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The updates to the Alien Employment Permits (AEP) guidelines aim to streamline processes, boost foreign investment, and protect local employment.
The Department of Labour and Employment (DOLE) has set in place new rules and regulations on the employment of foreign nationals in the Philippines, as part of the Alien Employment Permit (AEP) Guidelines.
On 20 January 2025, DOLE Secretary Bienvenido E. Laguesma signed Department Order No.248, Series of 2025, updating the rules governing the employment of foreign nationals in the Philippines. These revisions aim to balance investment promotion, local labour protection, and skills transfer to Filipino workers.
Key updates to the AEP guidelines include streamlined procedures to expedite employment permits for foreign nationals, aligning with the government’s goal to attract foreign direct investments (FDIs) under Executive Order No. 18, Series of 2023. The changes aim to simplify requirements, reduce red tape, and make the process more transparent, especially for employers in priority sectors.
One notable improvement is the integration of the labour market test into a single newspaper publication, reducing costs and wait times. Additionally, the guidelines introduce an Economic Needs Test (ENT), which evaluates whether there is a need for foreign workers based on the availability of qualified Filipino talent.
Another key feature of the updated guidelines is the focus on knowledge-sharing. Through the Understudy Training Programme (UTP) and Skills Development Programme (SDP), employers are now required to implement structured training for Filipino counterparts, enabling them to acquire necessary skills and eventually assume roles held by foreign nationals.
DOLE said the revised AEP guidelines are a crucial step in creating a more competitive and investor-friendly environment in the Philippines. By simplifying processes and ensuring skills transfer, these updates seek to support the development of a sustainable workforce while safeguarding local employment opportunities.
Lead image / Department of Labor and Employment (Philippines)
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