,i'.T!rT>x
NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SHMiafP
'SiUtP of I!’r ■t;>< c:rrnn>
*22 DEC-7 P2 53
SENATE
s. No. 1606
RECEIVED BY:
Introduced by SENATOR RAMON BONG REVILLA, JR.
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
In light of the outpour of Chinese and other foreign workers in the Philippines, 
there is a need to revisit the laws which regulate their employment. Title II of 
Presidential Decree No. 442, otherwise known as the "Labor Code of the Philippine^', 
as amended, governs the employment of non-resident aliens. However, the guidelines 
laid down in Articles 40 to 42 stay feeble because of the mild penalties. Article 41, 
subparagraph (a), thus provides:
"a. Any non-resident alien who shall take up employment in violation of 
the provision of this Title and its implementing rules and regulations shall be 
punished in accordance with the provisions of Articles 289 and 290 of the Labor 
Code1. X X x"
Articles 289 and 290 of the Labor Code provide for only a fine of One thousand 
pesos (PI,000.00) nor more than Ten thousand pesos (P10,000.00) or imprisonment
1 Articles 289 and 290 were renumbered as Articles 288 and 289, respectively, by virtue of Executive Order No. 
111. They are now renumbered as Articles 303 and 304, respectively.


of not less than three (3) months nor more than three (3) years, or both such fine or 
imprisonment at the discretion of the court.
Stiffer penalties should be put in place as such will deter not only non-resident 
alien employees and employers from illegally acquiring employment in the country but 
will also deter employers from violating Articles 40 to 42, thus making available more 
employment opportunities for Filipinos.
It is imperative that the State stays true to the tenet of the 1987 Constitution, 
Article XII, Section 12, which provides that the State shall promote the preferential 
use of Filipino labor.
Given the foregoing, the immediate passage of this measure is sought.
RAMON BONG REVILLA, JR.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. \ RDR
Ie-m ;-'rM •
of tl)e
•22 DEC-7 P2 S3
Rf.CEIViD
Introduced by SENATOR RAMON BONG RE VILLA, JR.
1 
AN ACT
2 
ENHANCING THE REGULATION ON EMPLOYMENT OF FOREIGN NATIONALS
3 
AND TRANSFER OF TECHNOLOGY, AMENDING FOR THE PURPOSE ARTICLES
4 
40, 41 AND 42 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED,
5 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES AND FOR
6 
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
7 
Section 1. Title II, Book I of Presidential Decree No. 442, otherwise known as
8 
the n Labor Code of the Philippines", is hereby amended to read as follows:
9 
"Title II - Employment of Non-Resident [AJiens] FOREIGN NATIONALS"
10 
Sec. 2. Article 40 of the Labor Code is hereby amended to read as follows:
11 
"ARTICLE 40. Employment permit of non-resident [aliens]
12 
FOREIGN NATIONALS - [Afty - alien] ALL NON-RESIDENT
13 
FOREIGN NATIONALS seeking [admission to the Philippines for
14 
employment purposes-and any -domestic or foreign employer who
15 
desires to engage an alien for] employment in the Philippines shall
16 
obtain an employment permit from the Department of Labor AND
17 
EMPLOYMENT (DOLE).
18 
"[The] AN employment permit may be issued to a non-resident
19 
[alien] FOREIGN NATIONAL after a determination of the non-
20 
availability of a [person in the Philippines who is competent, able]
21 
QUALIFIED and willing [at the time of application] FILIPINO


