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HR Glossary & Global Employment Terms
Your go-to HR glossary for hiring, global employment, and payroll terms. Whether you're an HR pro or scaling globally, we simplify the complex so you can scale with confidence.
Your go-to HR glossary for hiring, global employment, and payroll terms. Whether you're an HR pro or scaling globally, we simplify the complex so you can scale with confidence.
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February 20, 2025
As of 2025, the average annual salary in the Philippines is approximately PHP 539,755.48, equating to around $9,528 per year. This figure reflects the country's economic growth and the increasing demand for skilled professionals.
Income levels in the Philippines vary based on factors such as industry, experience, education, and location. Urban areas, particularly Metro Manila, tend to offer higher salaries compared to rural regions.
Here’s a general breakdown of monthly and annual salary ranges in the Philippines:
Source: Salary Expert
Note: USD equivalents are approximate, based on an exchange rate of 1 USD = 55 PHP.
The minimum wage in the Philippines varies widely by region. As of 2025, Metro Manila's daily minimum wage is PHP 645, while provincial areas have lower rates, around PHP 316-560 per day.
Salaries in the Philippines differ by industry, with highly skilled sectors such as IT and finance offering significantly higher compensation.
Note: Salaries are based on estimates from the latest salary surveys and job postings.
Set competitive salaries by comparing salary data for your roles globally, with real-time compensation benchmarking data.
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The Philippine labor market has shown resilience and adaptability, with an employment rate of 96% as of June 2024, according to the Philippines Statistics Authority. The services sector dominates employment, accounting for over 60% of the workforce, followed by industry and agriculture.
The country's young and educated population contributes to a dynamic labor force, with a median age of 25.7 years. However, challenges such as underemployment and job-skills mismatch persist, requiring continuous investment in education and training.
The Philippines has become a top destination for global companies looking to expand their workforce. Here are some key reasons why businesses choose to hire Filipino talent:
The salary landscape in the Philippines is shaped by a variety of economic and market-driven factors. Employers looking to hire talent in the country must consider these elements to ensure they offer competitive compensation packages.
Experience plays a crucial role in salary determination, with professionals who have several years in a field commanding significantly higher wages than entry-level employees. Typically, those with 0-2 years of experience earn lower salaries, while mid-career professionals (3-5 years of experience) can see earnings increase by 50% or more.
Senior-level professionals and specialists (10+ years of experience) can demand salaries that are often double or even triple the national average, particularly in technical fields.
The industry in which a professional works heavily influences salary levels. The IT, finance, healthcare, and engineering sectors generally offer higher-than-average wages due to talent shortages and global demand for skilled professionals. For example, software developers and cloud engineers are increasingly in demand as companies shift toward digital transformation. Similarly, healthcare professionals, particularly registered nurses and medical technologists, are seeing higher salaries due to international demand and the growing healthcare sector in the Philippines.
On the other hand, industries such as agriculture, hospitality, and education tend to offer lower salaries due to lower profit margins and economic constraints. Many workers in these fields supplement their incomes through side businesses or freelance work. Businesses in lower-paying industries can remain competitive by offering benefits beyond salary, such as performance bonuses, flexible work arrangements, and career development opportunities.
Location is a major determinant of salary levels in the Philippines. Metro Manila, being the economic hub, offers the highest salaries, as it hosts multinational corporations, IT parks, and major financial institutions. The average salary in Manila is 30-50% higher than in provincial areas due to the concentration of businesses and the higher cost of living.
Other major cities like Cebu and Davao also provide competitive salaries, particularly in the outsourcing (BPO), tourism, and IT sectors. However, rural and less-developed areas tend to have significantly lower salaries due to fewer job opportunities and lower living costs.
A teacher in Metro Manila, for instance, may earn PHP 25,000 per month, while a teacher in a rural province might earn only PHP 15,000 per month for the same role. Employers hiring remote workers should consider adjusting salaries based on cost-of-living differentials to attract talent across various regions.
