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Frequently Asked Questions

What exactly does an EOR do in the Philippines?
An EOR or Employer of Record acts as the legal employer for your employees in the Philippines, handling all the complex aspects of employment on your behalf. This includes processing payroll and taxes accurately and on time, ensuring compliance with all Philippine labor laws and regulations, managing employee benefits packages, and overseeing the onboarding and offboarding processes. By partnering with an EOR like OutTask, you can rest assured that your employees are being paid correctly, receiving the necessary benefits, and that your company is adhering to all legal requirements.
Why should I use an EOR instead of setting up my own entity in the Philippines?
Using an EOR offers several advantages over establishing your own legal entity in the Philippines. Primarily, it's significantly more cost-effective, eliminating the expenses and time involved in setting up a foreign entity. EORs also facilitate faster hiring processes, allowing you to onboard talent quickly and efficiently. With OutTask you can get started hiring today. OutTask assumes legal responsibility for compliance with local labor laws, minimizing your risk of penalties or legal issues. This allows you to focus on your core business activities and strategic goals, rather than getting bogged down in HR and legal complexities in a foreign country.
Can I use an EOR to hire both employees and independent contractors in the Philippines?
While OutTask primarily focuses on employing individuals as full-time employees under local labor laws, we may also be able to assist with engaging independent contractors. However, it's important to understand the distinction between employees and contractors in the Philippines, as misclassification can lead to legal and tax implications. At OutTask we can help you determine the correct classification and ensure compliance with relevant regulations for both types of workers.
Can I terminate an employee in the Philippines if I'm using an EOR?
Yes, if the situation requires it OutTask can assist you to terminate an employee's contract. The coordination of this must be done through OutTask so proper procedures may be followed. Ensuring compliance with notice periods, severance pay requirements, and other legal obligations. We can also help with any necessary documentation and communication with the employee during an offboarding process.
What are the most important things to look for when choosing an EOR in the Philippines?
Choosing the right EOR is essential for a successful partnership. An EOR with in-depth knowledge and experience with Philippine labor laws and regulations, ensuring they have a proven track record of compliance in the country. Out Task offers a comprehensive range of services, including payroll, benefits administration, compliance support, and HR assistance. Our team has decades of experience in the Outsourcing and legal compliance fields.