%
NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 804
of lije
72 JUL 25 AlO 34
RliCEiVlD BV.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
ENHANCING THE REGULATION ON EMPLOYMENT OF FOREIGN 
NATIONALS AND TRANSFER OF TECHNOLOGY, AMENDING FOR THE 
PURPOSE ARTICLES 40, 41 AND 42 OF PRESIDENTIAL DECREE NO. 442, 
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES AND FOR OTHER PURPOSES
EXPLANATORY NOTE
A 2019 survey by the Social Weather Stations (SWS) reported that 70% of 
Filipinos are "worried about the rising number of foreign Chinese workers in the 
Philippines." Under the same survey, 52% consider the same as a "threat to the 
country's overall security1." The Bureau of Immigration (BI) estimated that 3.12 
million Chinese nationals have entered the country from January 2016 to May 2018, 
about 335,800 working visas and special permits were issued to them2.
In 2019, the Department of Finance (DOF) also urged the BI to Intensify 
efforts against illegal foreign workers after the Department of Labor and 
Employment (DOLE) initially uncovered some 12,000 foreign nationals without the 
necessary work permits employed in various establishments3.
Heeding pervasive public concern about the influx of foreign workers 
competing with equally competent Filipino labor force in the local job market, there 
is a need to enhance and further clarify the existing regulations in the Labor Code 
with respect to the employment of foreign nationals.
1 http://www.sws.org.ph/swsmain/artcldisppage/?artcsvscode=ART-20191205180550
2 https://www.pna.gov.ph/articles/1088072
3 httDs://www.dof.gov.ph/dominguez-wants-immigration-to-step-up-inspections-after-dole-uncoyers-12f^
illegal-foreign-workers/


This proposed measure provides that:
a) All non-resident foreign nationals seeking employment in the country 
should obtain an employmient permit from the DOLE;
b) An employment permit m.ay be issued to a non-resident foreign national 
only after a determination of the non-availability of a qualified and willing 
Filipino national who will perform the services for which the foreign 
national is desired;
c) Foreign nationals with employment permit shall implement an understudy 
or skills development program which shall ensure the transfer of 
technology and skills to Filipinos;
d) Employment permit issued to a foreign nationals shall be specific to a 
particular position and employer, and there shall be no change in the 
position or employer of the foreign national without prior notice and 
approval of the DOLE;
e) All employers shall submit a list of engaged/employed non-resident foreign 
nationals to the DOLE regional offices; and
f) Penalties shall be imposed for failure to observe regulations prescribed 
under this Act.
I am refiling this measure which I originally submitted during the Sixteenth 
Congress. The measure was also approved on Third and Final Reading by the House 
of Representatives during the Seventeenth Congress, and was reported out by the 
Senate Committee on Labor, Employment and Human Resources Development in the 
Eighteenth Congress.
Pursuant to the Constitutional mandate of promoting the preferential use of 
Filipino labor and protecting the interests and employment opportunities of our 
domestic manpower, the immediate passage of this measure is sought.
INSGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
ii) s?fuatr
o( U)i* i
‘22 JUL 25 AlO 34
SENATE 
S. No. w
RtCElV£D8Y;
Introduced by Senator Jlnggoy Ejercito Estrada
AN ACT
ENHANCING THE REGULATION ON EMPLOYMENT OF FOREIGN 
NATIONALS AND TRANSFER OF TECHNOLOGY, AMENDING FOR THE 
PURPOSE ARTICLES 40, 41 AND 42 OF PRESIDENTIAL DECREE NO. 442, 
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Title II, Book I of Presidential Decree No. 442, otherwise known as
2 
the Labor Code of the Philippines, is hereby amended to read as follows:
3 
"Title II - Employment of Non-Resident [Aliens] FOREIGN
4 
NATIONALS"
5 
Sec. 2. Article 40 of the Labor Code is hereby amended to read as follows:
6 
"ARTICLE 40. Employment permit of non-resident [aliens]
7 
FOREIGN NATIONALS - [Any—aHen] ALL NON-RESIDENT
8 
FOREIGN NATIONALS seeking [admission to the Philippines-Tef
9 
employment purposes and any domestic or foreign employer who
10 
desires to engage-an alien for] employment in the Philippines shall
11 
obtain an employment permit from the Department of Labor AND
12 
EMPLOYMENT (DOLE).
13 
''[The] AN employment permit may be issued to a non-resident
14 
[aken] FOREIGN NATIONAL after a determination of the non-
15 
availability of a [person in thc> Philippincs-who is competcnty-able]
■ ' 1
i
•T.' M '