Higher education and specialized certifications significantly impact salary levels in the Philippines. University graduates typically earn 20-50% more than individuals without degrees. Certain degrees, such as computer science, engineering, finance, and healthcare, lead to higher salaries due to industry demand. In contrast, some graduates in liberal arts or education may find it more challenging to secure high-paying positions unless they specialize further. Additionally, professional certifications can give employees a competitive edge in the job market.
For example:
Employers should consider offering sponsorships for professional development programs to upskill their workforce’s capabilities while boosting retention rates.
Foreign companies operating in the Philippines often offer higher salaries, better benefits, and more career growth opportunities compared to local firms. This is especially true in industries like business process outsourcing (BPO), IT services, and finance, where multinational corporations actively hire Filipino professionals.
For example, a foreign IT company hiring a software developer in Manila may offer PHP 1.2M per year, whereas a local company might offer PHP 800,000 per year for the same role. Similarly, customer service representatives working for global companies may earn 20-30% more than their counterparts in locally owned businesses.
Explore our country hiring guides for 180+ regions, covering everything from leave and benefits to payroll.
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Understanding salary trends in the Philippines is essential for businesses looking to attract top talent and for professionals seeking fair compensation. To make well-informed decisions as a hiring manager, consider industry benchmarks, location, experience, and cost-of-living factors. Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.
If you're planning to hire in the Philippines, make sure to offer competitive salaries, provide benefits that match industry standards, and stay updated on local labor laws to ensure a smooth and successful hiring process.
Want to simplify the process of hiring in the Philippines? Playroll offers leading EOR services to make global hiring a breeze – let us handle legal employment, compliance, payroll and benefits management, so you freely explore new markets and focus on team growth. Book a chat with our team to find out how we can help scale your team in the Philippines in 2025.
Read Time
February 20, 2025
An Employer of Record (EOR) is a third-party service that legally employs workers on behalf of a company, handling all employer responsibilities such as payroll, benefits administration, tax compliance, and HR duties. This allows businesses to hire employees in foreign markets without the complexity, time, or expense of setting up a legal entity. While the EOR manages the legal and administrative aspects of employment, the company retains full control over the employee’s day-to-day tasks and responsibilities.
The benefits of using an EOR include:
We carefully evaluated a range of Employer of Record (EOR) providers based on key factors that matter most to businesses expanding internationally. Our selection process focused on:
Yes, we admit our bias, but can point to a proven track record of success when it comes to compliantly employing, managing and paying remote teams for businesses of any shape and size.
Playroll simplified our expansion into new markets by providing a comprehensive understanding of local regulations. Through this partnership, we could immediately tick the box on compliance, at no risk to BET Software.
Gizelle Govender, Senior People Partner, BET Software
As a global Employer Of Record, Playroll stands out for its cost effective pricing, without compromising on the quality of its EOR services or support. It offers truly human customer support for both employers and employees to simplify international employment. This is in contrast to many competitors that rely on ticketing systems, do not offer dedicated support, or upcharge for support. We are uncommonly flexible when it comes to the needs of our customers, going the extra mile to customize contracts and facilitating transfers between EOR and client entities as needed.
Playroll’s user-friendly platform allows you to employ, pay and manage employees and contractors alike in 180+ countries, and provides a team of experts that ensures compliance with shifting employment regulations. Other services include comprehensive localized benefits packages, immigration support, and streamlining global payroll operations.
Pricing: From $399 per month, per employee. No annual commitment required for affordable prices.
Papaya Global is especially known for its comprehensive support in payroll processing, and is innovative when it comes to integrating AI within HR tech. They have a broad range of customization options available to customers.
On the downside, Papaya Global relies fully on third party partners to provide their services, instead of having its own infrastructure of owned entities. This can mean extra fees being passed on to customers, on top of already hefty monthly EOR fees. It also means the EOR provider always has to liaise with third-party partners when providing customer support, which can significantly delay their response times.
