LAWS AND GUIDELINES LAWS AND GUIDELINES AFFECTING AFFECTING

EMPLOYMENT OF EMPLOYMENT OF FOREIGN NATIONALSFOREIGN NATIONALS

OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATION

Legal BasesLegal Bases AEP Facts and FiguresAEP Facts and Figures The Revised RulesThe Revised Rules Related Issuances on ImmigrationRelated Issuances on Immigration

Section 12. “The State shall promote the Section 12. “The State shall promote the preferential preferential use of Filipino laboruse of Filipino labor, domestic materials and , domestic materials and locally produced goods, and adopt measures that locally produced goods, and adopt measures that help make them competitive.” (underscoring ours)help make them competitive.” (underscoring ours)

Section 14. X x x x x x x x x.Section 14. X x x x x x x x x.

“ “The practice of all professions in the Philippines The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases shall be limited to Filipino citizens, save in cases prescribed by lawprescribed by law.” (underscoring ours).” (underscoring ours)

The Philippine Constitution of 1987The Philippine Constitution of 1987

Article 40Article 40. . Employment Permit for non-Employment Permit for non-resident aliensresident aliens. .

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

Labor Code of the Philippines, as Labor Code of the Philippines, as amendedamended

Article 40Article 40. . Employment Permit for non-Employment Permit for non-resident aliensresident aliens. .

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

Labor Code of the Philippines, as Labor Code of the Philippines, as amendedamended

a.a. D. O. No. 12, s. 2001 entitled Omnibus D. O. No. 12, s. 2001 entitled Omnibus Guidelines for the Issuance of Employment Guidelines for the Issuance of Employment Permits To Foreign NationalsPermits To Foreign Nationals

b.b. D. O. No. 19-02, s. 2002D. O. No. 19-02, s. 2002

c.c. D.O. No. 26-02, s. 2002D.O. No. 26-02, s. 2002

d.d. D.O. No. 41-03, s. 2003D.O. No. 41-03, s. 2003

e.e. D.O. No. 59-04, s. 2004D.O. No. 59-04, s. 2004

DOLE D.O. No. 75-06 amends or DOLE D.O. No. 75-06 amends or supersedes the following DOLE issuancesupersedes the following DOLE issuance

Data on Foreign Nationals Issued AEP Data on Foreign Nationals Issued AEP (2002 - 2007) By Industry(2002 - 2007) By Industry

INDUSTRYINDUSTRY TOTALTOTAL 20022002 20032003 20042004 20052005 2006 2006 20072007

Agriculture, Fishery & ForestryAgriculture, Fishery & Forestry 522522 5151 6262 8888 124124 126126 7171

Mining & QuarryingMining & Quarrying 411411 4444 4343 2020 5252 9797 155155

ManufacturingManufacturing 28,39828,398 5,1695,169 43554355 41324132 49084908 48424842 49924992

Electricity, Gas & Water SupplyElectricity, Gas & Water Supply 772772 274274 137137 8989 126126 7777 6969

ConstructionConstruction 6,1026,102 11821182 11731173 10021002 10271027 868 868 850 850

Wholesale & Retail TradeWholesale & Retail Trade 6,4716,471 15301530 10461046 10951095 790790 946946 10641064

Transportation, Storage & Transportation, Storage & CommunicationCommunication 10,13610,136 575575 966966 12671267 18581858 25642564 29062906

Financing, Insurance, Real State Financing, Insurance, Real State & Bus. Services& Bus. Services 3,5503,550 394394 7777 147147 186186 12061206 15401540

Community, Social & Personal Community, Social & Personal ServicesServices 2,5202,520 298298 318318 648648 588588 194194 474474

INDUSTRYINDUSTRYTOTALTOTAL 20022002 20032003 20042004 20052005 20062006 2007 2007

Hotels and RestaurantHotels and Restaurant 2,4252,425 517517 392392 342342 421421 517517 502502

Financial IntermediationFinancial Intermediation 1,1741,174 307307 220220 9292 8080 100100 9595

