THE Department of Labor and Employment’s (DoLE) plan to revise the guidelines for issuing Alien Employment Permits (AEPs) is seen as a response to the loosely-regulated entry of Philippine Offshore Gaming Operator (POGO) workers, labor analysts said.
“The revision is welcome reform. Obviously, it was a response to the POGO controversy. Rationalizing the entry of foreign workers is good policy,” University of the Philippines School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco told BusinessWorld via Messenger.
“We should refrain, however, from othering or discriminating against foreign workers who simply want to have a decent job. Which is also what motivates overseas Filipino workers when they seek jobs abroad,” he added. “Mobility for labor, not just capital, should be a right of workers.”
Federation of Free Workers President Jose G. Matula said Articles 40 to 42 of the Labor Code about AEPs and the Economic Needs Test (ENT) are the basis for issuing permits.
He noted such measures protect Filipino workers and have the potential to be “highly effective” in safeguarding job opportunities for workers by ensuring that labor market conditions are considered before allowing the employment of foreign workers.
“By carefully assessing whether there is a genuine shortage of skills or manpower in specific industries, the ENT prioritizes hiring Filipino workers, thus protecting their access to available jobs. However, its effectiveness will depend largely on proper implementation, transparency, and regular updates to reflect current labor market realities,” he said via Viber.
He noted that industries reliant on local labor, such as manufacturing, agriculture, construction and services, are likely to benefit most from the ENT.
“These sectors often have a large pool of Filipino workers who can be tapped if supported with appropriate training and upskilling programs,” he noted.
Industries requiring specialized skills or advanced technology, such as information technology and engineering, could face challenges if the ENT creates hiring bottlenecks, preventing the recruitment of foreign talent to fill gaps that Filipino workers are not yet prepared to meet, he said, adding: “Striking a balance between protecting Filipino workers and addressing skill gaps will be critical.”
Department Order No. 248 simplifies and integrates the labor market test and will require hiring needs to be advertised in a newspaper of general circulation.
An AEP is a work permit granted to foreign nationals seeking employment in the Philippines. According to DoLE data, 192,573 AEPs were issued over the past three years.
The DoLE said that the new rules will require employers hiring foreign workers to facilitate skills transfer and knowledge-sharing between foreign nationals and their Filipino counterparts through the Understudy Training Program and Skills Development Program.
President Ferdinand R. Marcos, Jr., in his State of the Nation Address last July 2024, banned all POGOs, also known as Internet Gaming Licensees, due to the illicit activities connected to them, such as human trafficking and scams. The ban took effect on Dec. 31. — Chloe Mari A. Hufana
