Employment Promissory Note Template for Philippines

The Employment Promissory Note is commonly used in Philippine business settings when an employee has received advanced compensation, training costs, or other financial benefits that require repayment to the employer. This document is particularly relevant in situations involving training bonds, educational assistance, advanced salary payments, or company loans. The Employment Promissory Note must comply with Philippine labor laws and financial regulations while protecting both employer and employee interests. It typically specifies the amount owed, payment terms, interest rates (if applicable), and any relationship between the debt and continued employment. This document is essential for creating a legally enforceable obligation while maintaining transparency in employer-employee financial arrangements.

1. Parties: Identification of the employer (Promisee) and employee (Promisor), including their complete legal names, addresses, and tax identification numbers

2. Background: Context of the employment relationship and the circumstances leading to the creation of the promissory note

3. Definitions: Key terms used in the document, including but not limited to Payment Terms, Default, Interest Rate, and other relevant financial and employment-related terms

4. Amount of Indebtedness: Clear statement of the principal amount owed, expressed in both numbers and words

5. Promise to Pay: Unconditional promise to pay the stated amount, including the specific payment schedule and terms

6. Interest Rate: Specification of any applicable interest rate, ensuring compliance with Philippine usury laws

7. Payment Terms: Detailed payment schedule, including installment amounts, due dates, and method of payment

8. Security: Any security or collateral provided against the promise to pay

9. Events of Default: Circumstances that constitute default and the consequences thereof

10. Employment Link: Relationship between the promissory note and continued employment, if any

11. Governing Law: Specification that Philippine law governs the agreement

12. Execution: Signature blocks, date, and witness requirements