Philippines: Supplemental Guidelines Released for Forthcoming Policies on Foreign National Employment

The Department of Labor and Employment (DOLE) released supplemental guidelines clarifying the new immigration policies released on the employment of foreign nationals in the Philippines; however, the effective date has yet to be determined.

First, once implemented, the DOLE will no longer require employers to post job advertisements on the PhilJobNet and Public Employment Service Office (PESO) portals as part of the Labor Market Test (LMT) requirement for Alien Employment Permits (AEPs), although such postings are still encouraged. However, the newspaper job posting as part of the LMT will remain mandatory.

Second, the processing time for AEP applications will be extended to 15 business days from the date of payment (up from the previous five business days). Additionally, the DOLE will accept AEP renewal applications if they are filed with an affidavit of undertaking stating that the employer will comply with the LMT publication requirements before the AEP card is released and that the employer will submit the Understudy Training Program/Skills Development Program (UTP/SDP) within 60 days of the renewal application date, if applicable. For renewed AEPs issued prior to February 10, 2025, employers will only be required to submit a UTP training plan (similar to the requirement for new applications) rather than full UTP or SDP compliance. Failure to submit or comply with required documentation may result in the revocation of the AEP.

Third, UTP or SDP will be required for companies that are: (1) registered under the Foreign Investment Act (FIA), employ foreign nationals, and receive fiscal incentives; (2) engaged in the operation of public utilities or critical infrastructure under the Public Service Act where foreign equity participation is allowed; or (3) recognized as strategic investments, including entities in sectors listed in the Strategic Investment Priority Plan or a comparable national development strategy. Once the UTP/SDP plan is submitted, the DOLE Regional Office (RO), through a Technical Working Group supported by the Bureau of Local Employment (BLE), will review the plan within five business days to ensure that it contains all the required information. Employers will be required to submit progress reports on implementation, attendance, and skills gained semi-annually (for one-year AEPs) or annually (for two- or three-year AEPs), which are signed by the employer, foreign national, and Filipino employees. Additionally, exemptions apply to foreign nationals not subject to AEPs, SEC-registered equity holders or investors, and roles deemed exempt by the TWG.

Finally, the respective DOLE RO will assess the economic impact of employing foreign nationals through the Economic Needs Test (ENT), which will also be evaluated by a TWG supported by the BLE, similar to the process used for UTP/SDP assessments.