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Internship Agreement
"I need an internship agreement for a 3-month summer internship, including a stipend of $1,500 per month, 20 hours per week, with a focus on marketing projects and mentorship opportunities."
What is an Internship Agreement?
An Internship Agreement spells out the terms between a host company and an intern in the Philippines, creating a structured learning experience that bridges classroom theory with real-world practice. It covers key details like work schedules, training objectives, and any allowances or benefits, following DOLE guidelines for student internships.
This agreement protects both parties by clearly defining roles, responsibilities, and expectations during the internship period. Companies often use these agreements to comply with Philippine labor laws while giving students valuable industry exposure without creating a traditional employer-employee relationship. Most universities require signed agreements before students can start their on-the-job training (OJT) programs.
When should you use an Internship Agreement?
Use an Internship Agreement before accepting any student interns into your Philippine organization. This document becomes essential when coordinating with universities for their required on-the-job training programs, particularly during the standard internship seasons of March to May and October to December.
The agreement needs signing before the intern's first day to ensure DOLE compliance and establish clear expectations. Companies hosting multiple interns, especially in regulated industries like banking or healthcare, need separate agreements for each student. Many universities require these signed documents at least two weeks before internship start dates to process academic requirements.
What are the different types of Internship Agreement?
- Internship Contract Agreement: Standard paid internship format used by most companies, covering compensation, work hours, and duties
- Unpaid Internship Agreement: Used for voluntary training programs focusing on educational benefits rather than compensation
- Work Placement Agreement: Three-way agreement between company, university, and student for academic credit programs
- Internship Learning Contract: Detailed version emphasizing specific learning objectives and skills development milestones
Who should typically use an Internship Agreement?
- Host Companies: Organizations providing internship opportunities, usually represented by HR managers or department heads who oversee intern programs
- Student Interns: College or vocational students seeking practical training experience, typically in their third or fourth year
- Educational Institutions: Universities and colleges that coordinate with companies and validate internship programs for academic credit
- OJT Coordinators: Faculty members who liaise between schools and companies, ensuring compliance with CHED requirements
- Legal Departments: In-house lawyers or external counsel who review and customize agreement terms
How do you write an Internship Agreement?
- Basic Details: Gather intern's full name, contact information, school ID number, and program details from university documents
- Training Schedule: Define internship duration, daily hours, and total required hours as per CHED guidelines
- Department Info: Confirm supervisor name, department assignment, and specific training objectives
- Compensation Terms: Determine allowance amount, payment schedule, and any additional benefits like meal subsidies
- School Requirements: Obtain university OJT guidelines, required forms, and evaluation criteria
- Insurance Coverage: Check if intern needs separate insurance or falls under company coverage
What should be included in an Internship Agreement?
- Parties and Purpose: Full names and details of company, intern, and educational institution, plus training objectives
- Duration Clause: Start date, end date, and required training hours following CHED guidelines
- Work Arrangements: Schedule, location, supervision structure, and department assignment
- Compensation Terms: Allowance amount, payment schedule, and any additional benefits or stipends
- Confidentiality: Protection of company information and intellectual property during internship
- Evaluation Process: Performance assessment criteria and reporting requirements to school
- Termination Terms: Conditions for ending the internship and notice requirements
What's the difference between an Internship Agreement and an Agency Agreement?
An Internship Agreement differs significantly from an Agency Agreement, though both involve someone performing work within an organization. Let's explore their key differences:
- Legal Relationship: Internship Agreements create a training-focused relationship with educational objectives, while Agency Agreements establish a principal-agent business relationship
- Duration and Purpose: Internships are temporary learning experiences tied to academic requirements, whereas agency relationships are often ongoing business arrangements
- Compensation Structure: Interns typically receive allowances or stipends, while agents earn commissions or fees based on performance
- Liability and Authority: Agents can legally bind their principals in business dealings, but interns have no such authority and work under close supervision
- Regulatory Framework: Internships fall under CHED and DOLE guidelines, while agency relationships are governed by the Civil Code of the Philippines
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