The Department of Labor and Employment (DOLE) has introduced new rules and regulations governing the employment of foreign nationals in the Philippines. These changes significantly impact the Alien Employment Permit (AEP) system and are designed to streamline the hiring process while protecting the local economy and workforce.
While the exact implementation date has yet to be announced, companies employing or planning to assign foreign nationals to the Philippines must prepare for the following key changes:
1. Extended AEP Application Period
The deadline for filing an AEP application has been extended to 15 calendar days (previously 10 days) from the execution of the employment contract or issuance of the appointment.
2. Mandatory Job Posting Requirements
Before considering a foreign national for employment, companies must now advertise the job vacancy in:
- A local newspaper
- The PhilJobnet website
- The nearest Public Employment Service Office (PESO) or Job Placement Office (JPO), depending on the job location
3. Certificate of Exemption Requirement
Foreign nationals who are exempt from obtaining an AEP must now request a Certificate of Exemption. This ensures proper documentation for all foreign employees, even those exempted from the AEP requirement.
4. Expanded List of Prohibited Acts
The New Rules now explicitly prohibit misrepresentation and fraudulent activities, which may lead to denial or revocation of an AEP. Companies must ensure full compliance to avoid penalties.
5. Exemption for Corporate Officers
Companies are not required to advertise job openings for certain corporate officer positions, provided the appointment is verified by the corporate secretary. This eases the process for executive-level hires.
6. Conditional Validity of Employment Offers
The employment contract or appointment becomes effective only upon the issuance of an AEP by DOLE. Offers should be conditional, pending successful AEP issuance.
7. AEP Application While Abroad
Foreign nationals may now begin the AEP application process while still abroad. However, the permit will only be released upon their entry into the Philippines with the appropriate visa.
8. Mandatory Training for Local Workforce
Companies are now required to implement training programs to support the transfer of expertise from foreign nationals to Filipino workers. This aims to boost local capability and encourage knowledge sharing, though it may result in additional operational planning and costs.
More information, download: https://dole.gov.ph/php_assets/uploads/2025/01/Department-Order-248-25-New-Rules-and-Regulations-on-the-Employment-of-Foreign-Nationals-in-the-Philippines.pdf
These changes call for strategic adjustments and strict compliance. We strongly encourage companies to consult legal professionals and remain updated on the final implementation timeline.
As the Philippines continues to be a key service hub in the region, navigating these new rules effectively will be critical to ensuring smooth operations and ongoing regulatory compliance.
Source: HR Asia
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