Title
Foreign Nationals' Employment Rules
Law
Memorandum Circular No. Mssd-15-09
Decision Date
Oct 19, 2015
The Clark Development Corporation, in collaboration with the Department of Labor & Employment and the Bureau of Immigration, establishes guidelines for the employment of foreign nationals, emphasizing the necessity of valid Alien Employment Permits and Subic Clark Working Visas, compliance inspections, and notification protocols for employment termination or company closure.

Law Summary

Inspection of Locator Premises

  • Locator companies must allow authorized representatives from Clark Development Corporation (CDC), Department of Labor and Employment (DOLE), and Bureau of Immigration (BI) to conduct random inspections.
  • Inspections are to be done during reasonable hours.
  • The purpose is to verify compliance with the Labor Code, Philippine Immigration Act, and other relevant laws and regulations concerning alien employment.

Additional Requirements for Employment of Foreign Nationals

  • CDC may request additional information on job descriptions, particularly for non-elective positions, to ensure justification for employing foreign nationals.
  • Verification includes checking the non-availability of qualified Filipino experts for the specified position.
  • Evaluation factors include company size and floor to manpower ratio.
  • Elective positions are exempt from this requirement if included in the latest By-Laws or General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC).

Notification and Procedures on Separation or Company Closure

  • Locators must notify CDC, DOLE, and BI Clark One Stop Shop (BI-OSS) at least 30 days before the termination or separation of the foreign national employee or the permanent closure of the company.
  • The foreign national is required to surrender the original AEP to DOLE and the Alien Certificate of Registration Identity Card (ACR I-Card) to BI-OSS.
  • The foreign national’s SCWV must be downgraded by the BI.
  • BI-OSS is authorized to process visa downgrading locally, eliminating the need for applicants to go to BI Manila.

Validity Period of AEP and SCWV

  • CDC’s endorsement of an AEP to DOLE is contingent upon the existence and registration of a valid Lease/Sub-Lease Agreement between CDC and the Freeport Enterprise.
  • The Lease/Sub-Lease Agreement qualifies the Freeport Enterprise to avail of non-fiscal incentives in hiring foreign nationals.
  • The validity of the AEP is co-terminus with the Lease/Sub-Lease Agreement.
  • Consequently, the SCWV validity is also co-terminus with the Lease/Sub-Lease Agreement.

This circular serves to streamline documentation and enforcement procedures in employing foreign nationals within the Freeport areas, ensuring compliance with Philippine labor and immigration laws while promoting employment opportunities for Filipinos.


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