EXECUTIVE ORDER NO.

857 December 13, 1982

GOVERNING THE REMITTANCE TO THE PHILIPPINES OF FOREIGN EXCHANGE

EARNINGS OF FILIPINO WORKERS ABROAD AND FOR OTHER PURPOSES

WHEREAS, existing laws and regulations governing remittances of foreign exchange earnings of
overseas Filipino workers to their families, dependents and/or beneficiaries have not been fully
effective in ensuring that they are coursed through official financial institutions of the Philippine
Government or their authorized agents;

WHEREAS, it is necessary to protect the welfare of families, dependents and beneficiaries of Filipino
workers abroad and to ensure that the foreign exchange earnings of these workers are remitted
through authorized financial institutions of the Philippine Government in line with the country's
economic development program;

WHEREAS, non-compliance with these aforesaid laws and regulations and recourse to the use of
unauthorized and unofficial financing institutions has led to the detriment of the country's balance of
payments and economic development program;

WHEREAS, it is imperative that the mandatory remittance requirement be fully complied with by all
concerned through the institution of appropriate remittance facilities and the imposition of effective
sanctions;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the

powers vested in me by the Constitution, do hereby order and promulgate:

Sec. 1. It shall be mandatory for every Filipino contract worker abroad to remit regularly a portion of
his foreign exchange earnings to his beneficiary in the Philippines through the Philippine banking
system. Licensed agencies and other entities authorized by the Ministry of Labor and Employment to
recruit Filipino workers for overseas employment are similarly required to remit their workers'
earnings as provided for in this Order.

Sec. 2. All contracts of employment and agency or service agreements submitted to the Ministry of
Labor and Employment shall contain a proviso that shall make it mandatory for workers to remit to
the Philippines in foreign exchange at least the following portions of their earnings;

a) Seamen or mariners: Seventy (70) percent of basic salary;

b) Workers of Filipino contractors and construction companies: Seventy (70) percent of basic
salary;

c) Doctors, engineers, teachers, nurses and other professional workers whose contract
provide for free board and lodging: Seventy (70) percent of basic salary;

d) All other professional workers whose employment contracts do not provide for free board
and lodging facilities: Fifty (50) percent of basic salary;

e) Domestic and other service workers: Fifty (50) percent of basic salary;

f) All other workers not falling under the aforementioned categories: Fifty (50) percent of
basic salary.law phi 1. net
Sec. 3. Passports issued to Filipino contract workers shall have an initial period of validity of one
year provided that the Ministry of Foreign Affairs may adjust, as circumstances may require, the
initial passport validity period. The passport shall be renewable every year upon submission of usual
requirements and presentation of documentary proof of compliance to the remittance requirement in
the percentages provided for in this Order. The Ministry of Foreign Affairs shall not extend or renew
the passport of any contract worker unless proof of his compliance with the mandatory remittance
requirement is submitted.

Sec. 4. The Ministry of Labor and Employment shall not approve the renewal of employment
contracts and agency or service agreements unless proof of remittance of foreign exchange
earnings is submitted.

Sec. 5. For purposes of this Order, proof of compliance with the mandatory remittance requirement
as mentioned in Section 1 hereof, may consist of any of the following documents or such alternative
as may be approved by the Central Bank of the Philippines showing that the contract worker had in
fact effected aforesaid remittance and had caused the surrender of the same for pesos through the
Philippine banking system:

a. Confirmed bank (foreign) remittance form;

b. Certification from employer, duly authenticated, that remittance has been effected;

c. Certification as to the surrender for pesos to the Philippine banking system; and

d. Receipt of International Postal Money Order.

Sec. 6. Remittances of foreign exchange earnings may be undertaken individually by the contract
worker or collectively through the employer under a payroll deduction scheme, in accordance with
Central Bank regulations and applicable guidelines.

