In a significant development, Immigration, Refugees and Citizenship Canada (IRCC) has clarified that self-employed individuals, including business co-owners, cannot claim arranged employment points under Express Entry. This update, sourced from IRCC’s internal functional guidance and accessed by immigration lawyer Steven Meurrens, provides a crucial interpretation of the arranged employment provision.
The document, dated June 2024, underscores that arranged employment is designed to support workers entering the Canadian labour market—not business owners or entrepreneurs. As co-owners function as shareholders and directors rather than employees, they do not meet the necessary employer-employee relationship requirement.
Business Co-Owners Do Not Qualify as Employees, IRCC States
The Express Entry system grants arranged employment points to foreign workers with a valid job offer, enhancing their eligibility for permanent residence. However, IRCC has reaffirmed that business co-owners, who manage operations rather than work as employees, cannot “hire” or “fire” themselves or each other.
According to the internal guidance, co-owners:
- Are considered shareholders and directors, not employees.
- Cannot establish an employer-employee relationship with themselves or fellow co-owners.
- Are not eligible to receive arranged employment points under Express Entry.
IRCC emphasizes that officers can only award arranged employment points when a legitimate employer-employee relationship exists. This ensures that the program benefits workers entering the labour market rather than individuals already in the business community.
IRCC’s Clarification Reinforces Program Integrity
The June 2024 IRCC document, obtained by immigration lawyer Steven Meurrens, reinforces the integrity of the Express Entry system. By preventing business co-owners from claiming arranged employment points, IRCC is maintaining a clear distinction between job offers for workers and business ownership roles.
Key Takeaways from IRCC’s Guidance
- Business co-owners and other self-employed individuals do not qualify for arranged employment points under Express Entry.
- Arranged employment points are meant for foreign workers with legitimate job offers—not business owners.
- Co-owners are shareholders and directors, not employees, and cannot establish an employer-employee relationship.
- IRCC officers will only recognize job offers when a genuine employer-employee relationship exists.
Conclusion: A Significant Clarification for Business Owners
This update from IRCC’s internal guidance provides essential clarity for entrepreneurs and business owners considering Express Entry. While many may have assumed their business roles could contribute to their Comprehensive Ranking System (CRS) score, this document confirms that arranged employment points are strictly reserved for foreign workers with employer-backed job offers.
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