TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
v0f^CP of i ' '
25 AUG-5 P4:10
SENATE 
S. No. ^50
RtCElVi-UbU
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 them.2
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 establishments.3
1 http://www.sws.ore.ph/swsmain/artcldisppage/?artcsvscode=ART-20191205180550
2 https://www.pna.eov.ph/articles/1088072
3 https://www.dof.gov.ph/dominguez-wants-immieration-to-step-up-inspections-after-dole-uncovers-12k-
illegal-foreign-workers/


From 2023 to 2025, the Department of Labor on Employment (DOLE) "issued 
a total of 192,573 Alien Employment Permits (AEPs) to foreign nationals engaged to 
work in various industries in the last three years".4 To address the continuing issue 
regarding this matter, the DOLE n January 21, 2025 promulgated Department Order 
No. 248, Series of 2025 providing for the "New Rules and Regulations on the 
Employment of Foreign Nationals in the Philippines"5 to rationalize requirements and 
streamline "the processing of employment permits aimed at balancing investment 
promotion, local labor protection, and ensuring the transfer of skills to Filipino 
workers".6
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.
This proposed measure provides that:
a) All non-resident foreign nationals seeking employment in the country 
should obtain an employment permit from the DOLE;
b) An employment permit may 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;
4 DOLE updates rules on work permit issuance to foreien workers I Philippine News Agency
5 Department-Order-248-25-New-Rules-and-Regulations-on-the-Emplovment-of-Foreign-Nationals-in-the-
Philippines.pdf
6 DOLE updates rules pn work permit issuance to foreign workers I Philippine News Agency


e) All employers shall submit a list of engaged/employed non-resident 
foreign nationals to the DOLE regional offices; and 
0 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.
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.
INGC^Y EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of f i'.'
)
SENATE
S. No. 950
25 AUG-5 P 4 -10
RKEIV.DG',
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
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
4 
[AKees] FOREIGN 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
7 
[aHerfs] FOREIGN NATIONALS - [Any-alien] ALL NON-
8 
RESIDENT FOREIGN NATIONALS seeking [admission to
9 
the Philippines for cmploymont purposes and any domestic
10 
or foreign employer who desires to engage an alien for]
11 
employment in the Philippines shall obtain an employment
12 
permit from the Department of Labor AND EMPLOYMENT
13 
(DOLE).
14 
"[The] AN employment permit may be issued to a
15 
non-resident [aiien] FOREIGN NATIONAL after a


1 
determination of the non-availability of a [person in the
2 
Philippines who is competent, able] QUALIFIED and willing
3 
[at the time of application] FILIPINO NATIONAL WHO
4 
WILL perform the services for which the FOREIGN
5 
NATIONAL is desired.
6 
"THE SECRETARY OF LABOR AND EMPLOYMENT
7 
SHALL BE AUTHORIZED TO GRANT EXEMPTIONS
8 
FROM THE LABOR MARKET TEST TO FOREIGN
g 
NATIONALS AS PROVIDED FOR UNDER EXISTING
10 
LAWS/ AS WELL AS TO OCCUPATIONS IN SHORT
11 
SUPPLY AS DETERMINED BY THE DOLE'S LABOR
12 
MARKET INFORMATION REPORT AND UPON
13 
TRIPARTITE CONSULTATION.
14 
"For an enterprise registered in preferred areas of
15 
investments, TOURISM ENTERPRISE ZONES, OR IN
16 
DESIGNATED ECONOMIC ZONES, THE employment
17 
permit SHALL ONLY BE ISSUED BY THE DOLE, [may-be
18 
issued] upon recommendation [of] BY the government
19 
agency charged with the supervision of said registered
20 
enterprise."
21 
Sec. 3. A new Article 40-A of the Labor Code is hereby provided to read as
22 
follows:
23 
"ARTICLE 40-A. UNDERSTUDY / SKILLS
24 
DEVELOPMENT PROGRAM. - FOREIGN NATIONALS
25 
ISSUED EMPLOYMENT PERMITS IN INDUSTRIES TO
26 
BE DETERMINED BY THE DOLE SHALL IMPLEMENT
27 
AN UNDERSTUDY / SKILLS DEVELOPMENT
28 
PROGRAM. THE PROGRAM SHALL BE APPROVED BY
29 
THE DOLE AND SHALL ENSURE THE TRANSFER OF
30 
TECHNOLOGY / SKILLS TO FILIPINOS, WHETHER
31 
NEXT-IN-RANK OR OTHERWISE, WITH THE
32 
POTENTIAL OF SUCCEEDING THE FOREIGN


