The Employment Contract Policy serves as a foundational document for organizations operating in the Philippines, establishing the framework for employment relationships in compliance with the Philippine Labor Code and related legislation. This document is essential for organizations seeking to standardize their employment practices, ensure legal compliance, and provide clear guidelines for both management and employees. The policy covers all aspects of the employment relationship from recruitment to separation, incorporating mandatory requirements under Philippine law as well as company-specific procedures and benefits. It should be implemented by all organizations with employees in the Philippines and regularly updated to reflect changes in labor laws and company practices.
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1. Purpose and Scope: Defines the objective of the policy and its application scope within the organization
2. Legal Framework: References to relevant Philippine labor laws and regulations that govern the policy
3. Employment Classifications: Defines different types of employment status (regular, probationary, project-based, seasonal, etc.)
4. Recruitment and Hiring: Procedures for job posting, candidate selection, and hiring processes
5. Working Hours and Schedule: Standard working hours, flexible arrangements, overtime policies
6. Compensation and Benefits: Salary structure, mandatory benefits, bonuses, and other compensation elements
7. Leave Entitlements: Various types of leaves as mandated by law and additional company-provided leaves
8. Performance Management: Performance evaluation procedures, criteria, and frequency
9. Code of Conduct: Expected behavior, professional standards, and workplace ethics
10. Disciplinary Procedures: Progressive discipline process, grounds for disciplinary action
11. Grievance Mechanism: Procedures for addressing employee complaints and concerns
12. Separation from Employment: Resignation, termination, retirement procedures and requirements
1. Remote Work Policy: Include when the company offers telecommuting options, outlining virtual work arrangements and requirements
2. International Assignment: Include for companies with overseas operations or expatriate assignments
3. Intellectual Property Rights: Include for companies dealing with creative works, innovations, or proprietary information
4. Non-Compete Clause: Include for positions with access to sensitive business information or high-level roles
5. Commission Structure: Include for sales positions or roles with variable compensation
6. Flexible Benefits Program: Include when offering cafeteria-style benefits options
7. Training and Development: Include when providing structured professional development programs
1. Schedule A - Salary Grade Structure: Detailed breakdown of salary grades and ranges
2. Schedule B - Benefits Summary: Comprehensive list of mandatory and additional benefits
3. Schedule C - Leave Application Forms: Standard forms for various types of leave requests
4. Schedule D - Performance Evaluation Forms: Standard forms and metrics for performance assessment
5. Schedule E - Code of Conduct Guidelines: Detailed examples of acceptable and unacceptable conduct
6. Schedule F - Disciplinary Action Forms: Standard forms for disciplinary proceedings
7. Appendix 1 - Employee Acknowledgment Form: Form for employees to acknowledge receipt and understanding of the policy
8. Appendix 2 - Company Organization Chart: Current organizational structure and reporting relationships
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