Pricing: From $599/month, per employee.
G-P is a popular EOR choice that offers a broad range of products. They split their EOR services between a core and premium offering. This can be useful for businesses that are looking for a broad range of options to pick and choose from. They also have many options to tweak and customize services, and advanced data analytics.
Globalization Partners does have its cons. Their pricing is complex and obscure, with reports of high monthly fees. Many of their EOR features are only available with their premium product, and they’ve received some negative feedback for slow customer service. Overall, this could make them a poor fit for smaller companies that have more limited resources and require more hands-on support to make their first international hires.
Pricing: Not publicly disclosed.
OysterHR is known for their fun branding and user-friendly platform, with quick onboarding times reported. They have a wide country coverage, and solid compliance credentials behind their name.
On the other hand, they are priced at the upper end of the market for their EOR services, which can quickly prove to be a financial bottleneck for companies hoping to hire more than just a handful of international employees. In addition, there have been some reports of payroll mistakes and delays on public review sites.
Pricing: From $599/month, per employee if paying annually. Monthly plans are priced from $699 p/month.
Remote is a well-known EOR provider, with a focus on providing services through their own network of owned entities, which can be useful for businesses that want to avoid dealing with any additional third parties in the equation.
On the downside, their EOR fees are very high compared to some other names in the business, and they have received some negative reviews on slow customer service and multiple points of contact. They also don’t offer a very wide network of country coverage for EOR services, with less than 100 countries covered, which can limit your ability to scale as a business.
Pricing: From $599/month, per employee.
Deel is another well-established player in the EOR space, offering options to manage full-time employees and contractors in 150+ regions. They can be a good fit for businesses looking for an EOR partner with many owned entities, and a comprehensive range of integrations.
That said, Deel’s fees are expensive and require annual commitments for cheaper pricing, and they’ve received many negative reviews of hidden fees and unexpected costs. This can make it hard to properly budget for their services, and can prove too expensive for smaller businesses looking to scale globally.
Pricing: From $499/month, per employee if paying annually. Monthly plans are pricier, at $599 p/month.
Rippling is a popular workforce management solution, and is especially known for their broad range of products that include payroll, finance and IT management. This can make them a good choice for companies looking for a single solution to workforce management.
If you’re looking for a specialist in global employment and EOR services though, there are some cons to consider. Their pricing is not publicly disclosed, though high fees are reported – and they’ve received negative reviews of a bloated product with a steep learning curve, as well as payroll errors.
Pricing: Not publicly disclosed.
Velocity Global stands out for its wide country coverage as an EOR provider, at 185+ regions, which can make them a good choice for employers interested in stable support for any future growth plans.
They are another example of an EOR provider that doesn’t disclose their pricing publicly, with reports of steep monthly fees. Another downside is the many negative reviews they’ve received for slow customer service and multiple points of contact, which can make them a frustrating provider to deal with if you value quick response times to enquiries.
Pricing: Not publicly disclosed.
Multiplier offers good pricing for the EOR services, and has a solid library of extra global hiring resources available for employers. They also have all compliance credentials needed to mitigate risk for employers looking to hire internationally.
On the other hand, they take a complex approach to invoicing, and have received some reviews of slow and faulty payroll services. They’ve also received negative feedback on slow customer service. Overall, this can mean risk to your business if you value simple, timely payroll for employees.
Pricing: From $400/month, per employee.
WorkMotion is an EOR service that specializes in supporting European companies, and can also assist with in-country registrations – which can make them a good choice for EU companies looking to expand their business.
As for its cons, WorkMotion charges very high EOR fees that only become more affordable when hiring many employees. They also don’t offer any support in hiring independent contractors, which can be detrimental to businesses that are looking for a single service to hire any type of worker across the globe. Lastly, they don’t have SOC2 certification, which many businesses require to safeguard their data when working with EOR providers.
