The Periodic Exit Exemption

Tuesday March 4, 2008
Maharlika
Saturday, March 01, 2008

LABOR FRONT
The periodic exit exemption


By Ferdie de la Torre
Reporter
Q: How can an employer get a key employee exemption pursuant to the periodic exit requirement?

A: According to the rules and regulations of the Public Law 15-108 (new labor reform law), employers who carry out the periodic exit requirement of at least 20 percent of the exit-eligible work force during the period from Jan. 1, 2008 through Dec. 31, 2008 will be able to claim a key employee exemption for an additional three percent of the full-time work force.

Employers who carry out the periodic exit requirement of at least 30 percent of the exit-eligible work force from Jan. 1, 2009 through Dec. 31, 2009 shall be able to claim a key employee exemption for an additional two percent of their exit-eligible work force.

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Q: When can employers with only one exit-eligible employee accomplish the periodic exit for that worker?

A: According to the regulations, employers with only one exit-eligible worker should make the periodic exit for that employee no later than Sept. 30, 2009 unless alternative arrangements are made with the Labor Director before June 30, 2009. The Labor Director will accommodate reasonable requests based on personal needs, scheduling problems, vacation or school requirements, or other factors.

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Q: What will happen if Labor finds that periodic exits have not been accomplished by September 2008?

A: The regulations state that in the event Labor determines that periodic exits have not begun or been accomplished by at least 30 percent of the exit-eligible alien workers by Sept. 30, 2008, Labor will hold a lottery.

The lottery will determine which exit-eligible alien workers shall begin the periodic exit during the period Jan. 1, 2009 through March 30, 2009 in order to ensure that a sufficient number of exits will occur in order to keep the exit program on schedule so that there is no bunching of exits at the end of the initial three-year period.

In the event that Labor finds out that periodic exits have not begun by at least 60 percent of the exit-eligible foreign workers by Sept. 30, 2009, Labor will hold a lottery. The lottery's purpose is to determine which exit eligible alien workers shall begin the periodic exit during the period Jan. 1, 2010 through March 30, 2010 in order to keep the exit program on schedule so that there is no bunching of exits at the end of the initial three-year period.

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