Canada immigration is making C11 LMIA Exemption Work Permit more difficult for temporary workers

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Afshin Yazdani /
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Canada immigration is making C11 LMIA Exemption Work Permit more difficult for temporary workers

C11 category under International Mobility Program covers self-employed or entrepreneur work permit under R205(a) Significant benefit within the Canadian Interests category. In November 2022 the IRCC made some major updates on the eligibility criteria of the LMIA exemption code of the C11 work permit. YLG was one of the pioneers of this program in 2019 and helped hundreds of applicants under C11 categories known as “Owner-Operator LMIA Exempted Work Permit”.

Overview of the category

According to the R205(a) of IRPR, under very specific situations the IRCC can determine work permit applications do not require LMIA approval where the work of a foreign national creates significant social, cultural or economic benefits or opportunities for Canadian citizens or permanent residents. C11 is the administrative LMIA exemption code that provides that the work of certain foreign nationals entering Canada to create or maintain a business as an entrepreneur or self-employed may create significant benefits. An alternative in a broader LMIA exemption Code there is C10 for workers who do not meet the specific considerations for a C11 exemption, but still can create significant benefits and the IRCC may still assess them on a case-by-case basis.

New amendments to the category operational manual

Work Permit LMIA Exemption code C11 officially has been recognized by the IRCC with two main subcategories. Unlike before, based on the applicants’ intentions of planning to move to Canada permanently or temporarily there are now two official categories: (a) Temporary workers with the temporary purpose of staying in Canada, and (b) Business candidates with permanent residency dual intent.

Under the temporary workers with the temporary purpose of stay in Canada category, applicants intend to come to Canada temporarily usually seasonal to run their existing business in Canada. The IRCC’s guideline highlights that they are usually self-employed people. To be more specific, these applicants are different from entrepreneurs or self-employed candidates under provincial nomination programs (PNP) or Federal or Quebec programs. Therefore, under this category, there are self-employed people and entrepreneurs without any acceptance from PNPs, Quebec, or Federal SUV programs.

In the second category, business candidates with permanent residency dual intent category apply to those who seek entry as a business candidate to start or run their business to meet the requirements for provincial nomination programs or Quebec’s selection as an entrepreneur or the requirements for the federal Start-up Business Visa. Under this category, there are PNP Candidates, Quebec’s Self Employed, and Start-Up Visa Candidates (only essentials). The candidates under PNP programs must first apply to a province or territory for acceptance into the provincial business immigration program. If the candidate is approved, the province or territory will provide them with a support letter to obtain 2-year work permits before they can apply for permanent residency in Canada with their Confirmation of Nomination letter or a Quebec Selection Certificate (CSQ). The second category is not the subject of this article, as I try to have a deeper view of the first category and new eligibility criteria.

It is important to highlight that it is unreasonable to list SUV work permits under C11 while the SUV work permit applicants fall under a different LIMA Exemption Code of A75 .

There are two subcategories of temporary workers, Self Employed Peoples and Entrepreneurs

Considering even the temporary workers under C11 without first intention to become a permanent residents of Canada potentially still can apply for permanent residency in Canada through Skilled based or Business Based programs, dividing them into two categories makes big difference. For example, a self-employed worker in Canada is not eligible for Canadian Experience Class (CEC) whereas an entrepreneur is, but regardless of this legal fact, the IRCC made it very clear neither is eligible under the CEC category. Notwithstanding they are eligible for additional employment arrangement scores of up to 200 points as Federal Skilled Workers inside the Express Entry if they can provide at least one year of international work experience.

There two types of business structure from the legal point are not the same. self-employed is a person who works for themselves as the owner of a business and rarely hires people outside of their family members, whereas an entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks to do so. They hire employees other than their family members to carry out the activities of the business.

Still, the IRCC does not clarify whether incorporating a business in Canada makes any difference. In legal terms, a company is a legal entity with a separate legal personality from its founders. A director of a company who is also the owner of the company is not necessarily self-employed because the director is an employee of the company.