Professional Employer Organization (PEO)

A:In the Philippines, there are several options for hiring staff, depending on your business needs, budget, and preferences. Here are some of the most common options:

1. Direct hiring – This involves hiring employees directly to work for your company. You can advertise job vacancies, conduct interviews, and select the best candidate for the job. This option gives you full control over the recruitment process, but it can also be time-consuming and costly.

2. Recruitment agencies – You can work with recruitment agencies to help you find suitable candidates for your job vacancies. These agencies can help you with sourcing, screening, and shortlisting candidates, saving you time and effort in the recruitment process. However, you will need to pay a fee for their services.

3. Job fairs – Attending job fairs is a good way to connect with potential candidates and showcase your company’s job opportunities. This option can be cost-effective and can generate a lot of interest from job seekers.

4. Online job portals – There are several online job portals in the Philippines, such as Jobstreet, Kalibrr, Indeed, and LinkedIn, where you can post job vacancies and reach a wide audience of job seekers. This option is convenient and can attract a large pool of candidates, but you may need to pay a fee to use these platforms.

5. Referrals – You can ask your current employees, business partners, or industry contacts for referrals for potential candidates. This option can be effective and cost-effective, as you can tap into your existing network to find suitable candidates.

It’s important to choose the hiring option that best fits your business needs and goals, and to ensure compliance with the applicable laws and regulations regarding employment and labor practices.

A: A PEO in the Philippines as a third-party organization that takes on the responsibilities of an employer, provides crucial HR outsourcing services to companies seeking quick, safe, and cost-effective strategies for global mobility.

An Employer of Record (EOR) in the Philippines provides companies with a cost-effective and simple solution for the complications of overseas hiring and employee management.

A: In the Philippines, there are several mandatory benefits that employers are required to provide to their employees, including:

1. Social Security System (SSS)
2. PhilHealth
3. Pag-IBIG Fund
4. 13th Month Pay
5. Service Incentive Leave
6. Maternity Leave
7. Paternity Leave
8. Solo Parent Leave
9. Special Leave Benefits for Women
10. Leave for Victims of Violence Against Women and their Children
These mandatory benefits are provided to employees by their employers, and failure to provide them can result in penalties or legal action.

A: The normal salary structure in the Philippines varies depending on the industry, job level, and location. However, there are some common features of salary structures in the country.

In general, salaries in the Philippines are structured on a monthly basis, and are often based on a 40-hour workweek. Most employers also provide mandatory benefits, such as the 13th Month Pay, Social Security System (SSS), PhilHealth, and Pag-IBIG contributions.

A: The payroll cost of hiring employees in the Philippines can vary depending on several factors such as industry, experience level, and location. However, in general, employers in the Philippines are required to pay at least the minimum wage set by the government, which varies by region and sector. In addition to the base salary, employers are also required to provide benefits such as statutory benefits and contributions. Other costs, such as training and development expenses, healthcare, relocation package, etc. may also factor into the total payroll cost of hiring employees in the Philippines.

A: In the Philippines, the annual leave policies for employees are governed by the Labor Code and the company’s internal policies. Generally, employees who have worked for at least one year are entitled to 5 days of annual service incentive leave (SIL), which can be used for rest, relaxation, and other personal pursuits. Additionally, employers may offer vacation leave, which can range from 5 to 30 days depending on the company’s policies. The exact number of vacation leave days can be negotiated between the employer and employee. Employers may also offer other forms of leave, such as sick leave, emergency leave, and bereavement leave. It’s important for employees to familiarize themselves with their company’s specific leave policies and to communicate with their employer regarding their planned absences.

A: In the Philippines, there are at least 18 public holidays per year, including regular holidays and special non-working holidays. These holidays are established by law and are observed throughout the country.

Employees are entitled to take these public holidays off, and they are usually paid for these days if they are regular holidays. However, if employees are required to work on a regular holiday, they are entitled to receive an additional 100% of their regular daily rate.

On the other hand, if employees are required to work on a special non-working holiday, they are entitled to an additional 30% of their regular daily rate.

It’s important to note that while public holidays are observed throughout the country, some businesses may be exempt from observing certain holidays, such as those in the tourism and healthcare industries. Employers and employees should be familiar with the applicable laws and regulations regarding public holidays to ensure compliance.

A: Yes, in the Philippines, employers are allowed to set a probationary period for newly-hired employees. The Labor Code provides that the probationary period should not exceed six months or 180 days, but the employer may specify a shorter period of time if they wish.

During the probationary period, both the employer and the employee have the opportunity to evaluate if the employment relationship is a good fit. The employer can assess the employee’s skills, work habits, and overall performance, while the employee can get a sense of the company culture and expectations.

It’s important to note that employees who are on probation still have certain rights and entitlements. Employers should be familiar with the applicable laws and regulations regarding probationary period to ensure compliance and avoid any legal issues.

A: In the Philippines, there is no mandatory severance pay required by law for termination for just causes or voluntary resignation of the employee. However, under certain circumstances, employees may be entitled to receive separation pay as mandated by law or their employment contract.

For example, if an employee is terminated due to authorized causes such as redundancy, retrenchment, closure of business, or certain illness, the employee is entitled to receive separation pay equivalent to what is stated in the labor code.

If the employee is terminated due to illegal dismissal or without just cause, the employee is entitled to receive back wages and may also be entitled to reinstatement or separation pay in lieu of reinstatement.

It’s important for employers to carefully follow the proper procedures and document the reasons for termination to avoid any legal issues or disputes. Additionally, employers may choose to offer severance pay or other separation benefits as a goodwill gesture or as part of a negotiated settlement.

A: Under Article 300 of the Labor Code, “an employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.”

A: Thus, the elementary rule is that an employee who voluntarily resigns from employment is not entitled to separation pay, except when it is stipulated in the employment contract or Collective Bargaining Agreement or based on established employer practice in the company.