Employee Outsourcing Agreement Template for Philippines

The Employee Outsourcing Agreement is essential for businesses operating in the Philippines that wish to engage external workforce through legitimate contracting arrangements. This document is particularly relevant in light of strict Philippine regulations on labor-only contracting, as outlined in Department Order No. 174-17. The agreement covers all aspects of the outsourcing relationship, including employee rights, benefits, and protections required under Philippine law, while clearly delineating the responsibilities of both the service provider and the client company. It's designed to ensure compliance with local labor standards, social security requirements, and data privacy regulations while providing a framework for sustainable workforce solutions. The document is crucial for companies seeking to optimize their workforce management while maintaining legal compliance in the Philippine jurisdiction.

1. Parties: Identifies the outsourcing service provider and the client company

2. Background: Explains the context of the agreement, including the client's need for outsourced employees and the provider's capabilities

3. Definitions: Defines key terms used throughout the agreement, including 'Outsourced Employees', 'Services', 'Service Levels'

4. Scope of Services: Details the outsourcing services to be provided, including recruitment, employment, and management of outsourced employees

5. Service Provider Obligations: Specifies the responsibilities of the service provider, including compliance with labor laws, payment of wages, and provision of benefits

6. Client Obligations: Outlines the client's responsibilities, including workplace safety, supervision, and payment terms

7. Employment Terms: Details the terms of employment for outsourced employees, ensuring compliance with Philippine labor laws

8. Compensation and Payment Terms: Specifies service fees, payment schedule, and terms for both provider fees and employee compensation

9. Statutory Benefits and Compliance: Addresses mandatory benefits under Philippine law (SSS, PhilHealth, Pag-IBIG, etc.)

10. Term and Termination: Specifies the duration of the agreement and conditions for termination

11. Confidentiality and Data Protection: Addresses confidentiality obligations and compliance with the Data Privacy Act

12. Indemnification and Liability: Outlines liability allocation and indemnification obligations between parties

13. Dispute Resolution: Specifies procedures for resolving disputes, including jurisdiction and governing law

14. General Provisions: Includes standard clauses such as force majeure, notices, and amendments