Philippines EOR Due-Diligence Checklist and Provider Scorecard

Author: Martin English, CEO & Founding Partner
Date Published: July 13, 2026

Choosing an Employer of Record in the Philippines should involve more than comparing monthly fees, platform features and sales presentations.

The best EOR for your company is the provider that can prove it has a legitimate local employment structure, reliable payroll controls, transparent pricing, secure employee-data processes and a workable plan for onboarding, employee support and termination.

Start by creating a shortlist using the Best EOR Providers in the Philippines comparison. Then use this checklist to assess every shortlisted provider against the same evidence-based criteria.

TL;DR: How Should You Evaluate a Philippines EOR?

Use a weighted 100-point scorecard covering:

• Legal employer and registrations
• Employment contracts and labour compliance
• Payroll, tax and statutory remittances
• Pricing, invoicing and foreign exchange
• Benefits and employee support
• Termination, switching and continuity
• Data privacy, intellectual property and security
• Service levels and business continuity

Score each area from 0 to 4 based on the strength of the evidence supplied.

Do not award a high score for a sales claim alone. A provider should receive its strongest score only when the requirement is supported by current documents, a clear operational process and an enforceable contractual commitment.

A critical failure—such as an unidentified legal employer, missing employer registrations or an inability to produce payroll and remittance evidence—should override the numerical score.

How to Use This EOR Scorecard

Follow these four steps:

1. Shortlist suitable providers based on country coverage, employment needs and commercial fit.
2. Send every provider the same evidence request.
3. Score each provider using the methodology below.
4. Resolve material gaps in the contract and implementation plan before approving the provider.

Do not score providers solely from their websites. Public information can help build a shortlist, but final due diligence should use documents supplied for the actual Philippine employing entity.

For a structured questionnaire to send shortlisted vendors, use the Philippines EOR RFP Template.

Philippines EOR Evaluation Framework

Evaluation category	Weight	What you are evaluating
Legal employer and registrations	15	Whether the provider can identify and substantiate the Philippine entity that will employ the workers
Employment contracts and labour compliance	15	Whether employment terms, policies and employment processes reflect Philippine requirements
Payroll, tax and statutory remittances	20	Whether payroll calculations, deductions, contributions and supporting records are accurate and auditable
Pricing, invoicing and FX transparency	10	Whether all recurring, one-time, pass-through and exit costs are disclosed
Benefits and employee support	10	Whether benefits, leave, HMO and employee enquiries are administered clearly
Termination, switching and continuity	10	Whether the provider can support lawful exits and transfers without avoidable disruption
Data privacy, IP and security	10	Whether employee and client data, confidential information and intellectual property are protected
Service levels and business continuity	10	Whether the provider has measurable timelines, escalation routes and continuity plans
Total	100

Evidence-Based Scoring Scale

Use the same scale for every category.

Score	Evidence standard
0	The provider does not answer, refuses the request or cannot demonstrate the capability
1	The capability is described only in marketing material or an unsupported sales statement
2	The provider supplies a written process or policy, but no Philippines-specific operational evidence
3	The provider supplies relevant Philippines-specific documents, examples or evidence for review
4	The evidence is current, internally consistent and supported by a contractual commitment, defined owner or measurable SLA

The weighted score for each category is:

Weighted category score = (provider score ÷ 4) × category weight

For example, a provider receiving 3 out of 4 for a category weighted at 20 points receives:

(3 ÷ 4) × 20 = 15 weighted points

The final result is the sum of all weighted category scores.

1. Legal Employer and Registrations — 15 Points

The provider should clearly identify the legal entity that will sign the employment contract, process payroll and assume the formal employer responsibilities.

What to check

• Full registered name of the Philippine employing entity
• Registered business address
• SEC registration details
• BIR registration and tax information
• SSS employer registration
• PhilHealth employer registration and EPRS access
• Pag-IBIG employer registration
• Identity of the authorised employment-contract signatory
• Relationship between the local employer and any global parent, platform or reseller
• Whether any employment function is subcontracted to another entity

Evidence to request

• SEC registration documents
• Current General Information Sheet where appropriate
• BIR Certificate of Registration
• Redacted employer registration evidence for SSS, PhilHealth and Pag-IBIG
• Sample Philippine employment contract showing the legal employer
• Corporate structure showing any parent, affiliate, partner or subcontractor involved
• Written explanation of which entity invoices the client and which entity employs the workers

Red flags

• The sales contract names one company, but the employment contract names another without explaining the relationship.
• The provider refers only to a “local partner” and will not identify it.
• The provider cannot show which entity controls payroll and statutory remittances.
• Employer registrations are expired, inconsistent or registered under an unrelated entity.
• The legal employer changes after commercial approval without renewed due diligence.

