Manila: The Department of Labor and Employment (DOLE) has revised the guidelines on the issuance of alien employment permit (AEP) to foreigners working in the country. Under the new guidelines, the conduct of labor market test is simplified and integrated in one publication in a newspaper of general circulation, which effectively reduces cost and waiting period for employers and foreign nationals.
According to Philippines News Agency, PhilJobNet, the government’s official job-matching portal, has also been tapped to post the rules making the process more efficient and transparent for both employers and jobseekers. Labor Secretary Bienvenido Laguesma said the revised AEP guidelines mark a significant step toward rationalizing requirements and streamlining the processing of employment permits aimed at balancing investment promotion, local labor protection, and ensuring the transfer of skills to Filipino workers.
In a statement Tuesday, Laguesma said another salient feature of the DOLE’s issuance is the setting up of a mechanism to ensure skills transfer and knowledge-sharing between the foreign national and Filipino counterparts through the Understudy Training Program (UTP) and Skills Development Program (SDP) to be implemented by the employers hiring foreign nationals. These structured training programs shall ensure the Filipino counterparts’ acquisition of expertise and competencies necessary to eventually assume the roles held by the foreign nationals, thereby fostering sustainable workforce development and reducing dependency on foreign labor in the long term.
The guidelines also introduce an Economic Needs Test (ENT), a critical criterion for evaluating AEP applications used in assessing the necessity of hiring foreign nationals based on the availability of qualified Filipino workers. ‘This measure aims to safeguard local employment opportunities and will undergo public consultations in the coming months to ensure inclusivity and relevance,’ Laguesma said.
He noted that the strengthened AEP guidelines are aligned with the directive of President Ferdinand R. Marcos Jr. under Executive Order 18 issued in 2023, which emphasizes attracting foreign direct investments (FDIs) by ensuring ease of doing business. ‘Employers in priority investment sectors will benefit from these reforms through expedited processes, reinforcing the Philippines’ position as a competitive and investor-friendly destination in the region,’ the DOLE chief said.
‘The guidelines aim to adopt unified and simplified requirements and procedures that will reduce red tape and expedite transactions with the government. This is to ensure that foreign workers contribute to priority sectors, align with national development goals, and respect the rights of Filipino workers,’ he added. DOLE has issued a total of 192,573 AEPs to foreign nationals engaged to work in various industries in the last three years.
