Contract To Hire Agreement Template for Philippines

The Contract to Hire Agreement is commonly used in the Philippines when organizations wish to evaluate potential permanent employees through a structured temporary employment period. This arrangement, governed by Philippine labor laws including the Labor Code and related DOLE regulations, provides a formal framework for both employers and workers during the evaluation period. The document typically includes detailed terms of employment, performance expectations, evaluation criteria, and the process for conversion to permanent employment. It's particularly relevant in industries with high-skill requirements or where extensive training investment is needed. The agreement must carefully balance the employer's need for evaluation with the worker's rights under Philippine employment law, including provisions regarding probationary employment and regularization.

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

2. Background: Context of the agreement, including the employer's desire to evaluate the worker for potential permanent employment

3. Definitions: Key terms used throughout the agreement, including 'Contract Period', 'Permanent Employment', 'Evaluation Criteria', etc.

4. Term and Contract Period: Duration of the contract period, typically 3-6 months, in compliance with Philippine Labor Code provisions on probationary employment

5. Position and Duties: Detailed description of the role, responsibilities, and performance expectations during the contract period

6. Compensation and Benefits: Salary, statutory benefits, and any additional benefits during the contract period

7. Performance Evaluation: Specific criteria and process for evaluating the worker's suitability for permanent employment

8. Conversion to Permanent Employment: Process, conditions, and terms for converting to permanent employment upon successful completion

9. Confidentiality and Intellectual Property: Protection of company information and ownership of work product

10. Termination: Conditions and process for early termination of the agreement

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

12. General Provisions: Standard clauses including amendments, entire agreement, and severability