Changes and challenges: New hiring rules for foreign nationals

In recent years, the Philippine government has taken significant steps to impose stricter rules on hiring foreign nationals to protect the local labor market.

- ARMIN JOYCE DE CHAVEZ

In addition to the extensive documentary requirements of the sponsoring Philippine company, the qualifications of the foreign national applicants are now more heavily scrutinized.

The Department of Labor and Employment (DOLE) issued Department Order 248, Series of 2025, outlining new regulations on the employment of foreign nationals in the Philippines. The order introduced new rules affecting labor market tests and additional requirements for securing an Alien Employment Permit. The main message of the order is clear—to streamline processes and establish clearer processing timelines.

The order introduces the Economic Needs Test (ENT) which assesses if hiring a foreign national will contribute to the country's economic development. The reinforcement of the Understudy Training Program (UTP) and Skills Development Program (SDP) is a significant step toward clearly defining the requirements and eligibility for these programs. This demonstrates the agency's commitment to promoting skills development for local labor.

The order provides clearer timelines for certain processes, demonstrating a commitment to improving the efficiency and speed of procedures. Some of the clarified timelines include the submission of the AEP application, which should be within fifteen calendar days from the execution of the employment contract or the issuance of an appointment. The result of the AEP application shall be communicated within fifteen working days from the payment of the required fee.