Bonuses and Raises: Your Obligations and Liabilities When Hiring Filipino Remote Staff

Before you hire a worker from the Philippines, you have to be prepared.


Venturing in this effort is a risk for you and your would-be staff, and it’s going to pay off if both of you are ready. That means knowing what you can offer the relationship, and even what you can lose.


Hiring talent overseas means fully understanding both the reach and the limit of your obligations and liabilities. These are talents from another country, and so different rules may apply.


Still, for online workers and for would-be in-house staff from the Philippines, rules are different. Your obligations and liabilities are dependent on these distinctions.


So what are your responsibilities as an employer?


Learn the code


Image Credit: HumanResources 101

Before laying out your plan of action, consider learning the labor code of the Philippines. You don’t have to read the whole text, only what applies to you and your business. This  is your primary source of information regarding hiring Filipino workers, even before you ask your candidate.


From it, you’ll learn how to set your overseas employee’s work schedule, and how to compensate him. Knowing the labor code also helps you avoid the don’ts in dealing with your remote staff.


Jobs of purely online nature may not yet be covered in the labor code, but other clauses in the code still apply to Filipino online job seekers. It’s a smart precaution for you to learn the code.


Know the holidays


The number of Filipino non-working holidays will surprise you.


Knowing what and when these are will help you set your staff’s schedule and compensation plan. Even before starting the calendar, you can already speak with the worker about non-working holidays, and ask if he’ll agree to working anyways.

Image Credit: Tax Credits


Your staff may choose to work during these days, which means you have to be ready to compensate for his additional hours.


You may also decide to follow your country’s working calendar, which means your holidays will be followed. If this is what you choose, inform your staff about your decision.


Whether it’s yours or your staff’s choice to work during a holiday, it’s your obligation to compensate for your staff’s effort. Still, you may choose not to. Just inform your staff.


Get the perks


Aside from the wages and the benefits, Filipinos have a 13th month pay and a Christmas bonus; it’s in the law. They also have an overtime pay and leave credits. Recruiting a Filipino worker means you have to learn these too. Your staff will be expecting these perks, and may ask if you’re open to granting him these.


Image Credit: Jean Strejan

Whether or not you are, you better to tell it straight.


Let him know where you’re comfortable, so you can start your relationship without a bump.


You may be trying to cut costs, but do remember to provide your staff with proper compensation always. If you’re going to skip on the monetary bonus, you can try to provide an alternative.


An employer’s first obligation to his employee is to provide him with a job. The next is to compensate for his efforts. For remote workers, it stops with these two. Filipino online workers don’t have fixed perks as their office-based counterparts do. Providing bonuses depends solely on you.


So what do you think? Is that a yes to bonuses and raises?


Special thanks to:
Brian Daniel for the main image, follow him on Flickr.

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  • gordon chase

    Or if you’re married to a filipina like I am you just get her family to work for you. I have two lawyers and engineer and a web designer in my business/family.