Philippines: New Guidelines Ease and Clarify Work Permit Issuance Provisions

Relaxed rules for labor market test compliance.

• Posting of job vacancies in the PhilJobNet (the government’s online job-matching portal) and Public Employment Service Office (PESO) is no longer required prior to submitting an Alien Employment Permit (AEP) application.
• Publication in a newspaper of general circulation remains the sole mandatory platform for the labor market test.

• An Affidavit of Undertaking can be submitted in renewal applications to confirm compliance with the publication and labor market test.

• With the removal of additional posting requirements, applications can now be submitted as soon as the required publication period (of 15 calendar days) in a newspaper of general circulation is completed. While it is still encouraged to post job vacancies in the PhilJobNet and PESO, these are no longer mandatory for the labor market test. This allows companies to file an AEP application earlier, reducing overall timelines and benefiting both the employer and the foreign national.
• Employers can better align the timing of AEP renewal filings with visa expiration dates or permit validity periods while ensuring compliance with the labor market test requirement.
• The newspaper publication remains valid for 45 days from the posting date.

Changes to the Understudy Training Program (UTP) and Skills Development Program (SDP) requirements.

• Scope. UTP/SDP compliance will only apply to the following categories of companies:
  • • Those registered under the Foreign Investment Act, who qualify for fiscal incentives from the government;
    • Those engaged in the operation of public utilities; or
    • Those identified as strategic investment by the Philippine government.
• Submission timeline. The UTP/SDP plan must be submitted during the AEP application or within 60 days from the start of work.
• Reporting schedule:
  • One-year work permits: semi-annual report submission
  • Two-to-three year work permits: annual report submission

Each report must detail the program implementation, attendance and competencies gained, and be signed by both the foreign and local workers.

• Transitional measure. Work permits issued before the revised guidelines took effect on February 10, 2025, will only be required to submit a UTP/SDP plan at the time of renewal.
• Evaluation mechanism.  A Technical Working Group (TWG) composed of various government agencies will develop evaluation criteria and methodologies to determine outcomes and effectiveness of the UTP/SDP.

• Employers outside the listed categories are not required to comply with the UTP/SDP, reducing administrative burdens and compliance costs.
• A defined submission and reporting schedule allows employers to strategically plan resources and align training programs more efficiently, ensuring these are clearly reflected in the submitted training plans. 

Exemptions from the UTP/SDP.

• UTP/SDP will no longer apply to the following:
  • • Individuals already excluded or exempted from obtaining a work permit;
    • Owners of the company and investors with equity participation as reflected in the corporate registration; and
    • Additional categories identified by the TWG.

·       Foreign nationals who qualify for the exemption will no longer be required to prepare and submit training plans under the UTP/SDP for the duration of their assignment. This significantly eases compliance requirements for the company and allows these employees to focus fully on their core functions.

·       However, it is important to note that all other foreign hires who are not exempt must still participate in the UTP/SDP. This ensures that while exempted employees bring immediate value without added administrative steps, the company continues to build local capability and sustain consistent training and skills development for local workforce.

Economic Needs Test report. The labor department will convene a TWG that will create a public report (called the Economic Needs Test report) that will assess the economic impact of employing foreign nationals.

·       The reports issued by the TWG may be utilized by companies as a reference point in evaluating labor market conditions.

·       The findings in the report can serve as practical guidance for employers making strategic hiring decisions involving foreign talent—helping companies justify applications, anticipate regulatory scrutiny, and align workforce planning with identified industry needs. In effect, the reports not only inform compliance but also support evidence-based decisions that balance the use of foreign expertise with the development of the local labor force.