Philippines: New Rules for Work Permit Applications May Cause Longer Processing

Labor Market Test updates. Employers submitting Alien Employment Permit (AEP) applications are now subject to more expansive related rules.

• First, they must post the vacancy on three platforms:
• • A newspaper of general circulation;
  • PhilJobNet, the Philippine government’s job portal; and
  • The Public Employment Service Office or Job Placement Office.
• The job posting must include key details such as the position, job responsibilities and qualifications, intended duration of employment, nature of the employer’s business, office address where the foreign national will primarily work, the foreign national’s full name and city of residence in the Philippines, a statement confirming their ability, willingness, and qualifications for the role, and the DOLE Regional Office (RO) where the AEP application will be filed, along with its address.
• The AEP application must be submitted at least 15 days after the last publication but no later than 45 days after the job posting has been published on all required platforms.
• Foreign applicants who qualify for an exemption from the job posting requirement must request a Certificate of Exemption from the DOLE Regional Office (DOLE RO) that has jurisdiction over their intended place of work. Exempted individuals, including those elected or holding appointed positions, may file their AEP application after 15 calendar days from either the execution of the employment contract or the issuance of the appointment.
• Previously, employers were only required to publish job vacancies in a newspaper of general circulation in the Philippines at least 15 days before submitting an AEP application. As far as supplemental documents, employers only had to submit a notarized affidavit confirming that either no applications were received, or no Filipino applicant was qualified for the position (this is still required). This requirement did not apply to AEP renewals.

AEP applications may take longer to process due to the stricter evaluation criteria and increased documentation requirements. 

Applicants and local employers are advised to start the application process early, collaborate closely with each other and/or with their immigration provider, and provide a strong justification for their employment to effectively navigate the stricter LMT process and reduce the risk of delays or rejection.

Understudy Training Program (UTP) and Skills Development Program (SDP) reinstated. 

• Certain local companies hiring foreign nationals must implement an UTP or SDP as a requirement for the issuance of an Alien Employment Permit (AEP). This requirement applies to employers who:
• • Receive fiscal incentives; 
  • Operate under the Foreign Investment Act or Public Service Act;
  • Are registered/recognized by Investment Promotion Agencies; or
  • Are engaged in priority or strategic investment areas.
• Covered employers must submit a progress evaluation or completion report on the UTP or SDP to the DOLE RO as part of compliance requirements.
• They are also required to nominate two Filipino understudies whose positions must be directly next in rank to that of the foreign national.
• Previously, all local companies seeking to hire foreign nationals were required to implement a UTP.

The UTP requirement has been limited, making it easier for some companies who do not fit the criteria for requiring a UTP to hire foreign nationals.

However for companies that must implement a UTP, there are increased administrative and financial responsibilities.

Other key updates include: 

• Economics Needs Test. For the following employers, the DOLE RO now evaluates whether employing foreign nationals is necessary and beneficial to developing and advancing local industries and sectors: employers who receive fiscal incentives, operate under the Foreign Investment Act or Public Service Act, are registered or recognized by Investment Promotion Agencies, or are engaged in priority or strategic investment areas.
• AEP additional requirements. Foreign nationals may be required to submit proof of educational credentials, relevant work experience, professional licenses, skills certifications, or evidence of specialized training to establish qualifications for the intended position. Previously, these documents were not required.
• Reporting. Employers must notify the DOLE RO that issued the AEP of any changes in a foreign national’s employment status, personal information, resignation, termination, or other business-related updates. This notification must be submitted within 10 calendar days of the change. Previously, employers were required to only submit a notification to the DOLE RO if  company information changed (such as office  address, contact number, company name and authorized representative).

For some local employers, hiring foreign workers may become more challenging due to stricter evaluations and documentation requirements. 

Employers are advised to strategize hiring processes, ensure compliance, and anticipate longer processing times for approvals. 

For foreign nationals, higher qualification standards, increased documentation requirements, and stricter permit renewals may limit opportunities. Applicants must be well-prepared with proper documentation to avoid further delays.