How To Avoid Pitfalls Of Worker Misclassification

Technological advances have allowed companies to undertake cross-border operations and engage individuals around the world without the need for relocation. The Philippines is an international business hub, so it is not unusual for foreign establishments to engage with Filipino professionals. There is, in fact, an ongoing trend in hiring Filipino workers either through direct employment or independent contracts on an individual basis.

These two modes of worker acquisition are fundamentally different. Direct employment means that employer obligations are automatically applicable. In The Philippines, this includes compliance with the statutory terms and conditions of employment, and upholding the worker's right to security of tenure. Employment relationships are governed by the Labour Code and other local labour laws.