In recent years, the Philippines has nurtured a diverse workforce characterized by a young and dynamic population with a significant portion under 30 years old. This demographic trend fuels a vibrant labor market, particularly in emerging sectors such as information technology, business process outsourcing (BPO), and healthcare.
While the labor market grapples with high unemployment and underemployment, other local industries still demand specialized skills often lacking among local workers. As a result, some Philippine-based companies seek foreign professionals and highly skilled workers to fill these gaps, enabling them to meet sector demands effectively.
However, the entry of these foreign workers into the country is not easy due to the government’s commitment to protecting local labor interests. To regulate their employment, strict labor and immigration laws require them to meet stringent criteria and obtain necessary work permits and visas. One key requirement is the — Alien Employment Permit (AEP).
In this article, we’ll provide a comprehensive overview of the Alien Employment Permit (AEP), guiding you through the entire application process while offering insights into the complex labor and immigration regulations in the Philippines. Read on and check the embedded links for related articles that can enhance your understanding.
Alien Employment Permit (AEP)
An Alien Employment Permit, or simply AEP, is a work permit issued to foreign nationals seeking gainful employment in the Philippines, i.e., regardless of the nature or duration of employment.
Gainful employment, as defined by DOLE, is the “state or condition that creates an employer-employee relationship between the Philippine-based employer and the foreign national where the former has the power to hire or dismiss the foreign national from employment, pays the salaries or wages, thereof and has authority to control the performance or conduct of the tasks and duties.”
The permit is not an exclusive authority for a foreign national to work in the country but just one of the requirements in the issuance of a work visa (e.g., 9G Work Visa).
Department of Labor and Employment (DOLE)
Unlike the work visas (e.g., 9g Work Visa) which are issued by the Bureau of Immigration (BI), the AEP is processed with and issued by the Department of Labor and Employment (DOLE), a government agency that is mandated to formulate policies, implement programs and services, and serve as the policy coordinating arm of the executive branch in terms of local labor and employment.
Based on the released DOLE D.O. 221-2021, or the “Revised Rules for the Issuance of Employment Permits to Foreign Nationals,” AEP applications must be filed with the DOLE Regional Office (DOLE-RO) or DOLE Field Office having jurisdiction over the foreign applicant’s place of work assignment. Read the other article: Alien Employment Permit (AEP) Application — and Why DOLE Regional Jurisdiction Matters.
DOLE Regional Offices are primary administrative units overseeing labor-related matters within their respective geographic regions. DOLE Field Offices, on the other hand, handle on-the-ground operations and specific tasks, mostly in more localized areas.
AEP Eligibility and Requirements
- General Eligibility Criteria. In order for a foreign national to be issued an Alien Employment Permit (AEP), the following criteria must be met:
[1] No Qualified Local Worker. The sponsoring employer must provide proof that there are no qualified and interested Filipino workers available for the position to be filled by a foreigner.
[2] Employer-Employee Relationship (Job Offer). The applicant must have a valid job offer from a Philippine-based company and must present a contract detailing the position, employment term, and salary, among others.
[3] Employer Registration. The sponsoring employer must be duly registered with relevant government agencies and can secure the necessary business registration documents and other special permits.
[4] Capital Requirement. The employer must have sufficient capitalization to sponsor foreign employees, generally a minimum paid-up capital of $200,000.
- Documentary Requirements. The employer, foreign national, authorized representative, or accredited agent, must submit the complete AEP documentary requirements as follows:
- Duly accomplished AEP Application Form
- Expiring AEP Card (in case renewal)
- Photocopy of Passport Bio-Page (with valid visa and appropriate visa, in case of renewal)
- Photocopy of BIR-received BIR Form 1904 or 1902 indicating the Taxpayer Identification Number (TIN) (a certification from the BIR or a copy of e-registration)
- Original Copy of Duly Notarized Appointment or Contract of Employment (indicating the duties and responsibilities, salary, and other benefits)
- CTC of Valid Business or Mayor’s Permit of the Philippine-based company (or CTC of the Certificate of Registration from Economic Zone Authorities)
- CTC of License from Philippine Construction Accreditation Board (PCAB) or Certificate of Registration issued by DOLE for contracting and subcontracting agreements (if applicable)
- CTC of Business Name Registration together with the Application Form duly received by DTI (in case of sole proprietorship) or CTC of Certificate of Registration, Articles of Incorporation, By-Laws, and updated General Information Sheet (GIS) issued by the SEC
- CTC of the Philippine Offshore Gaming Corporations (POGO) License, Accreditation, or Appointment issued by PAGCOR and any other authorized freeport or economic zones, in case of online gaming companies
- Proof of Publication of the Job Vacancy/ies in a newspaper of general circulation, together with a duly notarized affidavit stating no applications were received or no Filipino applicant was considered for the position; and,
- Other required relevant permits or authorities (i.e., Special Temporary Permit (STP) issued by the PRC in case of practice of a regulated profession, Authority to Employ Alien (AEA) issued by DOJ or proof of application in case the employer is covered by the Anti-Dummy Law, and Authority to Hire Foreign National (AHFN) issued by DENR or proof of application, in case of mining)
AEP Application Process
Given the complex and evolving labor and immigration regulations, foreign national applicants may always seek assistance from labor and immigration specialists to ensure accurate and timely application filing, thus preventing delays and denials.