Pricing: €649 p/month ($724) per employee for up to 4 employees. Price decreases if onboarding more people.
Choosing the right Employer of Record company is a critical decision for companies looking to expand globally while ensuring compliance and seamless employee management. A reliable EOR can simplify hiring, payroll, benefits administration, and legal compliance, allowing businesses to focus on growth. Here’s how to select the best EOR partner for your needs.
One of the primary reasons for using an EOR is to navigate complex labor laws and regulations in foreign markets. Ensure the EOR has deep legal expertise in employment laws, tax compliance, and contractual obligations in each country of operation. A trustworthy EOR should provide up-to-date legal guidance and minimize compliance risks.
If you’re hiring internationally, confirm that the EOR has established entities or partnerships in your target countries. A strong local presence ensures smooth onboarding, payroll management, and regulatory adherence. Some EORs specialize in certain regions, so make sure their coverage aligns with your expansion goals.
A top-tier EOR should offer robust payroll solutions, including salary processing, tax deductions, and statutory contributions. Additionally, they should provide competitive employee benefits, such as healthcare, pensions, and insurance, in compliance with local laws. Ask for details on their payroll processing timelines, currency support, and error resolution processes.
A modern EOR should leverage advanced technology for payroll, HR, and compliance tracking. Look for platforms that offer:
A tech-enabled EOR streamlines operations, improves transparency, and enhances the employee experience.
Understanding the service levels provided by an EOR is crucial. Request details on response times, dispute resolution, and issue escalation. A reputable EOR should offer dedicated account management and 24/7 support, ensuring seamless operations across different time zones.
EOR pricing structures vary—some charge a flat fee per employee, while others use a percentage-based model. Make sure you understand the full cost, including any hidden fees for contract terminations, currency conversions, or compliance updates. The right EOR should offer transparent pricing with no surprises.
Research the EOR’s track record by reading case studies, reviews, and testimonials from businesses in your industry. An experienced EOR with a solid reputation demonstrates reliability, expertise, and a proven ability to manage global workforces.
Given the sensitive nature of employee data, the EOR should comply with global data protection regulations such as GDPR and SOC 2. Ask about their cybersecurity measures, data encryption policies, and disaster recovery plans to ensure your employees’ information is secure.
An EOR provides a range of essential services to simplify global workforce management. Key services include:
Playroll ticks the boxes on robust compliance, broad country coverage and many owned entities. This is similar to many of the competitors mentioned on this list, and are some of the standard offerings you should look out for when choosing an EOR provider that offers comprehensive services.
Overall, though there are many strong EOR contenders on the market, Playroll stands out for its competitive pricing, as well as its on-the-ground support for businesses of all sizes – with dedicated support and flexibility for both employers and employees.
We believe quality support is the single most important trait for an EOR provider, since EORs support businesses that are expanding into jurisdictions they’re often unfamiliar with. This means quick responses to tricky compliance questions, flexibility to customer needs and a truly human touch is invaluable.
Book a chat with our team to find out how we can help you scale your global team.
Compare the top EOR providers side-by-side, with a full breakdown on cost, support, coverage and more.
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Read Time
February 20, 2025
In South Africa, a benefits package will include mandatory employee benefits such as paid time off, Unemployment Insurance Fund (UIF), and overtime pay and may include additional perks such as retirement plans and health benefits.
Not all workers are entitled to the same benefits. Workers can be separated into full-time, part-time, and fixed-term contract employees or independent contractors.
Full-time employees refer to employees who typically work 40 to 45 hours per week. These employees generally receive a more comprehensive benefits package than part-time workers (employees who work less than 40-45 hours per week but more than 24 hours a week). An employee on probation is not guaranteed supplementary benefits but will still have access to statutory benefits. Employees on fixed-term contracts (individuals whose employment runs through a specified date) may be eligible for certain benefits depending on the agreement with their employer.
However, independent contractors (individuals hired to complete a specific task or project) do not qualify to receive benefits.
