Philippines: Changes to Streamline Alien Employment Permit Processing; But May Delay Applications During Transition Period

Shorter government processing period. The prescribed processing period for AEP applications will decrease from 15 to 10 business days. DOLE may extend processing by up to 10 additional business days. 

Though shorter processing times are likely for AEPs, during a transition period, applicants may experience processing delays. Employers should therefore allow additional lead time for new hires, assignments and renewals, maintain flexibility with anticipated start dates and review time-sensitive cases individually. 

Relaxed labor market testing rules. Employers will no longer need to publish job advertisements in newspapers at their expense to meet the Labor Market Test requirement. The Order instead provides for publication of the notice through DOLE’s Official Portal/Public Repository or, alternatively, filing with the Office of the National Administrative Register at the University of the Philippines Law Center.  

Employers will benefit from fewer administrative steps and lower costs, with publication instead undertaken through the designated government platform or repository.  

Removal of certain filing prerequisites from other government agencies. Applicants will no longer need to submit the following documents, or proof of having applied for them, with their AEP applications: 

• Philippine Contractors Accreditation Board license; 

• Professional Regulation Commission Special Temporary Permit; 

• Department of Justice Authority to Employ Alien; and 

• Department of Environment and Natural Resources Authority to Hire Foreign National. 

Employers may be able to proceed with applications without waiting for the relevant agency documents. 

The removal of certain documents as AEP filing prerequisites does not eliminate the underlying regulatory obligations. Employers and applicants must continue to obtain any licenses, permits or authorizations separately required by the relevant government agencies. 

Revised payment process. Under the new rules, DOLE will no longer collect government processing fees upon submission and initial evaluation of an AEP application. Instead, it will issue the Order of Payment Slip (OPS) after approving the application following technical evaluation. 

Employers may face longer work authorization timelines, as the OPS is required to file a Provisional Work Permit (PWP) application. 

Healthcare requirement. Lawfully employed foreign nationals must receive healthcare benefits in government hospitals on terms no less favorable than those for Filipino workers in compliance with the International Labor Organization Convention. These were not a prominent component of the previous AEP guidelines. 

Employers should review healthcare benefits for lawfully employed foreign nationals to ensure they comply with the new rule.