Law Summary
Scope and Definition of Coverage (Section 1)
- Applies to all foreign nationals intending to engage in gainful employment in the Philippines.
- "Gainful employment" defined as an employer-employee relationship where the employer controls hiring, salary, and work performance.
Exemptions from Securing AEP (Section 2)
- Diplomats and foreign government officials with reciprocity agreements.
- Officers and staff of international organizations with Philippine government membership, including spouses.
- Foreign nationals exempted by law.
- POEA-accredited foreign principals for limited periods for interviewing purposes abroad.
- Visiting, exchange, or adjunct professors under formal university or governmental agreements, provided reciprocity.
- Permanent residents and probationary/temporary resident visa holders under Philippine Immigration Act Section 13.
Categories Excluded from AEP Requirement (Section 3)
- Governing board members with voting rights only, without management roles.
- Corporate officers as defined by law and corporate documents.
- Consultants without Philippine employers.
- Intra-corporate transferees (executives, managers, specialists) deployed for at least one year prior abroad, per trade agreements.
- Contractual service suppliers meeting qualifications and employed overseas for at least one year prior.
Application Procedures (Section 4)
- File applications at DOLE Regional or Field Office of intended workplace jurisdiction.
- Required documents: Passport with visa, notarized employment contract, Mayor’s Permit or equivalent certifications, employer’s understudy training program for knowledge transfer.
- Related companies applications allowed in corresponding regional offices.
- Position changes or employer changes require new AEP.
- Only one AEP issued per foreign national at a time.
Fees for AEP (Section 5)
- Initial filing fee: PHP 9,000 for one year validity.
- Additional PHP 4,000 per additional year or fraction for employment longer than one year.
- Renewal fee: PHP 4,000 per year or fraction.
- Courier fee: PHP 200 for online applications.
- Replacement fee for lost AEP or changes: PHP 1,500, supported by notarized affidavit.
- All fees non-refundable.
Labor Market Test and Objections (Section 6)
- DOLE must publish all new or changed AEP applications in newspapers, website, and PESO bulletin for 30 days.
- Publication includes job details, qualifications, salary, and benefits.
- Filipino workers competent and willing to perform the job may file objections within 30 days.
- DOLE verifies availability of qualified Filipino workers through registries (Skills Registry, PRC, TESDA).
- Objections concerning labor market or misconduct can be filed anytime.
Processing Timeline (Section 7)
- New AEP applications processed and issued within 24 hours after publication and fee payment.
- Renewals processed within 24 hours after receipt.
Ocular Inspection (Section 8)
- DOLE representatives may conduct workplace inspections within two working days after payment to verify foreign national employment legitimacy.
Validity Period of AEP (Section 9)
- Valid for the specific position and company.
- Duration set at one year unless employment contract states otherwise, but maximum three years.
Renewal Procedures (Section 10)
- Renewal applications filed not earlier than 60 days before expiration.
- Officers’ renewal applications have specific timing tied to appointment dates.
- Board Secretary’s Certification required within 15 working days of appointment.
- Failure to file certification results in automatic revocation after one month.
Grounds for Denial of AEP Application or Renewal (Section 11)
- Misrepresentation or fraudulent statements.
- Submission of falsified documents.
- Criminal conviction or fugitive status.
- Grave misconduct or ill-treatment of workers.
- Availability of qualified Filipino workers for the position.
- Denial order results in forfeiture of fees.
Cancellation or Revocation of AEP (Section 12)
- May be initiated by Regional Director motu proprio or upon petition.
- Grounds include non-compliance, misrepresentation, falsification, objection, criminality, employment termination, misconduct, or disapproval of DOJ or PRC permits.
- Cancellation/revocation order issued thereafter.
Effect of Denial or Cancellation (Section 13)
- Disqualified from reapplying for 10 years if grounds were criminal conviction or grave misconduct.
Appeal Process (Section 14)
- Appeals to DOLE Secretary must be filed within 10 days of receipt of denial/cancellation order.
- Decision of DOLE Secretary is final unless a motion for reconsideration is filed within 10 days.
- No second motions allowed.
Penalties for Working Without AEP (Section 15)
- Foreign nationals fined PHP 10,000 per year or fraction thereof without valid AEP.
- Employers fined PHP 10,000 per year or fraction thereof for illegal employment.
- Grace period for newly appointed officers to apply without penalty: 15 working days after contract/appointment.
Repealing Clause (Section 16)
- All inconsistent rules, regulations, and procedures previously issued are repealed or modified accordingly.
Effectivity (Section 17)
- Rules take effect 15 days after publication.