New DOLE Rules on Foreign Nationals’ Employment in the Philippines

The Department of Labor and Employment (DOLE) in the Philippines has issued new regulations governing the employment of foreign nationals through Department Order No. 248, series of 2025. These new rules aim to regulate the employment of foreign nationals more stringently, replacing the previous regulations under Department Order No. 221, series of 2021. The new framework, now titled “New Rules and Regulations on the Employment of Foreign Nationals in the Philippines,” comes into effect fifteen days after their publication in the Official Gazette or a widely circulated newspaper. As of the article’s date, the rules have not yet been published, and DOLE has not specified the implementation timeline or publication date.

Filing Deadline for Alien Employment Permit (AEP) Applications

One of the significant changes in the new regulations is the extension of the filing deadline for Alien Employment Permit (AEP) applications. Previously, employers were required to submit the AEP application within ten working days from the contract signing or before the employment began. The new rule extends this period to fifteen calendar days from the contract execution or from the issuance of the appointment to the foreign national. This change is pivotal as it provides employers with additional time to comply with the application requirements, thereby ensuring a smoother process for both employers and foreign employees. The added flexibility is likely to reduce the administrative burden on employers who need to secure the necessary permits for their foreign hires within a more manageable timeframe.

However, the extension also means that employers must remain vigilant in tracking their compliance timelines to avoid any potential lapses that could disrupt the hiring process. Adherence to this new timeline is essential for maintaining legal compliance and minimizing any procedural delays. Employers should treat this additional time as an opportunity to ensure thorough and accurate submissions of AEP applications, potentially reducing the risk of rejection or the need for resubmissions, thus promoting a more efficient employment landscape for foreign nationals.

Labor Market Test

The labor market test has also undergone significant changes aimed at enhancing transparency and opportunities for Filipino workers. Under the old rule, employers had to publish the job vacancy in a newspaper of general circulation. Additionally, DOLE’s regional offices posted new AEP applications for thirty days on their websites and job boards, and they could also refer to PhilJobNet and Public Employment Service Office (PESO) systems to verify the availability of qualified Filipinos. The new rule now requires employers to publish both the job vacancy and the foreign national’s name in three places: a general circulation newspaper, PhilJobNet, and the relevant PESO or Job Placement Office (JPO). This comprehensive approach aims to ensure greater visibility of job openings and provides more opportunities for qualified Filipino workers to apply for available positions.

This shift toward a more rigorous labor market test is designed to prioritize local talent and ensure that the employment of foreign nationals is justified only when no qualified Filipino is available for the role. By mandating the publication of both the job vacancy and the foreign national’s name across multiple platforms, the new rule establishes a transparent process that allows for more scrutiny. It aims to prevent any potential circumvention of the regulations and demonstrates a commitment to protecting the interests of Filipino job seekers. Overall, this adjustment is in line with DOLE’s goal of creating a balanced labor market that encourages the employment of local qualified individuals while upholding the integrity of the foreign employment process.

Certificate of Exemption

Another notable change in the new regulations pertains to the Certificate of Exemption for foreign nationals. Previously, foreign nationals exempt from securing an AEP had the option to request a Certificate of Exemption. The new rule, however, makes this request mandatory if they intend to be employed in the Philippines. This compulsory certification ensures that all foreign nationals working in the country are properly documented and regulated. The move to mandatory requests signifies a step toward more meticulous oversight of foreign employment, aimed at curbing potential abuses and maintaining a transparent employment environment.

The requirement for a Certificate of Exemption strengthens the regulatory framework by mandating a uniform process for all exempt foreign nationals, thereby eliminating any ambiguities regarding their employment status. This enforced documentation ensures all foreign nationals under exemption are accounted for and monitored, reducing the likelihood of undocumented employment scenarios. It also provides DOLE with a clear database of foreign workers, facilitating better governance and ensuring foreign nationals’ employment complies with Philippine labor laws. These measures contribute to a more organized and regulated system that aligns with the country’s labor policies and economic objectives.

Prohibited Acts

The new regulations also expand on the list of prohibited acts, emphasizing stricter adherence and compliance with the rules. The old rule included several prohibited acts related to invalid, expired, or fraudulent AEPs, and late applications. The new rule goes further by emphasizing misrepresentation, false statements, tampering, fraud, and non-compliance with the newly established regulations. This expansion is aimed at preventing any form of malpractice and ensures that the employment of foreign nationals is conducted fairly and transparently. The heightened scrutiny on these disruptive activities showcases DOLE’s unwavering dedication to upholding the principles of fairness in the employment sector.

