General Manager Contract Template for Philippines

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Key Requirements PROMPT example:

General Manager Contract

"I need a General Manager Contract for our Manila-based retail company, compliant with Philippine law, that includes strong non-compete clauses and performance-based bonus structures for our new GM starting March 2025."

Document background
The General Manager Contract is a crucial document used when appointing senior management personnel in organizations operating in the Philippines. It serves as the primary agreement governing the employment relationship between a company and its General Manager, establishing clear parameters for authority, responsibility, and accountability. This contract type must comply with Philippine labor laws, including the Labor Code and relevant employment regulations, while addressing specific business needs and corporate governance requirements. The document typically includes comprehensive provisions on executive compensation, performance expectations, confidentiality obligations, and termination conditions. It's particularly important for establishing clear reporting lines, decision-making authority, and protection of company interests through appropriate restrictive covenants.
Suggested Sections

1. Parties: Identification of the employer company and the General Manager being appointed

2. Background: Context of the appointment and brief description of the company's business

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Official designation, position title, and duration of employment (fixed-term or indefinite)

5. Duties and Responsibilities: Detailed description of the General Manager's role, authority, and reporting relationships

6. Place of Work: Primary work location and any mobility requirements

7. Hours of Work: Working hours, flexibility, and understanding of executive time commitments

8. Compensation and Benefits: Base salary, bonuses, equity participation, and standard benefits package

9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Philippine law

10. Performance Evaluation: Performance metrics, review periods, and evaluation process

11. Confidentiality: Protection of company confidential information and trade secrets

12. Intellectual Property: Ownership of work product and innovations developed during employment

13. Termination: Grounds for termination, notice periods, and consequences

14. Post-Termination Obligations: Ongoing obligations after employment ends

15. Governing Law: Specification of Philippine law as governing law and jurisdiction

16. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Non-Compete: Restrictions on working for competitors after employment ends - optional based on company policy and industry

2. Non-Solicitation: Restrictions on soliciting employees or customers - optional based on business needs

3. Mobility Clause: Requirements for international or domestic travel/relocation - include if position requires significant travel

4. Stock Options: Details of any share option scheme - include if company offers equity compensation

5. Sign-on Bonus: One-time payment upon joining - include if offered as part of compensation package

6. Relocation Assistance: Support for relocation - include if GM is being recruited from another location

7. Corporate Governance: Additional responsibilities related to board reporting - include if GM has board interactions

8. Crisis Management: Responsibilities during corporate emergencies - include for high-risk industries

Suggested Schedules

1. Schedule 1 - Compensation Package: Detailed breakdown of salary, bonuses, and benefits structure

2. Schedule 2 - Job Description: Detailed list of duties, responsibilities, and key performance indicators

3. Schedule 3 - Benefits Summary: Comprehensive list of all benefits and entitlements

4. Schedule 4 - Company Policies: Key company policies applicable to the General Manager position

5. Schedule 5 - Confidential Information: Definition and examples of confidential information

6. Appendix A - Performance Metrics: Specific KPIs and performance evaluation criteria

7. Appendix B - Authorized Actions: List of actions/decisions the GM can take without board approval

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

Manufacturing

Retail

Hospitality

Technology

Financial Services

Healthcare

Real Estate

Construction

Telecommunications

Food and Beverage

Agriculture

Business Process Outsourcing

Transportation and Logistics

Education

Relevant Teams

Human Resources

Legal

Board of Directors

Executive Management

Corporate Governance

Compensation Committee

Finance

Operations

Administration

Relevant Roles

General Manager

Country Manager

Managing Director

Chief Operating Officer

Regional Director

Branch Manager

Operations Director

Business Unit Head

Facility Manager

Division Head

Executive Director

Site Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, including provisions specific to managerial employees, working conditions, and employment terms
Republic Act No. 8282 (Social Security Law): Mandates social security coverage and benefits for employees, including executive positions
National Internal Revenue Code: Governs taxation of compensation, benefits, and other forms of remuneration for executives
Republic Act No. 10173 (Data Privacy Act of 2012): Regulates the handling of personal and sensitive information, particularly relevant for executive positions with access to confidential data
Republic Act No. 8424 (Tax Reform Act): Specifies tax obligations and treatments for various forms of executive compensation and benefits
Corporation Code of the Philippines: Defines corporate governance requirements and responsibilities of corporate officers and managers
Republic Act No. 10911 (Anti-Age Discrimination in Employment Act): Prohibits age discrimination in employment, including in executive positions
Republic Act No. 11165 (Telecommuting Act): Provides framework for alternative working arrangements, which may be relevant for executive positions
Republic Act No. 11058 (Occupational Safety and Health Standards): Sets standards for workplace safety and health, including management responsibilities
Republic Act No. 7877 (Anti-Sexual Harassment Act): Defines and prohibits sexual harassment in the workplace, particularly important for management positions
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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