January Updates on Canadian Immigration: IRCC Clarifies Requirements around ICT Physical Commercial Premises, Flagpoling, and Removal of LMIA Points Plus Resignation of Prime Minister Justin Trudeau

1. IRCC Refines Requirement for Commercial Physical Premises Under the Intra-Company Transfer Program

Following the major overhaul of the Intra-company transfer (ICT) program as indicated in our October 8, 2024 alert, the Immigration, Refugees and Citizenship Canada (IRCC) has backtracked its bar on the participation of companies with co-shared spaces in the program. It has now been clarified that there may be situations where the business operations for the Canadian enterprise operate in a co‑shared space would be allowed, however, officers must be satisfied that the business has a legitimate presence in Canada. The following criteria are reviewed when making this assessment:

• shared receptionist

• company name in the directory of the building

• direct phone line answered by company staff

• published address on the company website

• a dedicated space where employees work and client meetings are held

• have a business license

• accessible to the public

It remains the case that business operations with no physical commercial premises (virtual offices) are not eligible to transfer ICTs to Canada. 

2. Canada Provides Updates on Flagpoling and Removal of LMIA-based Job Offer Points for Express Entry

As an update to our alert on December 19, 2024, the Government of Canada  clarified that work and study permits would no longer be provided to flagpolers at a port of entry, unless the applicants qualify under the below exemptions:

• Citizens and Lawful Permanent Residents of the United States of America;

• Professionals and technicians under free trade agreements with the United States/Mexico, Chile, Panama, Peru, Colombia and South Korea;

• Spouses or common-law partners of professionals and technicians under free trade agreements with Panama, Colombia, and South Korea;

• International truck drivers who hold a work permit, were required to depart Canada for the purpose of their employment and held maintained status as a result of applying for renewal prior to departure; and

• Individuals who have a pre-existing appointment booked with the CBSA for permit processing.

The Government of Canada also clarified that the decision to no longer award additional points for a Labor Market Impact Assessment (LMIA)-supported job offer will come into effect in spring 2025. Once they take effect, the changes will impact candidates pursuing permanent residence through the Express Entry system. The changes will not affect candidates who have already been invited to apply or have an application in progress. The new rule will only apply to candidates with job offers in the pool as well as new candidates entering the pool. 

3. Canadian Prime Minister Justin Trudeau Announces Intention to Resign

On January 6, 2025, Prime Minister Justin Trudeau announced his intention to resign as prime minister and leader of the Liberal Party of Canada. He has prorogued parliament until March 24, 2025, a process which halts any parliamentary sessions, until the Liberal Party elects a new party leader in early March. The new leader would become prime minister until a federal election is held in October, or as early as May if the liberal party faces a vote of no confidence. In the latter scenario, the Liberals are expected to lose given that the party currently holds a minority number of seats in parliament and may not be supported by other parties. Trudeau will remain prime minister and party leader until the Liberals elect a new leader. 

Immigration Impacts

Prorogation of parliament removes any pending bills and legislation that have not received Royal Assent from decision and dictates that they must be re-introduced in the next session of Parliament. The Lost Canadians Bill (C-71) proposing to grant Canadian citizenship to individuals born outside of Canada to parents who were also born in another country, has been scrapped after multiple extensions. The bill may have granted citizenship to an estimated 200,000 individuals. 

It’s important to note that even with parliament prorogued, IRCC may continue to make changes to policies based on the laws already in place as we see with the aforementioned changes to the Express Entry system and flagpoling policies. We expect that IRCC policy will continue to remain in a holding pattern with a general tightening of immigration as part of the government’s goal to reduce immigration numbers in 2025. 

Impact of a New Elected Government

The leader of the Conservative Party, Pierre Poilievre, has emerged as the frontrunner for the position of prime minister in the next election. Poilievre has reiterated that a Conservative government would tie the number of immigrants entering Canada to the number of homes and availability of healthcare and jobs, essentially capping immigration rates to infrastructure capacity. The Conservatives, if elected, will likely take a cautious approach to immigration policy focusing on labor market needs and prioritizing economic immigration.