RemoteStaffingWiki

Staff Leasing

Definition

Staff Leasing — Staff leasing is a staffing model, common in the Philippines, in which a provider legally employs workers who then work exclusively and full-time for a single client. The provider handles payroll, benefits, and local compliance, while the client directs day-to-day work — closely resembling an Employer of Record arrangement.

Staff leasing is a staffing model — common in the Philippines — where a provider legally employs workers who work full-time and exclusively for a single client. It blends the economics and compliance-handling of outsourcing with the dedication and direct-management feel of your own team.

How It Works

In a staff-leasing arrangement the provider handles recruitment, payroll, benefits, compliance, and the office or infrastructure, while the client manages the day-to-day work and output — so the leased staff feel like the client’s own team without the client needing a local legal entity. It overlaps with staff augmentation and the employer-of-record model; the distinguishing feature is the dedicated, full-time, exclusive relationship, which is why it is a staple of the Philippine outsourcing industry for building long-term offshore teams.

Key Points

  • In staff leasing, the provider is the legal employer of the leased staff, handling payroll, statutory benefits, and HR compliance, while the client directs the actual work performed.
  • The model is widely marketed in the Philippines for building offshore teams; legitimate contracting there is regulated by the Department of Labor and Employment (DOLE) Department Order No. 174-17, which prohibits 'labor-only contracting.' (Philippine DOLE, Department Order No. 174, Series of 2017, 2017)
  • Staff leasing overlaps with Employer of Record (EOR) and staff augmentation but emphasizes a dedicated, exclusive, ongoing team rather than short-term or ad hoc placements.

Related concepts: Employer Of Record, Staff Augmentation, Statutory Benefits.

Related Terms

Employer of Record

An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company, handling payroll, taxes, benefits, and compliance in countries where the hiring company has no legal entity. EORs enable companies to hire international talent far faster than establishing a local legal entity.

Staff Augmentation

Staff augmentation is a flexible outsourcing model where external professionals are hired to fill specific skill gaps within your existing team, working under your direct management and following your processes. This model has become one of the most widely adopted staffing strategies in the technology sector. Typical engagement spans several months per resource.

Statutory Benefits

Statutory benefits are employee benefits an employer must provide by law — typically social security, healthcare or insurance contributions, unemployment insurance, workers' compensation, paid leave, and pensions. They contrast with voluntary fringe benefits like gym memberships or extra PTO, which employers offer to attract talent but are not legally required to provide.

FAQ

How does staff leasing work?
A provider recruits and legally employs staff who work full-time and exclusively for one client. The provider manages payroll, benefits, taxes, and local compliance, while the client oversees the workers' daily tasks, priorities, and performance.
Is staff leasing the same as an Employer of Record (EOR)?
They are very similar — in both, a provider is the legal employer while the client directs the work. 'Staff leasing' is the term commonly used in the Philippine offshore market; 'EOR' is the broader global term for the same core arrangement.
How is staff leasing different from staff augmentation?
Staff augmentation typically adds individual contractors to fill temporary gaps under the client's direction. Staff leasing emphasizes a dedicated, exclusive, ongoing team that the provider legally employs and administers on the client's behalf.
Who legally employs leased staff?
The staff-leasing provider is the legal employer of record. It holds the employment contract and is responsible for payroll, statutory benefits, and labor-law compliance, even though the workers perform their duties for and under the direction of the client.
Is staff leasing legal in the Philippines?
Legitimate contracting and staff leasing are permitted when compliant with DOLE Department Order No. 174-17, which sets rules for contracting and prohibits 'labor-only contracting.' Arrangements that fail its requirements can be deemed illegal, so compliance matters.