Sec. 7. As a prerequisite for accreditation by the Ministry of Labor and Employment, an employer
shall commit to provide facilities to effect the remittances and monitoring of foreign exchange
earnings of Filipino workers in his employ.law phi 1.net

Sec. 8. The Central Bank of the Philippines shall cause necessary arrangements to be made with
the appropriate financing institutions to handle the remittances called for in this Order. In the
absence of appropriate banking facilities, the Embassy or Consulate nearest to the job site, in
accordance with local laws and regulations, may act in the interim as the channel for remittance of
foreign exchange earnings. The Ministry of Foreign Affairs shall immediately inform the Central Bank
of the Philippines these arrangements and shall remit all funds thereto.

Sec. 9. Contract workers who fail to comply with the requirements of this Order shall be suspended
or excluded from the list of eligible workers for overseas employment. In cases of subsequent
violations, he shall be repatriated from the job site at the expense of the employer or at his expense,
as the case may be.

Filipino or foreign employers and/or their representatives who fail to comply with the requirements
under this Order shall be excluded from the overseas employment program. In the case of local
private employment agencies and entities, failure to comply with the provisions hereof shall be a
ground for cancellation of their license or authority to recruit workers for overseas employment,
without prejudice to their liabilities under existing laws and regulations.
Sec. 10. The Ministries of Labor and Employment and Foreign Affairs and the Central Bank of the
Philippines shall draw up the necessary rules and procedures for the proper implementation of this
Order within ten (10) days from the signing hereof.

Sec. 11. All provisions of existing orders, rules and regulations inconsistent herewith are hereby
repealed.

Sec. 12. This Order shall take effect thirty (30) days after the promulgation of implementing rules and
procedures.

Done in the City of Manila, this 13th day of December, in the year of Our Lord, Nineteen Hundred
and Eighty Two.

People v Panis

142 SCRA 664 (1986)

Facts: Four informations were filed on January 9, 1981, in the Court of First Instance of Zambales and
Olongapo City alleging that Serapio Abug, private respondent herein, "without first securing a license
from the Ministry of Labor as a holder of authority to operate a fee-charging employment agency, did
then and there wilfully, unlawfully and criminally operate a private fee-charging employment agency by
charging fees and expenses (from) and promising employment in Saudi Arabia" to four separate
individuals named therein, in violation of Article 16 in relation to Article 39 of the Labor Code.

Abug filed a motion to quash on the ground that the informations did not charge an offense because he
was accused of illegally recruiting only one person in each of the four informations. Under the proviso in
Article 13(b), he claimed, there would be illegal recruitment only "whenever two or more persons are in
any manner promised or offered any employment for a fee."

The posture of the petitioner is that the private respondent is being prosecuted under Article 39 in
relation to Article 16 of the Labor Code; hence, Article 13(b) is not applicable. However, as the first two
cited articles penalize acts of recruitment and placement without proper authority, which is the charge
embodied in the informations, application of the definition of recruitment and placement in Article
13(b) is unavoidable.

Issue:

Whether or not the petitioner is guilty of violating Article 13(b) of P. D. 442, otherwise known as the
Labor Code.

Held:
 Article 13(b) of P. D. 442, otherwise known as the Labor Code, states that, "(b) 'Recruitment and
placement' refers to any act of canvassing, 'enlisting, contracting, transporting, hiring, or procuring
workers, and includes referrals, contract services, promising or advertising for employment, locally or
abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or
promises for a fee employment to two or more persons shall be deemed engaged in recruitment and
placement."

As we see it, the proviso was intended neither to impose a condition on the basic rule nor to provide an
exception thereto but merely to create a presumption. The presumption is that the individual or entity is
engaged in recruitment and placement whenever he or it is dealing with two or more persons to whom,
in consideration of a fee, an offer or promise of employment is made in the course of the "canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers."

