Philippines Immigration Update | Revision on the issuance of Employment Permits to foreign nationals

Posted: 23/11/2015 Author: Liberty A. Galero

DOLE reinforces Alien Employment Permit issuance procedure and urges employers and foreign nationals to comply

The Department of Labor and Employment (DOLE) has revised the rules on the issuance of Employment Permits to foreign nationals to provide for stricter regulations, highlighting that foreigners are only allowed to work in the Philippines in case no local employee is available to fill up the posts.

NEW RULES

DOLE will strictly enforce the revised rules and the stringent implementation of the current procedures for the issuance of the AEP under Department Order No. 146-15, Series 2015 otherwise known as the 'Revised Rules for the Issuance of Employment Permits to Foreign Nationals' to ensure that Filipino employees are given the priority in filling up the job positions that are well-within their skills and competence.

Please find the details below:-

1. Ocular Inspection of Establishments

Under the Order, the DOLE may conduct ocular inspection of establishments employing foreign nationals to verify the legitimacy of the foreign nationals' employment and ensure that the foreigners are doing the job for which their AEPs were issued.

2. Grounds for Denial of AEP applications

The DOLE may deny applications for AEPs based on any of the following grounds:

  • misrepresentation of facts in the application
  • submission of falsified documents
  • the foreign national has a derogatory records, or
  • availability of a Filipino who is competent, able, and willing to do the job intended for the foreign national.

3. Grounds for Cancellation/Revocation of an Issued AEP:

DOLE regional directors may also cancel or revoke an AEP after due process based on meritorious objection or information against the employment of the foreign nationals.

4. Rules for Re-application after AEP application denial or revocation:

In addition, a foreign national whose AEP has been denied will not be allowed to reapply in any of the DOLE regional offices, unless the said foreign national has provided proof that the ground for denial has been corrected.

However, an appeal is afforded to any aggrieved applicant; and is effected by filing a petition with the Secretary of Labor and Employment within 10 days after receipt of the copy of denial, cancellation, or revocation order.

5. Rules on the suspension of AEP issuance

DOLE may also suspend the issuance of AEPS

  • if the continued stay of the foreign nationals may result in damage to the interest of the industry or the country and;
  • if the employment of the foreign nationals is suspended by the employer or by the order of the Court.

6. Penalty for Foreign Individuals working without an AEP

Foreigners found working without an AEP will also be fined Philippine Pesos P10,000 for every year of their employment in the country.

7. New Documentary Requirement

Apart from the standard documentary requirements by DOLE on the AEP applications, a copy of employer's understudy training program to be conducted by the foreign national to transfer knowledge to the Filipino worker is now required under the revised rules.

The DOLE has not yet issued details of the understudy training program however Santa Fe is monitoring the developments of the new Department Order with DOLE, the Bureau of Immigration and Philippine Economic Zone Authority to keep up with the changes. Santa Fe will provide updates as they become available.

8. New DOLE Publication Process: Labor Market Test

To find out if there is no Filipino worker willing, able, and competent to perform the putative work, a labor market test shall be effected by publication in a newspaper of general circulation within two working days from receipt of AEP application.

Publication in the DOLE website, and posting in the Public Employment Service Offices, of such notice of AEP application for a period of 30 days is also mandatory under the revised rules.

The said notice shall contain the foreign national's name, position, employer and his/her address, a brief description of the functions to be performed, qualifications, monthly salary range, and other benefits.

Any objection or information against the employment of the foreign national may be filed with the regional office anytime during the foreign national's period of employment.

9. Extended Period of Filing for Newly Hired or Elected Foreign Officer
DOLE extended the period of AEP filing for newly hired, elected or appointed foreign officers from 10 to 15 working days without penalty after signing of contract, election, or appointment, or before the start of actual term of office.
This extension aim to provide the foreign nationals ample time for the preparation of necessary documents in line with efforts to help the country attract foreign investments and technology transfer, noting that the foreign nationals are bound to train Filipino understudies in the course of their employment in the country.

IMPACT ON THE EMPLOYER WHEN HIRING FOREIGN NATIONALS IN THE PHILIPPINES

1. The lead time to plan for Alien Employment Permit application will be extended since there is an additional step for Companies to prepare under Understudy Program for each AEP application. This step must be prepared and planned ahead, before the arrival of the foreign nationals or start date of the assignment to ensure assignment start date is not affected.

2. DOLE may take a longer time to review the new additional documentary requirement.

With regards to the above, we advise the employers to speak with immigration service provider as soon as possible to plan ahead when hiring foreign nationals to work in the Philippines.

Should you have any questions, please contact our Santa Fe Philippines Immigration Team :

Liberty A. Galero
Lead, Visa and Immigration
Santa Fe Relocation Services, Philippines
Tel No. +63 2 553 2338 / 553-4264 / 553-6579
M:(63) 917-866-1051
Liberty.Galero@santaferelo.com

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