2. Employment Contracts and Labour Compliance — 15 Points

The employment contract should accurately describe the legal employer, employee role, compensation, benefits, working arrangement and applicable employment terms.

What to check

• Employment status and probationary terms
• Job title, duties and reporting structure
• Salary, allowances and payroll frequency
• Working hours, rest days and overtime treatment
• Leave and benefit entitlements
• Confidentiality, IP and data-protection obligations
• Equipment and acceptable-use provisions
• Performance-management process
• Disciplinary and grievance process
• Termination and final-pay provisions
• Consistency between the employment contract and client service agreement

Evidence to request

• Redacted employment-contract template
• Employee handbook
• Leave and attendance policies
• Probation and performance-management process
• Disciplinary and grievance procedure
• Termination and offboarding process
• Confidentiality and IP-assignment wording
• Employee acknowledgement records

Red flags

• The contract copies another country’s employment terms.
• Important employment terms are left to an unspecified future policy.
• The client is instructed to issue formal termination notices directly.
• The service agreement gives the client employment powers that conflict with the EOR’s role as legal employer.
• Contract terms do not match the provider’s described payroll or benefit practices.

Employment documentation should be reviewed against the applicable Philippine employment framework. The Department of Labor and Employment provides official labour information, while DOLE guidance identifies employment contracts, payrolls, daily time records and payment evidence as important employment records.

3. Payroll, Tax and Statutory Remittances — 20 Points

Payroll and statutory administration carry the highest weight because an EOR must be able to calculate, pay, report and evidence employment costs consistently.

What to check

• Payroll cut-off and approval calendar
• Gross-to-net payroll calculation
• Payslip format
• Salary, allowance and reimbursement treatment
• Overtime, holiday and premium-pay treatment
• Employee and employer statutory contributions
• Withholding-tax calculations
• 13th-month pay accrual and payment
• Payroll correction and retroactive-adjustment process
• Remittance and reporting process
• BIR Form 2316 administration
• Post-payroll evidence delivery
• Final-pay calculation

Evidence to request

• Redacted payroll register
• Sample payslip
• Sample payroll invoice
• Payroll calendar
• Payroll-approval workflow
• Redacted SSS contribution evidence
• Redacted PhilHealth remittance evidence
• Redacted Pag-IBIG remittance evidence
• Tax-withholding and BIR Form 2316 process
• 13th-month accrual example
• Payroll-correction log
• Sample final-pay statement

SSS publishes employer registration and contribution guidance through its official employer resources. PhilHealth states that employers must remit and report employee premiums and uses the Electronic Premium Remittance System for employer reporting. BIR Form 2316 records employee compensation and tax withheld.

Red flags

• Salary, statutory contributions and provider fees are combined into one unexplained amount.
• The provider cannot produce sample payslips or payroll registers.
• Remittance evidence is unavailable or supplied only after repeated escalation.
• Contribution records cannot be reconciled to individual employees.
• Payroll corrections have no approval or audit trail.
• The provider cannot explain how 13th-month pay is accrued.
• Payroll depends on a third party whose responsibilities are not disclosed.

4. Pricing, Invoicing and FX Transparency — 10 Points

A low headline fee does not necessarily mean a low total cost.

The quote should separate the provider fee from employee salary, statutory employer costs, benefits, 13th-month accrual, foreign-exchange charges and optional services.

What to check

• Monthly EOR administration fee
• Setup and implementation fees
• Employee onboarding fee
• Payroll-processing charges
• Deposit or pre-funding requirements
• FX rate and currency-conversion method
• FX spread or markup
• Benefits and HMO charges
• Equipment and recruitment fees
• Legal-review or HR-case fees
• Termination and offboarding fees
• Contract minimums
• Annual fee increases
• Exit fees and refund timelines

Evidence to request

• Itemised sample quote
• Sample monthly invoice
• FX policy
• Deposit terms
• Schedule of optional charges
• Contract renewal and price-increase terms
• Termination-fee schedule
• Deposit-refund procedure

Use the Philippines EOR Quote Comparison and Fee Normaliser to compare quotes on the same basis.