At any rate, the interpretation here adopted should give more force to the campaign against illegal
recruitment and placement, which has victimized many Filipino workers seeking a better life in a foreign
land, and investing hard-earned savings or even borrowed funds in pursuit of their dream, only to be
awakened to the reality of a cynical deception at the hands of their own countrymen.

 The corporate officers and directors of a private recruitment company engaged in illegal
recruitment are not automatically liable
 There must first be a finding that they were remiss in directing the affairs of that company

685 SCRA 245 – Labor Law – Labor Standards – Constitutionality of Sections 6, 7, 9, 10,
29, and 30 of the Migrant Workers Act or R.A. No. 8042
This case is a consolidation of the following cases: G.R. No. 152642, G.R. No. 152710, G.R.
No. 167590, G.R. Nos. 182978-79, and G.R. Nos. 184298-99.
G.R. No. 152642 and G.R. No. 152710
In G.R. No. 152642, in 2002, Rey Salac et al, who are recruiters deploying workers abroad,
sought to enjoin the Secretary of Labor, Patricia Sto. Tomas, the POEA, and TESDA, from
regulating the activities of private recruiters. Salac et al invoked Sections 29 and 30 of the
Republic Act 8042 or the Migrant Workers Act which provides that recruitment agency in the
Philippines shall be deregulated one year from the passage of the said law; that 5 years
thereafter, recruitment should be fully deregulated. RA 8042 was passed in 1995, hence,
Salac et al insisted that as early as 2000, the aforementioned government agencies should
have stopped issuing memorandums and circulars regulating the recruitment of workers
abroad.
Sto. Tomas then questioned the validity of Sections 29 and 30.
ISSUE: Whether or not Sections 29 and 30 are valid.
HELD: The issue became moot and academic. It appears that during the pendency of this
case in 2007, RA 9422 (An Act to Strengthen the Regulatory Functions of the POEA) was
passed which repealed Sections 29 and 30 of RA 8042.
G.R. 167590
In this case, the Philippine Association of Service Exporters, Inc. (PASEI) questioned the
validity of the following provisions of RA 8042:
a. Section 6, which defines the term “illegal recruitment”. PASEI claims that the definition by
the law is vague as it fails to distinguish between licensed and non-licensed recruiters;
b. Section 7, which penalizes violations against RA 8042. PASEI argues that the penalties for
simple violations against RA 8042, i.e., mere failure to render report or obstructing inspection
are already punishable for at least 6 years and 1 day imprisonment an a fine of at least P200k.
PASEI argues that such is unreasonable;
c. Section 9, which allows the victims of illegal recruitment to have the option to either file the
criminal case where he or she resides or at the place where the crime was committed. PASEI
argues that this provision is void for being contrary to the Rules of Court which provides that
criminal cases must be prosecuted in the place where the crime or any of its essential
elements were committed;
d. Section 10, which provides that corporate officers and directors of a company found to be
in violation of RA 8042 shall be themselves be jointly and solidarily liable with the corporation
or partnership for the aforesaid claims and damages. PASEI claims that this automatic liability
imposed upon corporate officers and directors is void for being violative of due process.
RTC Judge Jose Paneda of Quezon City agreed with PASEI and he declared the said
provisions of RA 8042 as void. Secretary Sto. Tomas petitioned for the annulment of the RTC
judgment.
ISSUE: Whether or not Sections 6, 7, 9, and 10 of RA 8042 are void.
HELD: No, they are valid provisions.
a. Section 6: The law clearly and unambiguously distinguished between licensed and non-
licensed recruiters. By its terms, persons who engage in “canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers” without the appropriate government
license or authority are guilty of illegal recruitment whether or not they commit the wrongful
acts enumerated in that section. On the other hand, recruiters who engage in the canvassing,
enlisting, etc. of OFWs, although with the appropriate government license or authority, are
guilty of illegal recruitment only if they commit any of the wrongful acts enumerated in Section
6.
b. Section 7: The penalties are valid. Congress is well within its right to prescribed the said
penalties. Besides, it is not the duty of the courts to inquire into the wisdom behind the law.
c. Section 9: The Rules on Criminal Procedure, particularly Section 15(a) of Rule 110, itself,
provides that the rule on venue when it comes to criminal cases is subject to existing laws.
Therefore, there is nothing arbitrary when Congress provided an alternative venue for
violations of a special penal law like RA 8042.
d. Section 10: The liability of corporate officers and directors is not automatic. To make them
jointly and solidarily liable with their company, there must be a finding that they were remiss
in directing the affairs of that company, such as sponsoring or tolerating the conduct of illegal
activities.
G.R. 182978-79, and G.R. 184298-99
In this case, Jasmin Cuaresma, a nurse working in Saudi Arabia was found dead. Her parents
received insurance benefits from the OWWA (Overseas Workers Welfare Administration).
But when they found out based on an autopsy conducted in the Philippines that Jasmin was
raped and thereafter killed, her parents (Simplicio and Mila Cuaresma) filed for death and
insurance benefits with damages from the recruitment and placement agency which handled
Jasmin (Becmen Service Exporter and Promotion, Inc.).
The case reached the Supreme Court where the Supreme Court ruled that since Becmen
was negligent in investigating the true cause of death of Jasmin ( a violation of RA 8042), it
shall be liable for damages. The Supreme Court also ruled that pursuant to Section 10 of RA
8042, the directors and officers of Becmen are themselves jointly and solidarily liable with
Becmen.
Eufrocina Gumabay and the other officers of Becmen filed a motion for leave to intervene.
They aver that Section 10 is invalid.
ISSUE: Whether or not Section is invalid.
HELD: No. As earlier discussed, Section 10 is valid. The liability of Gumabay et al is not
automatic. However, the SC reconsidered its earlier ruling that Gumabay et al are solidarily
and jointly liable with Becmen there being no evidence on record which shows that they were
personally involved in their company’s particular actions or omissions in Jasmin’s case.