In South Africa, employee benefits include statutory benefits (benefits guaranteed by law) and supplementary benefits (additional privileges provided at the employer’s discretion).
According to the Basic Conditions of Employment Act, employees are guaranteed annual leave of at least 21 consecutive days (not including public holidays), one day for every 17 days worked, or 1 hour for every 17 hours worked.
The employee and employer must reach a mutual agreement regarding the timing of the leave. The employer makes the final call if a mutual agreement cannot be reached. Employers may only grant leave up to six months after the end of the annual leave cycle and may not offer payment in place of granting annual leave (except on the termination of employment).
Pregnant employees are entitled to at least four consecutive months of maternity leave. The clock on these four months begins four weeks before the expected birth date, but employees may begin their leave earlier than this. Employers are not obligated to pay their employees during this time; however, the UIF covers 60% of their salary for up to 121 days.
Employees may request to extend their maternity leave. However, this request must be accompanied by a medical certificate specifying the extension's expected length.
Companies are only required to offer a less generous ten-day paternity leave following the birth or adoption of a child. In an adoption case, the child must be younger than two years old.
Paternity leave is unpaid; however, employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold.
Based on the Basic Conditions of Employment Act, workers are entitled to the number of days they would regularly work in 6 weeks every 3 years. For example, someone who works five days per week will have 30 days in their bank of sick leave days every three years.
However, during an employee’s first six months, they are only entitled to one day of paid sick leave for every 26 days they worked.
Employers have the right to request a medical certificate before paying employees who take more than two consecutive sick days or are absent more than twice in 8 weeks.
Certain South African employees are eligible to receive paid leave under certain circumstances, namely, the birth of a child, to care for their child that has fallen ill, or upon the death of an immediate family member.
The term “immediate family member” only includes the following individuals in this case:
The employee’s:
To qualify for Family Responsibility Leave, an employee must work for longer than four months for the same employer and work more than four days a week.
South African employers are required to pay their workers overtime pay. Overtime is capped at 3 hours per day and 10 hours per week. Employees can agree to work up to 15 hours of overtime, but only for up to two months a year.
If employees agree to work overtime, their employer must pay them 1.5 times their standard hourly pay rate. Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.
An employee may agree to accept PTO in exchange for working overtime.
Both employers and employees contribute to the Fund, which is set up to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the UIF.
The employee must contribute 1% of their remuneration to the Fund, and the employer must match this 1% contribution.
COIDA is a program that compensates workers injured or infected with diseases during their employment. This program covers dependents of workers who die on the job as a result of work-related accidents or contraction of occupational diseases.
The Skills Development Levy (SDL) is a tax imposed on businesses to develop and improve workforce skills. Unlike UIF, employees are exempt from paying SDL, but employers must contribute 1% of the total amount paid in salaries to employees each month.
Supplemental benefits (also called fringe benefits in South Africa) are not required by law, but can help you stand out as an employer and attract top talent. They include:
South African employers are not legally obligated to contribute to employees’ retirement funds. However, future planning is essential to any enticing benefits package.
In many cases, employees are given the option to contribute towards a retirement contribution system; employers in some industries make this a requirement. The idea is that employers invest a percentage of the employee’s remuneration in a retirement fund to provide employees with a source of income once they retire.
While South Africa’s public healthcare system is free, its quality is not comparable to private care. Medical aid is invaluable to employees’ lives as it covers medical services and healthcare expenses from private institutions.
Employers may offer their employees various health insurance systems, including medical aid schemes, hospital plans, and comprehensive medical coverage, to attract world-class talent.
In South Africa, there is no statutory requirement to give employees bonuses at the end of the year. However, it is commonplace to give employees performance-based bonuses in December. These bonuses are usually equivalent to one month’s remuneration.
