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IMPACT – MEDIUM
What is the change? Philippine authorities will soon require foreign nationals applying for Alien Employment Permits (AEPs) to submit applications and pick up their permits in person. Third parties will not be permitted to submit applications or claim AEPs once they are approved.
Additional information: The Department of Labor and Employment (DOLE) issued Advisory No. 19-08 last week, providing for the new rule to take effect in metro Manila on Oct. 1. The advisory said that between now and Oct. 1, authorities will continue to accept applications filed by authorized agents, e.g., consultancies or law firms.
Analysis and Comments: Companies should coordinate with foreign employees to be aware of this new appearance requirement beginning Oct. 1. Deloitte will monitor the implementation of this policy next week and will provide additional information as needed.
Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/aboutto learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? A new regulation from the Philippine government requires all foreign nationals to obtain a Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue prior to starting work in the Philippines.
Background: Previously, special work permit applicants on foreign payroll were not required to apply for a TIN. The new regulation requires all foreign nationals to apply for a TIN prior to conducting work in the Philippines and adds an additional step to the work permit application process.
Analysis & Comments: Employers should prepare for the additional processing time, as all new foreign workers will need to apply for a TIN prior to starting work. Special work permit holders and applicants, who submitted their application prior to the new regulation coming into effect, are exempt from the rule and do not require a TIN to conduct work.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? The Department of Labor and Employment, the Department of Justice and the Bureau of Immigration have released joint guidelines that impact special work permit applications.
New guidelines:
Analysis & Comments: Employers should follow the new guidelines when submitting work permit applications. While the changes are not yet in effect, they will go into effect within 15 days of publication.
What is the update? The Bureau of Immigration and the Department of Labor and Employment have both recently issued regulations that regulate work permit application and cancellation procedures.
The specifics:
Special Work Permit (SWP) and Provisional Work Permit (PWP) regulations:
What is the change? The Bureau of Immigration has issued new regulations that revise application and eligibility requirements for work permits.
What does the change mean? Employees must hold a valid 9(A) visa for at least 20 days prior to filing for an SWP or PWP in country. For all new and renewal SWP and PWP applications, employers must provide a notarized certification of employment. The certification must specify if the application is for a new permit or an extension and it must ensure that the foreign national will work only for the position applied for with the indicated employer. Additionally, manual workers – e.g., construction workers, security guards, warehouse caretakers – are no longer eligible for SWPs or PWPs.
Alien Employment Permits (AEPs):
What is the change? The Department of Labor and Employment issued an advisory providing additional guidelines for AEP cancellations.
What does the change mean? AEP cancellation requests must be submitted to the Employment Promotion and Workers’ Welfare department between 1 p.m. and 4 p.m. The request must be accompanied by a letter requesting cancellation, an original copy of the AEP card, an authorization letter from the company or employee and a location or map of the company.
Analysis & Comments: Companies should take into account the new regulations when submitting new and renewal work permit applications, as well as AEP cancellations.
What is the immigration reminder? The annual reporting period for foreign nationals in the Philippines started Jan. 1 and will last until Mar. 1. All foreign nationals holding an Alien Certificate of Registration Identity card must report to the main Bureau of Immigration office in Manila or to their nearest participating branch office during the two-month period beginning Jan. 3.
Background: Foreign nationals who hold ACR I-cards are required to report to the appropriate Bureau of Immigration office every year during the first two months of the year. ACR I-card holders should be prepared to provide (1) their original ACR I-card, (2) a valid passport, and (3) payment of the annual report fee (PhP310 or about US$5.92). Certain ACR I-card holders are exempt, including people under the age of 14, people 65 years old or older, and those who are mentally or physically incapacitated and have obtained the required written exemption.
Analysis & Comments: Foreign nationals are encouraged to submit their annual reports as early as possible to avoid the rush before the Mar. 1 deadline.
What is the change? Additional procedures will be implemented for foreign nationals applying for special work permits (SWPs) and provisional work permits (PWPs), which allow for temporary work while in tourist status.
What does the change mean? Applicants should anticipate greater scrutiny of applications for these permits and longer processing times due to the additional steps.
