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Fixed Term Contract Policy

Fixed Term Contract Policy Template for Philippines

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Key Requirements PROMPT example:

Fixed Term Contract Policy

"Need a Fixed Term Contract Policy for our IT consulting firm in Manila that will be implemented by January 2025, specifically addressing project-based employment and including provisions for remote work arrangements with international clients."

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Document background
The Fixed Term Contract Policy serves as a crucial governance document for organizations operating in the Philippines that engage employees on fixed-term bases. This policy is essential for ensuring compliance with the Labor Code of the Philippines, DOLE regulations, and relevant jurisprudence, particularly the guidelines established in Brent School vs. Zamora. It should be implemented when an organization regularly engages in fixed-term employment arrangements, project-based work, or seasonal employment. The policy provides comprehensive guidance on contract formation, management, and termination, while protecting both employer and employee interests. It includes specific provisions for benefits, compliance requirements, and risk management strategies tailored to the Philippine legal framework.
Suggested Sections

1. Purpose and Scope: States the objective of the policy and defines which employees and situations it covers

2. Definitions: Defines key terms used throughout the policy, including 'fixed-term contract', 'project-based employment', and other relevant terminology

3. Legal Framework: References to relevant Philippine labor laws and regulations governing fixed-term employment

4. Policy Statement: Overall company position on fixed-term contracts and commitment to legal compliance

5. Criteria for Fixed-Term Employment: Specific circumstances under which fixed-term contracts may be used, following Brent School vs. Zamora guidelines

6. Duration and Renewal: Guidelines on contract length, renewal procedures, and maximum duration limits

7. Rights and Benefits: Overview of statutory and company benefits applicable to fixed-term employees

8. Termination Provisions: Conditions and procedures for early termination or non-renewal of fixed-term contracts

9. Compliance and Monitoring: Procedures for ensuring compliance with the policy and relevant laws

Optional Sections

1. Conversion to Regular Employment: Include when the company has specific policies for converting fixed-term employees to regular status

2. International Assignments: Include when the company employs fixed-term contractors for international projects

3. Project-Specific Provisions: Include when the company frequently uses project-based fixed-term contracts

4. Remote Work Provisions: Include when fixed-term employees may work remotely

5. Training and Development: Include when the company offers specific training programs for fixed-term employees

Suggested Schedules

1. Template Fixed-Term Employment Contract: Standard template contract incorporating all required elements under Philippine law

2. Benefits Schedule: Detailed breakdown of benefits applicable to fixed-term employees

3. Compliance Checklist: Checklist for HR to ensure all legal requirements are met when issuing fixed-term contracts

4. Contract Review Form: Template for reviewing and approving fixed-term contract requests

5. Notice Period Requirements: Schedule of required notice periods for different contract durations and situations

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Fixed-Term Contract
Fixed-Term Employee
Regular Employee
Project-Based Employment
Seasonal Employment
Term
Effective Date
Expiration Date
Company
Employer
Employee
Department of Labor and Employment (DOLE)
Just Cause
Authorized Representative
Probationary Period
Regular Working Hours
Overtime Work
Benefits
Statutory Benefits
Contract Renewal
Notice Period
Termination
Early Termination
Non-Renewal
Cause
Project Completion
Material Breach
Worksite
Applicable Law
Legitimate Business Necessity
Substantial Requirements
Regular Status
Employment Relationship
Compensation
Work Schedule
Confidential Information
Intellectual Property Rights
Social Security System (SSS)
PhilHealth
Pag-IBIG Fund
13th Month Pay
Clauses
Purpose and Scope
Legal Framework
Policy Statement
Duration of Contract
Eligibility Criteria
Contract Formation
Renewal and Extension
Compensation and Benefits
Working Hours
Leave Entitlements
Performance Standards
Discipline and Termination
Notice Requirements
Statutory Benefits
Health and Safety
Confidentiality
Intellectual Property
Non-Competition
Data Privacy
Social Security and Insurance
Grievance Procedure
Contract Review Process
Compliance Requirements
Record Keeping
Monitoring and Evaluation
Reporting Requirements
Amendment Procedures
Implementation Guidelines
Authority and Responsibilities
Dispute Resolution
Governing Law
Severability
Relevant Industries

Construction

Information Technology

Manufacturing

Agriculture

Education

Entertainment

Retail

Hospitality

Business Process Outsourcing

Project Management

Consulting

Events Management

Seasonal Industries

Research and Development

Relevant Teams

Human Resources

Legal

Compliance

Operations

Risk Management

Talent Acquisition

Senior Management

Project Management Office

Department Management

Relevant Roles

HR Director

HR Manager

Legal Counsel

Compliance Officer

Department Head

Project Manager

Operations Manager

Recruiting Manager

HR Business Partner

Chief Human Resources Officer

Employment Law Specialist

Chief Legal Officer

Risk Management Officer

Talent Acquisition Manager

Personnel Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): The primary legislation governing employment relationships in the Philippines, including provisions on fixed-term employment, minimum terms and conditions of employment, and workers' rights
Department Order No. 18-A Series of 2011: Provides guidelines on contracting and subcontracting arrangements, including rules on legitimate contracting and prohibited practices
Brent School vs. Zamora (G.R. No. L-48494): Landmark Supreme Court decision establishing the validity of fixed-term employment contracts and setting criteria for their legitimacy
Republic Act No. 6715: Amends the Labor Code provisions on fixed-term employment and provides additional protections for workers
Department Order No. 147-15: Guidelines on the implementation of flexible work arrangements, which may be relevant for fixed-term contract structures
Republic Act No. 11058: Occupational Safety and Health Standards Law that must be referenced in employment contracts, including fixed-term agreements
Social Security Law (Republic Act No. 11199): Mandates social security coverage and benefits that must be provided to fixed-term employees
PhilHealth Law (Republic Act No. 11223): Required health insurance coverage provisions for fixed-term employees
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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