Hiring Non Resident Aliens

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Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Read also: MATTERS CONCERNING EMPLOYMENT OF NON-RESIDENT ALIENS

Labor Code provides that any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the Department of Labor.

The employment permit may be issued to a non-resident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired.

For an enterprise registered in preferred areas of investments, said employment permit may be issued upon recommendation of the government agency charged with the supervision of said registered enterprise.

Alien Employment Permit

          All foreign nationals who intend to engage in gainful employment in the Philippines shall apply for Alien Employment Permit (AEP).

The Alien Employment Permit (AEP) is a permit issued to a nonresident alien or foreign national seeking admission to the Philippines for employment purposes after a determination of the non-availability of Filipino citizen who is competent, able and willing at the time of application to perform the services for which the alien is desired.

Exempted from Securing an Employment Permit:

The following categories of foreign nationals are exempt from securing an employment permit:

1. All members of the diplomatic and service and foreign government officials accredited by and with reciprocity arrangement with the Philippine government;
2. Offices and staff of international organizations of which the Philippines government is a member and their legitimate spouses desiring to work in the Philippines;
3. Owners and representatives of foreign principals whose companies are accredited by the Philippine Overseas Employment Administration (POEA), who come to the Philippines for a limited period and solely for the purpose of interviewing Filipino applicants for employment abroad;
4. Foreign nationals who come to the Philippines to teach, present and/or conduct research studies in universities and colleges as visiting, exchange or adjunct professors under formal agreements between the universities or colleges in the Philippines and foreign universities or colleges; or between the Philippine government and foreign government: provided that the exemption is on reciprocal basis;
5. Permanent resident foreign nationals and probationary or temporary resident visa holders under Section 13 (a-f) of the Philippines Immigration Act of 1940 and Section 3 of the Alien Social Integration Act of 1995 (RA7917);
6. Refugees and Stateless Persons recognized by DOJ pursuant to Article 17 of UN Convention and Protocol Relating to status of Refugees and Stateless Persons;
7. All foreign national granted exemption by law

Exclusion

The following categories of foreign nationals are excluded from securing an employment permit:

1. Members of the governing board with voting rights only and do not intervene in the management of the corporation or in the day to day operation of the enterprise
2. President and Treasurer, who are part-owner of the company
3. Those providing consultancy services  who do not have employers in the Philippines
4. Intra corporate transferee who is a manager, executive or specialist as defined below in accordance with Trade Agreements and an employee of the foreign service supplier for at least one (1) year continuous employment prior to deployment to a branch, subsidiary, affiliate or representative office in the Philippines.
1. an Executive: a natural person within the organization who primarily directs the management of the organization and exercise wide latitude in decision making and received only general supervision or direction from higher level executives, the board of directors or stockholders of the business; an executive would not directly perform tasks related to the actual provision of the service or services of the organization;
2. a Manager: a natural person within the organization who primarily directs the organization/ department/ subdivision and exercise supervisory and control functions over other supervisory, managerial or professional staff; does not include first line supervisors unless employees supervised are professionals;  does not include employees who primarily performs tasks necessary for the provision of the service;
3. A specialist: a natural person within the organization who possesses knowledge at an advantage level of expertise essential to the establishment/ provision of the service and/or possession proprietary knowledge of the organization’s service, research equipment, technique or management; may include, but is not limited to, members of a licensed profession.
All other intra-corporate transferees not within these categories as defined above are required to secure an AEP prior to their employment presence in the Philippines.
5. Contractual service supplier who is a manager, executive or specialist and an employee of a foreign service supplier which has no commercial presence in the Philippines:
1. Who enters the Philippines temporarily to supply a service pursuant to a contract between his/her employer and service consumer in the Philippines;
2. Must possess the appropriate educational and professional qualifications;
3. Must be employed by the foreign service supplier for at least one year prior to the supply of service in the Philippines.
6. Representative of the Foreign Principal/ Employer assigned in the Office of Licensed Manning Agency (OLMA) in accordance with POEA law, rules and regulations.  (DO 186 Series of 2017)

REQUIREMENTS

A. For Issuance of New AEP

1. Duly accomplished application form
2. Photocopy of passport of Foreign National (FN) with valid visa and present original Certificate of Recognition for refugees or stateless persons
3. Original copy of Notarized Contract of Employment/Appointment or Board Secretary’s Certificate of Election enumerating the duties and responsibilities, annual salary and other benefits of FN.
4. Photocopy of valid Mayor’s Permit including CEZA registered companies
   • If PEZA registered:
     • PEZA registration or
     • Ecozone Authority
   • If construction company:
     • PCAB or
     • DO 18-A Registration
5. Two (2) pieces 2×2 ID picture with white background
6. Proof of Taxpayer’s Identification Number (TIN)
7. If in negative list per EO-184, authority to employ STP from DOJ or PRC or DTI or DENR, whichever is applicable
8. If retailer or in the negative list, updated General Information Sheet (GIS)
9. Authorization letter from the company or foreign national and photocopy of their IDs 

B. For Renewal of AEP

1. Duly accomplished application form
2. AEP Card or photocopy of current AEP
3. Photocopy of passport of Foreign National (FN) with valid visa* and present original Certificate of Recognition for refugees or stateless persons*
4. Original copy of Notarized Contract of Employment/Appointment or Board Secretary’s Certificate of Election enumerating the duties and responsibilities, annual salary and other benefits of FN.
5. Photocopy of valid Mayor’s Permit including CEZA registered companies
   • If PEZA registered:
     • PEZA registration or
     • Ecozone Authority
   • If construction company:
     • PCAB or
     • DO 18-A Registration
6. Two (2) pieces 2×2 ID picture with white background
7. Proof of Taxpayer’s Identification Number (TIN)
8. If in negative list per EO-184, authority to employ STP from DOJ or PRC or DTI or DENR, whichever is applicable
9. If retailer or in the negative list, updated General Information Sheet (GIS)
10. Authorization letter from the company or foreign national and photocopy of their IDs

FEES

Application Fee	Php 9,000
Renewal Fee	Php 4,000
*Additional year of validity of a fraction	Php 4,000
Card Replacement Fee	Php 1,500

Fines if found working without valid AEP prior application

Employer found employing Foreign National w/out valid AEP	Php 10,000
Foreign National w/out valid AEP	Php 10,000

VALIDITY

The Alien Employment Permit is valid for one (1) year.

WHERE TO APPLY

Regional Office of Department of Labor and Employment.

TOTAL PROCESS CYCLE TIME

• Denial/Acceptance within twenty-four (24) hours.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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