In recent years, the Philippine government has taken significant steps to impose stricter rules on hiring foreign nationals to protect the local labor market. In addition to the extensive documentary requirements of the sponsoring Philippine company, the qualifications of the foreign national applicants are now more heavily scrutinized.
The Department of Labor and Employment (DOLE) issued Department Order No. 248, Series of 2025, outlining new regulations on the employment of foreign nationals in the Philippines. The order introduced new rules affecting labor market tests and additional requirements for securing an Alien Employment Permit (AEP). The main message of the order is clear 鈥� to streamline processes and establish clearer processing timelines.
The order introduces the Economic Needs Test (ENT) which assesses if hiring a foreign national will contribute to the country鈥檚 economic development. The reinforcement of the Understudy Training Program (UTP) and Skills Development Program (SDP) is a significant step toward clearly defining the requirements and eligibility for these programs. This demonstrates the agency鈥檚 commitment to promoting skills development for local labor.
The order provides clearer timelines for certain processes, demonstrating a commitment to improving the efficiency and speed of procedures. Some of the clarified timelines include the submission of the AEP application, which should be within fifteen (15) calendar days from the execution of the employment contract or the issuance of an appointment. The result of the AEP application shall be communicated within fifteen (15) working days from the payment of the required fee.
DOLE also highlighted the ongoing development of the Alien Employment Permit Management System (AEPMS), which will incorporate biometric procedures, technology-based measures, and a data-sharing system with other relevant agencies. This initiative represents a significant advancement aimed at enhancing the efficiency and security of the AEP system. The integration of biometric procedures and advanced technologies is crucial for ensuring accurate identification and mitigating the risk of fraud, particularly in controlling the issuance of fake AEP cards. Although the specific agencies involved have not yet been detailed, the push for a data-sharing system is expected to create a more transparent and well-organized approach to managing foreign nationals and employers.
However, aside from these noteworthy changes, there are still pending questions among employers, foreign national hires, and DOLE accredited service agents. This uncertainty highlights the need for further clarification and detailed guidance from the authorities to ensure smooth implementation.
One of the most critical changes from the order is the requirement for job advertisements to be published in three mediums: a newspaper of general circulation, PhilJobNet, and the Public Employment Service Office (PESO) or Job Placement Office (JPO). Previously, only the publication in a newspaper of general circulation is required. While the new requirement aims to ensure transparency and fairness, it poses an additional administrative burden on employers.
The new rules also mandate the inclusion of more personal details in job postings, such as the foreign national's city of residence in the Philippines. This could raise privacy concerns for both employers and employees. Moreover, DOLE has also confirmed that the job advertisement requirement extends to AEP renewals, furtherlengthening the renewal process.
Another significant aspect of the new order is the provision allowing AEP applications to be processed 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 pre-arranged employment visa or 9(g) or working visa presented to the DOLE Regional Office. This rule benefits applicants by eliminating the impracticality of being present in the Philippines during the application process. However, further alignment is required with the Bureau of Immigration鈥檚 (BI) rule that mandates presenting the AEP card when applying for an employment visa or 9(g) visa. The ability to process AEP applications while the applicant is still outside the country could make the Philippines a more attractive destination for skilled foreign workers.
Change is indeed essential for process improvement, but it often brings its own set of challenges. The government must ensure that all relevant departments are aligned and that their processes are harmonized to avoid conflicts. Addressing the concerns and questions raised by stakeholders and fostering collaboration among government agencies will be key to achieving the intended outcomes of these new policies.
Armin Joyce M. De Chavez
Tax Senior Manager
R.G. Manabat & Co.