Philippines Releases Revised Rules on Foreign National Employment

Key Points

• The Philippines issued Department Order No. 248, requiring stricter labor market testing, economic needs assessments, and training program obligations for employers seeking to hire foreign nationals

Philippines Introduces New Compliance Rules for Hiring Foreign Nationals

The Philippine Department of Labor and Employment (DOLE) has issued Department Order No. 248, introducing new compliance requirements for employers hiring foreign nationals. These updates include the following:

Labor Market Test (LMT): Employers must now post job openings on at least three public platforms, including PhilJobNet, before hiring foreign nationals.

• Applies to both new and renewal Alien Employment Permit (AEP) applications
• Designed to ensure job opportunities are first made available to local talent

Economic Needs Test (ENT): The ENT applies to companies receiving government incentives, operating in strategic investment sectors, or public utilities.

• DOLE will conduct market impact assessments prior to approving employment permits

Understudy Training Program (UTP): Certain employers must implement training plans for Filipino workers to gradually assume the roles occupied by foreign nationals.

• Intended to support skills transfer and long-term workforce development

PEZA Visa Process Enhancements

The Philippine Economic Zone Authority (PEZA) also announced several procedural changes to improve efficiency for visa holders and sponsoring employers:

• Automation of visa processing workflows
• Exemption from Exit Clearance Certificate (ECC) and Special Return Certificate (SRC) fees for PEZA visa holders with ACR I-Cards
• Original AEP cards now required for PEZA visa issuance
• APEC Business Travel Card holders may apply for work visa conversion with additional documentation
• Tourist e-Visas cannot be converted into work visas
• Visa renewal applications are accepted up to one day before expiry, subject to complete documentation

These updates aim to strengthen labor protections and better align immigration practices with national workforce priorities.