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LAWS AND GUIDELINES AFFECTING EMPLOYMENT OF FOREIGN NATIONALS

AVITO G. STO. TOMAS Assistant Regional Director DOLE-NCR

OUTLINE OF PRESENTATION

Legal Bases AEP Facts and Figures The Revised Rules Related Issuances on Immigration

The Philippine Constitution of 1987 Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. Section 14. x x x x x x x x x. The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by law.
Part 1. LEGAL BASES

Labor Code of the Philippines, as amended


Article 40. Employment Permit for non-resident aliens. Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the Department of Labor and Employment.

Part 1. LEGAL BASES

Labor Code of the Philippines, as amended


Article 40. Employment Permit for non-resident aliens. The employment permit may be issued to a nonresident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired.

Part 1. LEGAL BASES

Data on Foreign Nationals Issued AEP


(2001 - 2006) By Industry
INDUSTRY Agriculture, Fishery & Forestry Mining & Quarrying Manufacturing Electricity, Gas & Water Supply Construction Wholesale & Retail Trade Transportation, Storage & Communication Financing, Insurance, Real State & Bus. Services Community, Social & Personal Services TOTAL 535 270 26,521 927 6,079 6,632 7,458 2,352 2,046 2001 84 14 3,115 224 827 1225 228 342 0 2002 51 44 5,169 274 1182 1530 575 394 298
2003

2004 88 20 4132 89 1002 1095 1267 147 648

2005 124 52 4908 126 1027 790 1858 186 588

2006 126 97 4842 77 868 946 2564 1206 194

62 43 4355 137 1173 1046 966 77 318

Part 2. FACTS & FIGURES

Data on Foreign Nationals Issued AEP


(2001-1ST Quarter 2006) By Industry
INDUSTRY Hotels and Restaurant Financial Intermediation Education Extra-Territorial Organizations & Bodies Health and Social Work TOTAL TOTAL 2,425 1,174 2,471 2001 236 375 157 2002 517 307 361 2003 392 220 314 2004 342 92 408 2005 421 80 549 2006 517 100 682

32 409 59,331

0 31 6,858

0 37 10,739

8 57 9,168

9 69 9,408

8 106
10,823

7 109 12,335

Part 2. FACTS & FIGURES

Data on Foreign Nationals Issued AEP (2001 - 2006) By Occupation


OCCUPATION
Administrative, Executive & Managerial Workers Professionals Technicians & Associate Professionals Service Workers & Shop & Market Sales Workers Farmers, Forestry Workers and Fishermen Trade And Related Workers Plant and Machine Operators and Assemblers

TOTAL
40,064 7,178 9,591 1,225 32 1,133 108

2001
4,121 1,205 672 119 5 736 0

2002
6,608 2,146 1,339 272 4 361 9

2003
6,066 1,327 1,430 250 0 16 79

2004
6,572 857 1,801 174 0 0 4

2005
8228 807 1557 199 7 20 5

2006
8469 836 2792 211 16 0 11

TOTAL

59,331 6,858 10,739

9,168

9,408

10,823

12,335

Part 2. FACTS & FIGURES

Data on Foreign Nationals Issued AEP (2001 - 2006) Top Ten Nationality
NATIONALITY Japanese Korean Chinese American British Taiwanese Indian Australian Malaysian German TOTAL TOTAL 18,724 12,298 6,339 3,410 2,905 2,568 2,448 1,327 1,342 1,002 52,363 2001 2,368 901 367 552 756 341 229 200 149 124 5,987 2002 3,576 1,900 1,098 515 584 506 589 226 219 301 9,514 2003 2,969 1,855 928 498 320 412 370 216 211 139 7,918 2004 2,975 1,847 984 618 451 389 438 225 216 128 8,271 2005 3367 2499 1370 562 403 434 384 249 215 163 9,646 2006 3,469 3,296 1,592 665 391 486 438 211 332 147 11,027

Part 2. FACTS & FIGURES

TOTAL AEPs ISSSUED JANUARY-NOVEMBER 2007


Koreans Chinese Japanese Malaysian Indian American British Australian New Zealander Canadian Taiwanese Thai Indonesian Singaporean Others Total 1688 1282 992 486 466 371 267 169 35 54 167 67 235 137 656 7072 23.87% 18.13% 14.03% 6.87% 6.59% 5.25% 3.78% 2.39% 0.49% 0.76% 2.36% 0.95% 3.32% 1.94% 9.28%

Department Order No. 7506 Series of 2006

Revised Rules for the Issuance of Employment Permits to Foreign Nationals Objective: To simplify the administrative requirements and procedures on the issuance of AEP.
Part 3. REVISED RULES

Effectivity Date
Date Issued : 31 May 2006 Date Published: June 16, 2006 Newspaper : Manila Times and Manila Standard : July 1, 2006
Part 3. REVISED RULES

Effectivity

Coverage:

All foreign nationals who intend to engage in gainful employment in the Philippines

Part 3. REVISED RULES

Exempted from securing AEP: 1. Members of the diplomatic services 2. Officers and staff of international organizations and their legitimate spouse 3. Members of the Governing Board who have only voting rights 4. Foreign nationals exempted by law (ex. Executives of ROHQ and RHQ) (RA 8756)
Part 3. REVISED RULES

Exempted from securing AEP: 5. Owners and representatives of POEA accredited foreign principals who come to interview Filipino applicants 6. Visiting/exchange/adjunct professors 7. Resident foreign nationals

Part 3. REVISED RULES

Requirements for Application for AEP:


1.

