Comprehensive Guide to Employers of Record in the Philippines
EOR,Payroll,Mobility,HR Services,Remote/Virtual team recruitment - Gonex
EOR, PEO, payroll,compliance in 100 countries.Vietnam, Philippines, Japan, South Korea, Russia, Saudi Arabia, Canada,UAE
In an era where remote work transcends borders
However, venturing into the Philippine employment market comes with its unique set of challenges. To streamline the international hiring process, numerous organizations are now leveraging the expertise of Employers of Record
Understanding EORs in the Philippines
An Employer of Record is a specialized entity that takes on the role of the legal employer for tax and legal matters. These organizations handle a variety of human resources and legal functions, including payroll, taxes, compliance, and employee benefits. By assuming responsibility for these formal employment tasks, EORs enable businesses to efficiently expand their workforce into new global territories.
The advantages of partnering with an EOR are manifold. Such collaborations make the Philippine talent pool more accessible and mitigate the complexities associated with global employment. For instance, companies like Oyster offer comprehensive services to manage overseas employment, covering everything from onboarding and offboarding to payroll and managing time off.
To discover how a global employment platform
Key Considerations for Employing in the Philippines
Hiring from the Philippines opens doors to a vast array of tech talents and skilled professionals. Yet, it's crucial to be mindful of the differences between Filipino and U.S. hiring practices. Below are essential aspects to consider when hiring in the Philippines.
Leave and Benefits
领英推荐
Unlike in some countries, Philippine law does not mandate employers to provide paid sick leave. After a year of service, employees become eligible for "service incentive leave," entitling them to at least five days of paid leave, which can be used for vacations.
Female employees are entitled to up to 105 days of fully paid maternity leave
A unique aspect of Filipino employment law is the 13th month salary, equivalent to one-twelfth of an employee's annual earnings, paid no later than December 24th. Often disbursed in December or in two installments in June and December, this payment is distinct from any Christmas bonus, which remains at the employer's discretion.
Work Hours and Overtime
The standard workweek in the Philippines is 48 hours, spread over six days, with eight-hour workdays. Overtime work should be an exception and is compensated at an additional 25% of the base rate. Special holidays command a higher overtime rate of an additional 30%. It's noteworthy that managerial positions do not qualify for overtime compensation.
Employment Terms
The probationary period for new hires is six months. Both employees and employers are required to give a 30-day notice for resignations and dismissals for authorized reasons, respectively. Immediate terminations can occur for just causes, following a specific procedure. Severance pay is due only in cases of termination for authorized reasons, potentially amounting to a month's salary for each year of service.
In conclusion, while the Philippines offers a promising avenue for accessing top-tier tech talent, successful integration of this workforce necessitates a thorough understanding of local employment laws and practices. Employers of Record can play a pivotal role in navigating these complexities, ensuring a smooth transition into the global employment landscape.
To access more information on corporate international expansion cases, global employment guidelines, worldwide compensation management, regulations for various regional countries, and factory establishment manuals in different nations, you are welcome to visit the GONEX official website at www.letsgonex.com to download these resources.