Public Administration & Public Administration & Defense; Compulsory Defense; Compulsory Social SecuritySocial Security 00 00 00 00 00 00 00

EducationEducation 2,4712,471 361361 314314 408408 549549 682682 756756

Extra-Territorial Extra-Territorial Organizations & Organizations & BodiesBodies 3232 00 88 99 88 77 1111

Health and Social WorkHealth and Social Work 409 409 3737 5757 6969 106106 109109 107107

TOTALTOTAL 66,06566,065 10,73910,739 9,1689,168 9,4089,408 10,82310,823 12,33512,335 13,59213,592

Data on Foreign Nationals Issued AEP Data on Foreign Nationals Issued AEP (2002- 2007) By Industry(2002- 2007) By Industry

Data on Foreign Nationals Issued AEPData on Foreign Nationals Issued AEP(2002 - 2007) By Occupation(2002 - 2007) By Occupation

OCCUPATIONOCCUPATION TOTALTOTAL 20022002 20032003 20042004 20052005 20062006 20072007

Administrative, Executive & Administrative, Executive & Managerial WorkersManagerial Workers 44,10544,105 6,6086,608 6,066 6,066 6,572 6,572 8,2288,228 8,4698,469 8,1628,162

ProfessionalsProfessionals 6,9416,941 2,1462,146 1,327 1,327 857857 807807 836836 968968

Technicians & Associate Technicians & Associate ProfessionalsProfessionals 13,15613,156 1,3391,339 1,430 1,430 1,8011,801 1,5571,557 2,7922,792 4,2374,237

Service Workers & Shop & Service Workers & Shop & Market Sales WorkersMarket Sales Workers 1,3311,331 272272 250250 174174 199199 211211 225225

Farmers, Forestry Workers Farmers, Forestry Workers and Fishermenand Fishermen 2727 44 00 00 77 1616 00

Trade And Related WorkersTrade And Related Workers 397397 361361 1616 00 2020 00 00

Plant and Machine Operators Plant and Machine Operators and Assemblersand Assemblers 108108 99 7979 44 55 1111 00

Laborers and Unskilled Laborers and Unskilled WorkersWorkers 00 00 00 00 00 00 00

TOTALTOTAL 66,06566,065 10,73910,739 9,1689,168 9,4089,408 10,82310,823 12,33512,335 13,59213,592

Data on Foreign Nationals Issued AEPData on Foreign Nationals Issued AEP(2002 - 2007) Top Ten Nationality(2002 - 2007) Top Ten Nationality

NATIONALITYNATIONALITY TOTALTOTAL 20022002 20032003 20042004 20052005 20062006 20072007

JapaneseJapanese 19,77019,770 3,5763,576 2,9692,969 2,9752,975 3,3673,367 3,4693,469 3,4143,414

KoreanKorean 15,11015,110 1,9001,900 1,8551,855 1,8471,847 2,4992,499 3,2963,296 3,7133,713

ChineseChinese 7,7267,726 1,0981,098 928928 984984 1,3701,370 1,5921,592 1,7541,754

AmericanAmerican 3,4633,463 515515 498498 618618 562562 665665 605605

BritishBritish 2,5332,533 584584 320320 451451 403403 391391 384384

TaiwaneseTaiwanese 2,6832,683 506506 412412 389389 434434 486486 456456

IndianIndian 2,8172,817 589589 370370 438438 384384 438438 598598

AustralianAustralian 1,3571,357 226226 216216 225225 249249 211211 230230

MalaysianMalaysian 1,7891,789 219219 211211 216216 215215 332332 596596

GermanGerman 996996 301301 139139 128128 163163 147147 118118

TOTALTOTAL 58,24458,244 9,5149,514 7,9187,918 8,2718,271 9,6469,646 11,02711,027 11,86811,868

Objective of the Revision of RulesObjective of the Revision of Rules

To simplify the administrative requirements To simplify the administrative requirements and procedures on the issuance of AEPand procedures on the issuance of AEP

Revised Rules For The Revised Rules For The Issuance of Employment Issuance of Employment

Permits To Foreign NationalsPermits To Foreign NationalsDepartment Order No. 75 – 06,

Series of 2006

CoverageCoverage::

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

1.1. Members of the diplomatic services Members of the diplomatic services 2. Officers and staff of international 2. Officers and staff of international

organizations and their legitimate spouseorganizations and their legitimate spouse3. Members of the Governing Board who 3. Members of the Governing Board who

have only voting rightshave only voting rights4. Foreign nationals exempted by law (ex. 4. Foreign nationals exempted by law (ex.

