Business Employment Contract for Philippines

Business Employment Contract Template for Philippines

A comprehensive employment agreement governed by Philippine law that establishes the formal relationship between an employer and employee in a business context. This contract complies with the Philippine Labor Code and related employment legislation, incorporating mandatory benefits, working conditions, and protective provisions required under Philippine law. It details the terms and conditions of employment, including compensation, duties, working hours, benefits, confidentiality obligations, and termination procedures, while ensuring alignment with local labor standards and practices.

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What is a Business Employment Contract?

The Business Employment Contract serves as a fundamental legal document establishing the employment relationship between companies and their employees in the Philippines. This contract type is essential for businesses operating in the Philippine market, ensuring compliance with the Labor Code of the Philippines and related employment legislation. It is typically used when hiring permanent employees in professional or business settings, covering all aspects of the employment relationship from compensation and benefits to work conditions and termination procedures. The document must incorporate mandatory provisions required by Philippine law, including statutory benefits, working hour limitations, and employee protections, while also allowing for customization based on specific industry requirements and position levels. This contract represents a crucial tool for risk management and clear communication of employment terms, particularly important in the context of the Philippines' employee-protective legal framework.

What sections should be included in a Business Employment Contract?

1. Parties: Identification of the employer and employee, including complete legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, responsibilities, and reporting relationships

5. Term of Employment: Employment duration, probationary period, and renewal terms

6. Compensation and Benefits: Salary, mandatory benefits, additional benefits, and payment terms

7. Working Hours and Location: Regular working hours, overtime policies, and place of work

8. Leave Entitlements: Various types of leave (vacation, sick, emergency) and their terms

9. Performance Expectations: Performance standards, evaluation processes, and review periods

10. Confidentiality: Protection of company information and trade secrets

11. Intellectual Property: Ownership of work products and innovations

12. Code of Conduct: Expected behavior, compliance with company policies

13. Termination: Grounds for termination, notice periods, and procedures

14. Post-Employment Obligations: Non-compete, non-solicitation, and return of company property

15. Governing Law: Application of Philippine law and jurisdiction

16. Entire Agreement: Integration clause and amendment procedures

What sections are optional to include in a Business Employment Contract?

1. Mobility Clause: Used when the position may require relocation or travel

2. Commission Structure: For sales or performance-based roles with variable compensation

3. Remote Work Provisions: When allowing work-from-home or hybrid arrangements

4. Training and Development: When specific training requirements or development programs are offered

5. Stock Options/Equity: For positions offering company ownership opportunities

6. International Assignment: For roles involving overseas work

7. Data Privacy Consent: Detailed section when extensive personal data processing is required

8. Non-Competition Agreement: For senior positions or roles with access to sensitive information

9. Flexible Working Hours: When offering alternative work schedules

10. Severance Package: For executive positions or when offering enhanced separation benefits

What schedules should be included in a Business Employment Contract?

1. Schedule A - Job Description: Detailed outline of role responsibilities and requirements

2. Schedule B - Compensation Package: Breakdown of salary components and benefits

3. Schedule C - Company Policies: Key company policies that form part of the employment terms

4. Schedule D - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Schedule E - Mandatory Benefits: Details of statutory benefits and calculations

6. Appendix 1 - Code of Conduct: Complete company code of conduct

7. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms and protected information

8. Appendix 3 - IT Security Policy: Technology usage and security requirements

9. Appendix 4 - Leave Policy: Detailed leave application and approval procedures

10. Appendix 5 - Training Agreement: Terms for company-provided training and development

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Telecommunications

Business Process Outsourcing

Real Estate

Hospitality

Energy

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Quality Assurance

Business Development

Administration

Product Development

Project Management

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Software Engineer

Financial Analyst

Human Resources Manager

Marketing Specialist

Operations Supervisor

Sales Representative

Project Manager

Business Development Executive

Administrative Officer

Research Analyst

Quality Assurance Specialist

Customer Service Manager

Technical Support Specialist

Account Executive

Product Manager

Legal Counsel

Systems Administrator

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, including terms of employment, working conditions, benefits, and termination procedures
Philippine Constitution of 1987, Article XIII (Social Justice and Human Rights): Constitutional provisions protecting workers' rights, ensuring humane working conditions, and guaranteeing security of tenure
Republic Act No. 7877 (Anti-Sexual Harassment Act): Defines and prohibits sexual harassment in the workplace, requiring employers to implement preventive measures
Republic Act No. 8282 (Social Security Law): Mandates Social Security System (SSS) coverage and contributions for private sector employees
Republic Act No. 11223 (Universal Health Care Act): Requires PhilHealth coverage for all employees and specifies employer contributions
Republic Act No. 7875 (National Health Insurance Act): Establishes mandatory PhilHealth coverage and contributions for employees
Republic Act No. 9679 (Home Development Mutual Fund Law): Mandates Pag-IBIG Fund membership and contributions for employee housing benefits
Republic Act No. 11058 (Occupational Safety and Health Standards): Sets requirements for workplace safety and health standards that employers must maintain
Republic Act No. 10396 (Night Work Prohibition Law): Regulates night work and provides additional compensation for night shift workers
Republic Act No. 11165 (Telecommuting Act): Provides legal framework for alternative working arrangements including work-from-home setups
Data Privacy Act of 2012: Governs the collection, processing, and protection of employee personal information
Republic Act No. 11036 (Mental Health Act): Requires employers to address mental health concerns and provide appropriate support in the workplace
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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