian labour market. Their pay and primary work location must remain outside of Canada to qualify for a work permit exemption.

Furthermore, simply qualifying for a work permit exemption does not guarantee entry to Canada. Foreign nationals must still seek admission to Canada as business visitors, and may need to explain and evidence why they qualify for the exemption at the border.

Finally, unless they are eTA-exempt (e.g., US citizens and lawful permanent residents), they will also need to obtain a Temporary Resident Visa (TRV) or Electronic Travel Authorization (eTA), depending on their country of origin.

Speak with an Immigration Lawyer about Work Permit Exemptions

International Mobility Program

The International Mobility Program is an umbrella work permit program that includes a mandate to provide social, cultural, and economic benefits to Canada.

There are various work permits available under the IMP, each of which has different requirements. Here are a few examples:

Work Permit Description
Intra Company Transferee(s) Employer-specific work permit for employees transferring employment from a foreign multinational to an appropriately related Canadian enterprise. ICTs are only available for executives, senior managers, and employees with highly specialized knowledge – who have been employed by the foreign multinational for at least 1 year.
CUSMA Professionals Work permit for citizens of the United States or Mexico, working in an eligible profession with arranged employment for a Canadian enterprise.
International Experience Class – Young Professionals Employer-specific work permit for youth from countries with bilateral youth mobility agreements with Canada.
International Experience Class – International Co-op (Internship) Employer-specific work permit for post-secondary students doing co-op work terms in Canada as part of their study programs.

International Mobility Program – Intra-Company Transferees

There are two main scenarios for ICTs:

  • Countries covered by a free-trade agreement; and
  • Countries not covered by a free trade agreement.

In cases where the country is covered by a free trade agreement, the employer and employee will have more scenarios in which they can qualify for ICTs, and it will be easier for them to meet the eligibility requirements.

Countries without free trade agreements can still take advantage of ICTs when eligible, but will face more limited scenarios and stricter requirements than those with free trade agreements.

You should plan to use ICTs for key personnel only, not as a general means of transferring your foreign workforce into Canada.

International Mobility Program – CUSMA Professionals

Citizens of the United States or Mexico with arranged employment for Canadian employers in eligible professions may qualify for a work permit under the Canada-United States-Mexico Agreement (CUSMA).

There are 63 eligible occupations, across a number of professional occupations, including managements consultants, scientists and scientific technicians, teachers, and medical professionals.

The foreign national must be providing professional level services in their field of qualification.

If the profession is a regulated profession, the foreign national may require the necessary licensing to practice their profession in Canada.

Self-employment is not allowed for this work permit, so the Canadian enterprise cannot be substantially controlled by the work permit holder, and the work permit holder may not solicit business in Canada.

If the professional will be working on more than one contract, they will require multiple work permits – one for each Canadian enterprise.

Which professions are eligible for CUSMA?

The following occupations are eligible for the CUSMA professionals work permit:

This is a complete list of occupations, as of November 1 2024. No other occupations are eligible.

Job titles may vary; these occupations refer to those set out in Canada’s National Occupation Classification (NOC).

International Mobility Program – International Experience Class

The International Experience Class (IEC) is a work permit program for youth from countries with bilateral youth mobility agreements with Canada.

To qualify, the work permit holder must be a foreign national of a participating country. They must also be between the ages of 18 and 35, or 30 for some countries.

Which countries have bilateral youth mobility agreements for the IEC?

The following countries have bilaterial youth mobility agreements with Canada:

Temporary Foreign Worker Program

If a work permit exemption does not apply to your scenario, and your employee cannot qualify for an IMP work permit, you can pursue a work permit through the TFWP.

The TFWP is intended to provide Canadian employers access to foreign labour in the case where they are not able to fill their needs with Canadian citizens or permanent residents.

The TFWP takes the most effort of the employer-based work permit options.

The TFWP has several streams, each of which has slightly different requirements.

Stream Description
Global Talent Steam For select employers determined by the Canadian government, or for employers looking to fill highly-skilled in-demand positions on the Global Talent Occupations list.
Permanent Residence Stream For hiring an employee while supporting their application for Canadian permanent residence. The job offer must meet specific requirements based on the appropriate federal economic immigration program.
High-Wage Stream For positions at or above the provincial or territorial median hourly wage.
Note: starting November 8, must be 20% above the median wage.
Low-Wage Stream For positions below the provincial or territorial median wage.
Note: processing of LMIAs for the low-wage stream is currently paused in certain regions.
Primary Agriculture Positions For hiring agricultural workers.
Caregiver Positions For hiring full-time in-home caregivers for family members.
Foreign Academic Positions For employees whose primary duties are teaching and research for Canadian universities and university colleges.

To obtain a work permit through the Temporary Foreign Worker Program (TFWP), you must undergo a Labour Market Impact Assessment (LMIA) with a positive or neutral result.

IRCC and Employment and Social Development Canada (ESCD) require LMIAs as a way for employers to prove that no Canadian citizens or permanent residents are available to fill the position.

Generally, prior to applying for an LMIA, you must advertise the job and show recruitment efforts within Canada.

There are some exceptions within the TFWP in which advertising is not required.

TFWP work permits may be issued for 1 – 3 years, depending on the stream.

To renew a TFWP work permit, you must undergo the LMIA process again.