The POEA has recently issued rules on direct-hiring by foreign employers. Here is a copy of the POEA circular on
direct hiring. (See also the DOLE article on POEA MC No. 04-2007.)

Under Philippine law, generally, direct hiring is not allowed (Article 18 of the Labor Code – Ban on direct-hiring).
There are two modes of hiring Filipinos for overseas placement: 1. Through POEA; and, 2. Through Private
Recruitment Agencies duly accredited by the POEA. An exception was under name-hire as may be allowed or
regulated by the Secretary of Labor.

With this Memorandum Circular, the POEA has effectively plugged an operative loophole in the rules on overseas
placement. Name-hire (or direct-hiring) has been known to be used by non-licensees (those “recruiters” with no
license from POEA) to conduct recruitment activities.

Likewise, this POEA MC will provide protection to Filipino workers hired through name-hire with the provisions on
pre-qualification with the Philipine Overseas Labor Office (POLO) and the POEA. There is also a bond requirement
on the employer. Such pre-qualification (which is akin to verification or the employer and the job order) puts into
POEA regulatory mechanism this loophole in overseas placement rules.

The POEA circular was issued on December 18, 2007.

Competent legal assistance is needed to ensure compliance with this rule on direct-hiring as well as other
Philippine overseas placement rules and regulations.
Memorandum Circular No. 1

Series of 2004

To : POEA Satellite Offices

Subject : Guidelines on the Registration of Name Hires by the POEA Satellite Offices

Pursuant to the decentralization program of the Department of Labor and Employment (DOLE) and the deregulation
thrust of the Philippine Overseas Employment Administration (POEA), all POEA Satellite Offices are hereby directed
to perform Registration of Name Hires and conduct of Pre-departure Orientation Seminar for registered name hires
as additional regular functions.

