Comparison Checklist
| Criteria | What to look for |
|---|---|
| Local entity | Holds a Philippine entity and the employer registrations itself. |
| Legal structure | Can explain how the arrangement complies with DOLE Department Order No. 174. |
| Payroll and statutory pay | Handles 13th-month pay, SSS, PhilHealth, Pag-IBIG and withholding tax. |
| Contracts | Labor Code-based employment agreements, probation terms, confidentiality and IP clauses. |
| Pricing | All fees provided in writing. |
| Contract terms | Clear minimum term, notice period and exit fees. |
| Onboarding and offboarding | Clear processes, including separation pay and final pay. |
| Support | Local HR expertise and clear response times. |
| Benefits | Health insurance options. |
Red Flags
- An unclear or missing fee breakdown.
- Long minimum terms with high exit fees.
- An inability to explain the legal structure.
- No local entity.
- Unclear handling of 13th-month pay and statutory contributions.
Questions to Ask Every Provider
- Do you hold the Philippine entity and employer registrations yourself?
- How does your arrangement comply with DOLE Department Order No. 174?
- How do you handle payroll, 13th-month pay, statutory contributions and withholding tax?
- What do the employment agreement, probation, confidentiality and IP terms cover?
- Can you list all fees in writing?
- What minimum term, notice period and exit fees apply?
- What are your onboarding and offboarding processes, including separation pay and final pay?
- What local HR support, response times and health insurance options are available?