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restrictive. Article 40 states that a foreigner seeking employment

in the Philippines must secure an “employment permit” from
the Department of Labor. This shall be given only after

“a determination of the non-availability of a
person in the Philippines who is competent, able
and willing at the time of application to perform

the services for which the alien is desired.”
(underscoring supplied)

This provision is better known in the Philippines as

the “labor market test”. However, the same Article 40 allows
“an enterprise registered in preferred areas of investments” to

secure employment permit for their managerial people “upon
recommendation by the government agency charged with the
supervision of said registered enterprise”.

This clause has become the main vehicle for the
employment of foreign managers and executives, mostly

coming from America and Europe, in the booming call center/
BPO sector of the Philippines.

Thirdly, the Philippines, through the decades, has
developed detailed systems of licensure, certifications and

regulations for various professions, a good number of which
were borrowed or adopted from the practices in the United
States.

Policy Forum 89

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