On 8 April 2025, the Department of Justice (DOJ) issued Department Circular No. 009, which provides for the updated procedure in processing applications for an Authority to Employ Alien (AEA) in wholly or partially nationalised trades, businesses, industries or undertakings.
Associate of the Immigration Department
ACCRALAW
The circular amends Ministry Order No.210, issued by the then Ministry of Justice on 1 December 1980, which had governed such applications for the past four decades.
The basis for this legal framework is the 1987 Philippine Constitution, which restricts foreign equity and participation in identified industries, professions and activities to protect national interests and preserve Filipino control over the economy.
Republic Act No. 7042, or the Foreign Investments Act of 1991 (FIA), complements these restrictions by promoting foreign investment within allowable limits to support economic growth, competitiveness and employment.
Pursuant to the FIA, a foreign investment negative list (FINL) is regularly issued to specify the industries and activities where foreign ownership or investment is limited or prohibited.
Enterprises covered by the FINL that intend to employ foreign technical personnel must secure an AEA from the DOJ as a precondition to their lawful employment, following the Anti-Dummy Law.
With the issuance of Department Circular No. 009, the DOJ introduced a revised and more streamlined process aligned with current labour and immigration policies, while continuing to uphold constitutional limitations on foreign equity and prioritising Filipino interests in nationalised and partly nationalised industries.
The circular introduced key changes in the AEA application process. Among the new requirements is a formal request letter signed by the president or duly authorised representative of the covered entity, which must justify the need to employ the foreign technical personnel and outline specific details of the proposed employment, such as the position and term of engagement.
The employer is now required to submit an understudy training programme for Filipino understudies who are expected to acquire the skills for which the foreign national is desired.
Supporting documents of the Filipino understudies, which include their valid government-issued identification cards and curriculum vitae showing their educational background and relevant work experience, must also be submitted. Previously, only a notarised undertaking by the employer to train at least two Filipino understudies was required for the AEA application.
These changes appear to be consistent with the new requirements of the Department of Labour and Employment (DOLE) Department Order No. 248, series of 2025, which now requires employers that are granted fiscal incentives by the government, engaged in priority or strategic areas of investment, or operating a public utility, to submit an understudy training programme or skills development programme in their foreign personnel’s Alien Employment Permit (AEP) application.
Another significant update in the circular is the submission of apostilled documents in cases where prospective foreign technical personnel have not yet arrived in the Philippines. This allows the employer to begin processing the AEA application prior to the foreign national’s arrival in the country.
Notably, the circular removed certain previously required documents such as the foreign national’s AEP card, or certificate of exclusion or exemption, or the relevant DOLE certification on the unavailability of Filipino workers for the intended position.
The new circular is a timely administrative measure that streamlines the process for securing an AEA, while maintaining compliance with constitutionally mandated restrictions.
Its effective implementation is essential to avoid causing undue burden on employers and their foreign personnel, and to ensure that the updated process remains consistent with Philippine legal and policy standards on foreign participation.
This article first appeared in BusinessWorld, a newspaper in the Philippines.
The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and is not offered as, and does not constitute, legal advice or legal opinion.
Christianna Manami Y Salud is an associate of the Immigration Department of ACCRALAW
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