If you’re hiring remote talent in the Philippines or managing a distributed workforce of Filipino VAs, freelancers, or contractors, staying compliant with HR policies isn’t optional—it’s essential. Philippine labor laws are strict, and overlooking even a single regulation can create unnecessary legal and financial risks for your business.
At Comply.ph, we help businesses like yours build virtual teams and convert freelancers into legitimate employees—ethically, securely, and seamlessly. One of the most important steps in this journey is ensuring your HR policies align with Philippine compliance requirements.
In this guide, we’ll walk you through 7 essential HR policies every Philippine business needs to stay compliant—and how our platform, Comply.ph, helps you implement and manage them the right way.
1. Employment Classification Policy
Before you do anything else, you must define and document how you classify your workforce. This is especially important if you’ve been working with contractors, freelancers, or virtual assistants.
Why It Matters:
Misclassification is one of the most common compliance issues. If your contractor works full-time hours, uses your systems, and reports only to you—they might be legally considered an employee under Philippine law.
What to Include:
- Clear criteria distinguishing full-time employees from independent contractors
- Conditions for converting contractors or VAs into employees
- A process for regular classification reviews
How Comply.ph Helps:
We specialize in employee conversions. If you’re unsure whether someone should be a contractor or a full-time employee, we guide you through the transition. Our Employer of Record (EOR) model allows you to onboard them as legitimate employees under our Philippine entity—no legal risk to you, full compliance for your team.
2. Statutory Benefits Policy
Every Filipino employee is entitled to government-mandated benefits. These are not optional. Failing to provide these benefits exposes your business to penalties and even potential employee lawsuits.
Key Government Mandated Benefits in the Philippines:
- Social Security System (SSS) – Retirement and disability insurance
- PhilHealth – Public healthcare insurance
- Pag-IBIG Fund – Housing savings and loan program
- 13th Month Pay – Mandatory annual bonus equivalent to one month’s pay
What Your Policy Should Include:
- Details on contribution rates and employer obligations
- How benefits are processed and paid
- Procedures for remitting to government agencies
How Comply.ph Makes It Easy:
When you build virtual teams through us, we take full responsibility for processing and remitting all statutory contributions. You get a simple monthly invoice—no government paperwork, no surprises, just fully compliant employment.
3. Leave and Holiday Policy
The Philippines has very specific rules on paid leaves, national holidays, and rest days. Your leave policy needs to reflect these requirements.
What to Include:
- Service Incentive Leave (SIL): 5 days of paid leave per year after one year of service
- Maternity Leave: 105 days for female employees, with options for solo parents
- Paternity Leave: 7 days
- Special Leaves: For women under the Magna Carta of Women
- Holiday Pay: Rules differ for regular and special non-working holidays
Common Mistakes to Avoid:
- Not providing SIL to full-time remote workers
- Incorrect holiday pay calculations for virtual employees
- Failing to document leave policies in employee handbooks
Our Solution:
When you onboard talent through Comply.ph, your team automatically receives all government-mandated leave benefits. You don’t have to memorize labor codes or calculate holiday pay—we do it for you.
4. Salary and Payroll Policy
Even if your team works remotely, you must follow Philippine payroll standards. This means not only paying on time, but also ensuring legal deductions, withholding taxes, and compliance with minimum wage laws.
Essential Inclusions:
- Pay schedules (bi-weekly or monthly)
- Tax withholding rules
- Deductions (SSS, PhilHealth, Pag-IBIG)
- Payslip generation and recordkeeping
Local Payroll Considerations:
- Payroll must be in Philippine Peso
- Mandatory government deductions must be listed in payslips
- DOLE (Department of Labor and Employment) audits often check payroll compliance
Why This Can Get Complicated:
Managing payroll manually or through foreign systems can easily result in errors—especially when scaling virtual teams.
What Comply.ph Does Differently:
We handle 100% of your Philippine payroll process. Our HR and legal experts ensure your employees are paid accurately, on time, and in full compliance with local laws. From payslip creation to tax filings, we manage everything.
5. Code of Conduct and Disciplinary Policy
Even with remote teams, you need a clear code of conduct—and an official policy on how to manage behavioral or performance issues. This ensures fairness and protects your business legally.
What to Include:
- Workplace expectations and standards of conduct
- Disciplinary process and documentation steps
- Termination guidelines aligned with Philippine labor laws
Why It’s Critical:
In the Philippines, you can’t just “let someone go” without due process. The Labor Code requires specific steps, including notice periods and valid cause.
What Happens Without It:
- Risk of illegal dismissal claims
- DOLE investigations and possible fines
- Damaged employer reputation
How Comply.ph Supports You:
We provide legal guidance on employee discipline and termination—so you never have to second-guess what’s compliant. From issuing warnings to managing due process, our HR team has your back.
6. Data Privacy and Confidentiality Policy
Whether your virtual staff handles customer information, internal documents, or financial data, Philippine law mandates businesses to uphold data privacy standards under the Data Privacy Act of 2012.
This isn’t just about protecting data; it’s also about ensuring your team understands their responsibilities when it comes to handling sensitive information.
What to Include:
- Rules on collecting, storing, and using personal or company data
- Restrictions on sharing or transferring information
- Remote work-specific protocols (e.g., device use, password sharing, cloud access)
- Disciplinary actions for breaches
Why It Matters:
The Philippine government takes data privacy violations seriously, even when they occur remotely. If your virtual team mishandles client data or leaks internal files, your company can face legal consequences—even if you’re overseas.
How Comply.ph Helps:
We ensure that when you build virtual teams through our platform, every employee signs an enforceable confidentiality agreement aligned with Philippine laws. Our employment contracts and HR policies are built to protect both you and your team, reducing the risk of any data breach or legal violation.
You stay protected—without needing your own legal department.
7. Termination and Exit Policy
The most overlooked HR policy—until things go wrong—is the termination and exit policy. In the Philippines, employee termination is strictly regulated. You can’t simply terminate someone at will, even in remote setups.
Without a documented and compliant exit process, you’re vulnerable to illegal dismissal claims, DOLE audits, and reputational damage.
What a Compliant Termination Policy Should Cover:
- Valid grounds for termination (e.g., just causes and authorized causes as defined by the Labor Code)
- Due process: notice requirements and hearing opportunities
- Final pay, including prorated benefits, last salary, and 13th-month pay
- Certificate of employment issuance
Common Pitfalls to Avoid:
- Letting go of someone without due notice
- Not issuing a formal termination letter
- Skipping government-required steps for authorized terminations
Where Comply.ph Comes In:
We don’t just help you hire—we support your team’s full lifecycle. If an employee needs to be let go, we manage the offboarding legally and ethically, handling:
- Proper documentation
- Legal compliance
- Final pay processing
- Exit interviews
Our team ensures that your business never crosses a legal line—and your reputation stays protected.
Ready to Stay Compliant and Scale With Confidence?
Don’t let HR compliance issues slow your growth. Whether you’re building virtual teams from scratch or need help with employee conversions, Comply.ph is the only platform you need.
- You set the salary.
- We handle onboarding, payroll, and legal compliance.
- You get a committed, compliant team that helps your business scale long-term.
Book your free consultation call now and let’s talk about how we can help you build and manage a compliant team in the Philippines—without the legal headaches.
