The Philippines Department of Labor and Employment (DOLE) issued Department Order (DO) No. 248-25 earlier this year, introducing new rules and regulations governing the employment of foreign nationals in the Philippines. To provide further clarity and guidance, DOLE also released a supplemental guideline, Department Order No. 248-A-251, which outlines additional information regarding the issuance of Alien Employment Permits (AEPs), a prerequisite for long-term-employment visa applications.
WHY THIS MATTERS
The new rules and supplemental guidance aim to simplify and expedite transactions with the government; however, they also entail additional administrative work for both foreign nationals and their employers. This may mean adjustments to employers’/advisers’ policies and procedures around preparing and submitting training and development programs required for AEP applications.
Employers and immigration advisers should become familiar with the changes so that they can make accurate submissions and maintain compliance with labor and immigration requirements. This can help to mitigate delays and operational disruptions and can support effective workforce planning.
Key Highlights
Job Vacancy Publication
Employers are required to publish job vacancies in a newspaper of general circulation. Posting in PhilJobNet and with Public Employment Service Office (PESO)/Job Placement Office (JPO) is not mandatory, but highly encouraged.
Requirement for UTP/SDP
The submission of an Understudy Training Program (UTP) or Skills Development Program (SDP) is required for the foIIowing establishments:
- Those registered under the Foreign lnvestment Act (FlA), employing foreign nationals, and enjoying fiscal incentives (these are companies that enjoy fiscal incentives such as subsidies, tax reliefs and preferential tax treatment to promote and encourage investments and development);
- Thosed engaged in the operation of public utilities or critical infrastructure under the Public Service Act, where foreign equity participation is allowed; or
- Those identified as a strategic investment, including those in key sectors outlined in the Strategic lnvestment Priority Plan (SIPP) or equivalent national development framework.
Exemption from UTP/SDP of Covered Establishments
The following foreign nationals are exempted from the mandatory submission and implementation of UTP and SDP:
- Those who are excluded or exempted from AEP;
- Equity holders/shareholders or owners or investors with equity participation as reflected in the reports lodged with and reported to the Securities and Exchange Commission (SEC); and
- Those occupying positions that have been determined by the Technical Working Group (TWG) to be qualified for exemption, in accordance with established guidelines and criteria.
Submission of UTP/SDP
Employers of covered establishments shall submit the UTP or SDP plan simultaneously with the AEP application or within sixty (60) days of the commencement of employment of the foreign national. Employers may use their own format for the plan, provided it contains the information specified under Rule Vl, Section 3 of DO 248-25.
Evaluation Period
Within five (5) working days, the DOLE Regional Office shall evaluate the submitted UTP/SDP and check whether the proposed training plan clearly outlines the required information.
Monitoring and Compliance
Employers shall submit progress reports, based on the submitted UTP/SDP plan on a semi-annual basis (for AEPs with one-year validity) and an annual basis (for AEPs with two- to three-years validity) detailing implementation, attendance, and competencies gained by the Filipino employee/s. The report shall be duly signed by the employer, the foreign national, and the Filipino employee/s.
Requirements for Renewal and Additional Positions
The Department may accept renewal applications with an affidavit of undertaking, committing to comply with the requirements of publication prior to the release of the AEP card, and the UTP or SDP within sixty (60) days of the date of submission, if applicable.
For AEPs issued before February 10, 2025, or prior to the issuance of DO 248-25, renewal applications shall only be required to submit a training plan for the UTP, similar to a new application, in lieu of full compliance with either the UTP or SDP requirements. Failure to submit or comply with the required documents shall be grounds for revocation of the AEP.
Action on the Application
Within fifteen (15) working days from payment of the required fee, the DOLE Regional Office shall act on the renewal or new AEP application.
KPMG INSIGHTS
The recent issuance seeks to balance the promotion of foreign investment with the protection of local labor, while encouraging the transfer of skills and knowledge to Filipino workers.
If companies would like assistance with understanding the changes to the requirements for AEP applications, require assistance with completing or submitting their applications, or with preparing the UTP or SDP, they may reach out to their usual immigration counsel or a member of the immigration team with KPMG in the Philippines (see the Contacts section).
FOOTNOTE:
1 Department of Labor and Employment, “Supplemental Guidelines Clarifying and Amending Provisions of Dole Department Order No.2,18, Series of 2025.”
Contacts
Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in the Philippines.
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