2. 3. 4. 5.

Duly accomplished application form Photocopy of passport, with visa or Certificate of Recognition for Refugees Contract of Employment/ Appointment or Board Secretarys Certificate of Election Photocopy of Mayors Permit to operate business or Certification from PEZA or Ecozone Authority for ecozone locators Photocopy of current AEP (for renewal)
Part 3. REVISED RULES

Fees
Upon filing, the applicant shall pay a fee of P8,000.00 for an AEP with a validity of one (1) year Plus P3,000.00 for every additional year of validity or a fraction thereof in case the validity of AEP is more than one year

Part 3. REVISED RULES

Processing and Publication of Application for AEP Upon receipt of complete documentary requirements, fees, and fines if any, the Regional Office shall issue the AEP within 24 hours. All applications for new AEP shall be published within two (2) working days after receipt.
Part 3. REVISED RULES

Processing of Application for AEP


A foreign national whose application for AEP has been denied/ cancelled/ revoked shall not be allowed to reapply unless the ground for denial/ cancellation/ revocation has been corrected.

Part 3. REVISED RULES

Venue of Filing
1. With the DOLE Regional Office having jurisdiction over the place of work 2. In case of assignment in related companies, with any of the DOLE Regional Offices having jurisdiction with any of the intended places of work

Part 3. REVISED RULES

Validity of AEP
1. One (1) year or co-terminus with the employment contract, consultancy services, other modes of engagement or term of office which shall not exceed 5 years. 2. Effectivity of renewal shall be on the day after the expiration of previous permit 3. One AEP shall be valid for assignment in related companies
Part 3. REVISED RULES

Renewal of AEP
1.Filing of application for renewal shall be on or before expiration of AEP 2. Application of foreign nationals with expired AEPs shall be considered new application. 3.If election or appointment takes place on or before expiration of AEP, filing shall not be later than 10 working days after election or appointment or on/before expiration of AEP
Part 3. REVISED RULES

Renewal of AEP
4.If election or appointment will be after expiration of AEP, application shall be filed on or before expiration. 5.The Certificate of Election or appointment shall be filed within 10 working days after election or appointment
Part 3. REVISED RULES

Grounds for Suspension of AEP


1. The continued stay of the foreign national may result in damage to the interest of the industry or the country 2. The employment of foreign national is suspended by the employer or by order of the court.

Part 3. REVISED RULES

Grounds for Cancellation or Revocation of AEP


1. Non-compliance with any of the requirements or conditions of the AEP 2. Misrepresentation of facts 3. Submission of falsified or tampered documents 4. Meritorious objection or information 5. The foreign national has a derogatory record 6. Termination of employment by the employer

Part 3. REVISED RULES

Remedies in Case of Suspension/ Cancellation/ Revocation of AEP

1. Motion for Reconsideration shall be filed within 7 calendar days after receipt of the Order of suspension/ cancellation or revocation. MR shall be resolved within 10 calendar days after receipt. 2. Appeal shall be filed with the Office of the Secretary within 10 calendar days from receipt of the Order of suspension/ cancellation or revocation.
Part 3. REVISED RULES

Fines for Working without AEP


P10,000.00 for every year or a fraction of one year for working without AEP or with expired AEP

Part 3. REVISED RULES

Immigration Laws and Related Issuances

Commonwealth Act No. 613, Philippine Immigration Act of 1940


Sec. 9 (a)- temporary visitor (b)- person in transit (c)- seaman (d)- treaty trader investor. (e)- foreign government official (f) - student (g) - prearranged foreign employee
Part 4. RELATED ISSUANCES ON IMMIGRATION

Immigration Laws and Related Issuances

Commonwealth Act No. 61: Philippine Immigration Act of 1940


Sec. 13 - Resident foreign nationals (immigrant status) exempted from AEP

Part 4. RELATED ISSUANCES ON IMMIGRATION

Fil-Am Players
Fil-Am players granted Certificate of Recognition of Filipino citizenship can play in the Philippines without securing Alien Employment Permit.

Part 4. RELATED ISSUANCES ON IMMIGRATION

Special Investors Resident Visa (SIRV) Foreign nationals granted SIRV for having invested in the Philippines an amount equivalent to at least US$75,000.00 are required to secure Alien Employment Permits when employed in the Philippines.

Part 4. RELATED ISSUANCES ON IMMIGRATION

Special Resident Retiree Visa (SRRV)


Foreign nationals registered with the Philippine Retirement Authority (PRA) and who complied with an entry deposit in the Philippines an amount equivalent to US$50,000.00 are required to secure Alien Employment Permits when employed in the Philippines.

Part 4. RELATED ISSUANCES ON IMMIGRATION

Special Non-Immigrant Visa [47(a)2] holders are required to secure AEP when employed in the Philippines

1. Foreign nationals assigned in government projects 2. Foreign personnel employed by offshore banks under P. D. 1034 or the Offshore Banking Law 3. Investors and Foreign nationals employed in economic zones

Part 4. RELATED ISSUANCES ON IMMIGRATION

Multiple Entry Special Visa (Article 60 of RA 8756) Executives of the applicant company who will work exclusively for the applicants regional or area headquarters or regional operating headquarters duly licensed to operate in the Phils. and with salary of at least US$12,000.00 per annum are exempted from securing AEP.
Part 4. RELATED ISSUANCES ON IMMIGRATION

Gday Mates!!!