Yes. Under SOS’s standard Employer of Record (EOR) arrangement, your company manages the employee’s day-to-day work in the Philippines. You assign tasks, set priorities, provide training and review performance. SOS’s Philippine legal employer handles employment contracts, payroll, statutory administration and formal HR processes.
Your employees can report to your managers, use your systems and take part in your team meetings. When a decision affects employment terms, pay or formal disciplinary action, coordinate it with SOS before putting it into effect.
Who handles what when you use an EOR in the Philippines?
| Your company manages | SOS’s Philippine legal employer handles |
|---|---|
| Daily assignments, priorities and deadlines | Employment contracts and necessary amendments |
| KPIs, performance reviews and coaching | Formal warnings, disciplinary procedures and employment exits |
| Training, work tools and team meetings | Payroll, statutory administration and employment records |
| Operational staffing needs and proposed schedules | Review and processing of changes affecting hours, pay and entitlements |
| Candidate interviews and selection | Employment onboarding and documentation |
You lead the work; the EOR administers the employment relationship. The agreed responsibilities should be reflected in your service agreement, employment documents and everyday working practices.
What can our managers do directly?
Your managers can organise the employee’s work much as they would for other members of a distributed team:
- Assign projects, set deadlines and review deliverables.
- Establish a reporting line to a manager in the UK, US, Australia or elsewhere.
- Set job-relevant goals and conduct regular performance reviews.
- Provide training, software access and instructions for the role.
- Include employees in meetings, planning and professional development.
For example, a US software company can assign sprint tasks to a developer in Manila and have its engineering manager review the code. An EOR representative does not need to approve each technical decision.
For practical advice on KPIs, feedback and communication, see our guide to managing remote teams in the Philippines.
Can we set KPIs and manage employee performance?
Yes. Your managers can set clear, reasonable KPIs, review results, give feedback and coach employees. Agree on expectations at the start, explain how performance will be assessed and keep a record of feedback and support provided.
If concerns may lead to a formal warning or another employment action, involve SOS’s HR team before communicating that decision. Operational feedback and formal disciplinary action are related, but they follow different processes.
Example: an employee repeatedly misses quality targets
Your manager reviews examples of the work, discusses the concerns with the employee and explains what improvement is needed. Keep dated notes of the feedback, the employee’s response and any training or support offered.
If the issue continues, share those records with SOS through your designated support contact. The Philippine legal employer reviews the circumstances and coordinates the appropriate formal process with you. A performance concern should not become an unplanned dismissal during a coaching meeting.
Which decisions need EOR coordination?
Changes to employment terms and formal HR matters should follow the approval process agreed with your EOR.
Pay, bonuses and working hours
You can propose a salary increase, performance bonus, overtime or a different shift. Coordinate the details and effective date with SOS so any necessary contract updates, employee communications and payroll treatment are addressed.
For example, moving an analyst to an evening shift may affect working hours and pay entitlements. Confirm the arrangements before the new schedule starts. Our payroll transparency and approval guide explains the checks involved in payroll approval.
Formal warnings and disciplinary action
Managers provide the facts and supporting records. Under SOS’s standard arrangement, the Philippine legal employer reviews and administers formal disciplinary steps, including the appropriate documentation and employee communications.
Resignation, redundancy and termination
Tell SOS promptly when an employee resigns or when a business change may affect their role. Ending a project or cancelling an EOR service agreement does not automatically end the employee’s employment.
Philippine dismissal requirements depend on the grounds and circumstances, including applicable process, notice and employee entitlements. The Department of Labor and Employment’s termination guidance provides background. Coordinate a proposed exit with the legal employer before announcing it to the employee.
System security and employment status are separate matters. If an urgent security incident requires restricting system access, follow your incident-response process and notify SOS promptly. Restricting access does not itself complete an employment termination process.
How does this work with SOS?
Smart Outsourcing Solution provides its Philippine EOR service through Global BPO Solution Philippines, Inc., the legal employer under our standard arrangement. Recruitment and candidate sourcing are included: your business interviews candidates, chooses whom to hire and directs their everyday work.
You also have a dedicated Account Manager and Delivery Manager, with 24/7 HR and payroll support. The purpose is to give your managers a clear route for employment questions while they concentrate on running their team.
For a performance concern, the division of responsibilities is straightforward:
- Your manager documents the concern. Record the relevant targets, work examples, feedback, support provided and employee response.
- You involve SOS. Share the information through your designated support contact before taking a formal employment step.
- The Philippine legal employer coordinates the process. The circumstances are reviewed and the appropriate documentation and formal communications are handled with your input.
- Your manager continues operational support. Keep expectations clear and provide the agreed coaching and feedback.
Before onboarding, agree on who proposes, approves, records and communicates leave, schedule and pay changes. SOS uses Sprout HR as its employment and payroll system of record; any client-side approval or time-tracking tools need an agreed process for transferring the relevant records.
See our Philippines EOR service scope and pricing for what is included.
Does using an EOR remove every employer-related risk?
No. An EOR arrangement should be assessed through its contracts and actual working practices. Philippine courts consider factors including engagement, payment, dismissal powers and control when determining an employment relationship. The Supreme Court discusses these principles in Ditiangkin v. Lazada, a worker-classification case rather than a ruling validating a particular EOR model.
An EOR does not automatically remove every potential client-side legal or tax obligation. If the arrangement raises questions about employer status or liability, obtain advice on the specific facts. Our contractor-versus-employee guide covers the separate classification issue.
Frequently asked questions
Can an EOR employee report directly to an overseas manager?
Yes, under SOS’s standard arrangement. The overseas manager directs daily work, sets priorities and reviews results. The employee should also know their SOS contact for employment, payroll and HR questions.
Can EOR employees use our company email and equipment?
Yes, subject to agreed security and engagement terms. You can provide company email, software access and equipment for the role. Agree on access permissions, confidentiality and equipment return arrangements before the employee starts.
Can we use our own leave-approval system?
You can use an agreed client-side process for operational leave approval. Approved leave must also be recorded accurately in SOS’s system of record so employee entitlements and payroll remain consistent. Confirm how records will be transferred before using a separate tool.
Can our manager approve overtime or a new shift?
Your manager can identify and approve the operational need within the agreed process. Coordinate the hours and effective date with SOS so contracted hours, payroll and applicable entitlements are addressed before the change takes effect.
Can we pay a performance bonus directly from overseas?
Speak to SOS first. A bonus needs appropriate documentation and payroll treatment, even if it is funded overseas. Agree on the payment route before sending it to avoid inconsistent employment or payroll records.
Who handles a complaint about the overseas manager?
The employee should have a clear route to SOS’s HR team or the designated Philippine employer contact. The client should preserve relevant records and cooperate with the review. The manager named in a complaint should not be the employee’s only escalation route.
Build your Philippine team with clear responsibilities
Keep your managers focused on tasks, performance and team development, with SOS supporting employment administration and formal HR processes.
Book an introductory call with SOS. Tell us whom you plan to hire and how your team operates, and we will walk through reporting lines, approvals and support before your employee starts.
