The Philippine government has moved to centralise the processing of work permits for foreign nationals, a significant regulatory shift that could strengthen oversight of foreign employment while reshaping how businesses hire international talent.
Under Administrative Order No. 199, Series of 2026, Labor Secretary Francis N. Tolentino has directed that all Alien Employment Permit (AEP) applications be processed exclusively by the Department of Labor and Employment’s (DOLE) Central Office, effective June 9, 2026.
The move ends the long-standing practice of processing permits through regional DOLE offices and places responsibility for the evaluation, approval and renewal of AEPs under a single national authority.
According to DOLE, the centralisation aims to strengthen administrative oversight, improve regulatory compliance and ensure more consistent implementation of labour policies governing foreign workers across the country.
The decision comes amid increasing scrutiny of foreign employment practices in several sectors and reflects a broader effort by the government to improve monitoring of labour market participation by non-Filipino workers.
A shift toward tighter labour market governance
Alien Employment Permits are required for foreign nationals seeking employment in the Philippines and serve as a key mechanism for determining whether a position can be filled by a local worker before approval is granted to a foreign hire.
By transferring all processing responsibilities to the Central Office, DOLE is seeking to reduce variations in interpretation and enforcement that can arise when applications are handled across multiple regional offices.
The department said the reform will support more effective auditing, monitoring and policy enforcement while improving the integrity of labour market assessments.
A key component of the new framework is the expanded role of the Bureau of Local Employment, which will directly oversee local publication requirements and labour market tests through digital platforms and coordinated labour registries. These procedures are intended to verify whether qualified Filipino workers are available before employers recruit foreign talent.
The centralised approach is expected to provide the government with a more comprehensive national view of foreign employment trends, skills shortages and sector-specific labour demands.
Balancing efficiency with compliance
While tighter oversight is a central objective, DOLE has also emphasized that the transition should not disrupt services for employers or applicants.
Pending applications received by regional offices on or before June 8 will be digitally transferred to the Central Office, which will continue processing them without restarting statutory timelines.
The department said this measure is designed to comply with the Ease of Doing Business and Efficient Government Service Delivery Act and prevent delays for applicants.
The order also mandates the transfer of records within five calendar days using encrypted data systems and documented chain-of-custody procedures to ensure compliance with the country's data privacy regulations.
Implications for employers
For businesses that rely on foreign labour, particularly in industries facing skills shortages, the change may bring greater consistency and predictability in permit decisions.
However, it also signals a more centralised and potentially more rigorous review process as the government seeks stronger control over foreign workforce participation.
The move aligns with broader labour market priorities articulated by the Marcos administration, which has increasingly emphasized workforce protection, skills development and stronger labour market governance amid rapid technological and economic change.
As the Philippines navigates evolving workforce challenges, including digital transformation, talent mobility and emerging skills demands, the centralisation of AEP processing represents a significant step toward consolidating labour market oversight while reinforcing the government's commitment to balancing foreign talent needs with opportunities for local workers.