Why an Employer of Record (EOR) is Essential for Hiring Filipino Remote Employees
AUTHOR
Kylie Confiado
PUBLISHED
February 2025
TABLE OF CONTENTS
In today’s globalized world, hiring remote employees from the Philippines seems like a no-brainer: lower labor costs, highly skilled professionals, and a strong work ethic. But before you send out that offer letter to a promising Filipino virtual assistant (VA) or remote employee, there’s something critical you need to know: hiring Filipino workers directly is illegal unless you establish a legal entity in the Philippines.
If you’re a foreign business owner looking to scale with Filipino talent, skipping compliance could lead to serious legal consequences, financial penalties, and even blacklisting.
The Legal Risks of Direct Hiring
The Labor Code of the Philippines, along with DOLE regulations (Department Order No. 174, Series of 2017), mandates that all employers comply with strict labor laws to protect employee rights. Here’s what’s at stake:
✅ For Employers:
Legal liability – You could be subject to lawsuits, fines, and even blacklisting from hiring in the Philippines.
No compliance = No protection – If an employee files a labor complaint, you won’t have a legal defense.
Payroll nightmares – The Philippines has specific payroll, tax, and benefit requirements, which are complex and time-consuming to handle.
✅ For Employees:
Loss of government benefits – No Social Security (SSS), health insurance (PhilHealth), or Pag-IBIG (housing fund) means your employees are left unprotected.
No tax records = No future financial security – Without proper tax compliance, your employees won’t qualify for bank loans, credit cards, or even travel visas.
High risk of unpaid work – Many remote workers have horror stories of foreign employers disappearing before payday.
Why an Employer of Record (EOR) such as Siegen EOR is Your Best Move
Instead of setting up a costly legal entity in the Philippines (which takes months and involves extensive compliance requirements), an EOR like Siegen Solutions handles everything for you:
Legal Compliance – Siegen is a DOLE-licensed Private Employment Agency (PEA), ensuring all hires meet government standards.
Background Checking & Validation – We verify employee skills and experience to prevent hiring unqualified workers.
Payroll & Benefits Administration – You only approve the pay while we handle taxes, government contributions, and employee attendance tracking.
Performance & Cybersecurity Monitoring – Siegen ensures your employees are not over-employed (i.e., juggling multiple jobs) and trains them on cybersecurity, providing VPNs, antivirus software, and secure access protocols.
Peace of Mind – Your business remains fully compliant, avoiding costly fines and reputational damage.
Without an EOR, you’re not just taking legal risks—you’re opening your business to unverified hires, payroll complications, and potential fraud. Let Siegen Solutions protect your business while giving you access to the best Filipino talent—legally, securely, and efficiently.
Don’t put your business at risk. Schedule a consultation with Siegen Solutions and discover how effortless hiring in the Philippines can be—compliant, seamless, and stress-free.
Why Siegen is the smarter choice.
Hiring in the Philippines offers immense potential, but navigating the intricacies of local labor laws and compliance can be daunting. That’s where Siegen Solutions comes in.
As your Employer of Record (EOR) partner, we ensure that every aspect of the hiring process is managed with precision, from compliance to payroll and employee support.
Here’s how Siegen supports you:
Compliance Experts
Full Compliance with Enhanced Security Measures: We handle all legal and regulatory requirements to protect your business and employees. Additionally, we provide secure laptops pre-installed with VPNs, single sign-on controls, and administrative access management to ensure your remote team operates safely and efficiently.
Seamless Payroll & HR
Streamlined Payroll and Benefits Management with Real-Time Visibility: From managing salaries to ensuring healthcare contributions and compliance with local tax laws, we handle all aspects of payroll. Plus, our platform allows you to track employee payments and payroll summaries, offering complete transparency.
End-to-End HR Services
Recruitment Expertise at No Extra Cost: As a licensed recruitment firm in the Philippines, Siegen Solutions maintains a robust applicant tracking system filled with highly qualified candidates across various industries. Unlike other EOR providers, we include recruitment services as part of our package, ensuring you find the perfect fit for your team without incurring additional costs.
Real People, Real Support
Dedicated Human Support for HR and Payroll: Our HR and payroll experts are just a call or email away, providing real-time support for any employee-related queries or concerns. This human-centered approach ensures seamless operations and personalized assistance.
Download Our FREE Employer of Record Guide
Want to learn more about how an EOR can simplify your expansion into the Philippines?
Download our FREE Employer of Record Guide and get all the information you need to start hiring confidently.
Award-Winning Excellence at Your Service
Philippines' Top 1 Best Place to Work 2023, 17th in Asia—bringing award-winning HR excellence to meet your needs.
Talk to our Team!
Connect with a Siegen Solutions expert to explore how our Employer of Record services make it easy to hire top Filipino talent without the need to establish a local entity.
Stay compliant with local labor laws and regulations, minimizing risks and ensuring smooth operations.
Optimize your growth potential with our flexible services that adapt as your business expands, all while keeping overhead expenses low.
Leverage our extensive experience in sourcing and recruiting top remote talent to find the perfect fit for your needs.
Benefit from our complete coverage of administrative tasks, including payroll and tax management, so you can focus on driving your business forward.
Ready to enhance your hiring strategy with our EOR services?
Schedule your personalized consultation today!