EMPLOYER OF RECORD

An Employer of Record (EOR) in the Philippines is a third-party company that acts as the legal employer for foreign businesses hiring Filipino employees. 

This means that CORE takes care of all employment-related compliance requirements for your team, including payroll, taxes, and benefits, while you focus on managing day-to-day work affairs with your employees.

CORE’s EOR service offers a comprehensive suite of solutions for global businesses looking to hire in the Philippines:

• Talent Matching: Leveraging our two decades of experience, CORE specializes in pairing global businesses with skilled Filipino talents. 
• End-to-End HR Management: We handle all employment management responsibilities, ensuring smooth onboarding, compliance with regulations, and comprehensive support. Our services cover everything from managing working hours and employee engagement to leadership training. If you need to terminate an employee in the Philippines, we also manage the termination process, ensuring adherence to local labor laws, including severance pay and other statutory requirements. 
• Streamlined Payroll & Admin: Simplify your operations as we manage wage computations, taxes in the Philippines, and all administrative tasks, ensuring timely and accurate salary payments and local compliance. 
• State-of-the-Art Facilities & IT: Benefit from modern work environments supported by 24/7 IT services, providing both on-site and remote teams with the necessary tools and infrastructure to excel, especially during working hours. 

The Philippines has long been recognized as a prime source of talent, especially in sectors like information technology, customer service, and business process outsourcing. Here are the main advantages of Filipino talents: 
Proficient in English: The Philippines is one of the largest English-speaking nations in the world, with English being one of its official languages. This ensures smooth communication, especially in sectors that require English proficiency. 

• Cultural Compatibility: Filipinos are familiar with Western culture due to historical ties and the influence of media, making it easier for them to work with international clients and understand global perspectives. 
• Highly Educated Workforce: The Philippines boasts a high literacy rate, and many Filipinos have tertiary education degrees, especially in fields such as engineering, IT, nursing, and business. 
• Excellent Work Ethic: Filipinos are known for their dedication, resilience, and commitment to their jobs. They are often willing to go the extra mile to meet job requirements and are recognized for their loyalty. 
• Cost-Effective: Filipino talents often provide high-quality services at a fraction of the cost compared to their counterparts in Western countries, making the Philippines an attractive destination for global businesses seeking efficient solutions. 
• Warm and Personable: Filipinos are known for their hospitable nature, making them excellent in roles that require interpersonal interactions, like customer service. 
• Adaptable and Flexible: Filipinos are known to be adaptable to various work environments and schedules, a trait that’s beneficial for industries that operate across different time zones. 
• Technical Proficiency: In sectors like IT, Filipinos have shown a high degree of technical knowledge and the ability to stay updated with the latest trends and technologies. 

In sum, the main advantage of hiring Filipino talents is gaining access to a highly skilled, English-proficient, culturally compatible, and cost-effective workforce. And if you’re looking to tap into this pool of talent, CORE’s employer of record services in the Philippines is here to help businesses seamlessly hire talented and skilled Filipinos.

By choosing an Employer of Record in the Philippines, businesses can achieve significant cost savings. 
For context, the cost of living differs substantially between the US and the Philippines. The average American requires an annual income between $58K to $99K. In contrast, according to Statista, a Filipino can comfortably sustain on an annual range of $9.6K to $14.5K. This presents an opportunity for companies to hire top-tier Filipino talent at a fraction of the price they might pay elsewhere, optimizing both quality and cost efficiency. 

Partnering with an employer of record in the Philippines like CORE further enhances these savings, as our expertise and streamlined processes ensure that businesses benefit from cost-effective recruitment, management, and retention strategies.

Legal Responsibility

• EOR: Assumes the full legal responsibility for employment, including compliance with local labor laws, tax regulations, and benefits administration. 
• Contractor: Responsible for their own legal and tax obligations. The hiring company has limited responsibilities. 
   

Talent Acquisition & Retention

• EOR: Provides a structured framework for talent acquisition and can ensure long-term employment, which is beneficial for retaining high-quality Filipino talent. 
• Contractor: Generally employed on a per-project basis, which may not ensure long-term retention. 

 
Employee Benefits & Welfare

• EOR: Offers comprehensive employee benefits, aligned with local norms and regulations, which can enhance job satisfaction and loyalty. 
• Contractor: Handles their own benefits and might not have access to the same level of benefits as regular employees. 

 
Cost Efficiency

• EOR: Provides cost savings by leveraging local knowledge and bulk purchasing power for benefits and insurance. They also manage administrative overheads for the employer. 
• Contractor: While contractors might offer lower initial costs, there might be hidden costs in terms of management, lack of benefits, and potential turnover. 

Compliance & Risk Management

• EOR: Ensures full compliance with Filipino labor laws, tax codes, and other local regulations, reducing legal risks for the hiring company. 
• Contractors: Should manage their own compliance. However, any misclassification or non-compliance might pose risks to the hiring company. 
   

Operational Flexibility

• EOR: Offers a flexible framework allowing companies to scale operations up or down based on their needs without the complexities of direct hiring or firing. 
• Contractors: Flexibility is high, but scaling (especially upward) might require additional contract negotiations or seeking new contractors. 

Duration & Commitment

• EOR: Typically suited for both short-term and long-term engagements, depending on the company’s needs. 
• Contractor: Generally, more suited for short-term or specific project durations. 

In summary, while contractors offer a quick and flexible solution for specific projects or short-term needs, an EOR provides a more holistic, compliant, and structured approach, especially beneficial when tapping into the talent pool in a specific region like the Philippines. 

 
If you’re considering expanding your business into the Philippines or tapping into the exceptional talent available here, CORE is here to help. We can assist with all your Employer of Record (EOR) needs, ensuring a smooth and compliant process every step of the way.