Key Takeaways from the New Rules on the Employment of Foreign Nationals

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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 

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AT A GLANCE:

On January 21, 2025, the Department of Labor and Employment issued Department Order No. 248 series of 2025 to regulate the employment of foreign nationals in the Philippines.

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Economic Needs Test

It is a process to evaluate and determine whether the employment of a foreign national is necessary to fill a gap, shortage or need in the local labor market, particularly in relation to the nature of functions, level of specialization and technological knowledge, and industry requirements of employers which are granted fiscal incentives, are engaged in priority or strategic areas of investments or operate public utilities under the Public Service Act, as amended. 

 

Pursuant to the economic needs test, the DOLE Regional Office shall, as appropriate, likewise evaluate and consider the economic implications of allowing the employment of foreign nationals in specific sectors, professions, occupations or industries, particularly taking into account the following:

 

1. Shortage or surplus of Filipino workers in the sector, industry, profession, occupation or industry in which the foreign national is intended to be employed based on official statistics or relevant surveys;
2. Unavailability in the local labor market of the specialized skills, expertise or knowledge required by or are inherent to the position to which the foreign national is intended to be employed, and whether or not these can be met within a short period of time by training local workers; and
3. The employment of the foreign national is deemed essential for the development, competitiveness or technological advancement of the specific sector, profession, occupation or industry and serves the national economic interest, particularly among employers granted fiscal incentives, engaged in priority investments, or operating public utilities under the Public Service Act, as amended. 

 

The foregoing provision on economic needs test shall be without prejudice to further advisory guidelines that the DOLE may issue after consultation with relevant government agencies such as but not limited to Professional Regulation Commission (PRC), Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), Philippine Economic Zone Authority (PEZA) and the Philippine Statistics Authority (PSA).

 

Labor Market Test

It is the process to determine the non-availability of a Filipino citizen who is competent, able and willing at the time the application for Alien Employment Permit (AEP) is filed to perform the services for which the foreign national is desired.  

 

Before the filing of an application for an AEP, the employer shall cause the publication of the vacant position to be filed up and the name of the foreign national it intends to hire, in the following manner:

 

a) The publication shall be made in –

 

1. A newspaper of general circulation;
2. The PhilJobnet; and
3. The Public Employment Service Office (PESO) or Job Placement Office (JPO) having jurisdiction over the intended place of work.

 

b) The publication shall state the employer’s intention to employ a foreign national and to apply for an AEP for this purpose. The publication shall include the following:

1. Name, address and nature of business of the employer;
2. Specific position to be filled up, job description, and functions to be performed that include the objective factors or requirements of the position;
3. Qualification requirements for the position, including education, experience, professional license, skills certification or specialized training;
4. Location/s and address/es of the workplace/s where the job vacancy is and where the foreign national will regularly perform his or her work;
5. Name and city of residence of the foreign national in the Philippines in whose favor the AEP is sought to be issued;
6. A statement that the foreign national is able, willing, and qualified to perform the service for which his or her employment is desired;
7. Intended period or duration of employment of the foreign national; and
8. The DOLE Regional Office and its address where the application for the AEP is intended to be filed.

 

c) One publication may include more than one position, provided that the information required under paragraph b) ii,iii,iv,v,vi and vii above shall be provided for each position. The publication shall be valid and effective up to a period of forty-five (45) days and can be used only for the position or positions stated and described therein. 

 

Exemption from Publication

A foreign national intended to be hired to any of the corporate officer positions as identified in the company’s Articles of Incorporation, By-laws or General Information Sheet (GIS), and as certified by the corporate secretary shall be exempted from the requirement of publication.

 

Period to file the application for Alien Employment Permit 

The application for AEP shall be filed with the DOLE Regional Office having jurisdiction over the intended place of work of the foreign national not earlier than fifteen (15) calendar days after publication in accordance with Section 1 of this Rule, and within fifteen (15) calendar days from the execution of the contract of employment between the employer and the foreign national or the issuance of an appointment by the former to the latter. In cases where the foreign national shall be assigned to more than one workplace falling under the jurisdiction of different regional offices, the application shall be filed with the DOLE Regional Office having jurisdiction over the primary place of work. The effectivity of the employment contract or appointment shall be conditioned on the issuance of an AEP by DOLE in favor of the foreign national.

 

An application for the AEP may also be filed and processed while the foreign national intended to be hired is still outside the country, provided that no AEP shall be released unless the foreign national has entered the country with the appropriate pre-arranged employment visa or 9(G) or working visa presented to the DOLE Regional Office. 

