Philippines Updates Rules for Work Permits for Foreign Workers

Posted by Written by Ayman Falak Medina Reading Time: 3 minutes

In response to the growing demand for foreign expertise and concerns about local employment protection, the Department of Labor and Employment (DOLE) has introduced new regulations governing work permits for foreign workers in the Philippines. These updates aim to enhance transparency, streamline procedures, and ensure that foreign employment aligns with national labor policies. Below, we break down the key changes and their implications for businesses hiring foreign talent.

Revised timeline for Alien Employment Permit (AEP) applications

Under the new guidelines, employers are permitted to file AEP applications on behalf of foreign nationals even before they arrive in the Philippines. However, the AEP will only be issued once the foreign national has entered the country. Previously, applications could only be submitted after the foreign worker’s arrival, potentially causing delays in employment commencement.

Enhanced job advertisement protocols

The updated rules introduce more stringent job advertisement requirements to ensure that the search for qualified Filipino candidates is exhaustive before considering foreign applicants. Employers must now publish job vacancies in a newspaper of general circulation, on the PhilJobNet (the government’s official job portal), and through the Public Employment Service Office (PESO) or Job Placement Office (JPO) in the area where the job is located.

The advertisement must include comprehensive details such as the company’s intent to hire a foreign national, the position, qualifications, job description, employer’s contact information, location of employment, the foreign national’s name and city of residence in the Philippines, a statement of the foreign national’s qualifications and willingness to work, the intended duration of employment, and the DOLE Regional Office where the AEP application will be filed.

Previously, the requirements were less detailed, typically necessitating only basic information about the position and employer.

Business implications of the new work permit rules

These changes carry significant implications for companies hiring foreign workers in the Philippines. Employers should anticipate:

  • Longer processing times – With the extended AEP application period and job advertisement requirements, hiring foreign talent may take more time than before.
  • Stricter compliance checks – DOLE’s requirement for a Certificate of Exemption formalizes previously automatic exemptions, meaning businesses must allocate more time for paperwork.
  • Higher costs – Increased job advertisement obligations and additional administrative steps may lead to higher hiring expenses.
  • Potential hiring delays – Employers must carefully plan recruitment strategies to account for the longer processing timelines and increased regulatory scrutiny.

Mandatory certificate of exemption for certain foreign workers

In contrast to earlier regulations where certain categories of foreign nationals were automatically exempt from obtaining an AEP, the new rules mandate that all exempted foreign workers secure a Certificate of Exemption from DOLE before commencing employment. This ensures a formal verification process and maintains regulatory oversight.

Extended processing duration for AEP applications

The processing time for AEP applications has been extended from the previous 7 working days to 15 working days from the date of payment of the filing fee. Employers should account for this longer processing period when planning the onboarding of foreign employees.

Exemption from publication requirement for certain corporate officers

The revised guidelines provide exemptions from the job advertisement publication requirement for specific corporate officers. Positions such as presidents, vice presidents, treasurers, and others with managerial roles may be exempted, recognizing the specialized nature of these roles and the potential difficulty in sourcing qualified local candidates.

These regulatory updates reflect DOLE’s commitment to balancing the facilitation of foreign talent employment with the protection and prioritization of the Filipino workforce.

Employers are encouraged to familiarize themselves with these changes to ensure compliance and effectively plan their recruitment strategies.

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