Red flags

• The quote includes an unexplained “employment cost” line.
• Statutory costs are marked up without disclosure.
• The provider will not explain the FX rate used.
• Important charges appear only in annexes or implementation documents.
• The deposit-refund timeline is undefined.
• Termination, legal review and transfer fees are described as “case dependent” without a pricing method.

5. Benefits and Employee Support — 10 Points

The EOR should explain what employees receive, when coverage begins and who helps when something goes wrong.

What to check

• HMO eligibility and coverage
• Dependant coverage
• Waiting periods and exclusions
• Leave administration
• Statutory benefit coordination
• Employee onboarding
• Payroll and benefits helpdesk
• Escalation for urgent employee concerns
• Benefit changes during renewal
• Benefit continuity during provider transfers

Evidence to request

• HMO plan summary
• Benefit enrolment guide
• Leave policy
• Employee onboarding guide
• Helpdesk response times
• Escalation matrix
• Benefit-renewal process
• Sample employee communications

Red flags

• Benefits are described as “included” without a plan summary.
• HMO start dates cannot be guaranteed or explained.
• Employees must raise all concerns through the foreign client.
• No Philippine HR escalation contact is available.
• Benefit deductions appear on invoices without corresponding employee documentation.

6. Termination, Switching and Continuity — 10 Points

An EOR should be evaluated for how it handles the end of employment, not only how quickly it can onboard workers.

What to check

• Responsibility for disciplinary and termination procedures
• Access to Philippine employment counsel
• Final-pay process
• Certificate of Employment and tax-document process
• HMO and benefit closure
• Equipment return
• Data and access removal
• Transfer to another EOR or the client’s Philippine entity
• Employee communication
• Payroll and benefits continuity during a switch
• Deposit and unused-fund reconciliation
• Record handover after termination

Evidence to request

• Termination workflow
• Responsibility matrix
• Final-pay template
• Offboarding checklist
• Sample employee-transfer plan
• Exit SLA
• Data-return and deletion process
• Deposit-reconciliation process

For a detailed employment-exit workflow, see Employee Termination and Offboarding Through an EOR.

Companies considering a provider transfer should also review How to Switch EOR Providers in the Philippines Without Disruption and the EOR Switching Cost and Timeline Calculator.

Red flags

• The provider promises immediate termination without reviewing the legal basis and required process.
• Final-pay responsibility is unclear.
• The provider charges an undefined fee to release employment records.
• There is no process for transferring employees to another provider.
• The provider cannot explain how payroll, HMO or leave continuity will be managed during a transition.

7. Data Privacy, IP and Security — 10 Points

EOR providers process employee identification, contact, payroll, tax, bank, health and benefit information. Buyers should understand where that information is stored, who can access it and how it is protected.

What to check

• Personal information controller and processor roles
• Data Protection Officer
• Data-processing agreement
• Data location and cross-border transfers
• Role-based access
• Encryption
• Security-incident response
• Retention and deletion
• Subprocessors
• Employee privacy notice
• Intellectual-property assignment
• Confidentiality obligations
• Access removal after termination
• Client-data return at contract exit

The Philippine Data Privacy Act of 2012 applies to personal-information processing in the private sector. The National Privacy Commission also provides guidance for personal information controllers, processors and Data Protection Officers.

Evidence to request

• Data-processing agreement
• Privacy notice
• Data-flow diagram
• Subprocessor list
• Data-retention schedule
• Incident-response procedure
• Access-control policy
• Business-continuity and backup overview
• IP-assignment language
• Security certifications or independent assessment reports, where applicable

Red flags

• The provider cannot identify its Data Protection Officer.
• Employee records are shared through uncontrolled spreadsheets or personal email accounts.
• Data storage locations and subprocessors are not disclosed.
• The provider claims that all security documents are confidential and offers no redacted evidence.
• IP ownership is not addressed consistently in the employment and client agreements.
• The provider cannot explain how records will be returned or deleted when the contract ends.

