[ESTABLISHING A BUSINESS ENTITY IN CANADA] 90
Immigration The Immigration and Refugee Protection Act (IRPA) (Canada) permits a foreign national to apply for a work permit, if necessary, where they will be engaging in “work” in Canada. Work permits are assessed and issued under one of the following programs: 1. International Mobility Program (IMP); or 2. Temporary Foreign Worker Program (TFWP). The IMP allows for foreign nationals to apply for a work permit directly to Immigration, Refugees, and Citizenship Canada (IRCC). Most IMP work permit categories are based on reciprocity and multi/bilateral agreements with other countries, such as the Canada-U.S.-Mexico Agreement ("CUSMA"), which replaced the North American Free Trade Agreement ("NAFTA"), and the General Agreement on Trade in Services . The IMP is primarily for high-skilled and high-wage occupations, but also includes work permits under the working holiday category. Work permits issued under an IMP category are usually employer-specific, although some categories allow for open work permits, including spousal work permits and post- graduate work permits. All employer-specific work permits under the IMP require an Offer of Employment through an online employer portal prior to the submission of a work permit application. The Temporary Foreign Worker Program (TFWP) is managed by Employment and Social Development Canada (ESDC) and is based on employer demand to fill specific positions. Employers must demonstrate that they have made efforts to find a Canadian for the position before filing a Labour Market Impact Assessment (LMIA) application with ESDC to support the foreign national’s job offer. As it is an employer-driven process, an LMIA approval allows a foreign national to apply for an
occupation and employer-specific work permit. Foreign nationals who require a visa to travel to Canada must file their work permit application at a visa post. Visa-exempt applicants may apply for their work permits at the port of entry. IRCC does allow limited categories of business visitors to work in Canada without a work permit, including, but not limited to: (i) some commercial speakers, seminar leaders and guest public speakers; (ii) some performing artists, athletes, sports officials, journalists, clergy and providers of emergency services; (iii) diplomats, consular officers and other representatives or officials of other countries; and (iv) expert witnesses or investigators. Additional procedures apply to foreign workers who intend to work in many jurisdictions, notwithstanding that immigration is a matter of federal jurisdiction. It is an offence for Canadian employers to hire anyone who is not authorized to work in Canada. Canada has introduced a rigorous employer compliance program that requires employers to keep all documentation for a foreign worker on file for a minimum of 6 years. All employers who have foreign national employees with employer-specific work permits are subject to an inspection or employer compliance review. Employers may be selected randomly or based on a complaint. In December 2015, the government introduced a system of administrative monetary penalties (AMPs) and varying bans on employers in order to address employer non-compliance with the TFWP and IMP employee conditions. The AMPs range from $200 to $100,000 depending on the size of the employer, the severity of the violation and the number of previous violations. Employers may also be subject to a ban on hiring foreign workers for a limited or indefinite
ILN Corporate Group – Establishing a Business Entity Series
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