Background: The Bureau of Immigration issued an operational order that establishes new procedures to more strictly regulate SWPs and PWPs because of the increasing number of companies using these permits.
Under the new procedures, the bureau offices will assess and verify the application for:
The bureau office must then refer the application to the agency’s commissioner with a recommendation on whether it should be approved. If approved, the commissioner will order the printing of an SWP or PWP ID card. The SWP will have an initial validity of three months with one possible three-month extension. The PWP will be valid for a non-extendable six-month duration.
Analysis & Comments: The order signals that the Bureau of Immigration is concerned about the abuse of SWPs and PWPs and will be vetting applications more closely. Petitioning employers should ensure that they are in compliance with application requirements. Employees should be reminded that they should carry their SWP or PWP ID cards at all times. If they fail to produce the card upon request by a Bureau of Immigration officer, the permit will be canceled.
IMPACT – LOW
What is the change? The Bureau of Immigration has issued a notice regarding contingency plans for the current shortage of 9(a) temporary visitor visa extension stickers, also known as “TV stickers.”
What does the change mean? Employees are urged to keep track of their official receipts for proof of 9(a) temporary visitor visa extensions.
Background: On Aug. 20, the Bureau of immigration released a notice regarding the shortage of 9(a) temporary visitor visa extension stickers. The government recommends that temporary visitor visa extension applicants should safeguard official temporary visitor visa extension receipts and present them when applying for additional temporary visa extensions, when departing the Philippines, and for any other immigration transaction where a temporary visitor visa extension sticker might be needed. Furthermore, the “TV Sticker” fee of 100 Philippine pesos (about US$1.84) will be suspended until further notice.
Analysis & Comments: The Bureau of Immigration’s contingency plan should ensure that the temporary visitor visa shortage will have minimal impact on employees or businesses in the Philippines. Employees are urged to keep copies of their temporary visitor visa extension application receipts.
What is the change? The Department of Labor and Employment has confirmed that additional documents will be required of companies sponsoring foreign workers on Alien Employment Permits.
What does the change mean? The additional documents are the employer’s business permit (also known as the mayor’s permit), a certificate of registration and article of incorporation from the Securities and Exchange Commission (if applicable), and an updated general information sheet (if applicable). Documents must be certified true copies.
BAL Analysis: Employers should be aware of the additional requirements and leave adequate time to gather the necessary documents to avoid delays in the application process.
This alert has been provided by the BAL Global Practice group and our network provider located in the Philippines. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The annual reporting period for foreign nationals in the Philippines will begin Jan. 3.
What does the change mean? All foreign nationals holding an Alien Certificate of Registration Identity card must report to the main Bureau of Immigration office in Manila or to their nearest participating branch office during the two-month period beginning Jan. 3.
Background: Foreign nationals who hold ACR I-cards are required to report to their appropriate Bureau of Immigration office every year during the first two months of the year. ACR I-card holders should be prepared to show (1) their original ACR I-card, (2) an official receipt for payment of the annual report fee (310 pesos or about US$6.20), (3) a printed confirmation number issued through the AR 2018 online system, and (4) documentation that they will fulfil any outstanding Bureau of Immigration obligations (where applicable). Certain ACR I-card holders are exempt, including people under the age of 14 years, people 65 years old or older and those who are mentally or physically incapacitated and have obtained the required written exemption.
BAL Analysis: Affected foreign nationals should plan to fulfil their reporting requirements as early as possible beginning Jan. 3 to avoid unexpected delays.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The Philippines has announced that government offices will close on Dec. 26 and Jan. 2 after the Christmas and New Year’s holidays.
What does the change mean? Companies should take note of the limited services and plan accordingly.
Background: Offices in countries around the world will close for the Christmas and New Year’s holidays. President Rodrigo Duterte’s office announced late last week that government offices in the Philippines would be closed not only on Christmas and New Year’s days, but also on Dec. 26 and Jan. 2. Private sector offices are not affected.
BAL Analysis: Those in need of immigration services should expect delays and file applications early if possible.