8. Service Levels and Business Continuity — 10 Points

Service quality should be measurable. “Dedicated support” is not an SLA unless it includes responsibilities, response targets and escalation routes.

What to check

• Named account owner
• Philippine HR and payroll contacts
• Standard response and resolution targets
• Payroll issue escalation
• Employee complaint escalation
• Implementation timeline
• Onboarding SLA
• Payroll continuity plan
• System outage process
• Disaster recovery
• Key-person dependency
• Client reporting cadence
• Service-review process

Evidence to request

• Service-level schedule
• Account-management structure
• Escalation matrix
• Implementation plan
• Business-continuity summary
• Disaster-recovery overview
• Sample service report
• Issue and resolution log
• Client reference relevant to the proposed scope

Red flags

• The provider offers only a general support inbox.
• Response targets are not included in the contract.
• Payroll continuity depends on one individual.
• No escalation path exists for missed payroll or employee complaints.
• The provider cannot provide a realistic implementation plan.
• Service credits are offered, but the underlying failure and employee impact remain unaddressed.

Critical Failures That Override the Numerical Score

A provider should not pass due diligence solely because its weighted score is high.

Consider pausing or rejecting the provider when:

• The Philippine legal employer cannot be identified.
• Employer registrations cannot be substantiated.
• The provider will not supply a Philippine employment-contract sample.
• Payroll and statutory remittance evidence cannot be produced.
• The provider uses an undisclosed third party as the legal employer.
• Material costs or FX charges remain undisclosed.
• The provider cannot explain who controls employee data.
• The client service agreement conflicts with the employment arrangement.
• Termination responsibility is assigned entirely to the foreign client.
• Material statements made during procurement are excluded from the contract.
• Submitted documents contain unexplained entity names, dates or figures.
• The provider refuses reasonable contractual protection for a material compliance obligation.

A hard-stop failure should be resolved before contract approval. It should not simply be offset by strong scores in lower-risk categories.

EOR Evidence Request Checklist

Request evidence in stages so confidential information can be handled appropriately.

Initial shortlist stage

• Legal employer name
• Corporate structure
• Service description
• Pricing schedule
• Sample implementation plan
• Country-specific capability summary
• Security and privacy overview
• Standard SLA
• Relevant client references

Final due-diligence stage

• Entity registration evidence
• BIR and employer-registration evidence
• Redacted employment contract
• Redacted payslip and payroll register
• Redacted statutory remittance evidence
• HMO and benefit summary
• Data-processing agreement
• Subprocessor list
• Termination workflow
• Business-continuity summary
• Full fee schedule
• Exit and transfer terms

Contracting stage

• Final service agreement
• Data-processing agreement
• SLA and escalation matrix
• Confirmed implementation plan
• Responsibility matrix
• Agreed pricing schedule
• FX methodology
• Exit-assistance terms
• Evidence-delivery schedule
• List of approved exceptions and remediation dates

Evidence does not always need to contain personal employee information. Providers can redact employee names, account numbers and other sensitive details while retaining enough information to demonstrate the process.

Blank Weighted Provider Scorecard

Enter a score from 0 to 4 for each provider.

Category	Weight	Provider A	Provider B	Provider C
Legal employer and registrations	15
Employment contracts and labour compliance	15
Payroll, tax and statutory remittances	20
Pricing, invoicing and FX transparency	10
Benefits and employee support	10
Termination, switching and continuity	10
Data privacy, IP and security	10
Service levels and business continuity	10
Weighted total	100
Critical failure present?		Yes / No	Yes / No	Yes / No
Decision

Maintain a separate evidence log recording:

• Document requested
• Document received
• Document date
• Entity named
• Reviewer
• Open issue
• Provider response
• Contractual resolution
• Final approval

How to Interpret the Results

Weighted score	Recommended interpretation
85–100	Strong candidate, subject to contract review and resolution of remaining issues
70–84	Conditional candidate with specific evidence, commercial or contractual gaps to resolve
Below 70	Significant gaps; do not approve without substantial remediation
Any score with a critical failure	Pause approval until the failure is resolved

The highest-scoring provider is not automatically the correct choice.

