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How to hire remote employees in
Laws about hiring are complicated, and the same is true in The Philippines. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in The Philippines, you have two real options when it comes to hiring. We’ll detail both below.
If you want to successfully hire in
The Philippines
, you have two options:
Laws about hiring contractors are significantly more simple in
The Philippines
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
The Philippines
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
The Philippines
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
The Philippines
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
The Philippines
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in The Philippines than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in The Philippines.
Every employee who has worked for a minimum of one year is entitled to five days of leave. These days can be taken as a holiday or sick leave.
If the leave is not used by the end of the year, employees can receive money to cover the unused days.
There are 21 holidays with 9 non-working holidays.
Every employee who has worked for a minimum of one year is entitled to five days of leave. These days can be taken as a holiday or sick leave.
Post childbirth, the following applies:
105 days of leave if the employee has paid at least three monthly contributions within the 12-month period before the birth.
Mothers who gave birth to twins or triplets are not entitled to any additional maternity leave.
The mother can file her maternity benefits for up to 10 years.
In the event of a miscarriage, the following applies:
60 days of leave
The employee has paid at least three monthly contributions within the 12-month period before the miscarriage.
The leave will be paid by the employer who can later request reimbursement from Social Security.
Seven days of full pay to all married male employees in the private and public sectors for the first four deliveries of the legitimate spouse with whom they are cohabiting.
Single parents are permitted to take additional leave of 7 working days per year with full pay and benefits.
None.
None.
None.
An employee may be terminated for just and authorized causes as per Labor Code and for any serious violation of company rules and regulations or the commission of further infractions or violations of the Code of Conduct.
Employees must provide a minimum of 30 days notice.
Severance pay or separation pay shall only apply if the employee was terminated by the employer (not resigned) for authorized causes. The employee will receive up to 1 month’s salary multiplied by their length of service per year.
The maximum length of a probationary period shall be six months. Once the probation period is completed, the employment contract becomes permanent.
Working hours are a maximum of 8 hours per day 6 days a week.
Persons whose work is supervisory or managerial are specifically excluded from the overtime pay.
On regular days, all hours worked above the standard 8 hours a day must be compensated by providing a daily salary plus a minimum of 25% additional pay.
On Special holidays, all hours worked above the standard 8 hours a day must be compensated by providing the daily salary plus a minimum of 30% additional pay.
On legal holidays, all hours worked above the standard 8 hours a day must be compensated by providing double the daily salary.
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