Opening a Philippines Branch — Lessons from HR’s Frontline
Earlier this year, our client leadership team made the decision to transition from using an Employer of Record (EOR) to establishing a fully operational branch office in Manila, Philippines. The EOR model had given us a compliant entry point into the clients market and allowed us to build a local team. But as operations grew, we recognised the need for greater oversight of compliance, workforce planning, and culture.
As HR Partners, we were tasked with leading the people strategy for this transition. That meant ensuring compliance, supporting cultural integration, and setting the foundations for sustainable growth. It was both exciting and complex: new laws to learn, a different way of working to navigate, and the responsibility of ensuring people felt secure throughout the change.
The goal: onboard the first 15 staff, embed cultural alignment, and start operations within eight weeks, without overwhelming our APAC support functions or losing trust along the way.
Key Challenges Faced
Transitioning from the EOR: Taking on direct responsibility for payroll, compliance, and benefits meant ensuring staff experienced a seamless shift. Protecting entitlements and reassuring employees were top priorities.
Navigating government requirements: Registering the branch, securing permits, and managing regulatory processes required learning on the go. Each step had its own intricacies, timelines, and documentation demands.
Understanding local labour compliance: From 13th month pay and probation rules to holiday entitlements and tax obligations, the Philippine Labour Code presented new layers of responsibility.
Cross-functional workforce: The staff weren’t concentrated in one department. They supported engineering, operations, finance, and customer functions across multiple geographies, making alignment and communication more challenging.
Collaboration with global functions: Every step of the setup needed coordination with the clients APAC HR team, global finance, IT, and legal teams, as well as regular engagement with the Group SLT to align on risk appetite, governance, and cultural intent.
Systems and infrastructure: Payroll, HRIS, data privacy, IT equipment, and cross-border collaboration all needed to be set up with minimal disruption.
What We Did and the Steps We Took
Listening and Partnering Locally
We began by engaging directly with employees, consultants, and local HR peers. Their insights shaped how we approached policy, onboarding, and communication.Careful Transition Planning
We partnered closely with the EOR to ensure contracts, benefits, and entitlements carried over smoothly, building staff confidence in the move.Policy Co-Design
Rather than applying existing Australian frameworks, we co-created policies with local input, ensuring flexibility and relevance in the Philippines context.Phased Rollout
A smaller pilot group allowed us to identify and resolve issues before expanding to the full team. Regular updates to the SLT kept momentum, accountability, and visibility high.Embedding Culture Through Practice
Culture was reinforced not only through documentation but also via onboarding sessions, team check-ins, and recognition rituals.Empowering Local Leaders
We invested in developing local HR champions and team leads, equipping them with tools to navigate cross-cultural leadership and adapt practices for their teams. We also built strong feedback loops with global HR and management functions to ensure alignment remained consistent.
What Worked
Listening early and co-designing policies fostered buy-in.
Coordinating with group functions ensured compliance and governance standards were consistent across borders.
A clear transition plan minimised disruption and reassured staff.
The phased rollout gave us space to iterate and improve.
Embedding culture through everyday practices made values tangible.
Strong local leadership bridged the gap between Australia and the Philippines.
Lessons Learned
Manage the EOR transition carefully: continuity of entitlements builds trust.
Local input is critical: what works at home won’t always work abroad.
Give local voices space: they see challenges we might miss.
Plan for extra time: regulatory approvals and translation delays are inevitable.
Lessons for Leaders
Opening a new branch isn’t just about compliance and process it’s about trust, purpose, and growth. A few reflections we’d add for others considering the same journey:
Anchor to purpose: Be clear on why you’re opening the branch beyond operations. Employees want to feel they’re part of something meaningful.
Communicate, then communicate again: Use every channel town halls, one-to-ones, leadership videos, to signal commitment and answer questions openly.
Think careers, not just contracts: Show new hires how their careers can grow in the organisation, not just that their entitlements are safe.
Balance global and local: Define what’s non-negotiable (values, ethics, safety) and what can flex (policies, working rhythms). Clarity avoids confusion.
Measure and adapt: Engagement surveys, retention, and cross-team collaboration are the signals to watch, and act on.
Looking Ahead
The next steps include expanding headcount, running regular engagement surveys, and benchmarking retention and productivity against regional standards.
Transitioning from an EOR to a fully established branch has been one of the most rewarding HR challenges we’ve faced. It reminded us that HR is not only about compliance it’s about building bridges across cultures and creating the conditions for people to thrive.
For organisations considering a similar move, the journey is demanding but achievable. With the right preparation and a people-first approach, it can unlock growth and strengthen culture in new markets. At AdvisoryHR, we are here to support you in navigating these changes, contact us today.