In addition to drawing in the best talent, employee benefits offer various advantages, including tax breaks or incentives. For example, as of 1 March 2016, contributions made to a pension or provident by an employer on behalf of an employee are tax deductible. This deduction comprises the sum of both the employee and employer contributions.
Interfering with employee benefits in South Africa should be taken seriously. Depriving employees of the benefits they’re entitled to can lead to the employee lodging a case against the employer at the Commission for Conciliation Mediation and Arbitration (CCMA). Failure to comply with South African labor law is treated as unfair labor practice and can result in significant penalties.
Employers also have an obligation to report all work-related incidents. For example, work-related injury and contraction of diseases must be reported to COIDA and other relevant parties.
There are various perks you should consider offering to current and potential employees in addition to the benefits discussed above:
The COVID-19 pandemic made employers and employees aware of the advantages of working from home. These benefits include increased productivity, flexibility and improved work-life balance for workers.
Since the pandemic, there has been an upward trend in adopting remote work, so much so that some workers look exclusively for fully remote positions. If you want access to a broader talent pool, consider offering various work arrangement options such as partial remote work, hybrid work models, or fully remote positions.
Employees not restricted by rigid schedules enjoy a better work-life balance. Flexible work hours allow employees to manage their time in a way that reflects their personal needs and expectations. Increased flexibility gives employees more autonomy regarding how they spend their time. This will invariably increase productivity and employee satisfaction and will help manage stress.
Any competitive benefits package must include an element of physical and mental wellness. Employee wellness programs give workers access to resources that support their physical and psychological care. These include partnerships with local wellness institutions such as gyms, in-house counseling, and health and wellness workshops.
Employee expenses significantly contribute to overall business spending in South Africa. Stats SA found that employers spent about 14% of total expenditure on employees. These costs include salaries and wages, training expenses, and the mandatory and supplementary employee benefits discussed above. That said, South Africa has a relatively low employment cost compared to other countries – studies have shown that European companies can save up to 50% on staff by hiring South Africans.
Use Playroll’s free global employee cost calculator to get a detailed breakdown of mandatory employer taxes and contributions in South Africa and to easily compare different market costs side-by-side.
Managing employee benefits in South Africa can be complex, but Playroll simplifies this process. With a footprint in over 180 countries, our centralized platform streamlines onboarding, payroll, and benefits administration, and ensures compliance with ever-changing employment regulations. Partner with Playroll to attract and retain top talent with benefits tailored to meet the needs of South African employees.
Book a demo with our team to learn how we can help you offer competitive employee benefits packages to scale your team.
Read Time
February 20, 2025
An Employer Of Record (EOR) is a third-party service that handles employment responsibilities for your company, like payroll, taxes, benefits, and compliance with local labor laws. The EOR legally employs your global team on paper, while you manage the employee's daily activities.
EOR providers typically operate under these business models: using their own wholly-owned local entities, partnerships with local providers, or a combination of these two approaches. A wholly-owned EOR model means the provider sets up its own entities in each country and retains full control over hiring and payroll.
In contrast, some EORs partner with local vendors and outsource these tasks. While this can be cheaper for the EOR, it may lead to less reliable service for you. Wholly-owned entities has the following advantages:
Selecting an EOR partner with a robust network of wholly owned entities can give you advantages in all these areas.
It's important to find an EOR with transparent pricing. Some providers may have hidden fees, like onboarding and offboarding charges, which can increase costs unexpectedly. Look for an EOR that clearly communicates all potential expenses upfront, is straightforward in their invoicing, cost effective and offers a clear breakdown of what’s included in their pricing.
Lastly, they should offer flexibility in their pricing models that suits the needs of your business: this includes offering monthly charges for full-time employees over requiring annual commitments for lower rates.
The level of support an EOR provides can make or break your global employment strategy. Quick response times and hands-on support are essential, especially when dealing with complex issues like payroll queries or legal compliance in jurisdictions you might be unfamiliar with.