1 
NATIONAL IN THE SAME ESTABLISHMENT OR ITS
2 
SUBSIDIARY, WITHIN A SPECIFIC PERIOD AS MAY
3 
BE DETERMINED BY THE DOLE, UPON
4 
CONSULTATION WITH RELEVANT GOVERNMENT
5 
AGENCIES AND INDUSTRY EXPERTS.
6 
"FAILURE OF THE FOREIGN NATIONAL TO
7 
CONDUCT OR COMPLETE THE UNDERSTUDY / SKILLS
8 
DEVELOPMENT PROGRAM WITHIN THE SPECIFIED
9 
PERIOD SHALL BE METED WITH A FINE OF NOT LESS
10 
THAN ONE HUNDRED THOUSAND PESOS
11 
(P100,000.00) FOR EVERY YEAR OF NON-
12 
COMPLIANCE, WITHOUT PREJUDICE TO THE NON-
13 
RENEWAL OF THE WORK PERMIT ISSUED TO THE
14 
FOREIGN NATIONAL, AND/OR THE BLACKLISTING
15 
OF THE EMPLOYER OF SUCH FOREIGN NATIONAL."
16 
Sec. 4. Article 41 of Presidential Decree No. 442 is hereby amended to read
17 
as follows:
18 
"ARTICLE 41. Prohibition against transfer of
19 
employment AND OTHER VIOLATIONS.
20 
"(a) After the issuance of an employment permit, the
21 
[aHee] FOREIGN NATIONAL shall not transfer to another
22 
job or change his employer without prior approval of the
23 
Secretary of Labor. THE EMPLOYMENT PERMIT ISSUED
24 
TO A FOREIGN NATIONAL SHALL BE SPECIFIC TO A
25 
PARTICULAR POSITION AND EMPLOYER OR
26 
ESTABLISHMENT. NO CHANGE IN THE POSITION OR
27 
EMPLOYER OF THE FOREIGN NATIONAL SHALL BE
28 
MADE WITHOUT PRIOR NOTICE AND APPROVAL OF
29 
THE SECRETARY OF LABOR. NOTICE TO THE DOLE
30 
SHALL BE MADE THIRTY (30) DAYS PRIOR TO THE
31 
INTENDED CHANGE IN POSITION OR EMPLOYER OR
32 
ESTABLISHMENT. FOR THIS PURPOSE, THE DOLE


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SHALL MAINTAIN A REGISTRY OF FOREIGN 
NATIONALS INDICATING THE STATUS OF 
EMPLOYMENT AND MOVEMENT OF POSITION OR 
EMPLOYMENT AFTER HE/SHE HAS BEEN ISSUED AN 
EMPLOYMENT PERMIT.
"(b) Any non-resident [aHeft] FOREIGN NATIONAL 
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 Articlcs-289
BFtd-290 of the Labor Code] METED WITH A FINE OF 
NOT LESS THAN TWENTY FIVE THOUSAND PESOS 
(P25,000.00) NOR MORE THAN FIFTY THOUSAND 
PESOS (P50,000.00) AND SHALL BE BLACKLISTED 
FROM RE-ENTERING THE COUNTRY.
"In addition, the [atien—worker] FOREIGN 
NATIONAL shall be subject to deportation after service of 
his sentence.
"(C) ANY EMPLOYER, HIS/HER ATTORNEY-IN- 
FACT OR ANY OTHER DULY AUTHORIZED 
REPRESENTATIVE, WHO SHALL HIRE NON-RESIDENT 
FOREIGN NATIONALS IN VIOLATION OF ANY OF THE 
PROVISION OF THIS TITLE AND ITS IMPLEMENTING 
RULES AND REGULATIONS, SHALL BE METED WITH A 
FINE OF NOT LESS THAN ONE HUNDRED THOUSAND 
PESOS (P100,000.00) NOR MORE THAN TWO 
HUNDRED THOUSAND PESOS (P200,000.00). THE 
SECRETARY OF LABOR AND EMPLOYMENT MAY ALSO 
SUSPEND OR ORDER THE CLOSURE OF AN ERRING 
EMPLOYER FOR REPEATED VIOLATION OR BLATANT 
DISREGARD OF THE PROVISIONS OF THIS TITLE.
"IN ALL CASES, THE FINES IMPOSED HEREIN 
SHALL BE WITHOUT PREJUDICE TO OTHER


1 
ADMINISTRATIVE, CIVIL OR CRIMINAL LIABILITY
2 
THEY MAY INCUR BY REASON OF SUCH ACT OR
3 
OMISSION."
4 
Sec. 5. Article 42 of Presidential Decree No. 442 is hereby amended to read
5 
as follows:
6 
"ARTICLE 42. Submission of List - [Any employer
7 
employing non-resident foreign nationals on the effective
8 
date of this Code] ALL EMPLOYERS shall submit a list of
9 
[such nationals] ENGAGED OR EMPLOYED NON-
10 
RESIDENT FOREIGN NATIONALS to the [Secretary of
11 
Labor—af>d—Employment] DOLE THROUGH THE
12 
REGIONAL 
OFFICE HAVING JURISDICTION OVER
13 
THEIR PRINCIPAL PLACE OF BUSINESS. THE LIST
14 
SHALL BE 
SUBMITTED within thirty (30) CALENDAR
15 
days after [such date] HIRING indicating their names,
16 
citizenship, 
foreign and local addresses, nature of
17 
employment and status of stay in the country. [The
18 
Secretary of Labor and Employment shall then determine if
19 
they are entitled te-a-n employment permit.]
20 
Sec. 6. Implementing Rules and Regulations. - Within ninety (90) days from
21 
the effectivity of this Act, the Secretary of Labor and Employment, in coordination
22 
with concerned agencies and in consultation with the relevant stakeholders, shall
23 
formulate the necessary rules and regulations to implement the provisions of this
24 
Act.
25 
Sec. 7. Repealing Clause. -Any law, presidential decree or issuance, executive
26 
order, letter of instruction, administrative order, rule, or regulation contrary to or
27 
inconsistent with the provisions of this Act are hereby repealed, modified, or
28 
amended accordingly.
29 
Sec. 8. Separability Clause. - If any provision or part hereof is held invalid or
30 
unconstitutional, the remainder of the law or the provision or part not otherwise
31 
affected shall remain valid and subsisting.


1 
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,