Authorities clarify requirements for corporate officers requesting exemptions

19 Jul 16

PHILIPPINES

IMPACT – MEDIUM

What is the change? Labor authorities have issued a checklist of documents required for individuals claiming an exemption from employment permits on the basis of their status as corporate officers or board members.

What does the change mean? Corporate officers and board members seeking a certificate of exclusion from the Department of Labor and Employment (DOLE) should review the checklist and prepare to show the required documents.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Certificates of exclusion from alien employment permits.
  • Who is affected: Corporate officers and board members eligible for the exclusion.
  • Business impact: The checklist clarifies the requirements and brings uniformity to the process of applying for a certificate of exclusion.

Background: DOLE overhauled employment permit rules in September. At the same time, the agency announced several exemptions and exclusions, including foreign corporate officers under a company’s by-laws and board members of Philippine companies who are not involved in managing daily operations. Since then, DOLE regional offices began requiring a letter requesting the exclusion and issuing certificates of exclusion for those approved as not requiring employment permits.

The DOLE has now issued a checklist of documents that all regional offices will require:

  • A letter requesting a certificate of exclusion, addressed to the DOLE regional director and including the name of the foreign national, title, company name and contact information.
  • A corporate certificate indicating election of the foreign national for the relevant position.
  • A photocopy of passport pages with biographical information and valid visa.
  • An updated general information sheet.
  • An updated business permit.
  • Certification that the foreign national does not receive any form of compensation or remuneration. (This requirement is under advisement.)
  • An authorization letter to collect the certificate of exclusion.

BAL Analysis: Corporate officers and board members should work with their BAL professional to gather the appropriate documents for submission. Those receiving compensation should note that it has been brought to DOLE’s attention that nothing in the original order allowing the exclusions required that foreign nationals are unpaid. DOLE has agreed to take the matter under advisement and review the checklist.

This alert has been provided by the BAL Global Practice group and our network provider located in the Philippines. For additional information, please contact your BAL attorney.

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