The Philippines puts great emphasis on the protection of its labor force. With a long history of unpaid involuntary servitude mandated during the Spanish occupation called polo y servicio, the Philippines has sought to protect the laborers’ plight. Article 3 of the Labor Code of the Philippines provides the following:
“The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.”
Not only do Philippine laws and regulations protect labor for internal forces, but they also seek to protect Filipino workers from outside competitors. Thus, on 21 January 2025, the Department of Labor and Employment (“DOLE”) issued Department Order no 247 series of 2025 or the New Rules and Regulations on the Employment of Foreign Nationals in the Philippines (“New AEP Rule which took effect on 10 February 2025. The New Rules introduced new requirements such as the Economic Needs Test and the Understudy Training Program/Skills Development Program.
The New Rules requires that the employer shall cause the publication of the vacant position to be filled up and the name of the foreign national it intends to hire in: a newspaper of general circulation, the Philjobnet, the Public Employment Service Office (PESO), or Job Placement Office (JPO) having jurisdiction over the intended place of work.
Similarly, the New Rules require certain categories of employers to submit an Understudy Training Program (“UTP”) or a Skills Development Program (“SDP”) as part of their AEP Application. These categories of employers include those granted fiscal incentives by the Philippine government, those engaged in priority or strategic areas of investments, and those operating a public utility pursuant to the Public Service Act. The UTP and the SDP are intended to ensure the transfer of technology or skills possessed by a foreign national to Filipino workers.
Lastly, the New Rules now expressly require certain categories of foreign nationals who are exempt from securing an AEP to secure an AEP Certificate of Exemption from the DOLE. To note, securing the Certificate was only discretionary.
How ABO Law Firm Can Help
At ABO Law Firm, we specialize in assisting domestic and multinational companies with the complexities of Philippine employment laws, including the implementation of the Labor Code of the Philippines. Our team provides comprehensive legal solutions, from securing permits and completing compliance requirements to drafting contracts and facilitating partnerships with Filipino investors and business owners.
We also offer services for end-to-end support to ensure smooth and compliant business operations within the framework of the Philippine labor laws. Contact us today to help you comply with Philippine laws and regulations for labor and employment.
