Are you working in Canada as a "contractor"? This could affect your path to permanent residency

Eddy Ramirez
July 8, 2026

It’s a shame that many foreign workers in Canada don’t know that “Contractor” status doesn’t count as valid work experience for the Canadian Experience Class (CEC) program under the Express Entry system.

If, according to Immigration, Refugees and Citizenship Canada (IRCC), experience as a "self-employed" individual or independent "contractor" does not count toward the CEC, this could become a serious problem for your application for permanent residence. 

However, there is hope that this situation can be reversed and that the officer will review the case again.

If your employer classified you as a “contractor, even though in practice you worked or are working as an employee, it is important that you read this article. 

Here, I'll explain how this option works and why it isn't always an automatic "no" in your PR process.

The general rule: “Contractor” or “self-employment” status does not count toward the CEC

The Canadian Experience Class immigration program requires a minimum of 1,560 hours (the equivalent of one year of full-time work) of skilled work experience in Canada, within a verifiable employer-employee relationship. 

The IRCC operations manual is clear on this point: 

“Any period of self-employment is excluded from the calculation of hours, regardless of whether the work was professional in nature or whether you paid taxes correctly.”

This means that if you billed for your hours, received a T4A instead of a T4, and filed your own taxes as a self-employed individual, that time, in principle, does not count toward your CEC application. 

It doesn't matter whether she worked full-time, had only one "client," or whether her role was identical to that of her colleagues who did have T4 forms.

What do T4 and T4A stand for?

A T4 (officially called the Statement of Remuneration Paid) is the official tax form in Canada that an employer provides to its direct employees (under an employment relationship) at the end of each tax year.

The T4 form serves as the primary evidence for IRCC to demonstrate that a formal employer-employee relationship existed. This document details the total salary earned, as well as the automatic deductions for income tax, Employment Insurance (EI), and the Canada Pension Plan (CPP) that the company withheld directly from paychecks.

It differs from the T4A, which is the form received by self-employed individuals or contractors for invoiced services and on which there are no payroll withholdings—a condition that the Canadian Experience Class (CEC) program explicitly excludes when counting immigration hours.

The key point: The “contractor” label does not automatically mean rejection

People think that IRCC only looks at the label on their contract, and that's exactly where many are mistaken in assuming that their case is a lost cause. 

The IRCC manual does not rely on statements such as: “If you have a ‘contractor’ agreement, you are automatically excluded.” What it does state is that the officer must determine the applicant’s actual employment status by considering a series of factors—which are, in fact, very similar to those used by Ontario’s labor courts to decide whether someone is an employee or an independent contractor—such as: 

  • Who controlled how, when, and where the work was done?
  • Who provided the tools and equipment?
  • Was there a real risk of loss or a chance of profit, as there would be in an independent business?
  • To what extent was that person involved in the company's operations?
  • Did he work exclusively for a single "client," as an employee would?

In other words: if, in practice, your working relationship resembled that of an employee—with set hours, direct supervision, and company-provided tools, and no real risk of “loss” as a business—there is a legitimate argument that IRCC should recognize that time as employee experience, regardless of whether the contract was labeled “contractor” or whether you received a T4A.

IMPORTANT: But let's be honest—since this is no guarantee that your application will be accepted, I must also be frank and realistic with everyone who is in this situation.

The officer has the final say

The final decision depends on the immigration officer reviewing your case and on how strong the evidence you can present is to show that the relationship was, in substance, one of employment rather than independent contracting.

There are even recent court decisions that confirm this discretionary nature: 

  • In a 2024 case before the Federal Court (Kaur v. Canada), the court confirmed that when it is evident that someone worked under a self-employment arrangement for example, with an entrepreneur work permit—the officer may deny the application without even being required to provide an opportunity to respond before making a decision. 

This shows that the clearer the appearance of "Contractor" in your documentation, the harder it will be to change that perception in the officer’s mind.

On the other hand, when the evidence of control and subordination is consistent, the outcome may be different. 

Simply put: the more your case resembles, on paper, that of an actual contractor , the harder it will be to make your case. 

The more you can document that, in practice, you were treated as an employee, the stronger your case will be.

What can you do if you find yourself in this situation?

If part of your experience in Canada was as a "contractor"but you believe you were actually working as an employee, consider these points to strengthen the arguments and evidence in your case:

  • Letters of reference from your employer that describe your duties, work schedule, and level of supervision in detail.
  • Evidence of control: emails with direct instructions, assigned schedules, and internal policies you were required to follow.
  • Evidence of integration: corporate email, participation in team meetings, use of the company's internal systems.
  • Absence of actual business risk: if it did not operate as an independent business with the real possibility of making a profit or incurring a loss based on its performance.

Canada Pension Plan and the Employment Insurance Act (using Form CPT1): An additional formal option

On the other hand, there is a formal option that involves requesting a ruling regarding your worker status under the Canada Pension Plan and the Employment Insurance Act (using Form CPT1). 

That CRA determination may be submitted as supporting evidence to IRCC to demonstrate that your employment relationship was, in substance, that of an employee.

Being classified as a “Contractor” in your employment contract does not mean that you automatically lose your accrued time for purposes of the CEC, nor does it mean that your application through this process is guaranteed. 

It all depends on how convincing the presentation is, with concrete evidence of what the reality of their work is like—and that it was different from what was described on paper. 

IMPORTANT: Since the final decision rests with the officer’s discretion when reviewing each case individually, it’s worth putting together your application carefully before submitting it— not after it’s been denied.

Does your work experience in Canada include time as a "contractor," and are you unsure whether it counts toward your Express Entry application?

‍Please fill out this form and provide us with the details so we can determine whether we can represent you.

At Immiland Law, we're here to help you settle in Canada legally and protect your rights.

I hope this information gives you peace of mind and helps you know how to proceed correctly.

With love,

‍Immiland Law Professional Corporation