Hiring Foreign Employees in the Philippines: Visa and Work Permit Requirements
Key Takeaways:
- Overview of visa options for foreign workers
- Work permit application process
- Employer obligations and employee requirements
- Estimated timelines and costs
Introduction
An introduction to why the Philippines is a hub for foreign talent and an overview of the legal process for obtaining a visa and work permit.
Types of Work Visas in the Philippines
Foreign employees working in the Philippines must obtain a valid work visa and permit to legally live and work in the country. The two most common types of work visas are the Alien Employment Permit (AEP) and the 9(g) Working Visa. Each visa serves a different purpose and requires a specific set of documents for the application.
1. Alien Employment Permit (AEP)
The Alien Employment Permit (AEP) is issued by the Department of Labor and Employment (DOLE) and is required for foreign nationals who intend to work in the Philippines. This permit is typically the first step in the process of hiring foreign workers and must be secured before applying for a 9(g) Working Visa.
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Who is eligible?
The AEP is required for foreign nationals working in any capacity where local employees with similar skills are also available. Typically, the AEP is issued to foreign professionals who are filling specialized roles in industries like IT, engineering, finance, and manufacturing.
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How to apply:
Employers must apply for the AEP on behalf of the foreign worker at the nearest DOLE office. The application must include key documents such as the employment contract, proof of the employee’s qualifications, and evidence that the company has attempted to hire locally before opting for a foreign worker.
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Validity:
The AEP is generally valid for the duration of the foreign worker’s employment contract, up to a maximum of five years, and must be renewed if the employment is extended.
2. 9(g) Working Visa
The 9(g) Working Visa is the standard employment visa in the Philippines and allows foreign nationals to legally work in the country once they have secured an AEP. This visa is issued by the Bureau of Immigration and is required for long-term employment in the Philippines.
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Who is eligible?
Foreign employees who have been hired for full-time employment in the Philippines and hold an AEP are eligible for the 9(g) visa. This visa applies to a wide range of industries and professions, including executives, technical experts, and skilled professionals.
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How to apply:
The application process for the 9(g) visa starts after the AEP is issued. The employer, on behalf of the employee, submits the application to the Bureau of Immigration. The process includes submitting the AEP, employment contract, passport details, and proof of the foreign employee’s qualifications.
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Validity:
The 9(g) visa is usually valid for one year and is renewable. The duration can be aligned with the length of the employee’s contract and can be extended for multiple years as needed.
Work Permit and Visa Application Process
The application process for work permits and visas in the Philippines can be complex, involving multiple government agencies. Below is a detailed guide on the steps involved in obtaining an Alien Employment Permit (AEP) and a 9(g) Working Visa.
Documents Required for AEP and 9(g) Visa
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Alien Employment Permit (AEP)
- A duly completed application form
- Photocopy of the foreign employee’s passport, showing the bio page and the arrival stamp
- Employment contract or appointment letter
- Proof of the employee’s qualifications (e.g., diploma, certifications)
- Recent photograph of the employee
- Any additional documentation required by DOLE, such as a job description or proof of recruitment efforts for local candidates
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9(g) Working Visa
- AEP issued by DOLE
- Photocopy of the passport, showing bio page and valid AEP
- Duly completed visa application form
- Clearance from the Bureau of Immigration (if required)
- Certificate of registration and Alien Certificate of Registration (ACR) I-Card for long-term residency
Detailed Guide on the Application Process
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Alien Employment Permit (AEP) Application
The employer submits the AEP application to the DOLE regional office. The application process involves paying the applicable fees and providing all required documentation. The DOLE will review the application to ensure that the position cannot be filled by a local worker. The AEP application process typically takes 7-10 business days.
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9(g) Working Visa Application
Once the AEP has been granted, the employer can proceed to apply for the 9(g) visa. The application is submitted to the Bureau of Immigration, where it undergoes further processing. Upon approval, the foreign worker is issued a 9(g) visa, which allows them to legally work in the Philippines. The process takes approximately 2-3 months, though it can vary depending on the case.
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Employer Obligations
Employers who hire foreign employees in the Philippines have several obligations to ensure compliance with local labor and immigration laws. These obligations include adhering to employment conditions set by the Department of Labor and Employment (DOLE) and ensuring that foreign employees meet all visa requirements.
Ensuring Compliance with the DOLE (Department of Labor and Employment)
Employers must comply with DOLE regulations when hiring foreign workers. This includes conducting labor market testing to prove that the foreign worker is needed for the position and ensuring that all documentation is submitted accurately. Employers must also provide working conditions that align with local labor standards, including appropriate wages, benefits, and contracts.
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Labor market testing:
Before applying for the AEP, employers may be required to prove that they have made efforts to hire locally. This involves advertising the job in local publications or job boards and demonstrating that no suitable local candidate was available.
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AEP compliance monitoring:
DOLE conducts periodic checks to ensure that companies employing foreign workers are complying with labor laws. Employers are required to maintain accurate records of foreign employees, including their AEP and 9(g) visa status.
Compliance Requirements for Employers
In addition to the requirements set by the DOLE, employers must also comply with rules set by the Bureau of Immigration. This includes regularly monitoring the visa status of foreign employees, submitting reports to immigration authorities, and renewing work permits and visas as required.
Labor Market Testing
Labor market testing is an essential step in ensuring that foreign workers are only hired when no qualified local candidates are available. Employers must document their efforts to recruit locally, including evidence of job advertisements and interview records.
Mandatory Reporting and Monitoring
Employers must also adhere to mandatory reporting requirements, which include notifying DOLE and the Bureau of Immigration of any changes in the employment status of foreign workers. This includes reporting the termination or resignation of foreign employees and ensuring that their visas are canceled or renewed as necessary.
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Monitoring work permit validity:
It is the employer’s responsibility to ensure that the work permits and visas of foreign employees remain valid throughout their employment. Employers must track expiration dates and initiate the renewal process in a timely manner.
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Penalties for non-compliance:
Failure to comply with the Philippines’ immigration and labor laws can result in significant penalties, including fines, deportation of the foreign employee, and restrictions on the employer’s ability to hire foreign workers in the future.
How AYP Can Help
Navigating the complexities of hiring foreign employees in the Philippines can be a daunting task. AYP offers comprehensive Professional Employer Organisation (PEO) and Employer of Record (EOR) solutions that simplify the visa, permit, and compliance processes for employers. Our team of experts handles everything from obtaining the Alien Employment Permit (AEP) to securing the 9(g) Working Visa, ensuring full compliance with the Department of Labor and Employment (DOLE) and the Bureau of Immigration.
With AYP’s EOR and PEO services, businesses can focus on their core operations while we manage the administrative tasks involved in hiring foreign employees. Whether you’re a start-up looking to hire your first foreign employee or a multinational expanding your team, AYP ensures a smooth and compliant hiring process.
