“Revised Rules for the Issuance of
Employment Permits to Foreign Nationals”
DOLE Department Order No.186-17
s2017
”
OUTLINE:
I. Profile of Korean Nationals with AEPs IV. Administrative Grounds 1. Grounds for Denial
II. Coverage 2. Effect of Denial
1. Exemption 3. Appeal
2. Exclusion 4. Penalty
III. Application Procedure 1. Documentary Requirements 2. Fees
3. Renewal
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Alien Employment Permit (AEP) is not an exclusive authority for a foreign national to work in the country. It is just one of the requirements to legally engage in gainful employment in the country.
Special Temporary Permit PRC
Authority to Employ Alien DOJ
Alien Employment Permit DOLE
Working Visa 9(g) BI
DISCLAIMER
”
Profile of Korean Nationals with AEPs
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By Region 2015 2016 2017 Total
NCR 1,238 875 1,415 3,528
CAR 35 31 34 100
RO I - 4 - 4
RO II 1 86 7 94
RO III 1,167 839 974 2,980
RO IV-A 1,030 776 900 2,706
RO IV-B 12 9 14 35
RO V 1 - - 1
RO VI 11 45 52 108
RO VII 7 598 658 1,263
RO VIII 2 3 - 5
RO IX 2 - - 2
RO X - 12 20 32
RO XI 7 20 29 56
RO XII 5 1 6 12
NIR - - 7 7
CARAGA - - 3 3
For the period 2015-2017, there were 10,936 Alien Employment Permits (AEPs) issued to Korean nationals.
A decrease was observed in the AEP issuance to said nationals in 2016.
However, a substantial increase of 20%
was registered the following year.
Majority (32% or 3,528) of Korean nationals were employed in National Capital Region (NCR) followed by Region III with 27% or 2,980, Region IV-A with 25% or 2,706 and Region VII with 12% or 1,263.
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By Major Occupation 2015 2016 2017 Total Administrative, Exec. &Managerial Workers 2,382 1,901 2,521 6,804
Professionals 493 422 717 1,632
Technicians & Assoc.
Professionals 473 969 735 2,177
Service Workers & Shop &
Market Sales Workers 154 5 113 272
Farmers, Forestry Workers &
Fisherman - - - -
Trades and Related Workers 1 2 25 28
Plant & Machine Operators and
Assemblers 15 - 8 23
Laborers & Unskilled Workers - - - -
TOTAL 3,518 3,299 4,119 10,936
There were 62% or 6,804 AEPs issued under the category of Administrative, Executive &
Managerial positions, followed by Technicians and Associate Professionals with 20% or 2,177 and lastly Professionals with 15%
or 1,632.
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By Major Industry 2015 2016 2017 TotalAgriculture, Hunting, Forestry, and fishing 5 1 9 15
Mining and Quarrying 2 34 5 41
Manufacturing 626 1,079 1,135 2,840
Electricity, Gas, and Water Supply 36 33 134 203
Water supply, sewerage, waste management 36 41 13 90
Construction 639 258 319 1,216
Wholesale and Retail Trade; Repair of Motor Vehicles,
Motorcycles and Personal and Household Goods 670 214 338 1,222
Transport, Storage and Communication 252 63 230 545
Accommodation and food service 318 166 234 718
Information and Communication 72 131 157 360
Financial and Insurance 33 42 57 132
Real Estate, Renting and Business Activities 62 65 85 212
Professional, scientific and technical activities 111 148 123 382 Administrative and support service activities 372 573 766 1,711
Public Administration and defense 4 2 - 6
Education 161 141 192 494
Human Health and Social Work 50 16 45 111
Arts, entertainment and recreation 69 290 236 595
Other service activities - 2 38 40
Service producing activities of households for own use - - 3
Korean nationals issued with AEPs were engaged mostly in Manufacturing with 26% or 2,840 located at the Export Processing Zone Area (EPZA) of Regions III, IV-A and VII.
Next to Manufacturing is Administrative and Support Service Activities (ASSA) which covers Business and Processing Outsourcing companies with 16%
or 1,711 situated mostly in Regions NCR, III, IV-A and VII.
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Coverage, Exemption and Exclusion
9 COVERAGE
All foreign nationals in the Philippines shall apply for an AEP if:
• intend to engage in gainful employment in the Philippines; and
• holders of SVEG, SIRV, SRRV, 9d, 47(a)2 for as long as
they occupy any executive, advisory, supervisory, or
technical position in any establishment.
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Gainful employment shall refer to a state or
condition that creates an employer-employee
relationship between the Philippine based
employer and the foreign national where the
former has the power to hire or dismiss the
foreign national from employment, pays the
salaries or wages thereof and has authority to
control the performance or conduct of the tasks
and duties.
