I. Legal Basis

The Alien Employment Permit (AEP) is a mandatory authorization issued by the Department of Labor and Employment (DOLE) pursuant to Article 40 of the Labor Code of the Philippines (Presidential Decree No. 442, as amended). The provision states that “no alien seeking admission to the Philippines for employment purposes shall be admitted without an employment permit issued by the Secretary of Labor and Employment or his duly authorized representative.”

Complementary provisions are found in Articles 41 and 42 of the Labor Code, which govern the issuance, duration, and revocation of permits, as well as the protection of local employment. These are implemented through successive Department Orders, the most comprehensive of which is Department Order No. 186, Series of 2017 (Revised Guidelines Governing the Issuance of Alien Employment Permit to Foreign Nationals). Earlier orders (D.O. No. 75-06, D.O. No. 102-11, and D.O. No. 146-15) were superseded or amended by D.O. 186-17, which streamlined documentary requirements, introduced electronic processing, and aligned the AEP regime with the Philippine Immigration Act and the Foreign Investments Act.

The AEP regime rests on two constitutional and statutory policies: (a) the preference for Filipino labor under Article XII, Section 12 of the 1987 Constitution, and (b) the recognition that foreign expertise may be necessary in positions where no equally qualified Filipino is available.

II. Scope of Application and Exemptions

An AEP is required for every alien, whether resident or non-resident, who intends to engage in any form of gainful employment in the Philippines, including managerial, technical, supervisory, or skilled positions.

Exemptions (enumerated under Section 3 of D.O. 186-17 and cross-referenced with the Philippine Immigration Act and special laws):

Foreign diplomatic and consular officials accredited by the Philippine Government and their dependents.
Officials and staff of international organizations recognized by the Philippines (e.g., UN, ADB, WHO).
Officers and crew of foreign vessels engaged in international trade.
Foreign nationals employed in enterprises registered with the Philippine Economic Zone Authority (PEZA) or operating under special economic zone laws, provided they comply with PEZA-specific reporting (AEP still required but processed differently).
Owners or representatives of foreign corporations or partnerships doing business in the Philippines who occupy only top managerial or executive positions and who do not receive salary from Philippine sources (subject to strict documentary proof).
Aliens married to Filipino citizens who are engaged in business or employment, provided they hold a valid Immigrant Visa (13) or a Permanent Resident Visa and can prove spousal relationship.
Foreign nationals granted permanent residency under the Special Investor’s Resident Visa (SIRV), Special Resident Retiree’s Visa (SRRV), or other immigrant visas, when they are not employed but only investing or retiring.
Foreign teachers, researchers, and scientists invited under government-to-government agreements or by state universities and colleges.
Aliens performing short-term (not exceeding six months) consultancy or technical services without employer-employee relationship, provided they hold a Special Temporary Permit (STP) from the Professional Regulation Commission (PRC) for regulated professions.

Any alien falling outside these exemptions must secure an AEP before commencing employment or before converting a tourist visa to a working visa.

III. Documentary Requirements

A. General Requirements (applicable to all applicants)

Duly accomplished AEP Application Form (DOLE-prescribed Form AEP-1 or its electronic equivalent).
Original and photocopy of the alien’s passport (bio-page and latest admission stamp).
Two (2) passport-size (2” × 2”) colored photographs taken within the last six months.
Notarized employment contract or appointment letter specifying position, salary, duration, and duties.
Proof of payment of filing fee.

B. Employer-Side Documents

Certified true copy of the employer’s Securities and Exchange Commission (SEC) registration or Department of Trade and Industry (DTI) certificate.
Latest Mayor’s Business Permit or Barangay Business Permit.
Latest General Information Sheet (GIS) or List of Stockholders/Partners showing at least 60% Filipino equity where required by law.
Proof that the position cannot be filled by a Filipino worker (e.g., Labor Market Test results, newspaper advertisement, or sworn statement of non-availability of qualified Filipinos).
Latest Income Tax Return (ITR) or Audited Financial Statements of the employer.
Organizational chart clearly indicating the foreign national’s position and reporting line.

C. Position-Specific Documents

For professionals or those in regulated occupations: PRC license or Special Temporary Permit (STP).
For board passers (engineers, accountants, etc.): Certificate of Board or Bar Examination passage issued by the PRC or Supreme Court.
For intra-corporate transferees under the ASEAN Framework Agreement on Services or similar treaties: proof of prior employment with the parent company for at least one year.
For athletes, artists, or performers: contract with the sports club or production company plus clearance from the Games and Amusements Board or Film Development Council of the Philippines, as the case may be.

