Philippines Companies Hiring, Onboarding, and Managing Employees in India with an Employer of Record Partner
Philippines companies are increasingly looking beyond their borders to access specialized talent and expand operations. Among the most popular destinations for outsourcing and staffing is India, thanks to its large pool of skilled professionals, competitive compensation levels, and growing alignment in business culture. However, direct hiring in India brings layers of administrative complexity, legal compliance, and employment management.
This is where an Employer of Record (EOR) partner becomes essential. An EOR acts as the legal employer on behalf of the foreign company, handling payroll, benefits, tax withholdings, employment contracts, and local compliance requirements. For Philippines companies unfamiliar with Indian labor law, partnering with an EOR mitigates risk and streamlines operations without the need to set up a legal entity.
By using an EOR, Philippines-based firms can hire Indian employees quickly, remain compliant with local regulations, and focus their internal efforts on project and performance management. This approach not only saves time but also helps avoid legal pitfalls that could delay or derail international hiring efforts. In the following sections, we will examine how Filipino Business can approach hiring in India through an EOR partner, how the onboarding process works, and best practices for managing Indian employees remotely.
Why Philippines Companies Choose EOR for Hiring in India
Companies based in the Philippines that seek to hire in India often encounter challenges related to legal registration, payroll processing, and contract management. Establishing a local entity involves significant cost and time, which is not always practical for short-term projects or small teams. An Employer of Record removes these barriers by legally employing workers on behalf of the Philippines-based client.
The EOR manages everything from offer letters to local tax filings, reducing the administrative burden on the hiring company. This is particularly beneficial for firms new to international employment or without internal HR expertise in Indian labor laws. EORs also help ensure that employment contracts are aligned with Indian legal standards, which vary by state and are subject to frequent updates.
For Philippine Business looking to expand quickly or test new markets without committing to long-term investments, an EOR provides a flexible and compliant solution. It also allows businesses to focus on core activities rather than local hiring logistics.
Effective Onboarding Strategies for Philippines Companies Hiring in India
Once a Filipino business decides to hire Indian talent through an EOR, the next step is onboarding. The EOR partner facilitates a structured process that ensures new hires are ready to contribute from day one.
The onboarding process typically starts with employment contract finalization. The EOR prepares this document in compliance with Indian labor laws, including mandatory clauses related to wages, notice periods, termination policies, and statutory benefits.
After signing, the EOR registers the employee with the relevant government agencies for tax and social contributions. The employee is then enrolled in applicable benefit schemes such as provident fund, employee state insurance, and medical coverage if offered.
Philippine firms play a key role in onboarding by providing job-specific training, access to internal systems, and introducing company culture. While the EOR handles the legal and administrative side, the hiring company is responsible for setting expectations and integrating the employee into team operations.
Philippines Companies Managing Indian Employees Through EOR
After onboarding, ongoing employee management becomes the joint responsibility of the EOR and the Philippine firms. The EOR ensures payroll is processed accurately and on time, statutory benefits are maintained, and compliance requirements are met.
Meanwhile, performance reviews, workload management, and professional development are typically handled by the Philippines company. Communication and clear delegation are essential to maintain accountability and keep employees aligned with business goals.
In case of disputes or issues related to termination, the EOR provides legal guidance and executes compliant exit procedures. This reduces exposure to legal risks and ensures that all actions align with both Indian labor law and the employer’s policies.
To maintain engagement, Philippine Organizations should invest in regular check-ins, cultural alignment initiatives, and transparent communication. Building a sense of inclusion can be more challenging across borders, but it plays a critical role in productivity and retention.
Case Study 1: Tech Startup Expands Indian Team Without Local Entity
A mid-sized Philippines-based tech startup wanted to hire software developers in India quickly but didn’t want to set up a legal entity. They partnered with an EOR service that handled all employment contracts, payroll, and compliance. Within two weeks, the startup onboarded three Indian developers under the EOR payroll. This approach saved them months of legal and administrative work and allowed them to focus on product development.
Case Study 2: Customer Support Firm Onboards Indian Staff Through EOR
A Philippines customer support company planned to scale operations by hiring Indian agents to cover additional time zones. Using an EOR partner, they managed to add five employees to the Indian payroll with all statutory benefits included. The EOR took care of local tax filings and compliance, while the company managed training and performance. This arrangement helped the firm meet their expansion goals with minimal risk.
Case Study 3: Financial Services Company Tests Indian Market with EOR
A Philippines financial services provider used an Employer of Record to employ two risk analysts in India. The EOR facilitated onboarding, payroll, and benefits management. After six months, satisfied with the results, the company hired additional staff. The EOR model gave them flexibility to test the market without upfront investment in a local office
Compliance and Payroll: What Philippines Companies Must Know
An essential advantage of working with an EOR in India is the ability to delegate complex compliance tasks. Labor laws in India are state-specific and often updated, making it difficult for foreign companies to stay current without local expertise.
The EOR handles payroll calculation, tax deductions, remittance to government agencies, and compliance reporting. They also ensure that leave policies, working hours, and holiday entitlements are properly implemented.
Philippines companies must ensure they collaborate closely with their EOR partner to define compensation structures, bonus policies, and other employment terms. Regular audits and clear reporting channels can further strengthen this partnership.
Onboarding and Managing Indian Staff with EOR
Using an Employer of Record in India allows Philippines companies to bypass the complexities of local setup while maintaining a high level of control over their hired talent. From onboarding to ongoing compliance, the EOR structure supports scalable and legally sound hiring operations. With proper collaboration between the hiring company and the EOR partner, managing Indian employees becomes a practical and effective process for Philippines-based firms.