The final decision should also consider:

• Philippines-only versus multi-country requirements
• Current and planned employee volume
• Industry-specific security or regulatory obligations
• Integration requirements
• Internal HR and payroll capability
• Required implementation date
• Employee experience
• Contract flexibility
• Cost predictability
• Quality of the provider’s supporting evidence

Questions to Ask Before Approving an EOR

1. Which exact Philippine entity will employ our workers?
2. Can you provide current evidence of employer registrations?
3. Can we review a redacted employment contract, payslip and payroll register?
4. When will we receive payroll and statutory remittance evidence?
5. How are salary, statutory costs, benefits, fees and FX charges separated?
6. Which services or employment events trigger additional fees?
7. Who leads formal disciplinary and termination processes?
8. What happens if we transfer employees to another EOR or our own entity?
9. Where is employee data stored, and which subprocessors can access it?
10. Which commitments will be included in the final contract and SLA?
11. Who handles urgent employee and payroll escalations in the Philippines?
12. What evidence will be available after onboarding and every payroll cycle?

Avoiding Duplicate Provider Rankings

This checklist does not rank or declare a winning EOR provider.

Provider rankings, published prices and “best for” recommendations belong in the canonical Best EOR Providers in the Philippines comparison.

Use that page to identify potential providers. Use this page to test whether each shortlisted provider can prove its claims and meet your organisation’s requirements.

Common EOR Due-Diligence Mistakes

Choosing the lowest headline fee

The service fee may exclude deposits, FX charges, benefits, legal review, onboarding and termination costs.

Accepting marketing material as proof

A polished compliance page does not demonstrate that the correct Philippine entity will employ your workers or that payroll controls operate consistently.

Reviewing only the client agreement

The client agreement, employment contract, payroll process, privacy terms and provider policies must work together.

Ignoring the exit process

A provider that is easy to join but difficult to leave can create payroll, benefit and employee-retention risks.

Treating every gap equally

A missing service-report example is not equivalent to an unidentified legal employer or unavailable remittance evidence.

Failing to record procurement commitments

Important representations should be added to the final contract, SLA, pricing schedule or implementation plan.

Frequently Asked Questions

What is EOR due diligence?

EOR due diligence is the process of verifying the legal, payroll, statutory, commercial, security and operational capabilities of an Employer of Record before allowing it to employ workers on a client’s behalf.

What documents should a Philippines EOR provide?

A shortlisted provider should be prepared to supply redacted entity documents, employer-registration evidence, employment contracts, payslips, payroll registers, statutory remittance evidence, benefit summaries, privacy documents, pricing schedules, SLAs and termination procedures.

How do you score EOR providers?

Score each category from 0 to 4 based on the quality of the evidence. Divide the score by 4 and multiply it by the category weight. Add the weighted category results to produce a score out of 100.

What is a good EOR due-diligence score?

A score of 85 or above indicates a strong candidate, provided no critical failure exists. A score between 70 and 84 requires conditional approval and remediation. A score below 70 suggests significant gaps.

Should the cheapest EOR receive the highest score?

No. Pricing accounts for only part of the assessment. Legal-employer evidence, payroll controls, remittances, employee support, data security and exit capability may create greater risk than the monthly service fee.

Can a provider pass if it has a critical compliance failure?

A critical failure should normally pause approval regardless of the provider’s overall score. The issue should be resolved and evidenced before contracting.

Should every EOR provider receive the same questionnaire?

Yes. Sending the same evidence request and applying the same scoring methodology produces a more consistent comparison.

How often should EOR due diligence be repeated?

Complete full due diligence before appointment. Review material documents annually and whenever the provider changes its employing entity, payroll partner, pricing structure, data subprocessors, service model or contract terms.

Evaluate Your Philippines EOR Shortlist

A reliable EOR should be able to explain its operating model and support important claims with current, relevant evidence.

Smart Outsourcing Solution can provide a clear breakdown of its Philippine employment model, payroll process, statutory administration, pricing structure, employee support and onboarding responsibilities.

Contact Smart Outsourcing Solution to discuss your planned headcount, roles, salary ranges, start dates and current employment structure.

 

This guide provides general procurement and operational information. It is not legal, tax, employment or data-protection advice. Requirements should be reviewed against your organisation’s circumstances and confirmed with appropriately qualified Philippine advisers.