Here is a step-by-step guide on how to apply for an AEP in the Philippines:
1. Conduct Eligibility Check.
Before applying for the work permit, foreign applicants must have a job offer from a Philippine-based company for a position that cannot be filled by a local worker. The sponsoring employer must be duly registered with government regulatory bodies and may need special permits or clearances based on their industry. Additionally, the employer must have a minimum paid-up capital of $200,000 to sponsor foreign employees.
2. Prepare the Documentary Requirements.
As listed above, foreign nationals must provide completed application forms, passport, valid employment contract, BIR Taxpayer Identification Number (TIN), and other supporting documents.
On the other hand, there are more documents that the sponsoring employer needs to prepare — mostly certified true copies (CTCs) of business registration documents and proof of newspaper publication of the job vacancy.
Different government agencies have different turnaround timelines for issuances of CTCs of documents, and this usually causes additional days or weeks of delay in the processing of the AEP application. You might need a special business documents and other permits assistance for expedited processing.
3. Publish a Job Vacancy Advertisement in a Newspaper.
At least fifteen (15) calendar days prior to the application for AEP, the sponsoring or petitioning employer must publish a job vacancy advertisement in a newspaper of general circulation (e.g., Manila Bulletin, Philippine Star, etc.). Its purpose is to allow any interested party or the general public to raise objections or oppositions, if any, on the employment of foreign nationals in the country.
4. File the AEP Application with the DOLE Regional Office.
The AEP application may already be filed online, together with the uploading of the documentary requirements. If not, then this should be submitted personally to the DOLE Regional Office (DOLE-RO) or DOLE Field Office with jurisdiction over the foreign national’s place of assignment or employment.
5. Wait for the DOLE Review of the AEP Application.
After submission of the application, it may take a few days for the DOLE-RO to review the application and release its approval. It also conducts its own labor market test (LMT) on all new applications for AEP through a newspaper publication within two (2) working days after receipt of the application.
The DOLE-RO review process ensures that the employment of foreign nationals does not adversely affect the local labor market and that companies comply with the governing rules and regulations.
In cases of denials, the foreign applicants also have some legal remedies, which include appeals and motions for reconsiderations, which may be escalated to the Office of the DOLE Secretary. Read this separate article: AEP Application Denials and Revocations: Options for Appeals, Reconsiderations, and Further Actions.
6. Pay the Necessary Fees.
Once the application is approved, the DOLE-RO issues an order of payment. The fees normally include the application and publication fees of PHP 10,000 and an additional PHP 5,000 for an additional year of extension or its fraction (refer to the fees below). Online payments may be made through the DOLE-accredited payment channels.
7. Receive the Alien Employment Permit (AEP) Card.
All DOLE-RO communications and notices, such as for the payment confirmation, final approval and delivery of the AEP ID Card, are mostly channeled via email. The entire processing of the work permit – from submission of documentary requirements to issuance of the card — usually takes two (2) to three (3) weeks.
Alien Employment Permit (AEP) Fees
Based on the DOLE order, the following are the fees to be paid (always check the official DOL website or contact the agency directly for updated fees):
[a] AEP Application and Publication Fees. Upon filing of the application, the applicant needs to pay PHP 10,000 for the Alien Employment Permit (AEP) with a validity of one (1) year, inclusive of publication fee of PHP 4,000.
[b] Yearly Extension Fee. In case the period of employment is more than one (1) year, an additional PHP 5,000 shall be charged every additional year or a fraction thereof.
[c] AEP Card Replacement Fee. A fee of PHP 3,000 shall be charged for the replacement of AEP card due to loss, change of information, or additional position. In case of loss, request for replacement must be supported by a duly notarized affidavit and police report.
[d] Certificate of Exemption or Exclusion Fee. For those qualified for AEP exemptions and exclusions, a fee of PHP 2,000 must be paid for every issuance of a Certificate of Exemption or Certificate of Exclusion.
Alien Employment Permit (AEP) Validity
The rule states that — only one (1) Alien Employment Permit (AEP) can be issued to a foreign national at any time. This is valid for one (1) year for the specific position and company for which it is issued. It may, however, be with a longer duration based on the length of employment as stated in the contract but may not exceed three (3) years.
The work permit remains valid until it expires, for the same position, despite the transfer of the company to another location. Likewise, the existing AEP remains valid in case the foreign national has been transferred or subsequently assigned to related companies in another region. The employer, however, should notify DOLE about this.
In case of any change in the position or employer, the foreign national must file a new application for AEP and surrender the previously issued permit card for nullification.
Certificates of Exemption and Exclusion
While an Alien Employment Permit (AEP) does not apply to all categories of workers, the DOLE also issues special certificates to foreign nationals who are exempted and excluded from securing the permit.
