Philippines: DOLE issues new rules on the employment of foreign nationals

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→Philippines: DOLE issues new rules on the employment of foreign nationals

Philippines: DOLE issues new rules on the employment of foreign nationals

March 2025
One Asia Lawyers Philippines Team
Yasuaki Nanba (Japanese Lawyer)
Camille Himala (Attorney in the Philippines)

On 21 January 2025, the Department of Labor and Employment (DOLE) of the Philippines issued Department Order No. 248-2025, or the New Rules and Regulations on the Employment of Foreign Nationals in the Philippines.

Several changes were made to previous regulations governing the issuance of an alien employment permit and other rules in connection with the employment of foreign nationals. These Rules became effective on 10 February 2025.

Alien Employment Permit

An Alien Employment Permit (AEP) is a permit issued by the DOLE to a foreign national who has the capacity and qualifications to be engaged in gainful employment by an employer in the Philippines.

Every employer who intends to employ a foreign national in the Philippines shall first secure an AEP prior to the actual start of the foreign national’s employment, unless otherwise exempted or excluded by the Rules.

Labor Market Test and Economic Needs Test

The Labor Market Test (LMT) is the process to determine the non-availability of a Filipino citizen who is competent, able, and willing at the time the application for AEP is filed to perform the services for which the foreign national is desired. Employers are required to comply with the publication procedure below in order to satisfy the LMT.

The New Rules also introduce the Economic Needs Test (ENT), which is a process to evaluate and determine whether the employment of a foreign national is necessary to fill a gap, shortage, or need in the local labor market, particularly in relation to the nature of functions, level of specialization and technological knowledge, and industry requirements of employers which are granted fiscal incentives, are engaged in priority or strategic areas of investments, or operate public utilities.

Under the New Rules, the DOLE Regional Office (DOLE-RO), in evaluating an application for AEP, shall conduct the ENT in accordance with the factors enumerated in the rules, and other guidelines that may later be issued.

Publication and posting

Previously, the old rules required the employer to the publish the job vacancy in a newspaper of general circulation, and the DOLE-RO to post new AEP applications in their website and the PESO job boards for thirty (30) days.

Now, the responsibility has been shifted to the employer to cause the publication of the vacant position in the three required modes under the new Rules, which now includes the PhilJobnet. Thus, before the filing of an application for AEP, the employer shall cause publication in:

(1) a newspaper of general circulation;
(2) PhilJobnet, and
(3) the Public Employment Service Office (PESO) or Job Placement Office (JPO) having jurisdiction over the intended place of work.

The publication shall be valid and effective only up to 45 days. Thus, if the application for AEP does not comply with the period to file discussed below, the position must be published anew.

When and where to apply

Under the old rules, applications for AEP were required to be filed within ten (10) working days from the date of signing of the contract or prior to the commencement of employment.

With the effectivity of the new rules, an application for AEP shall be filed with the DOLE-RO having jurisdiction over the intended place of work of the foreign national not earlier than fifteen (15) calendar days after publication, the effectivity of which is forty-five (45) days, and within fifteen (15) calendar days from the execution of the contract of employment. The effectivity of the employment contract shall be conditioned on the issuance of an AEP.

The application may be filed while the foreign national is still outside the country, provided that no AEP shall be released unless the foreign national has entered the country with the appropriate visa presented to the DOLE. Generally, an approved AEP is first required for the issuance of a 9g visa. Thus, an application for AEP shall be filed prior to obtaining a 9g visa. In any case, the AEP shall only be released upon arrival of the foreign national in the Philippines.

Certificate of exemption/exclusion

A foreign national that is exempted from securing an AEP shall request a certificate of exemption from the DOLE-RO. Previously, securing such certificate was optional.

Similar to the old rules, a foreign national that is excluded from securing an AEP shall likewise request a certificate of exclusion.

Skills Development Program and Understudy Training Program

Pursuant to the state’s policy of promoting human resource development and ensuring effective transfer of skills, knowledge, and technology to Filipinos, the following employers are, as a new rule, required to adopt and implement a Skills Development Program (SDP) or Understudy Training Program (UTP):

(1) An employer which is granted fiscal incentives by the Government,
(2) An employer engaged in priority or strategic areas of investments, or
(3) An employer operating a public utility under the Public Service Act.

SDP is a training plan designed to transfer technology or skills possessed by a foreign national to at least 2 regular rank-and-file Filipino employees per foreign national employed by such covered employer above, through learning sessions or any similar training modalities.

UTP is a training plan designed to transfer technology or skills possessed by a foreign national to at least 2 understudies who are regular employees of the employer and who are next-in-rank to such foreign national.

The UTP or SDP must be submitted to the DOLE with the application for AEP and must contain the details specified under the Rules.

Progress evaluation or accomplishment and completion reports are likewise required to be submitted to the DOLE Regional Office within five (5) working days from each periodic evaluation or completion of the UTP or SDP.

Prohibited Acts

The employer and foreign national shall be liable for any of the following acts:

(1) Any act of misrepresentation, false statement, tampering, fraud or other analogous or similar act that constitutes a ground for denial of an application for AEP under Section 10 a) and b), Rule II of the Rules;
(2) Any act that constitutes a ground for revocation of an AEP under Section 3, paragraphs a), b), c), and e) of Rule IV of the Rules; or
(3) Deliberate or wilful disregard or non-compliance with any of the provisions of the Rules.

What should companies do?

Companies employing foreign nationals in the Philippines, as well as foreign nationals working or intending to work in the country, should take note of the new procedures and requirements under the New Rules to ensure the timely application and smooth approval of their AEPs. Employers are further advised to ensure whether they need to comply with newly introduced requirements, such as the submission and implementation of the SDP or UTP. Please access a full text of the rules here to see all changes, including details on the publication requirements, guidelines for additional position, and other updates.