The Department of Labor and Employment (DOLE) announced on Tuesday that it has strengthened guidelines for the employment of foreign nationals in the Philippines.

Labor Secretary Bienvenido Laguesma signed Department Order No. 248, s. 2025, on 20 July, prescribing new rules and regulations on the employment of foreign nationals in the country, known as the "Alien Employment Permit (AEP) Guidelines."

According to DOLE, the revised AEP guidelines represent a significant step toward rationalizing requirements and streamlining the processing of employment permits for foreign nationals. The changes aim to balance investment promotion, protect local labor, and ensure the transfer of skills to Filipino workers.

Over the past three years, DOLE has issued a total of 192,573 AEPs to foreign nationals working in various industries.

The department explained that employers in priority investment sectors will benefit from these reforms through expedited processes, reinforcing the Philippines' position as a competitive and investor-friendly destination in the region.

"The guidelines aim to adopt unified and simplified requirements and procedures that will reduce red tape and expedite transactions with the government," DOLE stated.

"This is to ensure that foreign workers contribute to priority sectors, align with national development goals, and respect the rights of Filipino workers," it added.

Under the new guidelines, the labor market test is simplified and integrated into one publication in a newspaper of general circulation.

"This move effectively reduces cost and waiting periods for employers and foreign nationals," DOLE said.

To further expand its reach, job postings on PhilJobNet, the government’s official job matching portal, will be implemented, making the process more efficient and transparent for both employers and job seekers.

Another salient feature of the DOLE issuance is the establishment of a mechanism to ensure skills transfer and knowledge sharing between foreign nationals and Filipino counterparts through the "Understudy Training Program and Skills Development Program," which employers hiring foreign nationals must implement.

These structured training programs will ensure Filipino counterparts acquire the expertise and competencies necessary to eventually assume roles held by foreign nationals, fostering sustainable workforce development and reducing dependency on foreign labor in the long term.

Moreover, the guidelines also introduce an Economic Needs Test (ENT), a critical criterion for evaluating AEP applications.

"The ENT assesses the necessity of hiring foreign nationals based on the availability of qualified Filipino workers," DOLE explained.

"This measure aims to safeguard local employment opportunities and will undergo public consultations in the coming months to ensure inclusivity and relevance," the agency added.