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7.

Designation of Understudies — Employer shall designate at least two (2) Filipino understudies for any
of the following alien workers:

7.1 Those who will assume functions that are permanent in nature and are needed for the
continued operation of an enterprise or office established in the Philippines, including branch
offices of foreign companies;

7.2 Those whose services are contracted because their skills or expertise are in short supply in
the Philippines;

7.3 All alien workers not otherwise exempted from the understudy requirement under Item 8
hereof.

8. Exemption from the Understudy Requirement — The following categories of alien workers are
exempt from the understudy requirement:

8.1 Elective Officers General Manager and Treasurer of any enterprise that has a foreign equity
participation as approved by the Board of Investments and/or the Securities and Exchange
Commission;

8.2 Officers of foreign corporations having representative offices in the Philippines who seek
admission thereof solely for the purpose of identifying and developing new investment projects
in the country;

8.3 Aliens whose prospective employment in the Philippines inherently entails teaching or
training others such as academic professors and lecturers;

8.4 Those whose employment in the Philippines is temporary in nature and for the
accomplishment of a specific task such as consultants and representatives of machinery
suppliers coming to the country for the purpose of installing such machineries;

8.5 Athletes and artists invited to perform in the Philippines in the interest of sports
development and the promotion of fine arts;

8.6 Those alien workers whose functions or line of work may not need understudies as may be
determined by the Secretary of Labor and Employment on a case to case basis.

9. Submission of the Understudy Program — As a condition to the continued validity of work permit, the
alien worker required to train at least two (2) Filipino understudies shall submit to the Regional Office
for approval thru the employer, the understudy program which substantially contains the following
minimum requirements:

9.1 A detailed description of the understudy program including its different phases;

9.2 The estimated distribution of period allocated for each phase of the training processes;

9.3 The estimated total period allocated for theoretical instruction, if any;
9.4 The estimated total period allocated for the in-service or practical training.

10. Supervision Over the Understudy Program — The supervision over the understudy program shall be
vested on the Regional Office which shall from time to time check the implementation and progress of
the understudy program, except supervision over the understudy program implemented by alien
workers employed by enterprise registered by the Board of Investments by virtue of P.D. 66 upon which
agencies’ supervision over the understudy program is vested by law.

11. Understudy Program Progress Report — It shall be the duty of the employer to submit a regular
progress report on the understudy program once every three (3) months signed by him, the alien, and
the understudies.

12. Change of Understudies — The employer upon the recommendation of the alien worker may change
the understudies originally designated for reasons of incompetence or incapacity to work, of ill health
or other similar causes, only upon approval by the Regional Office.