The exercise of the above functions shall be strictly in accordance with the following guidelines pursuant to Section
6, Rule III, Part III, Registration of Name Hires, and Section 2, Rule I, Part V, Minimum Provisions of employment
Contract, of the POEA Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas
Workers:

A. Definition of Name Hire

Name hire shall refer to a worker who is able to secure an overseas employment opportunity without the assistance
or participation of a recruitment agency

B. Definition of Registration

Registration shall refer to the act of entering in the official records of the Administration the names of name hires
who will depart for overseas employment.

C. Coverage
1. These guidelines shall apply to landbased name hires, except household workers.

2. Only Filipino workers hired by direct employers may be processed as name hires.

3. Agency-endorsed name hires shall no longer be allowed.

D. Minimum Provisions of the Employment Contract

The following are the required minimum provisions of the employment contract:

1. Guaranteed wages for regular work hours and overtime pay, as appropriate, which shall not be lower than
the prescribed minimum wage in the host country, or the minimum wage set by a bilateral agreement or
international convention duly ratified by the host country and the Philippines, or the minimum wage in the
Philippines, whichever is highest;chanroblesvirtualawlibrary

2. Free transportation to and from the worksite or offsetting benefits;chanroblesvirtualawlibrary

3. Free food and accommodation or offsetting benefits;chanroblesvirtualawlibrary

4. Just/authorized causes for termination of the contract or of the services of the workers taking into
consideration the customs, traditions, norms, mores, practices, company policies and the labor laws and social
legislations of the host country;chanroblesvirtualawlibrar

5. Repatriation of worker's remains and proper disposition thereof, upon previous arrangement with the worker's
next-of-kin, or in the latter's absence, the nearest Philippine embassy or consulate to the worksite; or offsetting
arrangement (for example, an employer's undertaking on repatriation of the worker's remains, at the expense of
the employer, submitted to the host country as a requirement for the issuance of work/entry permit, life insurance,
etc.).

The Administration reserves the right to disapprove employment contracts, which contain provisions that are
contrary to law, morals and public policy.

E. Documentary Requirements

A name hire shall be registered by the POEA upon submission of the following documents:

1. Valid passport (original and photocopy)

2. Employment contract or offer of employment or equivalent document, duly signed by the employer and worker,
(original and photocopy).

3. Visa/employment or work permit, or equivalent entry document (original and photocopy)

4. Certificate of medical fitness (with photograph of the worker)

5. Certificate of attendance to the required employment orientation/briefing

6. Duly accomplished OFW Info Sheet

The documentary requirements for name hires shall be subject to country/skill-specific deployment guidelines
that the Administration may adopt. Verification of employment contracts of workers belonging to the professional
workers category or those going to countries with highly developed system of labor and social security shall not
be required, unless otherwise specified by the Philippine Overseas Labor Office (POLO) or defined under separate
country-specific guidelines.

F. Medical Examination

Name hires shall undergo pre-employment medical examination at a medical hospital or clinic accredited by the
Department of Health (DOH) or foreign embassy/consulate in Manila, or other government authorities of the host
country to conduct medical examination of overseas Filipino workers, in accordance with the medical requirements
of the host country.

The name hire shall choose a clinic from the list of accredited medical hospitals and clinics which will be made
available by the POEA. A medical referral/endorsement form shall be issued by the POEA to the worker for this
purpose.

A name hire with an "unfit to work" or expired medical certificate shall not be registered unless the employer
assumes full responsibility in writing for the worker's medical condition should a medical problem arise during
the term of his/her employment.

A name hire may be exempted from undergoing the pre-employment medical certificate requirement if the host
country requires medical examination upon arrival at the jobsite and the employer guarantees repatriation of the
worker should a medical problem arise.

G. Pre-Departure Orientation Seminar

All name hires, except those returning to the same jobsite shall be required to attend a pre-departure orientation
seminar or a special briefing to be conducted by the POEA Satellite Office before they shall be registered by the
Administration. Workers belonging to the professional category may be administered a special briefing on relevant
information requirements.