1 
QUALIFIED and willing [at the time of application] FILIPINO
2 
NATIONAL WHO WILL perform the services for which the
3 
FOREIGN NATIONAL is desired.
A 
"THE SECRETARY OF LABOR AND EMPLOYMENT SHALL
5 
BE AUTHORIZED TO GRANT iXIMPTIONS FROM THE LABOR
6 
MARKET TEST TO FOREIGN NATIONALS AS PROVIDED FOR
7 
UNDER EXISTING UWS, AS WELL AS TO OCCUPATIONS IN
3 
SHORT SUPPLY AS DETERMINED BY THE DOLE'S LABOR
9 
MARKET INFORMATION REPORT AND UPON TRIPARTITE
10 
CONSULTATION.
11 
"For an enterprise registered in preferred areas of Investments,
12 
TOURISM ENTERPRISE ZONES, OR IN DESIGNATED
13 
ECONOMIC ZONES, THE employment permit SHALL ONLY BE
14 
ISSUED BY THE DOLE, [may be issued] upon recommendation [ef]
15 
BY the government agency charged with the supervision of said
16 
registered enterprise."
17 
Sec. 3. A new Article 40-A of the Labor Code is hereby provided to read as
13 follows: 
,
19 
"ARTICLE 40-A. UNDERSTUDY / SKILLS DEVELOPMENT
20 
PROGRAM. - FOREIGN NATIONALS ISSUED EMPLOYMENT
21 
PERMITS IN INDUSTRIES TO BE DETERMINED BY THE DOLE
22 
SHALL IMPLEMENT AN UNDERSTUDY / SKILLS DEVELOPMENT
23 
PROGRAM. THE PROGRAM SHALL BE APPROVED BY THE DOLE
24 
AND SHALL ENSURE THE TRANSFER OF TECHNOLOGY /
25 
SKILLS TO FILIPINOS, WHETHER NEXT-IN-RANK OR
26 
OTHERWISE, WITH THE POTENTIAL OF SUCCEEDING THE
27 
FOREIGN NATIONAL IN THE SAME ESTABLISHMENT OR ITS
28 
SUBSIDIARY, WITHIN A SPECIFIC PERIOD AS MAY BE
29 
DETERMINED BY THE DOLE, UPON CONSULTATION WITH
30 
RELEVANT GOVERNMENT AGENCIES AND INDUSTRY
31 
EXPERTS.


1 
"FAILURE OF THE FOREIGN NATIONAL TO CONDUCT OR
2 
COMPLETE THE UNDERSTUDY / SKILLS DEVELOPMENT
3 
PROGRAM WITHIN THE SPECIFIED PERIOD SHALL BE METED
4 
WITH A FINE OF NOT LESS THAN ONE HUNDRED THOUSAND
5 
PESOS (P100,000.00) FOR EVERY YEAR OF NON-
6 
COMPLIANCE, WITHOUT PREJUDICE TO THE NON-RENEWAL
7 
OF THE WORK PERMIT ISSUED TO THE FOREIGN NATIONAL,
8 
AND/OR THE BLACKLISTING OF THE EMPLOYER OF SUCH
9 
FOREIGN NATIONAL."
10 
Sec. 4. Article 41 of Presidential Decree No. 442 is hereby amended to read
11 
as follows:
12 
"ARTICLE 41. Prohibition against transfer of empioyment AND
13 
OTHER VIOLATIONS.
14 
"(a) After the issuance of an employment permit, the [aHee]
15 
FOREIGN NATIONAL shall not transfer to another job or change his
16 
employer without prior approvai of the Secretary of Labor. THE
17 
EMPLOYMENT PERMIT ISSUED TO A FOREIGN NATIONAL
18 
SHALL BE SPECIFIC TO A PARTICULAR POSITION AND
19 
EMPLOYER OR ESTABLISHMENT. NO CHANGE IN THE
20 
POSITION OR EMPLOYER OF THE FOREIGN NATIONAL SHALL
21 
BE MADE WITHOUT PRIOR NOTICE AND APPROVAL OF THE
22 
SECRETARY OF LABOR. NOTICE TO THE DOLE SHALL BE MADE
23 
THIRTY (30) DAYS PRIOR TO THE INTENDED CHANGE IN
24 
POSITION OR EMPLOYER OR ESTABLISHMENT. FOR THIS
25 
PURPOSE, THE DOLE SHALL MAINTAIN A REGISTRY OF
26 
FOREIGN NATIONALS INDICATING THE STATUS OF
27 
EMPLOYMENT AND MOVEMENT OF POSITION OR
28 
EMPLOYMENT AFTER HE/SHE HAS BEEN ISSUED AN
29 
EMPLOYMENT PERMIT.
30 
"(b) Any non-resident [alien] FOREIGN NATIONAL who shall
31 
take up employment in violation 
of the provision of this Title and its
32 
implementing ruies and regulations, shail be [punished in accordanee