Executives of ROHQ and RHQ) (RA Executives of ROHQ and RHQ) (RA 8756)8756)

Exempted from securing AEP:Exempted from securing AEP:

5.5. Owners and representatives of POEA Owners and representatives of POEA accredited foreign principals who come to accredited foreign principals who come to interview Filipino applicantsinterview Filipino applicants

6. Visiting/exchange/adjunct professors6. Visiting/exchange/adjunct professors

7. Resident foreign nationals7. Resident foreign nationals

Exempted from securing AEP:Exempted from securing AEP:

11. . Duly accomplished application formDuly accomplished application form2. Photocopy of passport, with visa or Certificate of 2. Photocopy of passport, with visa or Certificate of

Recognition for RefugeesRecognition for Refugees3.3. Contract of Employment/ Appointment or Board Contract of Employment/ Appointment or Board

Secretary’s Certificate of ElectionSecretary’s Certificate of Election4.4. Photocopy of Mayor’s Permit to operate Photocopy of Mayor’s Permit to operate

business or Certification from PEZA or Ecozone business or Certification from PEZA or Ecozone Authority for ecozone locatorsAuthority for ecozone locators

5. Photocopy of current AEP (for renewal) 5. Photocopy of current AEP (for renewal)

Documents Required in the Documents Required in the Application for AEP:Application for AEP:

Upon filing, the applicant shall pay a fee of Upon filing, the applicant shall pay a fee of P8,000.00 for an AEP with a validity of one (1) P8,000.00 for an AEP with a validity of one (1) yearyear

Plus P3,000.00 for every additional year of Plus P3,000.00 for every additional year of validity or a fraction thereof in case the validity validity or a fraction thereof in case the validity of AEP is more than one yearof AEP is more than one year

Fees

Upon receipt of complete documentary Upon receipt of complete documentary requirements, fees, and fines if any, the requirements, fees, and fines if any, the Regional Office shall issue the AEP within Regional Office shall issue the AEP within 24 hours24 hours

All applications for new AEP shall be All applications for new AEP shall be published within two (2) working days after published within two (2) working days after receipt receipt

Processing and Publication of Application for AEP

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

Processing of Application for AEP

1.1. With the DOLE - Regional Office having With the DOLE - Regional Office having jurisdiction over the place of workjurisdiction over the place of work

2. In case of assignment in related 2. In case of assignment in related companies, with any of the DOLE - companies, with any of the DOLE - Regional Offices having jurisdiction with Regional Offices having jurisdiction with any of the intended places of work any of the intended places of work

Venue of Filing

11. . One (1) year or co-terminus with the One (1) year or co-terminus with the employment contract, consultancy employment contract, consultancy services, other modes of engagement or services, other modes of engagement or term of office which shall not exceed 5 term of office which shall not exceed 5 years.years.

2. 2. Effectivity of renewal shall be on the day Effectivity of renewal shall be on the day after the expiration of previous permitafter the expiration of previous permit

3. 3. One AEP shall be valid for assignment in One AEP shall be valid for assignment in related companiesrelated companies

Validity of AEP

11.. Filing of application for renewal shall be on Filing of application for renewal shall be on or before expiration of AEPor before expiration of AEP

2. Application of foreign nationals with 2. Application of foreign nationals with expired AEPs shall be considered new expired AEPs shall be considered new application.application.

