In our spotlight on APAC series, we round up the latest developments across the region. In this post, we capture some notable points on New Rules and Regulations on the Employment of Foreign Nationals in the Philippines.
On 21 January 2025, the Department of Labor and Employment (DOLE) had announced a “New Rules and Regulations on the Employment of Foreign Nationals in the Philippines”. The rules govern the employment of foreign nationals in the Philippines and these revisions aim to balance investment promotion, local labour protection, and skills transfer to Filipino workers.
Key Changes Under the New AEP Rules
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Submitting of AEP Applications When the Candidate is Abroad
Employers may now submit an AEP application before the foreign national arrives in the Philippines. However, DOLE will not release the AEP until the applicant has entered the country. The intention is to streamline the employing process and ensuring compliance with labour and entry regulations.
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Additional Job Advertisement Requirements
Employers considering hiring foreign nationals must now comply with stringent job posting requirements.
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Longer Processing Time for AEP Applications
The processing timeline for AEP issuance will be extended from 7 working days to 15 working days once payment is made prior to filling of the application. Due to this extended timeline, employers should expect potential delays in onboarding foreign employees.
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New Requirement for a Certificate of Exemption (COE) from AEP
Formerly, foreign nationals under the AEP exemption categories could initiate employment without further documentation. Under the new rules, however, all exempted foreign workers must secure a COE from DOLE before they can commence working.
Clarification to Skills Development Program / Understudy Training Program
A Skills Development Program refers to a training plan of an employer which is: (a) engaged in priority or strategic areas of investments; (b) granted fiscal incentives by the Government; or (c) working a public utility intended to transfer skills or technology possessed by a foreign national hired by such employer to at least two (2) regular rank-and-file Filipino employees per foreign national hired through learning sessions or any alike training programs.
An Understudy Training Program refers to a training plan of an employer which is: (a) involved in priority or strategic areas of investments; (b) approved fiscal incentives by the Government; or (c) working a public utility designed to transfer skills or technology possessed by a foreign national to at least two (2) understudies who are regular employees of the employer and who are next in positive to such foreign national.
Implementation Timeline
The new rules will take effect 15 days after their publication in the Official Gazette or a newspaper of general circulation. As of this writing, DOLE has not yet circulated the order, and implementation is still in progress.
What Employers Should Take Note of with the New Changes
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Identify and monitor the official publication of the new rules with the enforcement date.
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With the additional requirements in placed, manage ongoing and future AEP applications to ensure compliance are met.
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Adjust hiring and anticipate longer processing timeline.
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Ensure job advertisements met all the required details and are posted correctly.
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Consult legal professionals with compliance concerns to avoid potential delays or penalties.
For more information or any assistance you require pertaining to the above-mentioned, please do not hesitate to contact [email protected] or [email protected].
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