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Case Studies Based on Practical Experience

EOR Services for an Australian Company Hiring in Sri Lanka and the Philippines

Expanding an Australian Workforce Across Two Countries Without Local Entities

An Australian company was expanding its international operations and required professionals in both Sri Lanka and the Philippines. The company wanted to hire and manage employees in these markets but did not want to immediately establish separate legal entities, payroll infrastructure, HR departments, and employment administration systems in each country.

 

Formix was appointed as the company’s Employer of Record (EOR) partner, providing the local employment infrastructure required to engage professionals in Sri Lanka and the Philippines while allowing the Australian company to retain day-to-day control over the employees’ work.

The Challenge

International expansion creates several operational responsibilities beyond finding the right employees. Once an employee is hired, the business must consider employment contracts, payroll, statutory contributions, leave administration, employee records, HR support, onboarding, and compliant offboarding.

For the Australian company, establishing these systems independently in two different countries would have required significant administrative resources and local expertise. The company therefore required an EOR partner capable of managing the local employment relationship while allowing its management team to remain focused on business operations.

Formix as the Employer of Record

Formix structured the engagement so that the relevant employees could be formally employed through the appropriate local EOR arrangement while continuing to work under the Australian company’s operational direction.

The Australian company remained responsible for assigning work, setting performance expectations, managing day-to-day responsibilities, and directing the employees’ professional activities. Formix managed the employment infrastructure surrounding those employees.

This created a clear separation between operational management and local employment administration. The client could manage its international workforce as part of its own team while Formix handled the local employer responsibilities.

Managing Sri Lankan Employment Requirements

For the Sri Lankan employees, Formix managed the local employment administration associated with the EOR arrangement, including employment documentation, payroll coordination, HR administration, and statutory contribution processes.

Where applicable, Formix manages Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) obligations as part of the employment administration. Sri Lanka’s Department of Labour currently states that the minimum EPF contribution is 8% from the employee and 12% from the employer, while the ETF Board states that the employer contributes 3% of monthly total earnings to ETF.

The EOR structure therefore removes the need for the Australian company to independently build the local administrative infrastructure required to manage these obligations.

Managing Existing Employees Through EOR

The engagement also demonstrated how EOR can be used when an international company already has personnel working in a market and needs a compliant local employment structure.

Where an existing employee is transitioned into an EOR arrangement, Formix coordinates the employment documentation and relevant transfer process so that the employment relationship and applicable statutory rights are appropriately addressed. Sri Lanka’s Labour Department specifically requires documentation addressing continuity of statutory rights where personnel are transferred.

This provides a structured alternative to simply treating an existing employee as an independent contractor or informal representative.

Payroll and Ongoing HR Administration

Each month, Formix manages the employment administration required for the relevant employees, including payroll processing, statutory deductions and employer contributions, employee records, leave administration, and HR coordination.

The client provides the relevant payroll and employment inputs, while Formix manages the local processing and employer-side administration.

This gives the Australian company greater visibility over employment costs while reducing the administrative burden associated with operating across multiple jurisdictions.

A Multi-Country EOR Structure

One of the key advantages of the engagement was the ability to support the Australian company’s international workforce across more than one country through a coordinated EOR relationship.

Instead of establishing separate employment infrastructure in Sri Lanka and the Philippines, the company could work with Formix for its international workforce requirements while maintaining direct operational management of its employees.

This created a scalable foundation for future international hiring as the company’s workforce requirements developed.

The Outcome

Formix enabled the Australian company to employ professionals in Sri Lanka and the Philippines without requiring the client to immediately establish separate local employment infrastructure in both markets.

The company gained access to local EOR support covering employment administration, payroll, HR coordination, statutory requirements, and employee management support, while retaining control over the employees’ day-to-day work.

The engagement demonstrated how EOR services for Australian companies can simplify international hiring when businesses want to build teams in new markets without immediately establishing their own local entities.

Why Formix for EOR

Formix provides Employer of Record solutions for international companies hiring professionals across Sri Lanka, the Philippines, Australia, India, Bangladesh, Maldives, and other markets through its global network spanning more than 150 countries.

Our EOR model supports international businesses with local employment administration, payroll, HR coordination, statutory obligations, onboarding, employee documentation, and offboarding.

For Australian companies looking to hire employees in Sri Lanka without establishing a local company, employ professionals in the Philippines, or expand internationally through an Employer of Record, Formix provides a structured workforce solution that combines local employment infrastructure with international workforce management.

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