11 EXEMPTION
ü All members of the diplomatic service and foreign government officials;
ü Officers and staff of international organization of which the Philippine is a member, and their legitimate
spouses desiring to work in the Philippines;
ü Owners and representatives of foreign principals whose companies are accredited by POEA;
ü Foreign nationals who come to the PH to teach, present
and/or conduct research studies
12 EXEMPTION
ü Permanent resident foreign nationals and
probationary or temporary resident visa holders;
ü Refugees and Stateless Persons recognized by DOJ;
and
ü All foreign nationals granted exemption by law:
1. RA 8756, Sec 5, Art. 60, Para 3;
2. PD 732, Sec 2 (c); and
3. PD 1590, Sec 18
13 EXCLUSION
ØMembers 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 enterprises.
ØPresident and Treasurer, who are part-owners of the company Ø Those providing consultancy services who do not have
employers in the Philippines.
Ø Representative of the Foreign Principal/Employer assigned in
the Office of Licensed Manning Agency in accordance with
the POEA law, rules and regulations
14 EXCLUSION
Ø Intra corporate transferee who is a manager, executive or specialist as defined in accordance with Trade Agreements and an employee of the foreign service supplier for at
least one year prior to deployment to a branch, subsidiary, affiliate or representative office in the Philippines.
All other intra-corporate transferees not mentioned above
are required to secure an AEP prior to their employment in
the Philippines.
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16 EXCLUSION
Ø Contractual Service Supplier who is manager, executive or
specialist and an employee of a foreign service supplier which has no commercial presence in the Philippines:
(i) who enters the Philippines temporarily to supply a service pursuant to a contract;
(ii) must possess the appropriate educational and professional qualifications; and
(iii) must be employed by the foreign service supplier for at least one year prior to the supply of service in the Philippines.
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APPLICATION PROCEDURE 1. Documentary Requirements
2. Fees
3. Renewal
Documentary Requirements: Certificate of Exclusion
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All foreign nationals excluded from securing AEP shall secure Certificate of Exclusion from the Regional
Office.
Basic Documentary Requirements:
1. Letter request;
2. Valid Business/Mayor’s Permit; and
3. Photocopy of passport with valid visa
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Documentary Requirements: Certificate of Exclusion
Additional Documentary Requirements:
1. President and Treasurer and Members of Governing Board:
- Certified true copy of the updated GIS - Board Secretary’s Certificate of Election
- Certification that the foreign national is a member of the governing board with voting rights only
2. Intra-Corporate Transferee:
- CoE from the Origin company including proof of salary - Secondment Agreement
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Documentary Requirements: Certificate of Exclusion
3. Contractual Service Supplier:
- CoE from the Origin company including proof of salary - Service contract between the Phil based company and the
foreign company 4. Consultant:
- Service contract between the Phil based company and the foreign company
5. Representative of the Foreign Principal/Employer assigned in OLMA:
- Letter of Acknowledgement from POEA
21 Documentary Requirements: Issuance of AEP
All applications for AEP shall be filed and processed at the DOLE Regional/Field Office having jurisdiction over the intended place of work. It can be filed personally or through employer or authorized representative
Documentary Requirements:
1. Photocopy of passport with valid visa;
2. Original copy of notarized appointment or Contract of Employment;
3. Photocopy of Mayor’s Permit or Certification from Ecozone or PCAB or DO 174-17; and
4. Business Name Registration and Application Form with DTI or SEC
22 Documentary Requirements: Issuance of AEP
Additional Documentary Requirements:
- Special Temporary Permit (STP) from PRC, if the position title of the foreign national is included in the list of regulated professions.
- Authority to Employ Foreign National (ATEFN) from
DOJ or DENR, if the employer is covered by Anti-Dummy
Law or Mining.
23 Fees: Issuance of AEP
Renewal
Php 4,000 – AEP with a validity of one year
New Application - Php 9,000 – AEP
with validity of one year
- Php 4,000 –
additional for every year or a fraction thereof
Card Replacement Php 1,500 – AEP request for card replacement
Fees should be covered by official receipt by RO and
24 VERIFICATION INSPECTION
The RO may conduct inspection to verify the legitimacy of
employment of the foreign national as deemed necessary, within two working
days upon payment of
fees.
25 VALIDITY OF AEP
An AEP shall be valid for a period of one year for the position and the company for which it was issued, unless the employment contact, other modes or engagement
provides, which in no case shall exceed three
years.
26 RENEWAL OF AEP
All applications for renewal of AEP shall be filed not earlier than sixty days before its expiration. In case the foreign national needs to leave the country or in other similar circumstances, application may be filed earlier.
Expired AEP shall be processed as new application subject to the payment of required fees and penalties.
27 RENEWAL OF AEP
Officers whose appointment or election takes place before the
expiration of AEP, application must be filed not later that 15 working days after appointment, or before its expiration which ever comes later.
If appointment or election will take place after expiration of AEP, application for renewal must be filed before the expiration of AEP which can be renewed for 1 year. Within 15 working days after date of appointment or election, the foreign national shall submit the Board Secretary’s Certificate.
