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Manila Bulletin devider Philippines devider National devider DOLE requires foreign enterprises to secure certification from ROs

DOLE requires foreign enterprises to secure certification from ROs

Published Nov 4, 2022 11:41 am

The Department of Labor and Employment (DOLE) revealed Friday, Nov. 4, that it has issued a labor advisory requiring foreign micro and small domestic market enterprises to secure a certification from the department’s Regional Offices (ROs).

Department of Labor and Employment (DOLE) Sec. Bienvenido Laguesma (File photo)

Labor Secretary Bienvenido E. Laguesma signed Labor Advisory No. 20 s.22 dated Oct. 22, pursuant to Republic Act No. 11647 or the Foreign Investment Act of 1991, as amended.

The new rules required all foreign enterprises to secure a certification from the labor department for the purpose of registration with the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI).

The advisory further stated that non-Filipino investors engaging in enterprises with a paid-in equity capital of at least $100,000, but not equal to or more than $200,000, shall be required to obtain a certification and submit an undertaking to the concerned DOLE ROs.

Laguesma said foreign businesses should indicate in undertakings that the majority of their direct employees are Filipinos and that in no case shall the number of Filipino direct employees should not be less than 15.

“As requirements of the issuance of Certification, they shall also be required to pay a fee of Five Hundred Pesos (P500.00) and to submit a notarized Affidavit of Undertaking indicating that the majority of their direct employees shall be Filipinos,” the advisory read.

These documents can be obtained and submitted to DOLE ROs which have jurisdiction over the concerned enterprise, according to Laguesma.

“Upon payment of the required fee and submission of the Affidavit of Undertaking, the DOLE RO shall process the application and issue the Certification in accordance with Republic Act No. 11032 of the Ease of Doing Business and Efficient Government Service Delivery Act of 218,” the advisory continues.

RA 11647, amending the Foreign Investments Act of 1991 (FIA), was signed into law on March 2, 2022.

The law eases restrictions on foreign participation in investments to attract more non-Filipino businesses to invest in the country.

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labor Bienvenido Laguesma dole
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