 | Ontario accounts for 97% of Canada's automotive production. The automotive sector is responsible for 21% of Ontario's manufacturing output and almost 50% of its exports. |  |
 | Ontario is a world leader in the development of digital microwave transmission, satellite communications and data distribution networks. |  |
 | Ontario is home to 23 of the 25 largest chemical companies in the world, and the province accounts for more than half of all chemicals produced in Canada. |  |
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Multinational Employee Transfer Guide
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Guide to Multinational Employee Transfers
International firms establishing or expanding operations in Ontario frequently identify the temporary or permanent transfer of key overseas personnel as an important issue. Companies need to be aware of the immigration requirements for staff to work in Canada. In addition, assisting staff to plan appropriately for their move and personal settlement in Ontario can save the employee, and the company, time and money. The following summarizes some key issues and provides links for further details.
Please refer to the Essential Guide to Establishing a Business in Ontario for additional information on business establishment issues.
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Canadian Immigration Requirements
Work Permits
To work legally in Canada, foreign nationals who are not Canadian citizens or permanent residents require a work permit.
A Work Permit is a document issued by the federal Department of Citizenship and Immigration (CIC) that allows a foreign national who is not a permanent resident to work temporarily in Canada. Work permits specify the employer the foreign worker may work for, the length of time they are allowed to work in Canada, as well as any conditions or restrictions.
There are a number of work permit categories covering a wide range of work situations in Canada. In some cases persons may apply directly to a CIC official at a visa office abroad or at a port of entry. In other cases, the company must first obtain a Labour Market Opinion (LMO) from Service Canada. For additional information about work permit requirements, see Temporary Work Permits.
In addition to meeting the requirements of the work permit category in which they have applied, all applicants must meet statutory requirements related to health and good character in order to be approved. In some cases, the employee may be required to complete a medical examination as part of the application process. Citizens of certain countries may also require a temporary resident visa in order to travel to Canada.
Of particular interest to multinational companies establishing or expanding operations in Ontario are the following work permit categories that do not require LMOs and instead permit an application directly to CIC (for further information, see the Citizenship and Immigration Department's "Foreign Worker - Intracompany Transfer Guide"):
- Intra-Company Transferees: This category has specific requirements regarding the relationship of the foreign and Canadian entities, as well as employees eligible to be transferred. In summary, the category:
- Permits the temporary transfer of senior executives, managers, or employees with specialized knowledge to a permanent and continuing establishment of the company;
- Requires a qualifying relationship between the Canadian and foreign employer, i.e. affiliate, branch, parent or subsidiary;
- Requires that the Canadian company be doing, or expect to be doing, business;
- Requires the employee to have been working for the company in a similar capacity for at least one year in the previous three years;
- Requires a letter from the employer to Immigration detailing how the company and employee meet the requirements;
- Under the general provisions, executives and managers may be issued work permits for up to 7 years, provided the transfer remains temporary and specialized knowledge staff may remain in Canada for a maximum 5 years.
- Spouses of highly skilled work permit holders may apply for their own work permit without the need for a LMO. In order to qualify, the applicant's spouse must have been approved for a work permit valid for six months or more in a management or high skill occupation as defined in the National Occupation Classification. The applicant does not need to have a written offer of employment from a Canadian employer in order to apply. Applications from spouses already admitted to Canada may be made by mail to the Case Processing Centre in Vegreville, Alberta. A spouse includes common-law or married partner. For further information, see Section 5 in the Citizenship and Immigration Department's "Foreign Worker - Intracompany Transfer Guide".
- Companies seeking to recruit computer software professionals can benefit from the Information Technology Worker Program. This collaborative project between Citizenship and Immigration Canada, Human Resources and Skills Development Canada, Industry Canada and the Information and Communication Technology Council was set up to assist the Canadian software industry to meet industry needs for skilled workers.
The program allows for the recruitment of qualified foreign software workers in seven software development areas without obtaining a specific job confirmation from HRSDC.
Applicants who require a Temporary Resident Visa must apply at a visa office abroad (citizens of visa exempt countries may apply at a port of entry) and present a job offer letter detailing the specific duties of the position being offered, and have evidence of their education, training and work experience establishing their ability to meet the requirements of one of the seven job descriptions.
Staff in Canada on a work permit may apply for an extension to the Case Processing Centre in Vegreville, Alberta by mail. Applications must be submitted before the expiry of the existing work permit. We recommend applying at least 2-3 months in advance.
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Foreign Worker May Apply for Permanent Residence
Companies establishing or expanding their business are now able to support the permanent transfer of key staff through Ontario's Pilot Provincial Nominee Program. It comprises of two categories: the Employer category and the Multinational Investor category.
The Multinational Investor (MNI) Category may support companies making significant investments in Ontario leading to job creation and economic development. To be eligible under the MNI category the company must: make a qualifying investment of $10 million and create 25 permanent full-time jobs. The Employer Category is intended to offer permanent, full-time jobs to qualifying prospective nominees in selected occupations. To be eligible under this category a company must meet certain conditions.
Also, if you wish to hire a foreign worker on a permanent basis, it is possible to obtain an Arranged Employment Offer by applying to Service Canada. If approved, the prospective employee would apply for permanent residence under the Skilled Worker category through a visa office abroad. In addition to demonstrating good health and character, applicants for permanent residence must meet the requirements for selection as a Skilled Worker immigrant.
Foreign workers in Canada on certain temporary work permits may receive extra points on their Skilled Worker immigration application without the need for an employer to obtain an Arranged Employment Offer. They must have a valid work permit and have an offer of permanent employment from a Canadian employer in order to be eligible for these arranged employment points.
