Employee relocation to Philippines is the process of transferring the employee from the foreign company’s headquarters, or from another branch to the branch or subsidiary located in Manila, or in another city in the Philippines.
Many employees might be interested in relocation, given the fact that this step can provide them with important career opportunities, as well as the chance to become accustomed to the business culture in another country.
A company interested in personnel relocation to Philippines will take into account the local requirements for work and residence permits, as well as the provisions of the Philippines employment law.
Foreign nationals interested in immigration to Philippines, as well as foreign companies that have established their presence here and are interested in hiring foreign staff, can reach out to our local company formation experts if they have questions and whenever they require assistance for handling employment and business matters in Manila, or in other cities.
The company’s policy for employee relocation to the Philippines
When setting up its business operations in the Philippines, a foreign company has the option to either hire staff in the Philippines or to move valuable employees, who will be transferred from other branches.
A relocation package is prepared by the company’s HR department, and it is approved as per the company’s internal protocol. The main purpose of the package is to provide the employee with financial assistance for the relocation, as well as with the administrative support that may be required.
Some of the issues covered by the relocation package include:
- Temporary living expenses: if the transfer time is short, the company can offer the employee temporary housing in the Philippines, for a pre-determined period;
- Packing and moving: part of the reimbursement offered by the company can be for the services related to packing, and moving to the Philippines;
- Travel expenses: the company can pay for the airplane tickets to move to the Philippines;
- Miscellaneous allowance: this can include a fixed amount for the expenses incurred with the relocation.
Employee relocation to Philippines can take place as a request for transfer (when the employee desires the opportunity to do so) or as a transfer by the company (when the relocation was decided by the employee’s superiors, as per the company’s goals). The distinction between the two forms of relocation is an important one, as it will determine the subsequent steps for the individual(s) being relocated.
Foreign nationals who move to the Philippines as part of a requested transfer or the employer’s decision to relocate can reach out to our local team of agents for information on how they can reunite with their spouse and/or children.
Living and working in the Philippines
All foreign nationals who wish to engage in remunerated work in the Philippines need to apply for and obtain a work permit, called an alien employment permit. This is obtained from the Department of Labor and Employment.
Some of the key issues concerning the employment permit are the following:
- the holder of an employment permit will be permitted to engage in remunerated activities, with the condition that the employer was unable to find local employees for the particular job position;
- for the purpose of personnel relocation to Philippines, it must be shown that the services of the said foreign national are indispensable to the local company;
- when the relocation (employment) is for less than six months, a special application can be submitted to the authorities; for relocation periods of over six months, the regular application route is followed for an alien employment permit;
- a working visa required for foreign nationals in the Philippines is dependent on obtaining an alien employment permit from the Department of Labor and Employment.
The employer will need to follow the requirements not only for hiring foreign employees but also for the currently applicable daily minimum wage rates:
- Baguio City, La Trinidad, & Tabuk City: Php 380, an increase of Php 30 from the previous rate;
- Other areas: also Php 380, an increase of Php 40 from the previous rate;
- Cordillera Administrative Region: Php 400, an increase of Php 20 from the previous rate.
Our team can give you more details about the minimum wage rates, and other relevant labor law matters. You can contact us if you are interested in personnel relocation to Philippines.