Building an offshore team is not just about finding a talented person and sending them a login.
The way the relationship is structured matters. So do the contract, working arrangements, privacy controls, payroll responsibilities and the amount of direction the business gives the team member.
Team Hatch helps Australian businesses understand the practical options available when building a team in the Philippines. We keep the process clear, then recommend professional legal or tax advice where the situation needs it.
Two common engagement options
1. Direct engagement
Under a direct engagement model, the client engages the offshore team member directly.
This can offer:
- a direct relationship between the business and the team member;
- flexibility in how the role is structured;
- transparent salary arrangements;
- lower ongoing administration costs; and
- a team member who feels like a genuine extension of the business.
The client is responsible for choosing and documenting the correct arrangement. This includes classification, payment, tax, working expectations, leave, confidentiality, intellectual property, data protection and termination.
A contract label is not enough on its own. Regulators and courts may look at how the relationship works in practice, including control, fixed hours, exclusivity, delegation, financial risk and whether the person is operating their own independent business.
2. Employer of Record
An Employer of Record, commonly called an EOR, legally employs the team member in the Philippines while they work with the client’s business.
Depending on the provider and arrangement, this may include:
- a locally compliant employment agreement;
- payroll and tax administration;
- SSS, PhilHealth and Pag-IBIG contributions;
- 13th month pay;
- statutory leave and benefits;
- local HR support; and
- support with lawful performance management and termination.
An EOR may suit full-time, highly directed or higher-control roles, or businesses that prefer local employment administration to be handled by a specialist provider.
Through Hatch Compliance, Team Hatch can facilitate access to a third-party EOR provider at the provider’s cost. Team Hatch does not add a hidden salary markup.
Why we recommend an EOR for full-time and part-time Hatch Hire roles
An EOR is optional, but for full-time or part-time Hatch Hire placements we generally recommend it.
The reason is practical. If a worker is engaged directly as a contractor but the relationship operates like employment , fixed hours, close day-to-day direction, exclusivity, ongoing rather than project-based work , they may later be characterised as an employee rather than an independent contractor. If that happens, the business can be exposed to claims for back-pay, unpaid leave, superannuation and penalties. Cross-border engagements add a further layer of uncertainty about which country’s laws apply and how far they reach.
An EOR removes that ambiguity. A locally compliant entity becomes the legal employer, payroll and statutory entitlements are handled correctly from the start, and the business is insulated from misclassification exposure. We treat it as relatively low-cost protection against a dispute that can be expensive and stressful to resolve.
Whether and how these risks apply depends on the specific arrangement, so this is general information rather than legal advice. We recommend confirming your situation with a qualified employment or tax adviser.
How Hatch Flex is different
Hatch Flex is not a direct placement or a dedicated employee supplied to the client.
It is structured as a shared, task-based and generally asynchronous service:
- the client engages Team Hatch for service delivery;
- Team Hatch allocates work within its shared talent pool;
- work is requested as tasks and deliverables;
- the client does not set fixed working hours for an individual pool member; and
- Team Hatch remains responsible for allocating and managing delivery.
That structure is designed to keep Flex distinct from a direct employment-style relationship. The signed Hatch Flex Client Agreement sets out how the service operates.
Because Team Hatch engages the pool members, allocates the work and manages delivery, the classification and employment risk sits with Team Hatch, not the client. There is no contractor for the client to potentially misclassify, no payroll for the client to run, and no minimum-wage, leave or entitlement exposure for the client to manage. With Hatch Flex, that risk is ours to hold.
Practical safeguards for every offshore arrangement
Whichever model a business chooses, the basics matter:
- use a written agreement that matches the real relationship;
- clearly define the role, deliverables and responsibilities;
- deal with confidentiality and intellectual property in writing;
- set fair and transparent pay;
- document leave, availability, notice and termination expectations;
- limit access to systems and information based on the role;
- provide a clear onboarding plan and workplace policies;
- keep records of payments and key decisions;
- review the arrangement when the role or working pattern changes; and
- obtain legal, tax or employment advice when the classification is unclear.
What Team Hatch does
Team Hatch can:
- help scope the role and working model;
- recruit, screen and shortlist candidates;
- coordinate interviews and onboarding;
- provide practical onboarding and SOP support;
- explain the difference between direct engagement, Hatch Flex and EOR options;
- connect clients with an EOR provider where requested; and
- work alongside the client’s legal or professional advisers.
Team Hatch is a recruitment and offshore support business. We are not a law firm, accounting firm or government regulator. Information on this page is general only and should not be treated as legal, tax or employment advice.
The goal
Compliance should not be used as a scare tactic.
The goal is to choose a structure that fits the real role, protects both sides and gives the offshore team member a fair, stable and professional working relationship.