What Happens if an AEP is Revoked or Canceled?

An Alien Employment Permit (AEP) is a crucial document for foreign nationals working in the Philippines. Issued by the Department of Labor and Employment (DOLE), it grants foreign workers the legal right to be employed in the country. However, under certain circumstances, an AEP may be revoked or canceled by DOLE. When this happens, both the foreign worker and the employer must understand the consequences and take the appropriate steps to address the situation.

Here’s an overview of what happens if an AEP is revoked or canceled, and how it affects both the foreign national and the employer.

1. Reasons for Revocation or Cancellation of an AEP

DOLE has the authority to revoke or cancel an AEP under certain conditions. The most common reasons for AEP revocation or cancellation include:

a. Violation of AEP Terms

• If the foreign worker is found to be working in a different job position or for a different employer than what was stated in the AEP, DOLE may revoke the permit. The AEP is specific to the job and employer, and any changes must be reported to DOLE and approved through a new or amended permit.

b. Misrepresentation or Fraud

• If the AEP application contains false information, such as forged documents or inaccurate job descriptions, DOLE has the right to cancel the permit.

c. Failure to Comply with Labor Laws

• If the employer or the foreign worker is found to be in violation of Philippine labor laws, including wage and benefit requirements, DOLE may revoke the AEP.

d. Employment of Qualified Filipino Workers

• If a qualified Filipino worker becomes available to fill the position held by the foreign national, and the foreign worker is no longer deemed necessary, DOLE may cancel the AEP.

e. Termination of Employment

• When the foreign worker’s employment contract is terminated, either by resignation, dismissal, or the expiration of the contract, the AEP must be canceled. The employer is required to inform DOLE of the termination.

f. Non-renewal of AEP

• If the AEP is not renewed before its expiration, DOLE may automatically cancel the permit, making it illegal for the foreign worker to continue employment.

2. Immediate Consequences of AEP Revocation or Cancellation

Once an AEP is revoked or canceled, the following consequences apply to both the foreign worker and the employer:

a. Foreign Worker Cannot Legally Work

• Upon the cancellation or revocation of the AEP, the foreign worker can no longer legally work in the Philippines. Continuing to work without a valid AEP is considered illegal employment and may result in fines, deportation, or blacklisting from future employment in the country.

b. Employer Cannot Legally Employ the Foreign Worker

• The employer is no longer authorized to employ the foreign worker. If the employer continues to employ the foreign national after the AEP is revoked, they may face penalties from DOLE, including fines, business sanctions, or even the suspension of their License to Operate.

c. Visa and Immigration Status Impact

• The foreign worker’s 9G Working Visa, which is tied to the AEP, may also be affected. Once the AEP is revoked or canceled, the Bureau of Immigration (BI) may void the visa, making the foreign worker’s presence in the Philippines illegal. This could lead to deportation proceedings if the foreign worker does not leave the country or regularize their status promptly.

3. Steps to Take After AEP Revocation or Cancellation

If an AEP is revoked or canceled, both the foreign worker and the employer must take specific actions to address the situation:

a. For the Employer

• Report Termination or Employment Change: If the foreign worker’s employment has been terminated, or if there has been a significant change in their job position or employer, the employer must report this to DOLE within 15 days.
• Reapply for a New AEP (if applicable): If the foreign worker’s position has changed but they will still be employed by the company, a new AEP application must be submitted to reflect the updated job position or contract terms.
• Seek a Qualified Filipino Worker: If the reason for cancellation is the availability of a qualified Filipino worker, the employer should begin the recruitment process to fill the role locally.

b. For the Foreign Worker

• Cease Working Immediately: The foreign worker must stop working once the AEP is canceled or revoked. Continuing to work without a valid AEP is illegal and could lead to penalties.
• Rectify Employment Status: If the foreign worker wishes to continue working in the Philippines, they will need to work with their employer to reapply for a new AEP or find alternative employment.
• Resolve Immigration Issues: The foreign worker must ensure their visa status remains valid. If the 9G Working Visa is invalidated as a result of the AEP revocation, the foreign worker must leave the country or apply for a new visa that aligns with their current status.

4. Penalties for Non-Compliance

Failure to comply with AEP regulations, including continuing to employ a foreign worker after their AEP has been revoked or canceled, can result in penalties for both the employer and the foreign worker.

a. For the Employer

• Fines: Employers can be fined for continuing to employ a foreign worker without a valid AEP.
• Business Sanctions: In severe cases, DOLE may impose business sanctions, including the suspension or revocation of the company’s License to Operate.
• Blacklisting: Companies that repeatedly violate AEP regulations may be blacklisted, preventing them from hiring foreign workers in the future.

b. For the Foreign Worker

• Deportation: Foreign nationals working without a valid AEP or visa may face deportation and be blacklisted from future employment in the Philippines.
• Fines: Foreign workers caught working without a valid AEP may also be fined by DOLE or the Bureau of Immigration.

5. How to Avoid AEP Revocation or Cancellation

To avoid AEP revocation or cancellation, both employers and foreign workers should adhere to the following best practices:

a. Maintain Accurate Employment Records

• Employers should ensure that all information provided in the AEP application is accurate and truthful. Any changes in job position, salary, or employment status should be reported promptly to DOLE to avoid issues with misrepresentation.

b. Renew the AEP on Time

• Employers and foreign workers should monitor the expiration date of the AEP and ensure that it is renewed at least 60 days before it expires. Late renewals can lead to automatic cancellation of the permit.

c. Comply with Labor Laws

• Ensure that both the employer and foreign worker comply with all Philippine labor laws, including wage and benefits regulations. Violations of labor laws can lead to the cancellation of the AEP.

d. Inform DOLE of Employment Changes

• If there are any changes in the foreign worker’s employment status, such as a promotion, transfer, or termination, the employer must inform DOLE within 15 days. This ensures that the AEP reflects the foreign worker’s current role.

Conclusion

The revocation or cancellation of an Alien Employment Permit (AEP) has serious consequences for both the foreign worker and the employer. Foreign nationals cannot legally work in the Philippines without a valid AEP, and employers cannot legally employ them. When an AEP is canceled, immediate steps must be taken to rectify the situation, whether that means reapplying for a new permit, adjusting immigration status, or ceasing employment.