To attract high-skilled foreign workers, Canada launched a special work permit program targeting H-1B visa holders in the United States, particularly nationals of India and China. The Tech Talent Strategy, introduced by Minister of Immigration, Refugees, and Citizenship Sean Fraser, aims to offer new opportunities for skilled professionals seeking career growth and stability. The program’s 10,000-application quota was reached in two days, highlighting the growing appeal of Canada as a destination for top global talent, including those experiencing challenges with securing U.S. immigration benefits.

Canada’s H-1B Work Permit Program

The Canadian work permit program targets H-1B visa holders in the United States, a visa category that allows American companies to employ foreign workers in specialty occupations, particularly in technology, engineering, and medicine. With nearly 600,000 H-1B visa holders in the Unites States, primarily from India and China, Canada hopes to attract highly skilled professionals seeking alternative options due to uncertainties surrounding the U.S. immigration system.

Announcement and Features

Canada’s Tech Talent Strategy was announced June 27, 2023, and launched July 16, 2023. The program offers work permits valid for up to three years, providing successful applicants the flexibility to work for any employer anywhere in Canada. Additionally, this new visa classification allows immediate family members to work, making the opportunity more enticing for professionals seeking stability, a combined income, and the chance to build a life in Canada.

Response

The online application portal received an influx of applications soon after opening, leading to the 10,000-application limit being reached in less than 48 hours. The interest in the program demonstrates demand among H-1B visa holders for alternative immigration options.

Implications for U.S. Employers and Foreign Talent

While Canada’s Tech Talent Strategy offers Canadian employers the opportunity to tap into a skilled global workforce, it poses challenges for U.S. employers. With highly sought-after foreign talent increasingly looking towards Canada, U.S. companies may face competition in retaining top professionals. Employers with both U.S. and Canadian operations should consider developing comprehensive mobility policies to enhance talent movement between the two countries and address potential talent drain. However, those without Canadian operations will need to be cognizant of Canadian tax laws. 

Outlook

The Canadian government now will evaluate and process all applications to determine how many individuals will proceed to enter Canada and work under the program. This evaluation will be crucial in deciding whether the initiative will be renewed or potentially expanded in the future. Feedback from employers, industry stakeholders, and successful applicants will also play a vital role in shaping the program’s future direction.

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Photo of Ian Macdonald Ian Macdonald

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital domestically and internationally, including secondment agreements, benefits transferability, local host country employment concerns and immigration.

Ian and his team work closely with companies to manage and modify, where needed, corporate immigration programs to maximize efficiency, service and regulatory compliance levels. He is experienced with the full range of business immigration sponsorship categories (visas and permanent residence), anti-discrimination rules to reduce or eliminate risk of employment litigation, employer sanction cases, and I-9 and E-Verify compliance. Ian assists clients with establishing risk-based performance standards (RBPS) and Department of Homeland Security protocol, providing risk assessment assistance to corporations subject to Chemical Facility Anti-Terrorism Standards (CFATS) and assisting clients with ITAR/Export Control compliance within the immigration context.

Ian has developed strategic relationships abroad that he utilizes when working with clients to ensure compliance with foreign registration requirements. He is experienced with analyzing complex global mobility opportunities on country-specific matters to facilitate the transfer of personnel. Ian is also experienced in counseling employers on immigration strategy as well as immigration consequences of mergers and acquisitions, reduction in workforces, and furloughs.

Prior to joining the firm, Ian worked for the United Nations, various non-governmental think tanks and corporate law firms in London, Washington, D.C., New York and Atlanta.