3.3. If election or appointment takes place on or If election or appointment takes place on or before expiration of AEP, filing shall not be before expiration of AEP, filing shall not be later than 10 working days after election or later than 10 working days after election or appointment appointment oror on/before expiration of AEP on/before expiration of AEP

Renewal of AEP

4.4. If election or appointment will be after If election or appointment will be after expiration of AEP, application shall be expiration of AEP, application shall be filed on or before expiration. filed on or before expiration.

5.5. The Certificate of Election or appointment The Certificate of Election or appointment shall be filed within 10 working days after shall be filed within 10 working days after election or appointment election or appointment

Renewal of AEP

1.1. The continued stay of the foreign national The continued stay of the foreign national may result in damage to the interest of may result in damage to the interest of the industry or the countrythe industry or the country

2.2. The employment of foreign national is The employment of foreign national is suspended by the employer or by order of suspended by the employer or by order of the court.the court.

Grounds for Suspension of AEP

1.1. Non-compliance with any of the requirements Non-compliance with any of the requirements or conditions of the AEPor conditions of the AEP

2.2. Misrepresentation of facts Misrepresentation of facts 3.3. Submission of falsified or tampered documentsSubmission of falsified or tampered documents4.4. Meritorious objection or informationMeritorious objection or information5.5. The foreign national has a derogatory recordThe foreign national has a derogatory record6.6. Termination of employment by the employerTermination of employment by the employer

Grounds for Cancellation or Revocation of AEP

1.1. Motion for Reconsideration shall be filed Motion for Reconsideration shall be filed within 7 calendar days after receipt of the within 7 calendar days after receipt of the Order of suspension/ cancellation or Order of suspension/ cancellation or revocation. MR shall be resolved within revocation. MR shall be resolved within 10 calendar days after receipt.10 calendar days after receipt.

2.2. Appeal shall be filed with the Office of the Appeal shall be filed with the Office of the Secretary within 10 calendar days from Secretary within 10 calendar days from receipt of the Order of suspension/ receipt of the Order of suspension/ cancellation or revocation. cancellation or revocation.

Remedies in Case of Suspension/ Cancellation/Revocation of AEP

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

Fines for Working without AEP

Date IssuedDate Issued : : 31 May 200631 May 2006

Date Published:Date Published: June 16, 2006June 16, 2006

NewspaperNewspaper : : Manila Times and Manila Times and Manila StandardManila Standard

EffectivityEffectivity : : July 1, 2006July 1, 2006

Effectivity Date

Immigration Laws and Related Immigration Laws and Related IssuancesIssuances

Commonwealth Act No. 613, Philippine Commonwealth Act No. 613, Philippine Immigration Act of 1940Immigration Act of 1940

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

Immigration Laws and Related Immigration Laws and Related IssuancesIssuances

Commonwealth Act No. 613, Philippine Commonwealth Act No. 613, Philippine Immigration Act of 1940Immigration Act of 1940

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

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

Fil-Am PlayersFil-Am Players

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

Special Investors Resident Special Investors Resident Visa (SIRV)Visa (SIRV)

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

Special Resident Retiree Visa Special Resident Retiree Visa (SRRV)(SRRV)

1. Foreign nationals assigned in government projects1. Foreign nationals assigned in government projects

2. Foreign personnel employed by offshore banks 2. Foreign personnel employed by offshore banks under under P. D. 1034 or the Offshore Banking P. D. 1034 or the Offshore Banking Law Law

3. Investors and Foreign nationals employed in 3. Investors and Foreign nationals employed in economic zones economic zones

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

employed in the Philippinesemployed in the Philippines

Executives of the applicant company who Executives of the applicant company who will work exclusively for the applicant’s will work exclusively for the applicant’s regional or area headquarters or regional regional or area headquarters or regional operating headquarters duly licensed to operating headquarters duly licensed to operate in the Phils. and with salary of at operate in the Phils. and with salary of at least US$12,000.00 per annum least US$12,000.00 per annum are are exempted from securing AEPexempted from securing AEP..

Multiple Entry Special Visa (Article Multiple Entry Special Visa (Article 60 of RA 8756)60 of RA 8756)

End of PresentationEnd of PresentationThank You!Thank You!

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