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ADMINISTRATIVE GROUNDS 1. Grounds for Denial
2. Effect of Denial
3. Penalty
29 GROUNDS FOR DENIAL FOR NEW AND RENEWAL
§ Misrepresentation of facts in the application
§ Submission of falsified documents
§ Conviction to a criminal offense or a fugitive from justice
§ Grave misconduct in dealing with or ill treatment of workers
§ Availability of a Filipino who is competent, able and willing to do the job intended for or being performed by the foreign national
§ Worked without valid AEP for more than a year
§ Application for renewal with expired visa or temporary
30 GROUNDS FOR CANCELLATION/REVOCATION OF AEP
q Non-compliance with any of the requirements or conditions for which the AEP was issued
q Misrepresentation of facts in the application q Submission of falsified or tampered documents
q Meritorious objection or information against the employment of the foreign national
q Conviction to a criminal offense or a fugitive from justice
q Employer terminated the employment of foreign national
q Grave misconduct in dealing with or ill treatment of workers
31 EFFECT OF DENIAL/CANCELLATION OR REVOCATION OF AEP
a. Conviction of criminal offense or fugitive from justice
b. Grave misconduct in dealing with or ill treatment of workers Disqualified to re-apply within a period of 10 years
Misrepresentation of facts or submission of falsified documents with the intent to deceive, conceal or omit to state material facts
Disqualify to re-apply within a period of 5 years
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Effect of Fraudulent Application filed by Employers, Employer and FN’s representatives, and/or Agents Acting in behalf of the applicant found to have filed fraudulent application for AEP for 3 counts shall be barred from filling application for a period of 5 years after due process.
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APPEALAggrieved FN or his authorized representative may file an appeal with the SOLE within 10 days after receipt of copy of
denial/cancellation order.
PENALTY
Php 10,000 for every year or a fraction thereof for each foreign national and employer
34 PRC’S ISSUANCE OF COR or STP
q Practice of Profession in the Philippines requires the corresponding authority from the PRC via the issuance of Certificate of Registration (COR) or Special Temporary Permit (STP)
q Foreign nationals may be issued CORs by passing the professional licensure examination
q Foreign nationals may be issued STPs for a limited period of time and for specific engagement
q The requirements and procedure for the issuance of the COR and STP are provided for in the pertinent professional regulatory law and PRC Memorandum Order No. 03-2016
35 ACTUAL CASES OF AEP DENIED
GROUNDS FOR DENIAL CIRCUMSTANCES LEADING TO DENIAL OF AEP Misrepresentation of Facts q Non-Existing Companies
q Foreign nationals who used other companies to acquire an AEP but upon verification, the company denied hiring the said foreign nationals
Falsification of Documents q Applicants/Agents falsify the signatures of their employer/clients, submission of forge documentary requirements e.g., Articles of Incorporation, By Laws, General Information Sheet, Business Permits
Labor Market Test q Vigorous opposition by a Filipino Employee who is
willing, able and competent to do the job intended by the foreign national to fill up
36 Cont.. ACTUAL CASES OF AEP DENIED
GROUNDS FOR DENIAL CIRCUMSTANCES LEADING TO DENIAL OF AEP Availability of Filipinos who are
willing, able and competent to due the job
q Failure of the company to justify the employment of the foreign national; upon verification, DOLE personnel observed that the position can be filled up by Filipino jobseeker and does not need a special skill allegedly possessed by the foreign applicant
Denial of Authority to Employ Alien (AEA)
q Failure of the company/foreign national to secure an AEA (usually 3 months from the issuance of the AEP)
DENIED APPLICATION FOR AUTHORITY TO EMPLOY ALIEN BY DOJ
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POSITION REASONS FOR DENIAL
q General Manager q Restaurant Manager
q Korean Financial Consultant q Receptionist for Korean Clients q General Manager
q Asst. Area Branch Manager q Operations Manager
q Korean Food Consultant q Operations Manager
q Job is not considered technical in nature q The anti-dummy law prohibits foreign
nationals from occupying managerial position
q Functions and duties are insufficient to constitute a technical job
Source: Bureau of Local Employment
ISSUES AND CONCERNS RAISED KOREAN BUSINESSMEN TO DOLE
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ü Process Cycle Time
ü Extension of AEP validity
ü Foreign national engaged in small-medium scale enterprises
ü Foreign employee in PEZA locators requesting to work outside PEZA
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ISSUES AND CONCERNS RAISED KOREAN BUSINESSMEN TO PRC
Processing time Reduction in the number of signatories thru the appointment of Board Focal Person
Applicability COR and STP requirements apply if the intended activity partakes of a practice of profession
Validity COR is valid until revoked or suspended. The validity of the STP depends on the duration of engagement of the foreign national.
Requirements For the issuance of the COR- Reciprocity and other legal requirements
For the issuance of the STP- e.g. understudy, professional license abroad, insurance, etc.
DOLE’S INITIATIVE TO EASE APPLICATION FOR AEP
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ü Orient Korean businessmen on DO 186-17
ü Regional Offices i.e., CAR, NCR, III, IV-A, VII and XI to provide contact details of technical staff that will facilitate application of AEP of Korean nationals.
“Revised Rules for the Issuance of
Employment Permits to Foreign Nationals”
