Co Employment Agreement Template for Philippines

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Key Requirements PROMPT example:

Co Employment Agreement

"I need a Co-Employment Agreement under Philippine law for a software development company sharing technical staff with a multinational tech corporation, with specific focus on intellectual property rights and remote working arrangements starting March 2025."

Document background
The Co-Employment Agreement is essential in situations where two companies share employment responsibilities for the same worker(s) in the Philippines. This arrangement is commonly used in joint ventures, professional services arrangements, or when companies need to share specialized talent. The agreement must comply with Philippine labor laws, particularly the Labor Code and Department Order No. 174-17 regarding contracting arrangements. It defines each employer's obligations regarding compensation, benefits, management oversight, and statutory compliance. The document typically includes detailed provisions for social security contributions, healthcare coverage, and tax responsibilities, ensuring that all parties understand their roles and obligations in the co-employment relationship.
Suggested Sections

1. Parties: Identifies and provides details of all parties to the agreement: the Primary Employer, Secondary Employer, and the Employee(s)

2. Background: Explains the context and purpose of the co-employment arrangement and the business relationship between the employers

3. Definitions: Defines key terms used throughout the agreement including specific roles, responsibilities, and employment-related terminology

4. Term and Commencement: Specifies the duration of the co-employment arrangement and its start date

5. Employment Status and Relationship: Defines the nature of the co-employment relationship and the employee's status with each employer

6. Duties and Responsibilities: Outlines the specific responsibilities of each employer and the employee's duties

7. Compensation and Benefits: Details the salary, benefits, and which employer is responsible for providing each component

8. Working Hours and Location: Specifies work schedules, overtime policies, and primary work location(s)

9. Statutory Compliance: Addresses compliance with Philippine labor laws, including social security, healthcare, and other mandatory benefits

10. Performance Management: Establishes how employee performance will be monitored and evaluated by both employers

11. Confidentiality and Data Protection: Outlines confidentiality obligations and data protection requirements under Philippine law

12. Termination Provisions: Details the circumstances and procedures for terminating the co-employment arrangement

13. Dispute Resolution: Specifies procedures for resolving disputes between parties

14. Governing Law: Confirms that the agreement is governed by Philippine law

15. General Provisions: Includes standard clauses such as amendments, severability, and entire agreement provisions

Optional Sections

1. Intellectual Property Rights: Required when the employee's work involves creation of intellectual property, specifying ownership rights between employers

2. Non-Competition: Optional clause restricting employee's ability to work with competitors, if relevant to the business context

3. International Travel: Include when the role requires travel between countries, specifying which employer manages travel arrangements and expenses

4. Training and Development: Optional section detailing responsibility for employee training and professional development

5. Remote Work Provisions: Include when the role involves remote work arrangements

6. Commission Structure: Required for sales or commission-based roles, detailing how commissions are calculated and paid

7. Equipment and Resources: Include when specifying which employer provides work tools and resources

Suggested Schedules

1. Schedule A - Job Description: Detailed description of the employee's role, responsibilities, and reporting relationships

2. Schedule B - Compensation and Benefits Structure: Detailed breakdown of salary, benefits, and allocation of costs between employers

3. Schedule C - Statutory Benefits Administration: Specific arrangements for managing SSS, PhilHealth, Pag-IBIG, and tax contributions

4. Schedule D - Performance Metrics: Detailed performance evaluation criteria and processes

5. Schedule E - Operational Procedures: Specific procedures for day-to-day management, time reporting, and approval processes

6. Appendix 1 - Employee Handbook References: References to relevant sections of each employer's employee handbook

7. Appendix 2 - Contact Information: Key contact persons and details for each employer for various employment matters

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Business Process Outsourcing

Manufacturing

Professional Services

Healthcare

Education

Financial Services

Construction

Retail

Telecommunications

Consulting

Research and Development

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Research and Development

Quality Assurance

Corporate Services

Business Development

Administrative Services

Compliance

Relevant Roles

Software Developer

Project Manager

Business Analyst

HR Manager

Financial Controller

Operations Manager

Research Scientist

Technical Consultant

Sales Director

Account Manager

Legal Counsel

Quality Assurance Specialist

Department Head

Executive Officer

Regional Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, including rights and obligations of employers and employees, working conditions, compensation, and benefits
Department Order No. 174-17: Regulations on contracting and subcontracting arrangements in the Philippines, which is relevant for co-employment situations
Republic Act No. 11165 (Telecommuting Act): Provides guidelines for alternative working arrangements, which may be relevant in co-employment situations where work is performed remotely
Republic Act No. 10173 (Data Privacy Act of 2012): Governs the collection, handling, and protection of personal information, including employee data shared between co-employers
Social Security Law (Republic Act No. 11199): Mandates social security coverage and contributions, which must be clearly addressed in co-employment arrangements
National Internal Revenue Code: Governs taxation aspects including withholding tax obligations in employment relationships
Republic Act No. 7875 (National Health Insurance Act): Requires PhilHealth coverage for employees, which must be addressed in co-employment arrangements
Republic Act No. 9679 (Home Development Mutual Fund Law): Governs Pag-IBIG Fund contributions and benefits, which need to be addressed in employment arrangements
Republic Act No. 11058 (Occupational Safety and Health Standards): Sets requirements for workplace safety and health standards, with responsibilities needing to be clearly defined between co-employers
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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