On 6 January 2021, the Department of Labor and Employment ("DOLE") released the new guidelines for the issuance of an Alien Employment Permit ("AEP") and related certifications.
The Revised AEP Rules provide for new guidelines for filing dates, processing time, permit fees, penalties, documentary requirements, and employers' duties, among others. The AEP is one of the permits that must be secured by foreign nationals to legally work in the Philippines. Some of the amendments include:
- employer participation in the labour market test ("LMT");
- reduced grace period to file applications;
- increased processing time of applications with DOLE;
- increased amount of application fees; and
- submission by the employer of a quarterly report on list of foreign nationals employed.
The LMT is the mechanism to determine the non-availability of a Filipino citizen who is competent, able, and willing at the time of application to perform the services for which the foreign national is desired. Under the expanded LMT, employers are now required to cause the publication of the job vacancy being applied for the foreign national in a newspaper of general circulation at least 15 calendar days prior to the application for an AEP.
Applications for an AEP must be filed at the DOLE regional office concerned within 10 working days from the date of signing of the contract or prior to the commencement of employment. Applicants must also pay an increased application fee of PHP10,000.00 for a new AEP with a validity of one year and an additional PHP5,000.00 for every additional year. This is to avoid incurring a fine of PHP10,000.00 for both the foreign national and the employer.
Employers are now required to submit a quarterly report or an updated list of foreign nationals employed within 30 days from the reference period and change of employer’s information such as but not limited to name, address, or contact details.
