Employment Agreement Template for Philippines

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Employment Agreement

"I need a standard Employment Agreement for a senior software developer position in our Manila tech startup, starting January 2025, with specific clauses for intellectual property protection and remote work arrangements."

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What is a Employment Agreement?

The Employment Agreement serves as the foundational document governing the employer-employee relationship in the Philippines. It is essential for establishing clear terms of employment while ensuring compliance with the Philippine Labor Code, social legislation, and relevant employment laws. This document is typically used when hiring new employees or formalizing existing employment relationships, and should be updated when significant changes occur in the employment terms or relevant legislation. The agreement covers crucial aspects such as compensation, benefits, working conditions, and termination procedures, while incorporating mandatory provisions required by Philippine law, including probationary periods, statutory benefits, and worker protections. It's designed to protect both employer and employee interests while maintaining compliance with local labor regulations.

What sections should be included in a Employment 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 agreement

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

5. Term of Employment: Employment start date and whether fixed-term or permanent

6. Probationary Period: Length and terms of the probationary period as per Philippine Labor Code

7. Compensation and Benefits: Salary, mandatory benefits, and additional company benefits

8. Working Hours and Overtime: Regular working hours, overtime policies, and night shift differentials

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

10. Confidentiality: Protection of company confidential information

11. Intellectual Property: Ownership of work products and innovations

12. Data Privacy: Handling of employee personal data under the Data Privacy Act

13. Termination: Grounds and procedures for contract termination

14. Post-Employment Obligations: Continuing obligations after employment ends

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 Employment Agreement?

1. Mobility Clause: Required if employee may need to work at different locations

2. Remote Work Provisions: Include if telecommuting arrangements are allowed under RA 11165

3. Non-Competition: Include for senior positions, ensuring compliance with Philippine reasonable restrictions

4. Commission Structure: Include for sales positions or roles with variable compensation

5. Training Requirements: Include if specific training or certifications are required

6. Performance Metrics: Include if specific KPIs or performance standards apply

7. International Travel: Include if position requires international travel

8. Stock Options/Equity: Include if employee is eligible for company stock or equity programs

9. Signing Bonus: Include if a one-time signing bonus is offered

What schedules should be included in a Employment Agreement?

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

2. Schedule B - Compensation Package: Detailed breakdown of salary, allowances, and benefits

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

4. Schedule D - Mandatory Benefits: Details of statutory benefits under Philippine law

5. Schedule E - Performance Metrics: Specific KPIs and performance evaluation criteria

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

7. Appendix 2 - IT Policy: Company's IT usage and security policies

8. Appendix 3 - Leave Policy: Detailed leave policies and procedures

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

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Telecommunications

Real Estate

Energy

Agriculture

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Administration

Business Development

Product Development

Quality Assurance

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

Human Resources Manager

Marketing Manager

Sales Representative

Administrative Assistant

Operations Manager

Research Analyst

Customer Service Representative

Business Development Manager

Account Executive

Technical Support Specialist

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, covering rights and obligations of employers and employees, working conditions, compensation, and termination
Republic Act No. 10361 (Domestic Workers Act): Establishes labor standards for domestic workers, including minimum wage, benefits, and working conditions
Republic Act No. 11165 (Telecommuting Act): Provides framework for alternative working arrangements including work-from-home policies
Republic Act No. 11058 (Occupational Safety and Health Standards): Strengthens compliance with occupational safety and health standards and provides penalties for violations
Republic Act No. 10173 (Data Privacy Act): Protects individual personal information in information and communications systems, relevant for employee data protection
Republic Act No. 8282 (Social Security Law): Mandates social security coverage and benefits for employees
Republic Act No. 7875 (National Health Insurance Act): Establishes the Philippine Health Insurance Corporation (PhilHealth) and mandatory health insurance coverage
Republic Act No. 11223 (Universal Health Care Act): Provides for universal health care for all Filipinos, including employed individuals
Republic Act No. 7160 (Local Government Code): Contains provisions on local business permits and regulations that may affect employment
Republic Act No. 6971 (Productivity Incentives Act): Encourages implementation of productivity incentives programs
Republic Act No. 9481 (Night Shift Differential Act): Mandates additional compensation for employees working during night shifts
Republic Act No. 11313 (Safe Spaces Act): Prevents gender-based sexual harassment in workplaces and educational/training institutions
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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