H. Payment of Fees

The following fees shall be paid upon completion of all documentary requirements for registration:
1. At employer's cost:

POEA processing fee - US$100 or its peso equivalent

OWWA contribution - US$ 25 or its peso equivalent

2. At worker's cost:

Medicare coverage premium - PhP 900

An Order of Payment shall be issued to the worker for payment of the above-cited fees. After payment of the
required fees, the Administration shall issue the Overseas Employment Certificate (OEC) or e-Receipt to the worker.

I. Accredited / Registered Employer

A name hire whose foreign employer has a valid accreditation/registration with a licensed Philippine agency shall
not be registered as name hire by the Administration without notifying the Philippine agency. However, despite
absence of clearance from the agency, the Administration may still proceed with the registration of the name hire,
upon submission of an affidavit of declaration by the worker that in the event that his employer renege on
contractual obligation, he/she shall have no recourse against the Philippine agent.

J. Monitoring of Registered Name Hires

The POEA Satellite Offices shall transmit to POEA Central Office, on a regular basis, the list of registered name
hires for transmittal to various Philippine Embassies / Consulates or POLOs in the host countries for regular
monitoring.

For compliance effective immediately.

Name Hire – Hiring of a domestic helper whose employers directly and personally follow
up requirements and documentation with the Philippine Consulate.
/>
/>Direct Hire – Hiring of a domestic helper who directly finds a job and then asks for an
agency to process the requirements.
/>
/>Name hire is a preferred option by employers because, unless they are too busy to do
so, they can save money from fees paid to agencies when these employers can do the
task themselves.
/>
/>The Philippine Consulate in Hong Kong processes only the papers of Filipino
domestic helpers and does not necessarily need to do so on other jobs based in the
city. But the memorandum also restricts direct hiring of Filipino professional and skilled
workers of up to 10 per employer.
 FREQUENTLY ASKED QUESTIONS ON THE REVISED RULES FOR THE
ISSUANCE OF EMPLOYMENT PERMITS TO FOREIGN NATIONALS
(D.O. No. 97-09)

1. What is an Alien Employment Permit (AEP)? An Alien Employment Permit is a document issued by
the Department of Labor and Employment which authorizes a foreign national to work in the
Philippines.

2. Who are the foreign nationals required to apply for an AEP?


o

 All foreign nationals who intend to engage in gainful employment in the
Philippines.
 All foreign nationals who intend to engage in gainful employment in the
Philippines;
 Foreign professionals who are allowed to practice their profession in
the Philippines under reciprocity and other international agreements
and in consultancy services pursuant to Section 7(j) of the PRC
Modernization Act of 2000.
 Holders of Special Investors Resident Visa (SIRV), Special Retirees
Resident Visa (SRRV), Treaty Traders Visa (9d) or Special Non-
Immigrant Visa (47(a)2) for as long as they occupy any executive,
advisory, supervisory, or technical position in any establishment.

3. Who are exempted from securing AEP?

The following categories of foreign nationals are exempt from securing AEP:

1.
1.
1.
1. Members of the diplomatic services and foreign government officials
accredited by the Philippine government;
2. Officers and staff of international organizations of which the Philippine
government is a cooperating member, and their legitimate spouses
desiring to work in the Philippines;
3. Foreign nationals elected as members of the Governing Board who do
not occupy any other position, but have only voting rights in the
corporation;
4. All foreign nationals granted exemption by special laws and all other
laws that may be promulgated by the Congress;
5. 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 solely for the
purpose of interviewing Filipino applicants for employment abroad;
6. 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 a reciprocal basis; and
 7. Resident foreign nationals and temporary or probationary resident visa
holders employed or seeking employment in the Philippines.

4. Where shall an application for an AEP be filed?

An application for AEP shall be filed personally or through their respective employer with the DOLE
Regional Office or Field Office having jurisdiction over the intended place of work.
In case of foreign nationals to be assigned in subsidiaries, branch offices and joint ventures, and those
assigned in the headquarters with oversight functions in any of the branch offices, operations or
projects in the country, they may file their application in any of the DOLE Regional/Field Offices
nearest their place of work.