1 
NATIONAL WHO WILL perform the services for which the FOREIGN
2 
NATIONAL is desired.
3 
"THE SECRETARY OF LABOR AND EMPLOYMENT SHALL BE
4 
AUTHORIZED TO GRANT EXEMPTIONS FROM THE LABOR
5 
MARKET TEST TO FOREIGN NATIONALS AS PROVIDED FOR
6 
UNDER EXISTING LAWS, AS WELL AS TO OCCUPATIONS IN
7 
SHORT SUPPLY AS DETERMINED BY THE DOLE'S LABOR
8 
MARKET INFORMATION REPORT AND UPON TRIPARTITE
9 
CONSULTATION.
10 
"For an enterprise registered in preferred areas of investments,
11 
TOURISM ENTERPRISE ZONES, OR IN DESIGNATED ECONOMIC
12 
ZONES, THE employment permit SHALL ONLY BE ISSUED BY THE
13 
DOLE, [may-bo issued] upon recommendation [ef] BY the government
14 
agency charged with the supervision of said registered enterprise."
15 
Sec. 3. A new Article 40-A of the Labor Code is hereby provided to read as
16 
follows:
17 
"ARTICLE 40-A. UNDERSTUDY / SKILLS DEVELOPMENT
18 
PROGRAM. - FOREIGN NATIONALS ISSUED EMPLOYMENT
19 
PERMITS IN INDUSTRIES TO BE DETERMINED BY THE DOLE
20 
SHALL IMPLEMENT AN UNDERSTUDY / SKILLS DEVELOPMENT
21 
PROGRAM. THE PROGRAM SHALL BE APPROVED BY THE DOLE
22 
AND SHALL ENSURE THE TRANSFER OF TECHNOLOGY / SKILLS
23 
TO FILIPINOS, WHETHER NEXT-IN-RANK OR OTHERWISE,
24 
WITH THE POTENTIAL OF SUCCEEDING THE FOREIGN
25 
NATIONAL IN THE SAME ESTABLISHMENT OR ITS
26 
SUBSIDIARY, WITHIN A SPECIFIC PERIOD AS MAY BE
27 
DETERMINED BY THE DOLE, UPON CONSULTATION WITH
28 
RELEVANT GOVERNMENT AGENCIES AND INDUSTRY EXPERTS.
29 
"FAILURE OF THE FOREIGN NATIONAL TO CONDUCT AND
30 
COMPLETE THE UNDERSTUDY / SKILLS DEVELOPMENT
31 
PROGRAM WITHIN THE SPECIFIED PERIOD SHALL BE METED
32 
WITH A FINE OF NOT LESS THAN ONE HUNDRED THOUSAND


1 
PESOS (P100/000.00) FOR EVERY YEAR OF NON-COMPLIANCE,
2 
WITHOUT PREJUDICE TO THE NON-RENEWAL OF THE WORK
3 
PERMIT ISSUED TO THE FOREIGN NATIONAL, AND/OR THE
4 
BLACKLISTING OF THE EMPLOYER OF SUCH FOREIGN
5 
NATIONAL."
6 
Sec. 4. Article 41 of Presidential Decree No. 442 is hereby amended to read as
7 
follows:
8 
"ARTICLE 41. Prohibition against transfer of employment AND
9 
OTHER VIOLATIONS.
10 
"(a) After the issuance of an employment permit, the [alieft]
11 
FOREIGN NATIONAL shall not transfer to another job or change his
12 
employer without prior approval of the Secretary of Labor. THE
13 
EMPLOYMENT PERMIT ISSUED TO A FOREIGN NATIONAL
14 
SHALL BE SPECIFIC TO A PARTICULAR POSITION AND
15 
EMPLOYER OR ESTABLISHMENT. NO CHANGE IN THE
16 
POSITION OR EMPLOYER OF THE FOREIGN NATIONAL SHALL
17 
BE MADE WITHOUT PRIOR NOTICE AND APPROVAL OF THE
18 
SECRETARY OF LABOR. NOTICE TO THE DOLE SHALL BE MADE
19 
THIRTY (30) DAYS PRIOR TO THE INTENDED CHANGE IN
20 
POSITION OR EMPLOYER OR ESTABLISHMENT. FOR THIS
21 
PURPOSE, THE DOLE SHALL MAINTAIN A REGISTRY OF
22 
FOREIGN NATIONALS INDICATING THE STATUS OF
23 
EMPLOYMENT AND MOVEMENT OF POSITION OR
24 
EMPLOYMENT AFTER THE FOREIGN NATIONAL HAS BEEN
25 
ISSUED AN EMPLOYMENT PERMIT.
26 
"(b) Any non-resident [atien] FOREIGN NATIONAL who shall
27 
take up employment in violation of the provision of this Title and its
28 
implementing rules and regulations, shall be [punished- in accordance
29 
with the provisions of Articles 289 and 290 of the-Labor Code] METED
30 
WITH A FINE OF NOT LESS THAN TWENTY FIVE THOUSAND
31 
PESOS (P25,000.00) NOR MORE THAN FIFTY THOUSAND


