What is Employer of Record (EOR) and How Does It Work?

If you’re working as a contractor on VirtualStaff.ph but want more job security, benefits, and legal protection, then an Employer of Record (EOR) arrangement might be the right path for you. Here’s how it works and how it benefits Filipino professionals like you.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a company that legally employs workers on behalf of another business. This means that instead of being classified as a contractor, you would become a full-time employee under VirtualStaff.ph’s EOR service while continuing to work for your employer.

As your EOR, VirtualStaff.ph would handle:

• Compliance with Philippine labor laws
• Payroll processing and tax deductions
• Government-mandated benefits (SSS, PhilHealth, Pag-IBIG)
• Full legal employment status and HR support

How Does EOR Benefit You as an Employee?

By switching from an independent contractor to an EOR employee, you gain access to several important benefits:

• Job Security – You receive a legally compliant employment contract, ensuring long-term stability.
• Social Security and Healthcare – Your contributions to SSS, PhilHealth, and Pag-IBIG are handled by VirtualStaff.ph, securing your future.
• Paid Leaves & Bonuses – You become eligible for paid holidays, sick leave, and the 13th-month pay that’s standard for Filipino employees.
• Streamlined Payroll – Your salary is processed through a formal payroll system, ensuring timely and accurate payments with proper tax deductions.
• HR & Legal Support – You have access to HR assistance for any work-related concerns, making employment stress-free.

How Do You Transition from a Contractor to an EOR Employee?

If your employer is interested in hiring you as a full-time employee under VirtualStaff.ph’s EOR service, here’s how the process works:

1. Employer Approval – Your employer agrees to use VirtualStaff.ph’s EOR service.
2. Contract Signing – You sign an employment contract through VirtualStaff.ph.
3. Payroll Setup – Your salary, tax deductions, and benefits are all set up under the legal employment structure.
4. Start Working as an Employee – You continue your work but with full employee benefits and protections.

Frequently Asked Questions

1. Do I need to pay for EOR services?

No, the cost of EOR services is covered by your employer. You receive all the benefits without any additional cost.

2. Can I still work remotely?

Yes, working under an EOR does not change your remote work setup. You will continue working for your employer as usual, but with additional benefits and job security.

3. Will my salary change?

Your employer will determine your salary, but with EOR, you’ll receive a structured payroll system, tax deductions, and government-mandated benefits.

4. How long does it take to transition from a contractor to an EOR employee?

Once your employer agrees, the process typically takes 5-10 business days for contract signing and payroll setup.