This Webinar session aims to explain how businesses can achieve high-speed market entry into Philippines through a Professional Employer Organisation (PEO) or Employer Of Record (EOR).
Free On-Demand Webinar | Philippines | 30th June 2020, Morning and Afternoon Session
Entering Philippines’s Market Quickly and Compliantly with PEO/EOR
In this episode, you will understand how a PEO or EOR can help your business to expand into Philippines in a more cost-effective and compliant way.
How Does a POE/EOR Work in Philippines?
It involves a co-employment relationship between the PEO/EOR and your company. In this regard, the PEO/EOR will service your company in areas like HR consulting, payroll processing, employee benefits administration and labour law compliance management. On the other hand, your company retains control over its core business and maintains management rights.
AYP Group’s Scope of PEO/EOR Services
The following are key HR functions we can manage on behalf of your business:
- Drafting and maintenance of employment contracts
- Providing insurance coverage for your employees and their dependents
- Processing of payroll, salary and statutory contributions
- Aligning your business in compliance to Philippines’s labour laws
- Supporting your business in day to day HR operations
Understanding Philippines’s Contract Types and Labour Laws
For detailed explanations and elaborations on the mentioned terms, you may refer to the Webinar recording that has been uploaded on YouTube:
1. Contract Types
In Philippines, there are two types of contracts:
The employment contract type is based on the DOLE Worker’s Handbook according to Philippine’s labour law. It is a permanent contract that is used for an indefinite date.
Whereas the consultancy contract type is used for short-term projects involving consultants.
2. Labour Laws
Employment type contracts are governed by the Philippines’s Labour Code while consultancy type contracts adhere to the terms set between the company and the consultants it hires.
Work Permits and Visa Application
When foreign nationals are hired to work in the Philippines, companies will need to apply for work permits for them. If they are required to start work immediately, employers will apply for either the Provisional Work Permit (PWP) or Special Work Permit (SWP) for them.
Under these two work permits, the employee will need to have the 9(A) Temporary Visa.
On the other hand, employers will apply for the Alien Employment Permit (AEP) for foreign nationals who are employed for a full-time long-term position, This type of permit is required for the 9(G) Pre-Arranged Employment Visa for the employee to legally work in the Philippines.
If applicable, foreign nationals will need to also apply for the Inclusion of Dependent to 9(G) Visa for their spouses or dependents.FAQs on PEO/EOR in Relation to Philippines’s Labour Laws
FAQs on PEO/EOR in Relation to Philippines’s Labour Laws
Here are some additional FAQs for further understanding and clarification on Philippine’s labour laws.
1. What is the minimum requirement for a foreigner to legally start working in the Philippines?
A foreign worker will need a valid working permit and the corresponding visa covering the duration of their employment.
2. Are employers required to make statutory contributions?
It depends on the type of contract. It is mandatory to contribute for employment contracts but not for consultancy contracts.
3. Can a foreign national start work in the Philippines using a Temporary Visa?
Foreign nationals can only start work in the Philippines if they apply for a working permit or working visa.
4. How are claims and salary disbursement managed?
Through our in-house software called JuzTalent. Employees will file their claims through JuzTalent and managers can approve these claims either through the portal or the automated email notification sent to them.
5. What are the rules on termination?
Employers should give at least a 1-month notice period prior to termination.
Notice period may vary according to the agreed contract terms.
If you have further questions, feel free to contact us
Let us help you with your business plans!