Is your offshore contractor actually an employee?
Most Australian businesses paying someone in the Philippines directly have no idea where they sit. The contract says contractor. The relationship often says something else, and classification follows the relationship. Answer seven questions and see your exposure in about a minute.
General information, not legal advice. Nothing is stored unless you ask us to send you the breakdown.
Answer all seven questions to see your result.
Frequently asked questions
Is this legal advice?
No. It's a structured way to see where your arrangement sits so you can ask your accountant or employment lawyer better questions. Classification rules change in both Australia and the Philippines.
What actually happens if we get classification wrong?
The exposure runs both ways. In the Philippines, a reclassified worker can claim statutory benefits, 13th month pay and back contributions. In Australia, engaging someone as a contractor when the relationship is employment can attract a sham contracting claim under the Fair Work Act, with penalties attached.
Does paying through a freelance platform protect us?
Not on its own. The platform handles the payment rail. The question of who directs the work, sets the hours and owns the tools stays with you, and that's what classification turns on.
Can we move an existing contractor onto an EOR without disrupting them?
Yes. The person, the work and the pay stay the same. The employment moves to our Philippines entity, which becomes the legal employer. Most transitions take two to four weeks.