What is Employer of Record

Hiring a remote team can be complicated if you’re doing the hiring all on your own. Fortunately, EORs can lessen the burden of this process by doing all the work for you. EORs can help businesses meet their goals and objectives while ensuring legal compliance. That said, read on to learn what an EOR is, and why you need it in your business!
Employer of Record in PH

KMC has Delivered over 5,000 employees to over 200 Global companies

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Clean Energy Associates

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Tom Morgan

National Manager / ASG

KMC allowed ASG to set up operations quickly without the hassle or inconvenience of piecing together resources, services, and capabilities from different sources."

Michael Klint

Director of Operations / Moscord

Positives significantly outweigh the negatives working with KMC, It's definitely positive, there's a lot of talent, you can move quickly, it's very agile, we've had a lot of success."

Larah Teng

Country Manager / Zoom

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KMC helps us scale whether through leased workspace that they help manage or through staff leasing - leveraging KMC's core expertise which is talent acquisition"

Ivan - Catch

Ivan Trajkovski

Head of Customer Experience/Catch


KMC plays a key role in our growth strategy allowing us to scale up our workforce quickly and efficiently. This extends across many departments' including Customers Service, Marketing, Back Office and more. "

Reynaldo Mendoza, Jr.

MTO (PH) Manager / Coral Active

KMC consistently demonstrates a proactive approach in meeting our requirements, and we have full confidence in their ability to scale up effortlessly.


What is an EOR?

EOR stands for employer of record. Essentially, an EOR serves as a third-party company that handles essential employment tasks on behalf of a business. In this process of talent insourcing, businesses can build offshore teams with minimal local law risks and liabilities.

That said, read on to learn more what an EOR is, and why you need it in your business!

Remote Staff: Administrative

What are the responsibilities of an EOR?

The role of the employer of record is to be the mediator in an existing employer-employee relationship. The EOR handles the management of all legal requirements related to employment and payroll. On the other hand, its responsibilities don’t cover day-to-day work tasks. Furthermore, from its name, the EOR is the one registered as the employees’ employer on paper. However, the management and supervision lie within the client company’s responsibility. They make all necessary steps and decisions on project management, employee position and duties, termination, and compensation.

What are the key functions and responsibilities of an EOR?

An EOR has an extensive scope of services and responsibilities. As such, the client company has the opportunity to customize the service they will get according to their needs and circumstances.

But in general, the EOR handles basic personnel functions of the client company while ensuring they have total business operations control. The EOR offers an end-to-end business solution and acts as the legal entity for the following responsibilities:

Benefits of Having an EOR in the PHilippines

The EOR offers efficient end-to-end solutions to talent insourcing for businesses. In this way, companies can become more efficient with allocating time and resources. Read on below to know more about the benefits of having an EOR in your business functions!
EOR Benefits

Decreased Employee Accountability

EORs act on the responsibility of ensuring employee welfare. They carry out duties directed by authorities and health maintenance organizations, including insurance coverage and payroll processing.

Boost Time and Cost-Efficiency

Working with an EOR allows companies to focus on tasks significant to business growth. They will have more room to do these as they would no longer need to manage payroll and HR matters. Moreover, this partnership enables businesses to save costs by paying a fixed hourly rate for each employee.
Boost time and cost-efficiency
KMC Hybrid Work

Compliance Checking & Monitoring

Tax and labor laws differ from country to country and can be so complicated to understand. Having an EOR can help ensure that the company remains compliant with all necessary laws in the country they’re hiring from. This matter makes it convenient for overseas clients who are talent insourcing.

Part of the EOR’s duty is to remain up-to-date with local laws for compliance checking and monitoring. They also ensure that the processing of payrolls stays compliant with applied employment laws.

Skip Unnecessary Local Incorporation

When hiring employees locally, it’s necessary to process local incorporation and registration. It can cost quite a lot in terms of time and money because the process would require legal and accounting support. Fortunately, this is also within the scope of an EOR. They will ensure legal compliance without the need to undergo local incorporation.
Data Protection Techniques and Technology


Having an EOR onboard proves to be helpful to companies with plans to expand their reach. An EOR is reliable in advancing this process, thanks to their local expertise. Thus, an EOR can be the most practical and convenient way for a business to meet its vision for growth and expansion.

That said, below are some ways working with an EOR can be of help:

An EOR will make the needed research and assessment for the company’s international market readiness. If deemed necessary, they will hire employees in the client company’s target countries.

In this way, the company can evaluate the operations with local employees in said locations. Plus, the EOR will take care of matters concerning the establishment of an entity.

There is a risk in hiring independent international contractors in terms of employment and tax violations. Fortunately, the business can leave out the processing of requirements to the EOR to ensure compliance with all necessary processes.

Working with an EOR can help speed up the beginning of operations for a company with no entity yet. The EOR will handle the company’s services as the entity gets set up at the same time.

It is the EOR’s duty to pay new employees in compliance with labor laws and regulations. They will handle the payroll if the company has no legal business entity yet. In this process, the EOR facilitates acquisition for the company.

How KMC’s Employer of Record Services in the philippines Work

KMC offers payroll and general HR management for its client companies. Our team of expert professionals can seamlessly handle these critical administrative tasks for you. We also ensure compliance with local tax laws and systems businesses must follow in the talent insourcing process. In this way, you can focus on growing and expanding your business.
EOR Flow

The Zoom Story: Zero to Hero in 6 Months Amid the Pandemic

Zoom has become the number one tool in everybody’s remote work setup. In line with this massive transition, the company has had to pivot its operations to adapt to its rapid expansion. In this process, KMC has provided them with high-quality teams that have helped navigate their growth in the Philippines.

Human Resource Management

Human Resources Management

Payroll Services

Payroll Services
Outsourcing Model
Initial consultation
Sourcing and initial interview
Signing of contract
Onboarding of employee and set-up
Continuous partnership and support

Need an Employer of Record (EOR)? Work with KMC now!

KMC takes pride in our client-centric solutions. We commit to placing our 100% effort in building trust with all our partners and clients. Contact us today, and we look forward to being a part of your company’s success!