5. What are the requirements in the filing of application for AEP?

Documentary requirements


o

 Duly accomplished Application Form;
 Photocopy of Passport, with visa or Certificate of Recognition for
refugees;
 Contract of Employment/ Appointment or Board Secretary’s Certificate
of Election;
 Photocopy of Mayor’s Permit to operate business or in case of locators
in economic zones, Certification from the PEZA or the Ecozone
Authority that the company is located and operating within the
ecozone; and
 Photocopy of current AEP (if for renewal)

Fees


o

 Permit fee is P8,000 for one year validity or fraction thereof plus
P3,000.00 for every additional year of validity or a fraction thereof,
which shall not exceed five years, to be paid upon submission of
application.

Penalties


o

 If upon evaluation, a foreign national is found to have worked without
or with expired AEP prior to application, a penalty of Ten Thousand
Pesos (P10,000.00) shall be imposed for working without an AEP for one
(1) year or fraction thereof.
6. Who authorizes the issuance of an AEP?
The Secretary of Labor and Employment, through the DOLE Regional Director, who has jurisdiction over
the intended place of work of the foreign national, authorizes the issuance of an AEP.

7. Who are covered by the publication requirement?

An application for new AEP, for additional or change in position of the foreign national in the same
company or subsequent assignment in related companies during the validity or renewal of the AEP will
be subject for publication requirement and payment of publication fee.

8. If there is an objection/information filed with the Regional Office regarding the application for
AEP published, how will it be resolved?
The Regional Director shall determine as to whether or not an information/objection to the application
for AEP merits the denial of the application or cancellation of the AEP.

The Regional Director may require the appearance/s of either or both the foreign national and the
parties providing the information/objection. If the objection is meritorious, the Regional Director will
deny the application or cancel the AEP if it has been issued. If the objection is not meritorious, the
Regional Director will grant the AEP.

9. What is the period of validity of an AEP?

The AEP shall be valid for one (1) year or co-terminus with the duration of employment, consultancy
services or other modes of employment or term of office which in no case shall exceed five years. Said
AEP is valid for the position/s and company for which it was issued.

In case of assignment in the company’s subsidiaries, branch offices and joint ventures and those
assigned in the headquarters with oversight function in any of the branch offices, operation or projects
in the country, one (1) AEP shall be required and valid for all the said assignments irrespective of their
place/s.

10. How long is the processing period for the issuance of AEP?
If the application is filed at the Regional Office, issuance or denial of AEP shall be within 24 hours after
the publication. If the application is filed at the Field Office, issuance or denial of AEP shall be within 5
working days from date of filing of application.

11. What are the grounds for the denial of AEP

An application for AEP may be denied for misrepresentation of facts in the application; submission of
falsified documents; the foreign national has a derogatory record; or availability of a Filipino who is
competent, able and willing to do the job intended for the foreign national.

12. What are the grounds for suspension of AEP?

The AEP may be suspended after due process based on the following:


o The continued stay of the foreign national may result in damage to the interest of the
industry or the country;
o The employment of the foreign national is suspended by the employer or by order of
the Court.

13. If an application has been denied or cancelled by the Regional Office, can the foreign national
apply for an AEP in other Regional Offices
No, foreign nationals whose applications have been denied or whose AEPs had been cancelled shall not
be allowed to re-apply in any of the DOLE Regional Offices, unless said foreign national has provided
proof that the ground for denial/ cancellation/ revocation has been corrected.
14. Is there a remedy for a denied/cancelled or revoked AEP?
Yes, an Appeal maybe filed by any aggrieved party with the Secretary of Labor and Employment within
10 days after receipt of the Order of denial/cancellation or revocation.