Certificate of Exemption
This is a special certificate issued to a category of foreign nationals who, although covered by Article 40 of the Labor Code, are exempted from securing an employment permit under the existing laws or guidelines:
- Dependent spouse of any member of diplomatic corps, provided an existing reciprocity agreement between the two countries
- Accredited officials and personnel of international organizations of which the Philippine government has entered into an agreement with, and their dependent spouse
- Foreign nationals who are officers, staff, and employees working in the embassy by reason of extra-territoriality principle
- Foreign nationals who are officers and staff of peacekeeping or international organizations
- Foreign nationals who come to teach, present and/or conduct research studies in universities and colleges
- Permanent resident foreign nationals and probationary or temporary resident visa holders
- Refugees and stateless persons recognized by the Department of Justice (DOJ)
- All other foreign nationals granted exemption by law
Certificate of Exclusion
This is another special certificate issued to foreign nationals who provide or supply services in the country, but their employers are located abroad or those without employer-employee relationship with the Philippine-based entity. Thus, they are excluded from securing an employment permit:
- Members of the governing board with voting rights only and do not intervene in the day-to-day management of a corporation
- Presidents and Treasurers, who are part-owners of companies
- Intra-corporate transferees employed by the foreign service supplier for at least one (1) year of continuous employment prior to deployment to a branch or subsidiary
- Contractual service suppliers who are managers, executives, or specialists employed by a foreign service supplier with no commercial presence in the Philippines
- Authorized representatives of accredited/registered foreign principal/employers who participate in all recruitment activities of an agency licensed by POEA
Foreign nationals, who are exempted and excluded from securing an AEP, may request a Certificate of Exemption or Certificate of Exclusion, whichever applies, from the DOLE-RO and submit the documentary requirements.
The Certificate of Exemption is valid from the date of issuance up to the end date of the deployment, while the Certificate of Exclusion is valid up to the end date of the contract, appointment, or election.
Alien Employment Permit (AEP) Renewal
The application for AEP renewal must be filed as early as sixty (60) days before its expiration, or possibly earlier if the foreign national needs to leave the country or any other circumstances.
In all cases of renewals, the foreign national or employer must surrender the expiring AEP Card to the respective DOLE-RO for perforation to avoid tampering and illegal use. An application for renewal of an AEP without an appropriate visa (e.g. 9G work visa) is treated as a new application after the expiration of the existing AEP.
AEP-Related Violations and Penalties
Foreign nations found to be working with expired AEP or had been working without the necessary AEP will be barred from filing applications for five (5) years, plus payment of penalties.
As indicated in the department order, the DOLE-RO imposes a fine of PHP 10,000 to foreign nationals and PHP 10,000 to employers for every year or a fraction thereof for each count of violation of the following acts:
- Entering into an employment contract with an invalid and/or expired AEP;
- Employing or hiring foreign national without a valid AEP or processing fraudulent or expired AEP;
- Application for AEP filed beyond ten (10) working days after the date of signing of contract or after commencement of employment; and
- Other analogous circumstances
Common AEP Application and Renewal Challenges and Solutions
Here are some of the most common challenges faced by foreign nationals during their Alien Employment (AEP) application and renewal processing, along with potential solutions:
Complex Documentation Requirements
In addition to the foreign applicant’s documents, sponsoring employers must gather various CTCs of certificates and business registration papers. Due to high transaction volumes and bureaucracies, document requests from government agencies can be time-consuming. Creating a comprehensive checklist and anticipating turnaround times can help plan and streamline the process effectively.
Processing Delays
Apart from the delays from gathering documents, there can be further setbacks after lodging the application with DOLE, especially if possible grounds for denial are identified. Filing appeals and motions for reconsideration can be time-consuming and resource-intensive. To minimize delays and reduce the risk of denials, it is recommended to seek assistance from service providers with legal personnel who can navigate the necessary compliance requirements effectively.
Regulatory Confusion
Applying for an Alien Employment Permit (AEP) is just one step toward obtaining a work visa, e.g., 9G Work Visa. In other cases, additional work permits, such as Provisional Work Permit (PWP) and Special Temporary Permit (STP), are also required for immediate employment of the applicant.
Work visas and permits are different, as are the issuing agencies – DOLE and BI – which even make the applications and regulatory compliances confusing. Thus, consulting with labor and immigration specialists with extensive knowledge and experience can provide clarity and ensure a smoother application experience.
Renewal Confusion
AEP renewal regulations can also be confusing, often leaving first-time holders unsure of when and how to renew their work permits and resulting in penalties. To avoid this, applicants should review the DOLE regulations and set reminders for deadlines. Interestingly, some service providers proactively send reminders to their clients about upcoming renewal dates, helping them ensure compliance.
Changes in Employment Terms
As DOLE clarifies, an AEP is valid until expiration for the same position despite any transfer of company location. Any changes in information should be promptly communicated to the agency for AEP Card replacement of potential reapplication. Thus, it is crucial to understand DOLE regulations and seek clarification on any vague details to avoid penalties or legal issues.
… and you might just need our assistance.
Ready to apply for or renew your Alien Employment Permit (AEP)? Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