 

Additional position

The foreign national shall only be engaged or assigned in the position for which the AEP was issued. An additional position may be allowed in exceptional cases, subject to the following:

 

a) An additional position pertains to a position to be performed by a foreign national who has a subsisting AEP with the same employer or with the latter’s related company but under a job category, title, description and functions distinct from the position for which the original AEP was issued.

b) The applicant shall submit sufficient proof that:

1. There is no conflict between the duties and responsibilities of the original and additional positions; and 
2. The foreign national has the capacity to effectively perform the responsibilities of both positions under the same employer.

c) A photocopy of the subsisting AEP card, which shall be surrendered to the DOLE Regional Office as a condition for release of the new AEP.

d) In evaluating the application, the DOLE Regional Office shall consider the proximity of the application to the approval or expiry date of the original AEP, the place of work and other relevant circumstances.

 

Exemptions

The following categories of foreign nationals desiring to work in the Philippines are exempted from securing an AEP.

1. Dependent spouse of any member of the diplomatic corps, provided there is an existing reciprocity agreement and/or exchange of notes between the Philippine Government and the diplomat’s country of origin;
2. Any accredited official and personnel of an international organization with which the Philippine government has entered into an agreement, and the dependent spouse of such official or personnel;
3. Any foreign national who is an officer, staff or employee in his or her country’s embassy in the Philippines;
4. Any foreign national who is an officer, staff or employee of a peacekeeping or international organization, either deployed in the Philippines or invited by a non-governmental organization and accredited, endorsed or certified by the appropriate government agency;
5. Any foreign national who comes to the Philippines to teach, present or conduct research in a university or college or in a government agency as a visiting, exchange or adjunct professor under a formal agreement between the Philippine and foreign university or college, or between the Philippine government and the sending government;
6. Any foreign national who is a permanent, probationary or temporary resident visa holder; and
7. Any refugee or stateless persons recognized by the DOJ pursuant to Article 17 of the 1951 and 1954 UN Conventions Relating to Status of Refugees and Stateless Persons; and 
8. Any foreign national exempted by law. 

 

Certificate of Exemption

A foreign national under any of the exemptions in the immediately preceding section who intends to be employed in the Philippines shall request a certificate of exemption by submitting to the DOLE Regional Office which has jurisdiction over the intended place of work the following:

1. Duly notarized request for certificate of exemption in the form prescribed by DOLE, which shall include material information including, among others, the name and address of the employer and the intended workplace of the foreign national;
2. Except as to stateless persons, photocopy of the bio page of the foreign national’s valid passport; and 
3. Photocopy of the foreign national’s valid visa and the corresponding Alien Certificate of Registration (ACR) I-Card issued by the Bureau of Immigration (BI), if applicable.

 

In addition, a foreign national belonging to any of the categories indicated below shall submit the following:

1. For a dependent spouse, endorsement for employment from the DFA;
2. For a foreign national, copy of the agreement between the involved academic institutions or governments;
3. For a refugee or stateless person, Certificate of Recognition issued by the DOJ; and 
4. For a foreign nation, copy of the law granting exemption. 

 

Understudy Training Program (UTP) or Skills Development Program (SDP)

In line with the policy to promote human resource development and ensure the effective transfer of skills, knowledge and technology to Filipinos, employers and foreign nationals covered by the requirement to adopt and implement a UTP or SDP shall be guided by the following:

 

a) The UTP or SDP must be submitted to the DOLE Regional Office with the application for AEP and must contain:

 

1. The objectives of the program, the specific skills and competencies to be transferred and developed, and the learning milestones and timetables;
2. The duration of implementation of the UTP or SDP, which must start within five 950 working days from the foreign national’s employment and conclude not later than five (5) working days prior to the expiry dates of the AEP;
3.  At least two identified understudies per foreign national, their positions, proof that they are regular employees of the applicant employer and, in the case of UTPs, that such positions are next-in-rank to the position to be occupied by the foreign national;
4. Standards of evaluation and assessment tools for the learning milestones, including the schedule of periodic evaluation and reporting to the DOLE Regional Office; and 
5. The person responsible for overseeing and evaluating the implementation of the UTP or SDP other than the foreign national, who must be knowledgeable and proficient in human resource development and training.

 

b) Within five (5) working days from each periodic evaluation or completion of the UTP or SDP, the employer shall submit a progress evaluation report or accomplishment and completion report to the DOLE Regional Office.

 

The foregoing shall be without prejudice to further technical guidelines that DOLE may issue from time to time. Upon request or when necessary, the DOLE Regional Office shall provide technical assistance in the formulation, design, implementation, evaluation and assessment of the UTP or SDP. 

 

Prohibited Acts

The following are prohibited acts of the employer and foreign national:

1. Any act of misrepresentation, false, statement, tampering, fraud or other analogous or similar act that constitutes a ground for denial of an application for AEP;
2. Any act that constitutes a ground for revocation of an AEP under Section 3, paragraphs a), b), c) and e) of Rule IV of these Rules; or
3. Deliberate or willful disregard or non-compliance with any of the provisions of these Rules. 

 

Related Articles:

• What is an Alien Employment Permit? Who Needs It and Who is Exempted and Excluded?
• MATTERS CONCERNING EMPLOYMENT OF NON-RESIDENT ALIENS

 

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