Expanding your business internationally can be one of the most rewarding steps in your growth journey, but it often comes with legal, financial, and operational hurdles. Each country has its own employment laws, payroll regulations, and compliance requirements that can slow down expansion and increase costs.

And that’s how Employer of Record (EOR) services come in, which enable companies to hire and manage employees in another country without setting up a local legal entity. Essentially, the partner with EOR services becomes the ‘legal employer’ on record, while your organization maintains full control over the employees’ day-to-day responsibilities and performance. It’s an evolution of the same principles that explain why companies outsource work, to reduce complexity, lower costs, and gain access to skilled talent across borders.

For global leaders, the model offers a fast, compliant, and cost-efficient way to build teams abroad, so if you’re scaling a startup or managing global operations, EOR simplifies hiring so you can focus on growth rather than red tape.

How Employer of Record Services Work

An Employer of Record is the official employer for your overseas staff, handling all administrative, legal, and HR responsibilities on your behalf. This includes:

  • Drafting locally compliant employment contracts
  • Managing payroll, taxes, and statutory benefits
  • Ensuring adherence to labor laws and regulations
  • Handling terminations, renewals, and HR documentation

The client company, however, still directs the employees’ tasks and integrates them into the business just like internal staff.

The model differs from traditional outsourcing or business process outsourcing (BPO) setups, where work is typically project-based and controlled by the provider. With EOR, your global team members are fully dedicated to your organization, aligned with your culture and goals.

EOR vs. PEO and Direct Hiring

While a Professional Employer Organization (PEO) offers HR support and co-employment arrangements, the client still has to be a registered entity in the country. An EOR, by contrast, eliminates that requirement entirely, making it ideal for companies testing new markets or scaling rapidly across borders. Read our blog to learn more about the difference between EOR and PEO.

Direct hiring may provide more control but comes with significant overhead: entity registration, local HR setup, and legal exposure, which echo many of the risks of outsourcing that companies face when managing overseas operations without a trusted compliance partner. For businesses prioritizing speed, flexibility, and compliance, EOR services are the practical middle ground.

Most Common Roles Placed Under Employer of Record Services

Employer of Record solutions are especially valuable for organizations that need to scale teams quickly across different departments. The most common roles placed under EOR include:

  • Customer support and service representatives. Businesses strengthen customer experience through dedicated offshore support.
  • IT and software development teams. Tech startups and SaaS companies tap global talent without local incorporation.
  • Finance and accounting professionals. EOR providers manage compliant hiring for finance roles that require precision and trust.
  • Sales and marketing staff. Companies entering new markets use EOR to onboard regional teams and test expansion potential.
  • HR and recruitment coordinators. EOR setups often include local HR professionals who understand cultural and legal nuances.

These roles reflect the dual demand for operational support and specialized expertise. With an EOR, companies gain both without navigating the complexities of foreign entity registration.

For startups considering offshore expansion, EOR services complement strategies explored in outsourcing for startups, providing a pathway to hire full-time employees abroad while maintaining flexibility.

Why the Philippines Is a Prime Market for EOR Services

The Philippines has long stood as a global hub for outsourcing and offshore staffing, and for good reason. With a strong talent base, English proficiency, and cost advantages of up to 70% savings, it offers one of the most strategic locations for EOR solutions.

Companies choose the Philippines for its:

  • Skilled workforce. A broad talent pool across IT, customer service, finance, and creative industries.
  • Cultural alignment. Professionals adept at working with Western companies, ensuring smoother collaboration.
  • Competitive costs. Lower operational expenses without compromising quality or work ethics.
  • Robust outsourcing ecosystem. Established infrastructure and labor policies designed to support international partnerships.

EOR in the Philippines provides a launchpad that combines local expertise with global scalability for businesses seeking to expand operations efficiently.

How Reliasourcing Delivers Employer of Record Services

At Reliasourcing, we designed our Employer of Record solutions to remove the complexity of international hiring.

We handle all compliance, payroll, and HR functions so businesses can expand confidently, without the administrative weight of entity setup. Our approach goes beyond paperwork. It’s about building partnerships grounded in trust and scalability.

Here’s what makes our EOR service distinct:

  • Tailored workforce models for startups, SMEs, and enterprises entering or scaling in the Philippines.
  • Compliance-first operations ensuring every hire meets local labor standards and data privacy laws, such as ISO 9001:2015 and ISO/IEC 27001:2022.
  • End-to-end HR administration, integrating payroll, benefits, and employee relations.
  • Flexible scalability, allowing clients to add or adjust teams without long-term commitments and without having to establish a local entity.

We understand that each client’s journey is unique. If you’re a startup exploring offshore teams or an established company expanding globally, our local expertise ensures seamless integration into your global workforce. Book a consultation to explore EOR solutions with Reliasourcing. 

Conclusion: Making EOR Part of Your Growth Strategy

Employer of Record services simplify what global expansion often complicates: hiring, compliance, and payroll management. They bridge the gap between ambition and execution, allowing companies to focus on innovation while staying compliant in every market they enter.

As businesses navigate a more borderless world of work, scaling globally without bureaucratic obstacles becomes a competitive advantage. With its skilled workforce and dynamic outsourcing environment, the Philippines remains one of the best places to start.

If you’re considering EOR as part of your growth strategy, let’s make it happen. Contact Reliasourcing today, and let’s talk about your global hiring goals.