Fixed Term Employment Contract Template for Philippines

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Fixed Term Employment Contract

"I need a Fixed Term Employment Contract for a Senior Software Developer position in Manila, Philippines, for a 12-month project starting March 1, 2025, with potential for renewal based on project extension."

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is essential for businesses operating in the Philippines that require temporary workforce arrangements for specific projects, seasonal work, or other time-bound employment needs. This document is designed in accordance with the Labor Code of the Philippines and subsequent amendments, particularly Republic Act No. 6715 and Department Order No. 18-A. It should be used when there is a legitimate business need for fixed-term employment and when both parties knowingly and voluntarily agree to the arrangement. The contract includes mandatory provisions required by Philippine law, clearly states the employment duration, and outlines all statutory benefits and protections. It's particularly relevant for project-based work, seasonal employment, or temporary replacement of permanent employees.

What sections should be included in a Fixed Term Employment Contract?

1. Parties: Identification of the employer and employee with complete details as required by Philippine law

2. Background: Context of the employment relationship and confirmation of fixed-term nature

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specific start and end dates of employment and conditions for any renewal

5. Position and Duties: Job title, responsibilities, and reporting relationships

6. Work Location: Primary workplace and any flexibility arrangements

7. Compensation: Base salary, payment schedule, and statutory deductions

8. Working Hours: Regular working hours, overtime policies, and rest days

9. Benefits: Statutory benefits including SSS, PhilHealth, and Pag-IBIG

10. Leave Entitlements: Vacation, sick leave, and other statutory leave rights

11. Confidentiality: Protection of company information and trade secrets

12. Termination: Grounds for termination and notice requirements

13. Governing Law: Confirmation of Philippine law application

14. Entire Agreement: Integration clause and amendment procedures

What sections are optional to include in a Fixed Term Employment Contract?

1. Probationary Period: Used when the fixed term is long enough to include a probationary period (up to 6 months)

2. Non-Competition: Used for senior positions or when employee will have access to sensitive information

3. Intellectual Property: Required when employee will be creating IP in course of employment

4. Performance Metrics: Used when specific performance targets are part of employment terms

5. Remote Work Provisions: Needed if role involves remote working arrangements

6. Commission Structure: Required for sales positions or roles with variable compensation

7. Training Requirements: Used when specific training or certifications are required

8. Vehicle/Equipment Provision: Needed when company provides tools or equipment

What schedules should be included in a Fixed Term Employment Contract?

1. Schedule A - Job Description: Detailed outline of role responsibilities and requirements

2. Schedule B - Compensation Details: Breakdown of salary components and benefits

3. Schedule C - Company Policies: Key workplace policies applicable to the employee

4. Schedule D - Performance Metrics: Specific KPIs and evaluation criteria if applicable

5. Appendix 1 - Statutory Benefits Summary: Overview of mandatory benefits under Philippine law

6. Appendix 2 - Code of Conduct: Company's code of conduct and ethical standards

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 Industries

Technology

Manufacturing

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Construction

Hospitality

Business Process Outsourcing

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Human Resources

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Project Management Office

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Customer Service

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Procurement

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Relevant Roles

Project Manager

Software Developer

Sales Representative

Administrative Assistant

Construction Supervisor

Research Assistant

Seasonal Worker

Contract Teacher

Financial Analyst

Marketing Coordinator

Customer Service Representative

Production Worker

Event Coordinator

Technical Consultant

Healthcare Professional

Industries
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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