What is an Employer of Record? Here Is Everything You Need to Know
Hiring international talent shouldn’t require setting up entities, navigating unfamiliar labor laws, or carrying unnecessary risk. An Employer of Record (EOR) allows companies to hire full-time employees in other countries while staying compliant—without establishing a local legal entity.
KMC Teams helps companies build dedicated teams in the Philippines and Colombia, handling employment, compliance, and operations so you can focus on leading your people and growing your business.
What is EOR?
Employer of Record (EOR) refers to a third-party organization that legally employs workers on behalf of another company. While the EOR becomes the legal employer on paper, the client company retains full control over the employee’s day-to-day work, performance, and responsibilities.
Through an EOR model, companies can build teams in the Philippines and Colombia without setting up a local entity—reducing legal exposure while maintaining operational control.
What Are Employer of Record (EOR) Functions and Responsibilities?
An Employer of Record serves as the legal employer for compliance and administrative purposes. KMC assumes responsibility for employment-related obligations, while you manage the employee’s work and outcomes.
KMC is the employer on record for contracts, payroll, taxes, and statutory benefits. You remain in control of role scope, compensation decisions, performance management, and termination approvals.
This structure allows companies to operate confidently in new markets without taking on regulatory risk.
Service Scope of an Employer of Record
The scope of EOR services can be customized based on your needs. As your Employer of Record in the Philippines and Colombia, KMC is responsible for:
- Employment contracts compliant with local labor laws
- Payroll processing, taxes, and statutory remittances
- Benefits administration and government reporting
- Employee onboarding and offboarding
- Ongoing HR, admin, and compliance support
- Acting as liaison with local authorities when required
You maintain full operational authority while KMC manages the employment framework behind the scenes.
What are the Benefits of Employer of Record (EOR)?
The EOR is an effective and efficient solution for the outsourcing needs of your business. As a client, you can save time and resources that you can redirect to more significant functions. Proceed to the section below to know more about the numerous distinct benefits of hiring an EOR.
Reduced Employment Risk
KMC ensures employees are hired, paid, and managed in full compliance with local labor laws—reducing exposure to penalties, disputes, and misclassification risks.
Compliance Monitoring
Labor and tax regulations vary by country and change frequently. KMC stays current with employment laws in the Philippines and Colombia, ensuring ongoing compliance without burdening your internal team.
Time and Cost Efficiency
By outsourcing HR, payroll, and compliance responsibilities, companies save operational time and avoid the cost of legal setup, local consultants, and internal administration.
No Local Incorporation Required
With an EOR, you can hire employees without registering a local entity—allowing faster market entry and lower upfront investment.
When to Use an Employer of Record (EOR)
Hiring an EOR will be very helpful to organizations that plan to expand globally. The client company will then rely on the EOR for local expertise and expediting the process. Hiring an EOR is the most convenient way for a company to meet its global growth objectives. To elaborate, here are some situations wherein partnering with an EOR will be most helpful.
A company may hire an EOR to help them explore new markets.
An EOR will hire employees in target countries and assess the readiness of an international market. They let the company test the waters by starting operations with the new employees. The company will not need to spend money and time establishing an entity since the EOR will take care of it.
A company may hire an EOR to guard them against the non-compliance of independent contractors.
Hiring independent international contractors will put you at risk of tax and employment violations. An EOR will do all processes following all the requirements of your host country. Doing so will prevent you from incurring penalties due to non-compliance.
A company may hire an EOR to act as an entity stopgap.
Hiring an EOR is best for a company that wants to begin its operations quickly but is yet to establish an entity. The EOR will take charge of the company’s services while the company sets up the entity simultaneously.
A company may hire an EOR to facilitate an acquisition.
The EOR will help a company compliantly pay its new employees. They will take charge of the payroll on behalf of a company that does not have a legal business entity. By doing so, this facilitates the acquisition for the client company.
How KMC Employer of Record (EOR) Services Work
As your Employer of Record, KMC manages employment, HR, payroll, and compliance so you can focus on leadership and execution. Our teams in the Philippines and Colombia understand local regulations, tax systems, and employment best practices.
Human Resources Management
- Recruitment coordination and deployment
- Employee onboarding and orientation
- Benefits and compensation administration
- Workforce documentation and reporting
- Termination and redundancy compliance
Payroll Services
- Time and attendance monitoring
- Payroll processing and payslip generation
- Government-mandated remittances and reporting
- Payroll and tax documentation
Our EOR Process
Free Initial Consultation
We align on hiring goals, role requirements, and team structure in the Philippines or Colombia, including salary benchmarks and timelines.
Sourcing & Initial Interview
KMC leverages its employer brand and recruitment network to attract and screen qualified candidates aligned with your requirements.
Contract Signing
Once candidates are approved, KMC prepares compliant employment contracts and finalizes compensation, benefits, and start dates.
Employee Onboarding & Set Up
We provide workspaces, IT infrastructure, and operational support—whether your team works remotely or from one of our managed offices.
Continuous KMC Support and Partnership
Our HR, admin, and IT teams remain available to support both you and your employees throughout the engagement.
Frequently Asked Questions (FAQs)
KMC Solutions is the Philippines’ premier Employer of Record (EOR) and flexible workspace provider, trusted by global businesses to build high-performing offshore teams with speed and full compliance.
Here’s what sets us apart:
Time-to-Hire:
2–4 weeks
Client Retention Rate:
90%+
Global Clients Served:
400+
EOR Countries:
Philippines, Vietnam, Mexico, Colombia
Talent Base Managed:
6,000+ employees
Office Locations:
30+ across 4 countries
Certifications:
ISO 27001, ISO 9001, B Corp, Great Place to Work Best, Place to Work, HR Asia Best Companies to Work
Housing Program:
CASA Co-Living for seamless relocation and retention
We work with over 400+ businesses across multiple industries with diverse size and staff requirements
Stories of Growth
If you need an Employer of Record in the Philippines, work with us!
KMC is ISO-certified and is the largest Employer of Record service provider in the Philippines. Our team takes pride in providing customer-centric solutions for our clients. We commit our time and effort to build our partners’ trust. Contact our experts today, and we look forward to taking part in your company’s growth and success