Before bringing an EOR provider on board, check their public reviews on platforms like G2 and Trustpilot. Additionally, ensure that the EOR offers dedicated support for your employees to ensure employee satisfaction and retention. Be sure to ask if dedicated support comes free of charge, as some EOR providers charge extra for this service.
Your EOR provider should have a strong presence in the countries where you wish to expand in the short-term and in the long run. In cases where they do not operate in your desired country, your growth might be hampered if you're locked into a contract you’re unhappy with. Some providers also charge fixed offboarding fees – it’s a good idea to ask whether this is the case before you commit to a provider.
Identify a company with comprehensive country coverage. For example, Playroll operates in over 180+ regions and offers the extensive coverage required to support your global ambitions.
An ideal EOR should help you hire both full-time employees and contractors legally. This flexibility is essential as your workforce needs may evolve over time. It’s much easier to use one service provider that can cater for all potential needs, than having to choose different providers to hire full-time employees and contractors.
Additionally, the EOR provider should be able to assist with classifying your workers correctly to avoid the penalties associated with misclassifying employees as contractors, and convert contractors to full-time employees if needed.
Check that your chosen EOR provider will support hiring different types of workers, in all the regions you’re interested in.
Competitive employee benefits are a key component of attracting and retaining top talent. Your EOR should offer a comprehensive benefits package that includes both local benefits and global options.
Enquire about additional services like benefits management and visa support. The more robust and flexible the benefits, the better equipped you’ll be to support your international team no matter any curveballs that might come your way.
Timely and accurate payroll is a non-negotiable part of your day-to-day operations when managing a global workforce. Having delayed and faulty payroll can result in great reputational harm to your business and potential legal fallout. Ensure the EOR has a proven track record of paying employees on time and offers a user-friendly payroll system.
Before committing, ask for a demonstration of how their payroll system works and whether it provides a clear view of all transactions in one place. Ask how their invoicing system works, as some providers can make this needlessly complex.
Your data should always be safe, and data security is an important consideration while choosing an EOR. Ensure this by checking the certifications the EOR holds, such as GDPR and SOC2, and inquire about the measures they take to protect your Intellectual Property. An EOR provider should guarantee that all contracts are compliantly set up to ensure your IP will belong to you.
Be wary of EORs that rely heavily on third-party partners since this can increase the risk of data security issues.
Compliance with local labor laws is one of the main reasons to partner with an EOR. The right EOR should have a team of experts on hand to help you navigate challenges such as employee misclassification risk, and meeting all compliance requirements in new markets. Again, be sure to check if the EOR provider has a track record of quick response times, as you might need fast support when it comes to questions of compliance.
Ask about their legal expertise in the specific countries you’re interested in and how they help you stay compliant with local regulations.
Employment contracts can vary across different regions and your EOR should be flexible to your specific needs and can create customized agreements if needed. Ask about their process for amending contracts and how long it typically takes.
Flexibility in this area ensures your contracts are aligned with both local laws and your business objectives.
Employee terminations can be difficult and complicated, making it a matter that should be handled carefully. Ensure the EOR has a clear and compliant process for managing terminations, including support for both the employer and the employee during the offboarding process. Understand this process thoroughly before entering into a partnership to prevent legal issues in the future.
If you're considering moving an employee from an EOR to one of your own entities, many EOR providers require a ‘resign and rehire’ process. During this process, the employee resigns from the EOR and is rehired by your entity. This approach can complicate the businesses’ relationship with the employee.
Clarify with the EOR if they offer a flexible transfer process.
Choosing the right EOR partner is fundamental for your business’s global expansion. Playroll stands out by meeting the criteria mentioned above, offering extensive country coverage at 180+ regions with a robust network of wholly owned entities.
Enjoy transparent, best-in-class pricing, dedicated support for employees and employees, and a flexible approach to employment contracts – with a team of HR, finance and legal experts on hand every step of the way.
Compare EOR providers and book a demo with Playroll today to explore how we can support your international growth.
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