All documents executed abroad must be authenticated by the Philippine Embassy/Consulate (Apostille if from Hague-member countries) and translated into English if necessary.

IV. Application Procedure

The procedure is governed by Section 5 of D.O. 186-17 and may be undertaken either manually or electronically.

Filing – The employer or the duly authorized representative files the application at the DOLE Regional Office or Field Office having jurisdiction over the workplace. Electronic filing is available through the DOLE e-AEP portal.
Preliminary Evaluation – The DOLE examiner checks completeness of documents within one (1) working day. Incomplete applications are returned with a deficiency notice.
Labor Market Test (if required) – For new positions or first-time applicants, the DOLE posts the vacancy for five (5) working days on the Public Employment Service Office (PESO) bulletin board and website.
Technical Evaluation – The Regional Director or authorized officer evaluates whether the position requires foreign expertise and whether the salary and benefits are commensurate with industry standards.
Approval or Denial – The Regional Director issues the AEP or a denial letter within two (2) to seven (7) working days from receipt of complete documents. Denial may be appealed to the DOLE Secretary within ten (10) days.
Issuance – Upon approval, the AEP is printed, signed, and released to the applicant. The original AEP must be kept at the workplace and presented upon demand by labor inspectors.

V. Fees

Initial AEP: Two thousand pesos (₱2,000.00) plus Five hundred pesos (₱500.00) for each dependent.
Renewal: One thousand pesos (₱1,000.00).
Replacement of lost/damaged AEP: Five hundred pesos (₱500.00).
Express processing (same-day, if available in selected regions): additional One thousand pesos (₱1,000.00).

Fees are paid through authorized payment channels (Land Bank, GCash, or DOLE cashiers) and are non-refundable except in cases of outright denial without fault of the applicant.

VI. Validity, Renewal, and Cancellation

An AEP is valid for one (1) year from the date of issuance or for the duration of the employment contract, whichever is shorter.
Renewal applications must be filed at least fifteen (15) days before expiry. The same set of documents is required, except that the labor market test is waived for renewals.
Cancellation occurs automatically upon termination of employment, expiry without renewal, or violation of any condition. The employer must notify DOLE within five (5) days of termination. The alien must surrender the AEP within ten (10) days.

VII. Obligations of Employers and Foreign Workers

Employers must:

Post the AEP conspicuously at the workplace.
Report any change in position, salary, or workplace address within ten (10) days.
Ensure the foreign worker does not engage in any activity outside the permitted scope.

Foreign workers must:

Limit activities to those specified in the AEP.
Comply with all Philippine labor laws, tax laws, and social security requirements.
Carry the original AEP at all times during work hours.

VIII. Penalties and Sanctions

Administrative fines under D.O. 186-17 and Rule XIV of the Omnibus Rules Implementing the Labor Code:

Employment without AEP or with expired AEP: ₱10,000.00 for the first offense; ₱20,000.00 for the second; ₱30,000.00 and closure recommendation for the third.
Knowingly allowing an alien to work without AEP: same fines plus possible criminal prosecution under Article 289 of the Labor Code.
False statements in the application: revocation of AEP, blacklisting, and deportation proceedings initiated by the Bureau of Immigration.

The alien may also face deportation under Section 37(a)(7) of the Philippine Immigration Act, cancellation of visa, and inclusion in the Bureau of Immigration’s watch list.

IX. Interrelation with Immigration Laws and Special Regimes

The AEP is a prerequisite for the issuance of a 9(g) Pre-Arranged Employment Visa or a 9(g) visa conversion by the Bureau of Immigration. PEZA-registered enterprises enjoy expedited processing and joint DOLE–PEZA evaluation. Foreign nationals under the Balik-Scientist Program or the Special Non-Immigrant Visa for investors under Republic Act No. 8762 (Retail Trade Liberalization Act) are subject to modified documentary requirements but still require an AEP for any paid employment.

All changes in law, implementing rules, or fees issued after the latest Department Order are deemed incorporated herein by reference and must be complied with as they take effect. The AEP regime remains a cornerstone of the Philippines’ labor sovereignty while allowing controlled access to global talent.