Zhi Go (Zhi) is a non-resident Chinese national who plans to live and establish a career in the Philippines. Zhi went to the Philippines and applied with the Tarlac Agricultural Products (TAP) as an ordinary farm worker. The TAP hired Zhi because of her diverse set of farming skills. The TAP assigned Zhi in its Bamban Farm. Did TAP lawfully hire Zhi Go as a farm worker? Explain.
Suggested answer only. Not an official answer and not legal advice.
No, TAP did not lawfully hire Zhi Go as a farm worker.
Under Article 40 of the Labor Code, an employer engaging a non-resident alien must obtain an Alien Employment Permit (AEP) from the DOLE. An AEP is issued only after a Labor Market Test determines the non-availability of a person in the Philippines who is competent, able, and willing to perform the required services.
Here, Zhi Go is a non-resident alien hired by TAP as an ordinary farm worker. An ordinary farm worker position does not require specialized skills that competent, able, and willing Filipino citizens lack. Consequently, Zhi cannot pass the Labor Market Test necessary for the issuance of an AEP.
Therefore, TAP's hiring of Zhi Go without a valid Alien Employment Permit is unlawful.
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Quick check
Under Article 40 of the Labor Code, what permit must a non-resident foreign national obtain prior to working in the Philippines?
Article 40 requires non-resident aliens seeking employment in the Philippines to obtain an Alien Employment Permit from DOLE.
What is the primary statutory purpose of the Labor Market Test conducted by the Department of Labor and Employment?
The Labor Market Test determines whether a competent, able, and willing Filipino citizen is available to perform the position.
Why was Tarlac Agricultural Products' hiring of non-resident alien Zhi Go as an ordinary farm worker unlawful?
Zhi Go's hiring was unlawful because an ordinary farm worker position cannot satisfy the Labor Market Test requirement for an AEP.
Which government agency is statutorily authorized to issue Alien Employment Permits in the Philippines?
The Department of Labor and Employment is the agency authorized to issue Alien Employment Permits under Article 40.
What is the legal effect of engaging a non-resident alien for local employment without an Alien Employment Permit?
Engaging a non-resident alien without an Alien Employment Permit is unlawful under Philippine labor laws.
Learn more about these topics
1. Alien Employment Permit
Under Article 40 of the Labor Code, any non-resident alien seeking employment in the Philippines, as well as any domestic or foreign employer desiring to engage their services, must obtain an Alien Employment Permit from the Department of Labor and Employment. The permit serves as an administrative regulatory mechanism to protect local labor standards and ensure that foreign nationals are employed only in positions where qualified Filipino workers are unavailable. Working in the Philippines without a valid Alien Employment Permit renders the employment arrangement illegal under labor regulations.
2. Labor Market Test
The Labor Market Test is a mandatory statutory prerequisite before an Alien Employment Permit can be validly issued to a non-resident foreign national. Conducted by the Department of Labor and Employment, the test determines whether there is a person in the Philippines who is competent, able, and willing to perform the services required by the employer. If local workers possess the requisite skills to perform the job duties, the employment permit application for the foreign national must be denied to protect domestic employment opportunities.
3. Alien Employment Restrictions
The employment of non-resident aliens in the Philippines is strictly non-automatic and subject to constitutional and statutory restrictions favoring Filipino labor. Positions involving ordinary manual labor, such as farm work, generally fail the Labor Market Test because competent Filipino citizens are readily available to perform such tasks. Consequently, employers cannot validly hire foreign nationals for routine jobs under the guise of diverse or special skills when the position can be performed by local workers.