When the work is done in Canada by a foreign national whose employer is outside Canada and who is remunerated from outside Canada, the activity is not considered work and no work permit would be issued.

For those working in Canada with employer-specific work permits, there is an employer compliance regime that ensures that employers are abide by conditions stipulated in the foreign worker’s employment offer. Employer compliance ensures that the business is actively engaged, in compliance with federal and provincial/territorial laws that regulate employment and recruitment, provide foreign workers with wages and working conditions that are set out in the offer of employment and make efforts to ensure an abuse-free workplace.

When applying for a work permit, employers must specify the location of work, which may or may not be the same as the business address.

Immigration and Refugee Protection Regulations (IRPR) gives officers the authority to conduct on-site inspections of a workplace or location. The inspection may be unannounced. Therefore, a home office could be subject to an unannounced visit by an inspector to ensure that the business is actively engaged and compliant with federal, provincial or territorial regulations. During an on-site visit, inspectors can take photographs, video or audio recordings, examine anything on the premises related to the job, and they can request access to computers and other electronic devices.

Another difficulty of remote work by foreign workers is the work permit document lists a specific location, city or region where the primary job duties will be carried out. However, if the employer is based in one city while the employee is located in a different city or province, there may be difficulties in obtaining provincial health-care coverage because the work permit specifies a location that is different than the worker’s residence.

Generally, it is the law of the province where the worker is physically located and where the work is performed, but if the business operation is in a different province, there may be a conflict. Employment standards, workplace health and safety laws of the location where the worker is physically present usually governs the employment relationship.

As well, prevailing wage rates vary between different cities. If a work permit was approved based on a location with a specific prevailing wage and ultimately, the foreign worker ends up residing and working remotely in a different location with a higher prevailing wage, there may be issues with compliance or eligibility in receiving the work permit.

It must be remembered that a work permit authorizing employment in Canada contemplates that there is entry into the Canadian labour market. Where work is done remotely, there can be a question of why that remote work specifically has to be performed in Canada. If the remote worker’s projects are connected to foreign clients, reporting to direct supervisor or manager who resides in another country and the worker is operating under the care and control of a foreign company outside of Canada, the question becomes, what is the connection to Canada? Is a work permit even required in this scenario given that there doesn’t appear to be labour market entry? However, if there is no labour market entry then the entry would be for tourism or temporary residence. There must be some connection to the Canadian labour market for a work permit to be issued.

As quoted by IRCC, an activity which does not really ‘take away’ from opportunities for Canadians or permanent residents to gain employment or experience in the workplace is not “work” for the purposes of the definition. Examples of activities for which a person would not normally be remunerated or which would not compete directly with Canadian citizens or permanent residents in the Canadian labour market and which would normally be part-time or incidental to the reason that the person is in Canada include, but are not limited to: volunteer work for which a person would not normally be remunerated, such as sitting on the board of a charity or religious institution; being a ‘big brother’ or ‘big sister’ to a child; 

being on the telephone line at a rape crisis centre (normally this activity would be part time and incidental to the main reason that a person is in Canada);

unremunerated help by a friend or family member during a visit, such as a mother assisting a daughter with childcare, or an uncle helping his nephew build his own cottage;

long distance (by telephone or Internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada;

self-employment where the work to be done would have no real impact on the labour market, nor really provide an opportunity for Canadians. Examples include a U.S. farmer crossing the border to work on fields that he owns, or a miner coming to work on his own claim;

short-term educational exchanges by high school students through international arrangements, such as the Regional Joint Cooperation Commission between Atlantic Canada and the archipelago of Saint-Pierre and Miquelon.