EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENA'
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s.NoNAI^78
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Prepared by the Committee on Labor, Employment and Human Resources 
Development with Senators Villanueva and Revilla as authors thereof.
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:
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SECTION 1. Title II, Book I of Presidential Decree No. 442, otherwise known as 
the Labor Code of the Philippines, is hereby amended to read as follows:
Title II - Employment of Non-Resident [Aliens] FOREIGN NATIONALS
SEC. 2. Article 40 of the Labor Code is hereby amended to read as follows:
ARTICLE 40. Employment permit of non-resident [aliens] FOREIGN NATIONALS 
- [Any alien] ALL NON-RESIDENT FOREIGN NATIONALS seeking [admission to 
the Philippines for employment purposes and any domestic or foreign employer 
who desires to engage an alien for] employment in the Philippines shall obtain 
an employment permit from the Department of Labor AND EMPLOYMENT 
(DOLE).
[The] AN employment permit may be issued to a non-resident [alien] FOREIGN


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NATIONAL after a determination of the non-availability of a [person in the 
Philippines who is competent, able] QUAUFIED and willing [at the time of 
application] FILIPINO NATIONAL WHO WILL perform the services for which the 
FOREIGN NATIONAL is desired.
THE SECRETARY OF LABOR AND EMPLOYMENT SHALL BE AUTHORIZED TO 
GRANT EXEMPTIONS FROM THE LABOR MARKET TEST TO FOREIGN 
NATIONALS AS PROVIDED FOR UNDER EXISTING LAWS, AS WELL AS TO 
OCCUPATIONS IN SHORT SUPPLY AS DETERMINED BY THE DOLE'S LABOR 
MARKET INFORMATION REPORT AND UPON TRIPARTITE CONSULTATION.
For an enterprise registered in preferred areas of investments, TOURISM 
ENTERPRISE ZONES, OR IN DESIGNATED ECONOMIC ZONES, THE 
employment permit SHALL ONLY BE ISSUED BY THE DOLE, [may be issued] 
upon recommendation [of] BY the government agency charged with the 
supervision of said registered enterprise.
SEC. 3. A new Article 40-A of the Labor Code is hereby provided to read as 
follows:
ARTICLE 40-A. UNDERSTUDY/SKILLS DEVELOPMENT PROGRAM - FOREIGN 
NATIONALS ISSUED EMPLOYMENT PERMITS IN INDUSTRIES TO BE 
DETERMINED BY THE DOLE SHALL IMPLEMENT AN UNDERSTUDY/SKILLS 
DEVELOPMENT PROGRAM. THE PROGRAM SHALL BE APPROVED BY THE DOLE 
AND SHALL ENSURE THE TRANSFER OF TECHNOLOGY/SKILLS TO FILIPINOS, 
WHETHER NEXT-IN-RANK OR OTHERWISE, WITH THE POTENTIAL OF 
SUCCEEDING THE FOREIGN NATIONAL IN THE SAME ESTABLISHMENT OR ITS 
SUBSIDIARY, WITHIN A SPECIRC PERIOD AS MAY BE DETERMINED BY THE 
DOLE, UPON CONSULTATION WITH RELEVANT GOVERNMENT AGENCIES AND 
INDUSTRY EXPERTS.


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FAILURE OF THE FOREIGN NATIONAL TO CONDUCT OR COMPLETE THE 
UNDERSTUDY/SKILLS DEVELOPMENT PROGRAM WITHIN THE SPECIHED 
PERIOD SHALL BE METED WITH A FINE OF NOT LESS THAN ONE HUNDRED 
THOUSAND PESOS (PIOO.000.00) FOR EVERY YEAR OF NON-COMPLIANCE, 
WITHOUT PREJUDICE TO THE NON-RENEWAL OF THE WORK PERMIT ISSUED 
TO THE FOREIGN NATIONAL, AND/OR THE BLACKLISTING OF THE EMPLOYER 
OF SUCH FOREIGN NATIONAL.
SEC. 4. Article 41 of Presidential Decree 442 is hereby amended to read as 
follows:
ARTICLE 41. Prohibition against transfer of employment AND OTHER 
VIOLATIONS.
(a) Employment permit issued to A FOREIGN NATIONAL SHALL BE SPECIFIC 
TO A PARTICULAR POSITION AND EMPLOYER OR ESTABLISHMENT. NO 
CHANGE IN THE POSITION OR EMPLOYER OF THE FOREIGN NATIONAL SHALL 
BE MADE without PRIOR NOTICE and approval of the Secretary of Labor AND 
EMPLOYMENT. NOTICE TO THE DOLE SHALL BE MADE THIRTY (30) DAYS 
PRIOR TO THE INTENDED CHANGE IN POSITION OR EMPLOYER OR 
ESTABLISHMENT. FOR THIS PURPOSE, THE DOLE 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 [alien] 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 
Articles 289 and 290] METED WITH A HNE OF [the Labor Code] 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,


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In addition, the [alien worker] FOREIGN NATIONAL shall be subject to 
deportation.
(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 (PIOO.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 VIOLATIONS OR 
BLATANT DISREGARD OF THE PROVISIONS OF THIS TITLE.
IN ALL CASES, THE FINES IMPOSED HEREIN SHALL BE WITHOUT PREJUDICE 
TO OTHER ADMINISTRATIVE, CIVIL OR CRIMINAL LIABIUnY THEY MAY 
INCUR BY REASON OF SUCH ACT OR OMISSION.
SEC 5. Article 42 of Presidential Decree 442 is hereby amended to read as 
follows:
ARTICLE 42. Submission of List. - ALL EMPLOYERS [Any employer employing 
non-resident foreign nationals on the effective date of this Code] shall submit a 
list of ENGAGED OR EMPLOYED NON-RESIDENT FOREIGN NATIONALS [such 
nationals] to the DOLE THROUGH THE REGIONAL OFRCE HAVING 
JURISDICTION OVER THEIR PRINCIPAL PLACE OF BUSINESS. [Secretary of 
Labor and Employment] THE LIST SHALL BE SUBMITTED within 30 CALENDAR 
days after HIRING, [such date] indicating their names, citizenship, foreign and 
local addresses, nature of employment and status of stay in the country. [The 
Secretary of Labor and Employment shall then determine if they are entitled to 
an employment permit.]


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SEC. 6. Implementing Rules and Regulations. - Within ninety (90) days 
from the effectivity of this Act, the Secretary of Labor and Employment, in 
coordination with concerned agencies and in consultation with the relevant 
stakeholders, shall formulate the necessary rules and regulations to implement the 
provisions of this Act.
SEC. 7. Repealing Clause. - All laws, executive orders, rules and regulations 
or any part hereof inconsistent herewith are deemed repealed or modified 
accordingly.
SEC. 8. Separability Clause. - If any part or provision of this Act shall be 
declared unconstitutional and invalid, such declaration shall not invalidate other 
parts thereof which shall remain in full force and effect.
SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days its complete 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation, whichever comes earlier.
Approved,