The global workforce is increasingly embracing the concept of hiring remote staff from overseas, bringing about benefits such as cost reduction and access to a more diverse talent pool. It is crucial for those engaging in direct hiring in the Philippines to grasp specific processes to ensure compliance and prevent penalties for violations of the Fair Work Act.

Remote work case study: The importance of compliance

A recent event saw a remote worker’s case set a model for companies working with remote staff. Although she lived and worked in the Philippines, the Australian court ruled that she was an employee of an Australian company. As a result, the company could not treat her as an independent contractor and had to face unfair dismissal proceedings under Australian employment laws.

This situation highlights the risks of getting employee classifications wrong. Many businesses believe that hiring staff from other countries as freelancers or contractors means they can avoid following employment obligations. However, as seen in this case, if the setup looks like that of an employee (such as the company controlling work hours and tasks), Australian laws still apply.

Why compliance matters in a remote setting

This emphasises the importance of working with a reliable offshore provider like Deployed. By legally hiring your offshore staff through Deployed, you eliminate associated risks of direct hiring from your business operations, ensuring that your company complies with all laws.

Failure to follow proper procedures when hiring remote staff can lead to various risks and potential liabilities, including:

• Breaches of anti-slavery and labour laws or suspicions of money laundering
• Legal claims for unfair dismissal
• Penalties for non-compliance with employment laws
• Fines for underpayment if wages fall below local minimum standards
• Reputational damage from negative legal outcomes

It’s crucial to understand that even if your staff work from another country, your business is still subject to Australian law — regardless of the business activity’s location and your business size. 

Deployed protects you from violations and fines by handling everything on your behalf. 

How Deployed ensures your business stays compliant with the law:

Accurate employment classification

We accurately classify your staff, whether they work full-time, part-time, or on a project basis, based on the nature of the work and local laws. This classification ensures that your business is fully compliant with employment regulations.

Employer of Record (EOR) Service

Our EOR services manage all legal obligations, including employment contracts, payroll, and taxes on your behalf. This ensures that your remote staff are legally employed under the correct structure, reducing the risk of misclassification.

Compliant contracts and policies

With our expert HR and Legal teams, we guarantee that all employee contracts adhere to local labour laws in the Philippines. This prevents unexpected issues such as unfair dismissal claims and ensures transparent terms for all parties involved.

Transparency with you and your offshore staff

Our role is to bridge the gap between you and your offshore team by ensuring a clear understanding of your obligations. Through clear communication and well-documented processes, we prevent disputes and foster stronger working relationships.

We offer more than just staffing solutions—we provide peace of mind. Our expertise in compliance ensures that your business stays protected if you’re offshoring your operations to the Philippines. We guarantee that all staff, wherever they are, are legally employed, properly managed, and protected.

 If you’d like to learn more about how we can protect your business with our compliant remote staffing solutions, reach out to us today for a free consultation.