1 
PESOS (P50/000.00) AND SHALL BE BLACKLISTED FROM RE-
2 
ENTERING THE COUNTRY.
3 
"In addition, the [alien worker] FOREIGN NATIONAL shall be
4 
subject to deportation after service of his sentence.
5 
"(C) ANY EMPLOYER, ITS ATTORNEY-IN-FACT OR ANY
6 
OTHER DULY AUTHORIZED REPRESENTATIVE, WHO SHALL
7 
HIRE NON-RESIDENT FOREIGN NATIONALS IN VIOLATION OF
8 
ANY OF THE PROVISIONS OF THIS TITLE AND ITS
9 
IMPLEMENTING RULES AND REGULATIONS (IRR), SHALL BE
10 
METED WITH A FINE OF NOT LESS THAN ONE HUNDRED
11 
THOUSAND PESOS (P100,000.00) NOR MORE THAN TWO
12 
HUNDRED THOUSAND PESOS (P200,000.00). THE SECRETARY
13 
OF LABOR AND EMPLOYMENT MAY ALSO SUSPEND OR ORDER
14 
THE CLOSURE OF AN ERRING EMPLOYER FOR REPEATED
15 
VIOLATION OR BLATANT DISREGARD OF THE PROVISIONS OF
16 
THIS TITLE.
17 
"IN ALL CASES, THE FINES IMPOSED HEREIN SHALL BE
18 
WITHOUT PREJUDICE TO OTHER ADMINISTRATIVE, CIVIL OR
19 
CRIMINAL LIABILITY THEY MAY INCUR BY REASON OF SUCH
20 
ACT OR OMISSION."
21 
Sec. 5. Article 42 of Presidential Decree No. 442 is hereby amended to read as
22 
follows:
23 
"ARTICLE 42. Submission of List. - [Any employee-employing
24 
non-resident foreign-nationals-on the effective date of this Code] ALL
25 
EMPLOYERS shall submit a list of [such nationals] ENGAGED OR
26 
EMPLOYED NON-RESIDENT FOREIGN NATIONALS to the
27 
[Secretary- of Labor and—Employment] DOLE THROUGH THE
28 
REGIONAL OFFICE HAVING JURISDICTION OVER THEIR
29 
PRINCIPAL PLACE OF BUSINESS. THE LIST SHALL BE
30 
SUBMITTED within thirty (30) CALENDAR days after [such date]
31 
HIRING indicating their names, citizenship, foreign and local
32 
addresses, nature of employment and status of stay in the country. [The


1 
Secretary of Lobor and Employment-shall then determine if they-ar-e
2 
entitled to-arvemployment permit.]
3 
Sec. 6. Implementing Rules and Regulations (IRR). - Within ninety (90) days
4 
from the effectivity of this Act, the Secretary of Labor and Employment, in coordination
5 
with concerned agencies and in consultation with the relevant stakeholders, shall
6 
formulate the necessary IRR to implement the provisions of this Act.
7 
Sec. 7. Repealing Clause. -Any law, presidential decree or issuance, executive
8 
order, letter of instruction, administrative order, rule, or regulation contrary to, or
9 
inconsistent with, the provisions of this Act are hereby repealed, modified, or amended
10 
accordingly.
11 
Sec. 8. Separability Clause. - If any provision or part hereof is held invalid or
12 
unconstitutional, the remainder of the law or the provision or part not otherwise
13 
affected shall remain in full force and effect.
14 
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
15 
publication either in the OfTicial Gazette or in at least two (2) newspapers of general
16 
circulation in the Philippines.
Approved,