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Employer of Record Strategies for Success in the Philippines

Enhancing Employments in the Philippines Market

A Dive into Philippines Employment of Record Market

The Employer of Record (EOR) market in the Philippines is thriving, offering businesses a strategic solution to streamline their human resource operations. As companies navigate the complexities of workforce management, EOR providers play a pivotal role in ensuring compliance, efficiency and scalability. Leveraging the expertise of EOR services, businesses can tap into the Philippines’ skilled workforce without the administrative burden of managing payroll, benefits and legal compliance.
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Benefits of Employment of Record Services in Philippines

EOR service providers handle payroll processing, benefits administration and compliance with local labour laws, freeing up valuable time and resources for businesses to focus on core activities. EOR services ensure scalability, allowing businesses to quickly adapt to changes in workforce needs and market conditions.
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Expertise And Support

EOR providers have expertise in HR management and can provide guidance and support on a wide range of HR-related issues, including employee relations, performance management, and training and development.

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Focus On Core Activities

Outsourcing HR functions to EOR providers allows businesses to focus on strategic initiatives and revenue-generating activities, driving business growth and success.

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Scalability

Businesses can easily adjust their workforce size if market conditions or business requirements change without the need to hire and train new employees with EOR services.

Risk Mitigation

EOR services handle payroll processing, tax withholding and other administrative tasks, reducing the risk of errors and ensuring accurate and timely payments to employees.

Why Is EOR a Major Benefit for
the Filipino Market

Employer of Record (EOR) is positioned as a very beneficial service in the Philippines due to its multifaceted advantages tailored to the country’s dynamic business landscape. With intricate labour laws and regulations, navigating HR processes can be daunting for businesses. EOR services alleviate this burden by ensuring compliance, mitigating legal risks and providing expert guidance on local practices.
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Access To Benefits And Perks

EOR providers may offer access to employee benefits and perks, such as health insurance, retirement plans and wellness programs. This can help businesses attract and retain top talent in the competitive Philippines market.

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Legal And Regulatory Updates

EOR providers stay abreast of changes in labour laws and regulations in the Philippines, ensuring that businesses remain compliant with evolving legal requirements. This proactive approach minimises the risk of non-compliance and legal disputes.

Adaptability To Local Practices

EOR providers are well-versed in local business practices and cultural norms in the Philippines, ensuring that HR processes are tailored to local preferences and regulations. This adaptability enhances operational efficiency and fosters better relationships with employees and stakeholders.

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Peace Of Mind

By entrusting HR management to EOR providers, businesses can have peace of mind knowing that their HR processes are handled professionally and efficiently. This allows business owners and managers to focus on strategic priorities and growth initiatives.

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How Can Galaxy Group Help Companies Get The Best Out of EOR Services In The Philippines

Foreign companies can conduct Employment of Record (EOR) in the Philippines by partnering with reputable EOR service providers like Galaxy Group. This strategic collaboration allows foreign entities to establish a legal presence in the Philippines without the need for setting up a local entity. Employer of Record providers act as the legal employer of record for the foreign company's workforce in the Philippines, handling payroll processing, benefits administration, and compliance with local labour laws and regulations.

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Define Requirements

Clearly define the company's requirements and expectations for EOR services. This includes the number of employees, types of employment contracts, compensation structure and any specific compliance needs.

Collaborate On HR Processes

Work closely with the Employer of Record provider to establish HR processes and procedures that align with the company's needs and preferences. This may include onboarding processes, performance management and employee relations.

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Select An EOR Provider

Foreign companies should research and choose a reputable EOR provider in the Philippines. This provider will act as the legal Employer of Record for the company's employees in the Philippines, handling payroll, benefits administration, and compliance with local labour laws.

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Maintain Communication

Maintain open communication with the EOR provider to address any issues or concerns promptly. Regular meetings and updates can help ensure alignment and transparency.