By addressing a broader spectrum of prohibited acts, the regulations are more comprehensive and better equipped to deter any attempts to sidestep the legal processes. This proactive stance serves as a deterrent against unethical practices and reinforces the importance of integrity in filing and maintaining AEPs. Employers and foreign nationals must be aware of these expanded prohibitions and adopt rigorous compliance measures. Adhering to these provisions assures that the foreign employment process remains transparent and equitable, fostering a labor market environment based on trust and accountability. The emphasis on compliance encourages employers to maintain robust internal checks and balances, effectively minimizing the risk of legal repercussions.

Corporate Officers Exempted from Publication Requirement

Under the new regulations, foreign nationals hired for positions listed in the company’s Articles of Incorporation, By-laws, or General Information Sheet (GIS) and certified by the corporate secretary, are exempt from the publication requirement. This exemption is an acknowledgment of the unique nature of corporate officer positions and aims to streamline the process for hiring foreign nationals in these specific roles. By removing the publication mandate, the DOLE recognizes the specialized expertise often required for high-level corporate positions, which may not be readily available within the local workforce.

The exemption ensures that corporations can fill critical roles without facing the delays associated with the general publication process. These positions typically demand specific qualifications and experience levels, and the streamlined process fosters a more efficient hiring cycle for essential corporate roles. This adjustment is beneficial for companies seeking to leverage global talent for their executive boards while concurrently complying with DOLE’s overarching regulatory framework. By focusing on corporate officers, the exemption provides a balanced approach to regulation that respects both the need for specialized expertise and the principle of local workforce prioritization.

Conditional Effectivity of Employment Contracts

A new provision under the regulations stipulates that the validity of the employment contract or appointment hinges on the issuance of an AEP by DOLE. That means the employment contract or appointment will only become effective once the AEP is issued, ensuring that all foreign nationals working in the Philippines possess the necessary permits. This conditional effectivity underscores the importance of securing proper documentation, aligning with DOLE’s commitment to legal compliance and employment transparency.

This requirement ensures that employers cannot prematurely engage foreign nationals without due process and the necessary legal clearances. It protects both parties by making it clear that only legally authorized employment contracts are valid. This provision emphasizes compliance with labor regulations and reinforces the importance of obtaining all mandatory permits before any formal employment begins. Employers must diligently follow this guideline to avoid any contractual misunderstandings or legal entanglements, thereby maintaining the integrity of employment practices within the Philippines.

Filing AEP Applications While the Foreign National is Abroad

The new regulations introduce provisions allowing AEP applications to be filed while the foreign national is still abroad. However, the AEP will not be released until the foreign national has entered the Philippines with the appropriate employment visa (9(G) or working visa). This provision is designed to facilitate the hiring process for employers, allowing them to initiate the permit application process beforehand and ensuring smoother transitions for foreign nationals upon their arrival. It reflects DOLE’s effort to create a more adaptable and responsive regulatory framework that meets the complexities of international employment.

This adjustment benefits both employers and foreign workers by minimizing the time and logistical challenges typically associated with cross-border employment. Employers can use this time to prepare all necessary documentation and compliance materials, ensuring a seamless entry and integration process for their foreign hires. This foresight allows for better planning and execution of the hiring process, reducing potential administrative delays. Foreign nationals benefit from this provision by having their permits processed in advance, decreasing the waiting period upon arrival and enabling them to commence work promptly, enhancing overall operational efficiency.

Skills Development and Understudy Training Programs

The Department of Labor and Employment (DOLE) in the Philippines has released new guidelines governing the hiring of foreign nationals through Department Order No. 248, series of 2025. These fresh regulations aim to enforce stricter controls on the employment of foreign workers, superseding the previous rules outlined in Department Order No. 221, series of 2021. Officially titled “New Rules and Regulations on the Employment of Foreign Nationals in the Philippines,” this regulatory framework will be enacted fifteen days following its publication in the Official Gazette or a widely circulated newspaper. As of now, these rules have not yet been published, and DOLE has not indicated a specific timeline for their implementation or publication date. This initiative reflects the Philippine government’s commitment to refining its labor policies regarding foreign nationals, ensuring compliance with local employment standards and protecting local job markets.

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