Canada has tightened eligibility for certain LMIA-exempt work permits, requiring foreign nationals applying under the C20 reciprocal employment category to already be employed by the company abroad.
Immigration, Refugees and Citizenship Canada (IRCC) updated its instructions on July 29. The department now states that an employer-employee relationship must exist with the overseas organization before the application is submitted. A worker who is only scheduled to start employment after arriving in Canada will not qualify under this requirement.
Why Canada Changed the Rules
C20 work permits fall under the International Mobility Program and allow foreign nationals to work in Canada without a Labour Market Impact Assessment when their employment creates or maintains comparable opportunities for Canadians or permanent residents abroad.
IRCC says hiring someone only when they arrive in Canada would not provide the worker or employer with the intended exchange of knowledge or experience.
The previous guidance did not specifically require applicants to already work for the company overseas. It also focused heavily on achieving a broadly neutral impact on the Canadian labour market, wording that has been removed from the updated instructions, according to CIC News.
IRCC has also clarified that reciprocity does not need to occur directly between Canada and one other country. A multinational company, for example, may demonstrate that it provides similar opportunities to Canadians across offices in different countries.
Who Uses C20 Work Permits
C20 permits can apply to organizations operating internationally, including multinational companies, academic institutions, government organizations and international non-profits.
Employers must provide evidence showing that reciprocal employment exists. This can include an exchange agreement, a letter from a Canadian institution, an employment offer containing evidence of reciprocity or, for cultural agreements, documentation from the relevant governing body.
The C20 category does not cover International Experience Canada. IEC work permits are assessed separately under R204(d).
Foreign nationals who do not qualify for C20 may still qualify under another LMIA exemption. Otherwise, their employer may need to use the Temporary Foreign Worker Program and obtain an LMIA before the worker can receive a work permit.
That route can involve additional restrictions. Canada currently refuses to process certain low-wage LMIA applications for jobs in census metropolitan areas with unemployment rates of 6% or higher, subject to listed exemptions.
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