Why an Employer of Record (EOR) is Essential for Hiring Filipino Remote Employees
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.
Ready to Hire Remote Employees the Right Way?
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.
Visit www.siegeneor.com to explore EOR solutions designed for startups and global teams.
