Employer of Record (EOR): Your Guide to Hiring Without a Local Entity

17/09/2026

5 Minute read

Found the right candidate overseas but don’t have a local entity to employ them? 

Setting up your own local entity is an option, but it is typically a long, complex, and costly process involving significant legal and regulatory overhead. An Employer of Record (EOR) provides a far more efficient and cost-effective alternative, allowing you to hire compliant international talent without the operational delay.

 

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party provider that legally employs talent on your behalf in another country, allowing you to hire internationally without setting up your own local entity.

Depending on the service and local requirements, the EOR can handle:

  • Employment documentation and onboarding
  • Payroll and statutory contributions
  • Tax withholding and benefits
  • HR administration
  • Employment-related compliance

You remain responsible for the employee’s day-to-day work, including their priorities, training and performance.

In simple terms, the EOR handles the local employment arrangement while you manage the employee’s work.

 

When is an Employer of Record worth considering?

Expanding your search beyond the local talent market can give your business access to a wider pool of skills and experience. An EOR may be worth considering if:

  • You already have a candidate you want to employ in another country
  • You do not have a local entity where the employee is based
  • You want to manage the employee’s role and work directly
  • You want a fully compliant, risk-free hiring model without establishing a local entity

 

EOR vs offshore staffing: which model fits your hiring needs?

If you have already identified your own candidate, an EOR provides a light-touch solution to handle local employment and compliance. If you need comprehensive support to recruit talent and build a dedicated team, offshore staffing offers full-service support with a team of professionals supporting your business while you retain full management of your team.

Here’s how the two models compare:

 

Employer of Record

Offshore Staffing

Business need

Employ someone in another country without setting up a local entity

Build a dedicated offshore team to expand your workforce

Finding talent

Bring your own candidate, with recruitment available if needed

Talent is sourced and recruited based on your requirements

Service scope

Employment administration, payroll, benefits and HR

Recruitment, HR, payroll, IT, workspace and wider operational services

Best suited for

Businesses looking for a light-touch model to employ identified talent, ideal if you are confident managing staff remotely.

Businesses that need a dedicated team of professionals supporting their operations while retaining full management control.

 

How to choose an Employer of Record 

When looking beyond your local talent market, the Philippines established global services sector offers access to professionals across a wide range of business functions.

When choosing an EOR to employ talent in the Philippines, consider:

  • Local expertise: Check that the provider has on-the-ground knowledge of Philippine employment requirements and can guide you through local employment practices.
  • Reliable HR and payroll: Clear processes for payroll, benefits and HR administration.
  • Clear responsibilities: Transparency around what the EOR manages and what remains with your business.
  • Employee experience: Effective onboarding and ongoing HR assistance for your employees.
  • Ability to scale: Services that can adapt as your workforce grows.

A good EOR partnership should give your business and employees a reliable local point of contact throughout the employment relationship.

 

Get started with an Employer of Record in the Philippines

Ready to employ talent in the Philippines, or still considering EOR?

Deployed can help you navigate the local employment process and determine the right setup for your hiring needs.

Book a Free Consultation

Want to learn more about Employer of Record in the Philippines?
Follow Deployed on LinkedIn for more EOR insights.

FAQs

How much does Deployed’s EOR service cost?
The total cost typically includes the employee’s salary and benefits, statutory employment costs and the EOR service fee. Additional costs may apply depending on the employment package or support required. Deployed provides a cost breakdown before you proceed, so you can clearly see the employment costs and service fees involved.

How quickly can I employ someone in the Philippines through Deployed?
The timeframe depends on the employee, employment requirements and how quickly the required documentation can be completed. We’ll outline the expected timeline upfront and guide you through employment documentation, onboarding and payroll setup.

What employment benefits will my employee receive?
Employees hired through Deployed’s EOR service receive the applicable statutory benefits and contributions required in the Philippines. Additional benefits can also be included depending on the employment package you want to offer.

Can I choose the salary and benefits for my employee?
Yes. You can determine the compensation package you want to offer, subject to applicable Philippine employment requirements. We’ll provide local guidance to help you structure the package appropriately.

What happens if I need to end an employee’s employment?
We’ll guide you through the applicable process based on the circumstances and Philippine employment requirements, including the required steps, documentation, notice and employee entitlements where applicable. 

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