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Comprehensive Guide to the New Rules on Employing Foreign Nationals in the Philippines [DOLE DEPARTMENT ORDER NO 248 Series of 2025]

an image illustrating foreign nationals collaborating with Filipino colleagues in a professional setting, symbolizing teamwork and cultural harmony in the Philippines.


On January 23, 2025, the Department of Labor and Employment (DOLE) issued Department Order No. 248, signed by Secretary Bienvenido E. Laguesma. This landmark regulation updates the rules governing Alien Employment Permits (AEPs), balancing the promotion of foreign investments with the protection of Filipino labor. Here's a detailed look at the new provisions, their impact on employers and foreign workers, and how they align with the Philippines' broader economic goals.


Copy of DOLE DEPARTMENT ORDER NO 248 Series of 2025 - NEW RULES AND REGULATIONS ON THE EMPLOYMENT OF FOREIGN NATIONALS IN THE PHILIPPINES



1. A Step Toward Streamlined Processes

The new AEP guidelines simplify processes to encourage investments while ensuring compliance with labor laws:

  • Streamlined Labor Market Test (LMT): Previously complex procedures are now condensed into one key requirement—publishing job vacancies in a widely circulated newspaper and on PhilJobNet, the government’s official job-matching portal. This change reduces costs and shortens waiting times for employers and foreign applicants.
  • Economic Needs Test (ENT): DOLE introduced this new evaluation criterion to ensure foreign hires are only approved when there are no available or qualified Filipino workers. This safeguard protects local labor markets while addressing employer needs.

These reforms align with Executive Order No. 18, Series of 2023, under President Ferdinand R. Marcos Jr.’s administration, which emphasizes streamlined business processes to attract foreign direct investments (FDIs).



2. Promoting Investments While Protecting Filipino Labor

The updated guidelines aim to achieve a balance between fostering economic growth and safeguarding local employment:

  • Skill Transfer Programs: Employers hiring foreign nationals are now required to implement either the Understudy Training Program (UTP) or Skills Development Program (SDP). These programs ensure that Filipino workers acquire the skills and expertise of foreign employees, reducing long-term dependency on foreign labor.
  • Priority Sectors: The regulations favor industries identified as strategic or in need of technical expertise. By expediting AEP applications for these sectors, the Philippines positions itself as a competitive and investor-friendly destination in the region.


3. Improved Efficiency in AEP Applications

Over the past three years, DOLE has issued 192,573 AEPs across various industries. The new framework seeks to improve efficiency:

  • Enhanced Processing Systems: The DOLE has introduced an Alien Employment Permit Management System (AEPMS) to ensure faster and more secure applications, including biometric identification for foreign workers.
  • Fees and Validity Periods: The AEP application fee remains PHP 6,000 for the first year, with PHP 5,000 charged for each subsequent year. AEPs are valid for up to three years, depending on the employment contract.


4. Compliance and Monitoring Mechanisms

To ensure adherence to these new regulations, DOLE has strengthened its enforcement measures:

  • Quarterly Reporting: Employers must regularly update DOLE on their foreign hires' employment status.
  • Inspections: Businesses employing foreign workers are subject to regular audits to verify compliance with general labor standards.
  • Penalties for Violations: Misrepresentation or non-compliance can result in fines of PHP 10,000 per offense and a ban on applying for AEPs for up to 10 years.


5. Aligning with Economic Growth Objectives

The guidelines are closely tied to the country’s broader goals of inclusive growth and sustainable development:

  • By targeting priority investment sectors and simplifying government transactions, the DOLE aims to boost FDIs.
  • The Economic Needs Test (ENT) will undergo public consultations to ensure inclusivity and fairness, reinforcing its role in protecting local job opportunities.


6. How Employers and Foreign Workers Benefit

Employers in strategic sectors, such as technology and infrastructure, benefit from faster and more transparent procedures, reducing bureaucratic delays. Foreign workers, in turn, gain clear guidance on their responsibilities, while Filipino employees are assured of their job security through skills development initiatives.



Conclusion

DOLE’s Department Order No. 248 represents a progressive step toward balancing economic growth and labor protection. By streamlining AEP processes, introducing mechanisms for skill transfer, and safeguarding local employment opportunities, the government is creating a robust framework that supports both businesses and the Filipino workforce.

As these guidelines take effect, all stakeholders—employers, foreign workers, and Filipino employees—are encouraged to engage with DOLE for clarity and compliance.


What are your thoughts on these reforms? How might they impact your industry or career? Let us know in the comments below!


 

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