Persons who have resided in Canada for at least three years as permanent residents are eligible, but not required, to apply for Canadian citizenship. Many permanent residents live for many years in Canada without becoming Canadian citizens.
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Student Permits
Children of employees in Ontario on a work permit may attend elementary and secondary school. A student permit may be applied for at the same time as the application for the work permit is made. In Ontario, 97% of students attend public schools. There are also private schools in many communities as well. Read more about enrolling children in school.
Dependants may also enrol in post-secondary colleges or universities subject to admission criteria. A student permit is required. Dependents of work permit holders may be eligible to pay domestic student tuition fees. Visit the Ministry of Training, Colleges and Universities or the individual education institution web sites for more details.
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Health Insurance
International employees working in Ontario on work permits valid for at least 6 months are eligible for coverage under the Ontario Health Insurance Plan (OHIP). Dependents of work permit holders are also eligible for OHIP coverage provided the company provides a letter indicating that the intended duration of the assignment in Ontario will be at least three years. (the work permit need not be valid for three years). It is important to note that OHIP coverage does not apply for the first 90 days after arrival. Private insurance options exist, but coverage should be arranged either before coming to Ontario or within 5 days after arrival.
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Driver's Licences
Visitors to Ontario who are permanent residents of countries other than Canada may drive in Ontario with that license for up to one year, as long as they are in possession of a valid driver's licence and an international driver's permit.
A new resident of Ontario, such as a recently-landed business immigrant, may drive in Ontario for up to 60 days. That individual must have a valid driver's license from his/her jurisdiction. After 60 days, an Ontario driver's license is required.
Ontario has different types of driver's licenses under its Graduated Licensing System (GLS), so immigrants should be mindful of different qualifications needed. The ability to obtain any one specific type of license (such as a motorcycle, bus, or regular automobile license) will depend on the type of licence held in the immigrant's country of origin, and the driving experience of that immigrant.
Ontario has reciprocal licensing agreements with Austria, France, Germany, Japan, South Korea, Switzerland, United Kingdom and United States exempt foreign drivers from these jurisdictions with more than 2 years of driving experience from Ontario's GLS. Drivers may obtain a license without taking a road test, as long as they meet all medical requirements, including a vision test. Persons who qualify under these international agreements must have proof of their previous license status and driving experience. Drivers from these jurisdictions with less than 2 years of driving experience will benefit from certain 'credit' when they are required to take Ontario's road tests. Similarly, drivers from jurisdictions which do not have exchange agreements with Canada also benefit from such credit, and require a road test.
For more information, please visit Ontario's Ministry of Transportation. This web page provides information about licenses, car licensing, and further information for visitors and new residents in Ontario.
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Social Insurance Number
The Social Insurance Number (SIN) is a nine-digit number that is required to work in Canada or to receive government benefits. SIN numbers and cards are provided upon application to Human Resources and Skills Development Canada (HRSDC), at any of the may local HRSDC offices in Canada. Please refer to the SIN home page within HRSDC's website. This site includes frequently asked questions, and provides access to application forms for new and replacement cards. Application forms must be submitted in person along with requisite proof of identity. Be sure to consult this web site or your local HRSDC office before going to apply for your card, to ensure that you qualify and have all the correct documentation with you.
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Tax Considerations
Tax planning is an important issue to consider when moving to Canada. Every country has its own rules and regulations regarding personal and business taxation and individuals with significant world-wide assets are encouraged to seek professional tax advice. Professional tax advisors will be able to inform you about tax planning measures such as Immigration Trusts that you can make BEFORE you move to Canada. The Canada Revenue Agency has a Newcomers to Canada and a Deemed Residents guides to explain Canadian tax procedures.
Reference should also be made to CRA's comprehensive tax web site.
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Customs
The Canada Border Services Agency is responsible for customs and importation of goods and pets into Canada. They have developed a guide, Settling in Canada, which explains the rules on bringing your personal effects when you immigrate to Canada.
Reference should also be made to CBSA's comprehensive Custom's web site.
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Employment Law and Labour Relations
Employment standards in Ontario are governed by the Employment Standards Act, which sets out many of the primary rules and regulations governing employment in Ontario, including hours of work, minimum wage, public holidays, overtime and vacation pay, maternity leave, benefits, termination of employment and severance. General information can be found in Ontario's publication entitled A Guide to the Employment Standards Act. This guide, along with other information relating to the above issues, can be found in Ontario's Ministry of Labour's web site, within the Employment Standards home page.
For those who plan to run a business in Ontario, it is also important to consider all issues surrounding workplace health and safety.
Finally, employers should become informed of other legislation such as Ontario's Human Rights Code, Pay Equity Act and all at-source deductions necessary to consider when hiring employees and/or contractors. It is a good idea to speak to qualified counsel when starting a business to ensure that all labour and employment standards have been met.
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Payroll Matters
Employers in Canada are responsible for making payroll deductions from amounts paid to employees and sending them to the Canada Revenue Agency. Among these deductions are Canada Pension Plan (CPP) contributions. There are Social Security Agreements and Conventions between Canada and many countries that could apply to international staff on assignment in Ontario to avoid duplicate payments to CPP and home country pension plans. Further information may be obtained at the Canada Revenue Agency, Business Tax Services Office or by phone at 1-800-959-5525, or from the
Ottawa Tax Service Centre
Revenue Collections Centre
CPP/EI Coverage Unit
333 Laurier Ave. West
7th Floor
Ottawa, Ontario
K1A 0L9
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