15. Is the decision of the Secretary final and executory?

Yes, the decision of the Secretary shall be final and executory, unless a motion for reconsideration is
filed within ten (10) days after receipt of the decision of the Secretary. No second motion for
reconsideration shall be entertained.

16. When shall an application for renewal of AEP be filed?

An application for renewal of AEP must be filed before its expiration. For elective and appointive
positions, applications must be filed within 15 working days after election/appointment or before
expiration of AEP, if election or appointment will take place before expiration of AEP.

In case the election or appointment will take place after the expiration of the AEP, the application
shall be filed before the expiration of the AEP, and shall be renewed for one year.

17. What are the grounds for revocation/cancellation of AEP?

Any of the following is a ground for revocation/cancellation of an AEP:

1.
1.
1.
1. Non-compliance with any of the requirements or conditions for which
the AEP was issued;
2. Misrepresentation of facts in the application;
3. Submission of falsified or tampered documents;
4. Meritorious objection or information against the employment of the
foreign national as determined by the Regional Director;
5. Foreign national has a derogatory record; or
6. Employer terminated the employment of the foreign national.

18. Are there fines and penalties relative to the filing of an application for an AEP?
Yes, a fine of Ten Thousand Pesos (P10,000.00) for every year or a fraction thereof shall be imposed on
foreign nationals found working without an AEP or with an expired AEP.

19. Is there a grace period in the filing of application for new AEP?
Yes, newly hired, elected or appointed officers are allowed to file application for new AEP without
penalty within fifteen (15) working days after signing of contract, election or appointment.

However, if the appointment, election or signing of contract is more than 15 working days before the
start of contract or term of office, the application may be filed before the start of contract or term of
office.

20. What is required in the replacement of an AEP Card?

Replacement of AEP card shall require a fee of Seven Hundred Fifty Pesos (P750.00). In case of loss of
AEP card, request for replacement shall be supported by an Affidavit of loss.

Employment permit for non-resident aliens

 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 is required to obtain an
employment permit from the Department of Labor and Employment.
Who may be issued alien employment permit
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 investment, the employment permit may be issued upon
recommendation of the government agency charged with the supervision of said registered enterprise.
Filing of application for AEP
The foreigner applying for AEP may file his application with the DOLE Regional Office having jurisdiction
over the intended place of work. If he will be assigned in the different parts of the country, then he can file
his application with any of the DOLE Regional Offices having jurisdiction in any of the places of work.
The applicant must prepare the following documents for submission upon filing of his application:
1. Duly accomplished application form
2. Photocopy of passport, with visa or Certificate of Recognition for refugees
3. Contract of Employment/Appointment or Board Secretary’s Certificate of Election
4. Photocopy of Mayor’s Permit to operate business
5. Photocopy of current AEP (for renewal)
Prohibition against transfer to another jobs
An alien issued with employment permit may not transfer to another job or change his employer without
prior approval of the Secretary of Labor. Article 41 of the Labor Code provides: “After the issuance of
employment permit, the alien shall not transfer to another job or change his employer without prior
approval of Secretary of Labor and Employment.”
Violation of this prohibition shall be punished in accordance with Art. 289-290 of the Labor Code. In
addition, the alien worker shall be subject to deportation after service of his sentence.
Alien exempted from securing AEP
1. All members of the diplomatic service and foreign government officials accredited by and with reciprocity
arrangement with the Philippine government;
2. Officers and staff of international organizations of which the Philippine government is a member, and
their legitimate spouses desiring to work in the Philippines;
3. Foreign nationals elected as members of the Governing Board who do not occupy any other position, but
have only voting rights in the corporation;
4. All foreign nationals granted exemption by law;
5. Owners and representatives of foreign principals whose companies are accredited by the Philippines for a
limited period and solely for the purpose of interviewing Filipino applicants for employment abroad;
6. 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; and
7. Resident foreign nationals. (DOLE Department Order No. 75-06, Series of 2006.)