As defined in our previous article, a non-derogatory record check—also called an immigration status verification—is a background check conducted by an employer or a third-party service provider to determine whether a job candidate or subject individual (usually a foreign national) has outstanding immigration violations or criminal records that may place him or her under immigration advisories or enforcement orders.
In this article, we’ll explore how a non-derogatory background check can help you, as a hiring manager or employer, prevent hiring unauthorized, undocumented, or blacklisted foreign workers—and why it should be part of your standard due diligence in employing foreign nationals, as evidenced in real-life case studies.
Hiring Foreign Workers in the Philippines
In many blogs, we have highlighted the advantages of doing business in the Philippines, i.e., from the business-friendly environment to the young, skilled, and English-speaking workforce. However, we’ve written less about the other side of the coin—and that is the need to hire skilled foreign workers to address talent gaps in certain local sectors.
While the Philippine labor market, like many in the ASEAN region, continues to face challenges such as high unemployment and underemployment, hiring foreign workers remains highly regulated. Strict measures are enforced to ensure that they are only hired when no qualified and willing Filipinos are available for the role. For instance, an Alien Employment Permit (AEP) and extensive documentation requirements must be processed before getting issued a 9G work visa. Likewise, the sponsoring employer must provide substantial proof that the job cannot be filled by a local and that the company is sufficiently capitalized, usually a minimum paid-up capital of US$ 200,000.
Even just at the DOLE stage (for AEP), applications may already be denied for reasons such as misrepresentation, fraud, or non-compliance with visa rules. Even if approved, the permits may still be revoked later if disqualifications or violations are discovered during or after onboarding.
Risks of Hiring Unauthorized and Undocumented Foreign Workers
As an employer or hiring manager, you must always comply with the strict labor and immigration laws and regulations. Bypassing these can lead to hiring unauthorized and undocumented foreign workers, which can further expose your business to serious legal, financial, and reputational risks.
Workplace Safety and Security Risks
You may end up hiring a foreign national who is unknowingly listed under immigration lookout bulletins or deportation orders or with criminal records in the origin country or even in the Philippines. Having him or her onboard increases the risks of workplace violence, theft, and sabotage, especially in sensitive roles involving finance, operations, or data.
Legal Penalties and Sanctions
You and your unauthorized foreign worker will likely face legal penalties and sanctions from the Department of Labor and Employment (DOLE) and the Bureau of Immigration (BI). While the burden of compliance largely falls on you, as the employer, violations such as working without the appropriate work visas and permits carry a fine of PHP 10,000 per year but can also lead to more severe penalties depending on the case.
Foreign Worker Deportation and Other Related Legal Issues
If a foreign national is found working illegally or without proper documentation by the local authorities, he or she will be detained and soon deported. Depending on the circumstance and legal decisions, he or she could also be placed under immigration watchlists, bans, and blacklist orders.
Business Disruption
While your employed foreign worker may quickly become an asset to your business, his or her sudden removal from your team after immigration and legal issues can lead to significant operational delays and staffing problems, project disruptions, especially in roles that require specialized skills, and even loss of institutional knowledge if he or she performs a critical function.
Reputational Damage
Being associated with illegal hiring practices or foreign nationals with derogatory records can tarnish your company’s public image and brand. Your clients, investors, and partners may lose trust in your business. Media exposure of such violations can lead to negative publicity. Additionally, regulatory non-compliance can affect future contracts, especially with government entities and multinational partners.
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Case Studies: Why Non-Derogatory Background Checks Matter
The two case studies below reveal how a lack of proper background checks can lead to serious risks—and why thorough non-derogatory background checks are crucial, especially when hiring foreign workers.
Case 1: Undocumented Foreign Workers at BGC Telecom Firm
Background: On May 29, 2025, the Bureau of Immigration (BI) conducted a coordinated operation at a telecommunications company in Bonifacio Global City (BGC), Taguig City, which led to the arrest of 39 foreign nationals for immigration violations.
Key Issues: While some held working visas, these were issued under petitions from a different employer, making them undocumented under Philippine law. Others had no valid travel documents at all. So, either the local employer failed to confirm the legitimacy of the foreign workers’ visa documentation or knowingly accepted invalid or fraudulent work permits.
Implications: This case highlights a critical gap in the employment screening and government regulatory processes. While not officially disclosed, we assume that the company likely faced legal consequences, fines, and reputational harm. If this can be attributed to oversight on the part of the company, then this incident underscores the importance of thorough background checks, particularly non-derogatory records checks with the Bureau of Immigration (BI).
Case 2: Foreign Fugitive Found Overstaying and Working
Background: On May 22, 2025, operatives of the Bureau of Immigration’s (BI) Fugitive Search Unit (FSU) arrested a foreign national in Pasay City. He was wanted by foreign authorities for kidnapping and serious injury to another citizen five years prior.
Key Issues: Accordingly, the fugitive entered the Philippines as a tourist in 2017, overstayed his visa for eight years, and worse, reportedly found local employment. In 2021, the BI issued a deportation order and blacklisted him as an undesirable alien.
Implications: While the case points to significant gaps in immigration enforcement and monitoring, the absence of routine non-derogatory record checks or immigration clearances by employers or agencies dealing with foreign workers further allowed the risk to go unnoticed. Had proper background checks been conducted, the deportation order and INTERPOL Red Notice would have prevented the fugitive’s continued presence and employment in the country.
How We Conduct Non-Derogatory Background Checks
Non-derogatory record checks or immigration status verifications may already form part of a standard procedure during work permit and visa applications, but you may need additional verifications as part of continuous monitoring of your foreign employee’s legal standing.
We, at FilePino, conduct non-derogatory record checks with the Bureau of Immigration (BI) by acting as an authorized representative to process BI Clearance Certificates. This involves submitting the required forms, documents, and fees, followed by collecting the certificate and preparing a formal background check report for our clients. Read the full discussion here.
Visa and Immigration Status Verification
With a non-derogatory background check, you can ensure that the subject foreign national (or even a Filipino resident) is not placed under any immigration advisories and enforcement orders (e.g., hold departure orders, watchlist orders, blacklist orders, etc.) and has a valid visa justifying the current stay in the country.
Country Exit and Reentry Confirmation
The background check can also be used to confirm that the subject does not have any issues that could prevent his or her exit and reentry into the country. If this is the case, then there will be no problem with the movement, especially if the position requires international travels from time to time.
Government and Employment Clearances
Ultimately, the immigration status verification serves as a clearance and a supporting document to various transactions with the government as far as local employment of a foreign national is concerned. It is a requirement for work permit and visa applications.
Final Thoughts
In conclusion, non-derogatory record checks or immigration status verifications are a critical step in the responsible and compliant hiring of foreign nationals. These background checks can reveal criminal records and immigration violations not only within the Philippines but also in the foreign national’s country of origin.
While typically required during visa and work permit applications, hence the BI clearance requirements, these background checks can be conducted independently as a proactive approach, especially to ensure updated status after employee onboarding. This is particularly important when new immigration advisories, watchlists, or enforcement orders are issued that may affect the foreign national’s legal standing or presence in the country.
… and you might just need our expertise.
FilePino is a trusted leader in background check services in the Philippines. We ensure that the process of verifying immigration status with the Bureau of Immigration (BI) is legally compliant, straightforward, and efficient.
Ready to hire our background check investigators for a non-derogatory record check? 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.