1 
with the provisions sf Artieles 289 and 290 of the'Labor Code] METED
2 
WITH A FINE OF NOT LESS THAN TWENTY FIVE THOUSAND
3 
PESOS (P25,000.00) NOR MORE THAN FIFTY THOUSAND
4 
PESOS (P50,000.00) AND SHALL BE BLACKLISTED FROM RE-
5 
ENTERING THE COUNTRY,
s 
"In addition, the [alion worker] FOREIGN NATIONAL shall be
7 
subject to deportation after service of his sentence.
8 
"(C) ANY EMPLOYER, HIS/HER ATTORNEY-IN-FACT OR
9 
ANY OTHER DULY AUTHORIZED REPRESENTATIVE, WHO
10 
SHALL HIRE NON-RESIDENT FOREIGN NATIONALS IN
11 
VIOLATION OF ANY OF THE PROVISION OF THIS TITLE AND
12 
ITS IMPLEMENTING RULES AND REGULATIONS, SHALL BE
13 
METED WITH A FINE OF NOT LESS THAN ONE HUNDRED
14 
THOUSAND PESOS (P1CO,000.00) NOR MORE THAN TWO
15 
HUNDRED THOUSAND PESOS (P200,000.00). THE SECRETARY
16 
OF LABOR AND EMPLOYMENT MAY ALSO SUSPEND OR ORDER
17 
THE CLOSURE OF AN ERRING EMPLOYER FOR REPEATED
13 
VIOLATION OR BLATANT DISREGARD OF THE PROVISIONS OF
19 
THIS TITLE.
20 
"IN ALL CASES, THE FINES IMPOSED HEREIN SHALL BE
21 
WITHOUT PREJUDICE TO OTHER ADMINISTRATIVE, CIVIL OR
22 
CRIMINAL LIABILITY THEY MAY INCUR BY REASON OF SUCH
23 
ACT OR OMISSION."
24 
Sec. 5. Article 42 of Presidential Decree No. 442 Is hereby amended to read
25 
as follows:
26 
"ARTICLE 42. Submission of List. - [Any -employer employing
27 
non-resident foreign natlonaio on the effective date of this Code] ALL
28 
EMPLOYERS shall submit a list of [such-natienate] ENGAGED OR
29 
EMPLOYED NON-RESIDENT FOREIGN NATIONALS to the
30 
[Secretary of Labor and Employment] DOLE THROUGH THE
31 
REGIONAL OFFICE HAVING JURISDICTION OVER THEIR
32 
PRINCIPAL PLACE OF BUSINESS. THE LIST SHALL BE


1 
SUBMITTED within thirty (30) CALENDAR days after [siich-dat-e]
2 
HIRING Indicating their names, citizenship, foreign and local
3 
addresses, nature of employment and status of stay in the
4 
country.[The-SecrctaFy-of Labor and EmploymGnt-shDll then dctormino
5 
ifThey- are-entitied to an employmcnt-permItT]
6 
Sec. 6. Implementing Rules and Regulations. - Within ninety (90) days from
7 
the effectivity of this Act, the Secretary of Labor and Employment, in coordination
8 
with concerned agencies and in consultation with the relevant stakeholders, shall
9 
formulate the necessary rules and regulations to implement the provisions of this
10 
Act.
11 
Sec. 7. Repealing Clause. -Any law, presidential decree or issuance, executive
12 
order, letter of instruction, administrative order, rule, or regulation contrary to or
13 
Inconsistent with the provisions of this Act are hereby repealed, modified, or
14 
amended accordingly.
15 
Sec. 8. Separability Clause. - If any provision or part hereof is held invalid or
16 
unconstitutional, the remainder of the law or the provision or part not otherwise
17 
affected shall remain valid and subsisting.
18 
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
19 
publication In the Official Gazette or in a newspaper of general circulation.
Approved,