Work Visa Options In the Philippines: An Overview

In the Philippines, various types of work visas and permits cater to the diverse needs of foreign nationals seeking employment in the country.
9(g) Pre-Arranged Employee Commercial Visa

This visa entitles the holder multiple entries and exits into and out of the country while working with a company registered or licensed to do business and existing under Philippines laws. With the 9(g) visa, the foreigner is entitled to legitimately work and stay in the country for a duration approved by the Bureau of Immigration, which should correspond with his employment contract.

9(g) Pre-Arranged Employee Non-Commercial Visa

The 9(g) Pre-Arranged Employee Non-Commercial Visa is a type of visa in the Philippines intended for foreign nationals who have secured employment with a Philippine-based employer before entering the country. This visa category is often used for individuals who will work in the Philippines for an extended period, typically beyond six months.

Special Non-Immigrant Visa Or 47(A)(2)

The Special Non-Immigrant Visa provides a legal framework for foreign nationals to participate in various non-employment activities in the Philippines, contributing to cultural exchange, collaboration, and cooperation between the Philippines and the international community.

Special Non-Immigrant Visa under E.O. 226, as amended by R.A. 8756 (ROHQ)

This visa category plays a crucial role in supporting the operations of ROHQs in the Philippines by facilitating the entry of foreign talent and expertise, contributing to the growth and development of the country's business and economic landscape.

Special Work Permit (SWP)

This permit is for foreign nationals who intend to work in the Philippines on a short-term or temporary basis, usually for a period not exceeding six months. It is commonly used for activities such as consultancy, training, or participation in specific projects.

Provisional Work Permit (PWP)

This permit is for foreign nationals who are undergoing probationary employment in the Philippines. It allows the holder to work while their application for a regular work permit is being processed.

Alien Employment Permit (AEP)

The AEP is a prerequisite for foreign nationals seeking employment in the Philippines. It is issued by the Department of Labor and Employment (DOLE) and serves as a clearance to engage in gainful employment in the country. The AEP is typically obtained by the employer on behalf of the foreign employee.

Understanding Recruitment In The Philippines

Recruitment in the Philippines requires insight into its unique cultural, legal, and economic landscape. With a workforce known for its resilience, adaptability and proficiency in English. The Philippines offers a rich pool of talent across various industries. Recruitment practices often emphasise personal connections and referrals, reflecting the importance of relationships in Filipino culture. Moreover, compliance with labour laws and regulations, such as the Labor Code and regulations set by the Department of Labor and Employment (DOLE), is paramount in recruitment processes.
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Efficient Hiring Processes

Knowledge of recruitment practices and legal requirements in the Philippines allows employers to streamline their hiring processes. By following best practices and compliance standards, organisations can expedite recruitment timelines and fill critical positions more efficiently.

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Access To Top Talent

By understanding the local recruitment landscape, employers can effectively tap into the diverse pool of skilled professionals in the Philippines. This enables them to attract and hire candidates with the right expertise and cultural fit for their organisations.

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Competitive Advantage

Employers who understand the intricacies of recruitment in the Philippines gain a competitive edge in attracting top talent. By offering an exceptional candidate experience and positioning themselves as employers of choice, organisations can outperform competitors in the talent market.

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Long-Term Success

A deep understanding of recruitment in the Philippines enables employers to build sustainable talent pipelines and cultivate a strong employer brand. This lays the foundation for long-term success and growth, as organisations continue to attract, develop and retain high-performing employees.

Frequently Asked Questions

What are the benefits of using EOR services in the Philippines?
Some benefits of using EOR services in the Philippines include streamlined HR processes, access to local expertise, compliance with labour laws, cost savings, scalability, and risk mitigation. Employer of Record services allows companies to focus on their core business activities while outsourcing HR functions to specialised providers.
Yes, many EOR providers in the Philippines offer comprehensive employee benefits administration services, including health insurance, retirement plans and other perks. By outsourcing benefits administration to EOR providers, companies can ensure compliance and provide competitive benefits packages to their employees.
In the Philippines, EOR providers handle various HR functions on behalf of client companies, including payroll processing, tax withholding, benefits administration and compliance with labour laws. The EOR provider becomes the legal employer of record for the client’s employees, while the client retains control over day-to-day tasks and operations.

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