Employee Contract Agreement for Philippines

Employee Contract Agreement Template for Philippines

A comprehensive employment agreement governed by Philippine labor law that establishes the formal employment relationship between an employer and employee. This contract outlines essential terms and conditions of employment, including job responsibilities, compensation, benefits, working hours, and other key provisions in compliance with the Philippine Labor Code and related employment legislation. The document incorporates mandatory requirements under Philippine law such as probationary periods, 13th month pay, and statutory benefits while allowing for customization based on specific employment terms and company policies.

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What is a Employee Contract Agreement?

The Employee Contract Agreement serves as the foundational document establishing the employment relationship in the Philippine context. This document is essential when hiring new employees or formalizing existing employment relationships in the Philippines, ensuring compliance with the Labor Code of the Philippines and related employment legislation. It outlines crucial elements including compensation, benefits, working conditions, and termination procedures, while incorporating mandatory provisions required by Philippine law such as social security coverage, health insurance, and workers' protection. The agreement should be used at the commencement of employment or when updating terms for existing employees, providing both parties with clear understanding of their rights, obligations, and expectations within the employment relationship.

What sections should be included in a Employee Contract Agreement?

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract defined for clarity

4. Position and Duties: Job title, role description, and primary responsibilities of the employee

5. Term of Employment: Employment start date and whether the contract is fixed-term or indefinite

6. Probationary Period: Duration and terms of the probationary period, not exceeding 6 months as per Philippine law

7. Compensation and Benefits: Base salary, mandatory benefits (13th month pay, SSS, PhilHealth, Pag-IBIG), and other standard benefits

8. Working Hours and Schedule: Regular working hours, days, and overtime provisions in compliance with Philippine labor laws

9. Leave Entitlements: Vacation, sick leave, and other statutory leave entitlements

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Standards of Conduct: Expected behavior, compliance with company policies, and grounds for disciplinary action

13. Termination: Conditions and procedures for contract termination, notice periods, and severance provisions

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

15. Entire Agreement: Statement that the contract represents the complete agreement between parties

What sections are optional to include in a Employee Contract Agreement?

1. Remote Work Provisions: Include when the role involves work-from-home or hybrid arrangements, as per the Telecommuting Act

2. Non-Compete Clause: Include for senior positions or roles with access to sensitive business information

3. Relocation Terms: Include when the role may require relocation or overseas assignments

4. Commission Structure: Include for sales positions or roles with performance-based compensation

5. Training Requirements: Include when specific training or certification requirements exist

6. Flexible Benefits: Include when offering cafeteria-style benefits or flexible benefit options

7. Vehicle/Equipment Provision: Include when company provides vehicles or significant equipment for employee use

8. Performance Metrics: Include when specific KPIs or performance measures are crucial to the role

What schedules should be included in a Employee Contract Agreement?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and reporting relationships

2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits computation

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

4. Schedule D - Confidential Information: Specific details of what constitutes confidential information

5. Schedule E - Benefits Summary: Detailed description of all benefits and eligibility criteria

6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical standards

7. Appendix 2 - Leave Policy: Detailed leave policy including application procedures and special leaves

8. Appendix 3 - Performance Review Process: Details of performance evaluation procedures and timing

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

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Professional Services

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Administration

Production

Quality Assurance

Business Development

Strategic Planning

Compliance

Relevant Roles

Chief Executive Officer

Department Manager

Software Developer

Financial Analyst

Human Resources Manager

Marketing Coordinator

Sales Representative

Administrative Assistant

Project Manager

Operations Director

Customer Service Representative

Research Analyst

Production Supervisor

Quality Assurance Specialist

Business Development Manager

Technical Support Engineer

Account Executive

Legal Counsel

Data Scientist

Graphic Designer

Industries
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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