The Department of Labor and Employment (DOLE) introduced Department Order No. 248, Series of 2015 or the New Rules and Regulations on the Employment of Foreign Nationals in the Philippines. It outlines the significant changes to the employment of foreign nationals in the country. These changes involve the application process of Alien Employment Permit (AEP) and additional requirements for employers hiring foreign employees in the country.
Alien Employment Permit (AEP)
An Alien Employment Permit (AEP) is issued by the Department of Labor and Employment (DOLE) to foreign nationals who have the capacity and qualifications to be engaged in gainful employment by an employer in the Philippines in a position which no Filipino citizen is competent, able and willing to perform at the time the application of AEP is filed.
New Alien Employment Permit (AEP) Rules
Application
Employers may submit an Alien Employment Permit (AEP) application before the foreign worker arrives in the country. However, the Department of Labor and Employment (DOLE) will not release the AEP until the applicant arrives in the country. The processing period for AEP issuance has been extended from seven (7) to fifteen (15) working days from the date of payment of the filing fee. Additionally, employers should anticipate potential delays in onboarding foreign employees due to this extended timeline.
Labor Market Test (LMT)
Previously, employers seeking to hire foreign nationals were only required to publish the job vacancies in newspapers of general circulation. Under the new rules, employers are required to also publish the vacancies in PhilJobNet (the official publication government job portal), Public Employment Service Office (PESO) or Job Placement Office (JPO) where the job is based. The validity period of job posting is up to forty-five (45) days.
Job Posting Content
The employer must include the following information on their job vacancies post:
- Company’s intent to hire a foreign national
- Job position, qualifications, and description
- Employer’s name, address, and contact details
- Location of employment
- Foreign national’s name and place of residence in the Philippines
- Statement that the foreign national is qualified and willing to work
- Intended duration of employment
- DOLE Regional Office and address where the AEP application will be filed
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 are exempted from the requirement of publication under the immediately preceding section.
New Requirement for a Certificate of Exemption
Before, foreign nationals covered by AEP exemption categories could commence employment without additional documentation. Under the new rules, all exempted foreign employees must secure a Certificate of Exemption from the Department of Labor and Employment (DOLE) before they can begin working.
Exempted from Applying an Alien Employment Permit (AEP)
The following foreign individuals who want to work in the Philippines are exempted from applying an AEP:
- 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;
- 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;
- An officer, staff or employee in his or her country’s embassy in the Philippines;
- 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;
- 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;
- A permanent, probationary or temporary resident visa holder; and
- Any refugee or stateless persons recognized by the Department of Justice (DOJ) pursuant to Article 17 of the 1951 and 1954 UN Conventions Relating to Status of Refugees and Stateless Persons; and
- Individuals exempted by law.
Requirements for Alien Employment Permit (AEP) Application
When applying for an AEP, the following documents must be submitted to the DOLE Regional Office:
- Duly accomplished application signed by you and your employer with all material information required by the Department of Labor and Employment (DOLE)
- Photocopy of passport bio-page with your valid visa
- Photocopy of BIR Form No. 1904 or 1902 duly received by the Bureau of Internal Revenue (BIR) District Office indicating your Taxpayer Identification Number (TIN), a certification from the BIR with a list of foreign nationals and their respective TINs, or a copy of e-registration
- Original copy of duly notarized or authenticated appointment or contract of employment signed by you and your employer, indicating the job position, scope of work, duties and responsibilities, salary, and benefits
- Proof of employer’s legal personality and authority to operate or do business
- Proof of publication, unless exempted from this requirement
- Other necessary documents
Application Process of Alien Employment Permit (AEP)
Before the filing of an application for an Alien Employment Permit (AEP), the employer should publish the vacant job position in a newspaper of general circulation, the PhilJobnet, and the Public Employment Service Office (PESO) or Job Placement Office (JPO). The publication is valid and effective up to forty-five (45) days. Note that hiring for corporate officer positions are exempted from publication.
Once there are no qualified Filipino citizens applying for the vacant position, an application for AEP may be processed even if you are still outside of the Philippines. Once the application and supporting documents have been submitted, you will be required to pay the necessary fees. The DOLE Regional Office will then evaluate and process your application, which could either be approved or denied.
Validity Period of Alien Employment Permit (AEP)
An Alien Employment Permit (AEP) is valid for one (1) year, unless the duration of employment as stated in the employment contract or other modes of engagement. This could also be extended for three (3) years.
Grounds for Denial of Alien Employment Permit (AEP) Application
Upon evaluation and assessment of your application, it may be denied because of any of the following reasons:
- Misrepresentation, false statement or fraud in the application or supporting documents;
- Ineligibility of the employer or foreign employee to apply for an AEP due to a previous and subsisting disqualification;
- Non-compliance with the labor market test or the economic needs test or both;
- Non-submission or failure to secure the visa, permit or license;
- Timely and meritorious objection filed by a Filipino citizen who is competent, able and willing to perform the functions intended to be performed or being performed by the foreign national; and
- Adverse verified information that the foreign national has maltreated workers, or from competent authority that the foreign national or the employer is engaged in activities that may constitute a crime or offense under Philippine laws and applicable international laws.
If the denial is due to a, b or f, you and your employer are disqualified to re-apply for an AEP for five (5) years.
Need further information and assistance regarding Alien Employment Permit (AEP)? Talk to our team at Duran & Duran-Schulze Law in Bonifacio Global City, Taguig, Philippines to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.
