Labor market test policies updated

IMPACT – HIGH

The Department of Labor and Employment (DOLE) has provided more information on its new labor market testing rules.

Key Points:  

• The LMT intends to regulate the employment of foreign nationals and safeguard work for Filipino citizens, meaning foreign nationals will only be able to apply for a work permit if there is no competent, able and willing Filipino worker wanting the position.
• All businesses required wanting to employ foreign nationals on an Alien Employment Permit (AEP) are subject to the new LMTs.
• Businesses must publish the job vacancies intended to be filled by a foreign national once in a local newspaper 15 days before the Alien Employment Permit (AEP) application is submitted. The publication will only hold validity for 30 days.
• The following information is required in the publication:  
  • Company name. 
  • Workplace with complete address and assignment location.  
  • Position and number of employees needed.  
  • a description of qualifications and functions.
• Proof of publication and a notarized affidavit stating that no application was received or no Filipino applicant was considered for the position must be included with the AEP application upon its submission.

Additional Information: The DOLE-Regional Office (RO) will also run a separate LMT within two days of receiving the AEP application. Their publication will include: name of the foreign national; position, job description and qualification needed; salary range and benefits; employer’s name and address; and a notice that any person in the Philippines who is competent, able and willing to work can file an objection at the DOLE-RO within 30 days of its publication. All AEP required visas will be affected by the new LMT policy.

BAL Analysis: The changes will add to the time it takes to hire foreign nationals in the Philippines in many cases. Employers are encouraged to review the rules and work closely with their immigration provider when recruiting and onboarding foreign nationals.

This alert has been provided by the Berry Appleman & Leiden. For additional information, please contact berryapplemanleiden@bal.com.

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