When engaging Remote People to hire an employee in the Philippines through our Employer of Record (EOR) services, it is essential to understand which client entities are permitted to enter into a contractual agreement with us.
The Philippine Entity Cannot Sign
A client may have an entity legally registered in the Philippines. However, Remote People does not sign contracts with Philippine-based entities for purposes of EOR engagement.
The client's Philippine entity cannot sign the Proposal or Terms & Conditions.
Instead, the client must designate a separate foreign entity—one that is legally established outside of the Philippines—to act as the contracting party with Remote People.
This policy applies specifically to clients looking to hire employees in the Philippines using Remote People's EOR solution.
Why This Requirement Exists
Remote People assumes the role of the legal employer in the Philippines, while the client retains operational oversight of the employee. In order to comply with Philippine labor and corporate laws, and to preserve the proper structure of the EOR arrangement, the agreement must be entered into by a foreign (non-Philippine) entity. This approach ensures: full legal compliance with local employment and tax regulations; clear delineation of roles between Remote People (as EOR) and the client (as end-user); and protection against regulatory or structural complications.
Summary of Requirements
Client has a registered entity in the Philippines: Permitted. Philippine entity signs Remote People's Proposal or Terms & Conditions: Not permitted. Foreign (non-Philippine) entity signs Proposal and Terms & Conditions: Required. If your organization is planning to hire talent in the Philippines through Remote People, please ensure that the contractual agreement is signed by an eligible foreign entity.