New Employment Rules for Foreign Nationals in the Philippines

HR Policy Global’s perspective: Countries restrict hiring foreign nationals to protect local employment, manage labour market needs, and address potential social and economic challenges associated with immigration. The Philippines joins other Asian countries, including Singapore and Indonesia, in tightening the requirements for the hiring of foreign nationals. 

The Bigger Picture: The Department of Labor and Employment (DOLE) of the Philippines introduced new regulations under Department Order No. 248-2025, effective February 10, 2025, impacting foreign nationals' employment. 

The Economic Needs Test (ENT): is a process designed to assess whether hiring a foreign national is necessary to address specific gaps or needs within the local labour market. It evaluates factors such as job functions, specialization levels, and industry requirements, especially for employers receiving fiscal incentives or operating in strategic investment areas. 

Publication and posting: Employers now bear the responsibility for job vacancy publications, which must be advertised in three specific modes, including PhilJobnet, for a period of 45 days. 

Skills Development Program (SDP): New rules mandate that employers offering fiscal incentives, working in strategic areas, or operating public utilities must implement SDP or Understudy Training Program (UTP) to train Filipino employees. 

Considerations for Employers