Key Points
- The Philippines issued DOLE DO 248, revising regulations for the employment of foreign nationals.
- Employers must now comply with Labor Market Tests (LMT) and Economic Needs Tests (ENT) for new and renewal Alien Employment Permit (AEP) applications.
- Certain employers must implement an Understudy Training Program (UTP) for Filipino employees.
- Updates to the PEZA visa process, including automation, annual reporting exemptions, and eligibility for work visa conversions.
Overview
The Department of Labor and Employment (DOLE) in the Philippines has introduced DOLE Department Order 248, revising rules for hiring foreign nationals. The new regulations impose stricter compliance requirements for businesses employing foreign workers, including Labor Market Tests (LMT), Economic Needs Tests (ENT), and mandatory training programs for local employees.
Key Changes in Employment Regulations
- Labor Market Test (LMT)
- Employers must advertise job openings on at least three media platforms, including PhilJobNet.
- The LMT applies to new and renewal AEP applications, ensuring local workers have priority job access.
- Economic Needs Test (ENT)
- The ENT applies to employers receiving fiscal incentives, involved in strategic investments, or operating public utilities.
- The DOLE will assess economic impacts and labor market forecasts before granting employment permits.
- Understudy Training Program (UTP)
- Employers in specific industries must eventually implement training programs for Filipino employees to replace foreign workers in key roles.
PEZA Visa Process Updates
The Philippine Economic Zone Authority (PEZA) has also introduced updates to the visa process affecting foreign nationals:
- Automation of PEZA Visa processes to improve efficiency.
- Annual Report Exemptions for PEZA Visa holders with an ACR I-Card—exempt from Exit Clearance Certificate (ECC) and Special Return Certificate (SRC) fees.
- The original AEP card is required for PEZA Visa issuance, with Documentary Stamp Tax (DST) fees applicable.
- APEC Business Travel Card holders can convert to a work visa with additional documentation.
- The e-Visa remains for tourism purposes only and cannot be converted into a work visa.
- Visa renewal applications can be submitted until the day before expiry, provided all documents are complete.
Looking Ahead
The DOLE’s stricter employment regulations and PEZA visa process updates reflect the Philippine government’s efforts to balance economic growth with labor market protections. Employers should anticipate more rigorous compliance checks and prepare for potential processing delays due to additional assessment requirements.
Foreign nationals and businesses should work closely with immigration and employment experts to ensure seamless compliance with the new labor and visa regulations. As further refinements to DOLE policies and PEZA processing are expected, staying updated on these changes will be critical for businesses employing foreign workers.
