Canada’s outsourcing company hires workers in China
Hiring from China to replace Canadian workers is not illegal, according to a legal opinion by the Canada Revenue Agency (CRA).
“If you are not a resident of Canada, you are allowed to do business in China,” said David Sirota, a partner with the law firm, Gautier & Co., which represents outsourcing company Hiring China.
“You can’t do it without a permit.
The CRA does not have authority to enforce the regulations.”
Hiring Chinese workers from Canada, however, is a criminal offence, and the CRA said it has no intention of enforcing the law.
“There is no law in Canada that allows for foreign nationals to work in Canada, or work on a Canadian payroll, if they do not have an official Canadian licence,” Sirotta said.
“In the CRA’s view, they’re not legally permitted to do it.”
The CRA issued a notice of intention in March to enforce rules against outsourcing firms, which it has previously cracked down on in a number of cases.
The notice says that the Canadian government has issued rules against “unlawful acts of international business practices” in the past, but the CRA says the latest rules are the first to address the issue of non-residential expatriation.
The latest ruling, which was issued this month, states that the CRA is issuing a notice for compliance with the Foreign and International Private Sector Licensing (FIPSL) Regulations that prohibit non-residents from operating within the country without a Canadian licence.
The new rules also ban “unlicensed conduct” such as “invasive, harassing, disruptive or threatening conduct” or “illegal acts of any kind”.
The rules were designed to make it easier for Canadian firms to hire overseas workers, but some experts are worried that the new rules will have the unintended consequence of criminalising foreign workers.
“I think it will have an adverse impact on Canadian workers, because it will prevent foreign workers from having the legal right to work and to be employed in Canada,” said Paul Côté, a professor at the School of Business at York University.
“It may be illegal to hire foreign workers but it is not unlawful to hire Canadian workers.
The foreign workers will still be legal to work for.”
Côrè, however; said that while it is illegal for non-citizens to work, “we should not criminalise them, and they are free to do so.”
In a statement to CBC News, the CRA did not immediately respond to questions about the new rule.
In an email, the agency said it will be reviewing the new ruling.
“This decision does not change the law that prohibits foreigners from working in Canada without a licence,” it said.
Canadian Prime Minister Justin Trudeau has previously said that the issue is not about immigration, but rather about “our values and the very nature of our country.”
He also recently suggested that some of the “illegal” activities that Canada has taken to crack down on illegal labour will soon end.
“We have to come together as a country and say to each other, we are not going to stand for it anymore,” Trudeau said in an interview with CBC News in February.
“And the fact that the rules that are in place in some cases, are in some instances being abused, is not a reason to change them.”
The government said the rules would take effect on July 1, and that the regulations “do not change current laws or Canadian law in any way”.