HR Outsourcing Agreement Template for Philippines

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Key Requirements PROMPT example:

HR Outsourcing Agreement

"I need an HR Outsourcing Agreement for our multinational tech company expanding into the Philippines, starting March 2025, with particular emphasis on recruitment, payroll, and compliance services, ensuring data protection for cross-border transfers."

Document background
This HR Outsourcing Agreement is designed for organizations operating in the Philippines who seek to delegate their human resources functions to specialized service providers. The document is essential when companies want to streamline their HR operations, reduce operational costs, or access specialized HR expertise while ensuring compliance with Philippine labor laws and regulations. It covers crucial aspects such as recruitment, payroll processing, benefits administration, employee relations, and HR compliance. The agreement is structured to protect both parties' interests while maintaining alignment with the Data Privacy Act of 2012, Labor Code of the Philippines, and other relevant local legislation. Companies typically implement this type of agreement when scaling operations, entering the Philippine market, or restructuring their HR functions to improve efficiency and compliance.
Suggested Sections

1. Parties: Identification of the service provider and client company, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, brief description of both companies, and the purpose of entering into the HR outsourcing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Scope of Services: Comprehensive description of HR services to be provided, including core responsibilities and deliverables

5. Service Provider's Obligations: Detailed obligations of the HR service provider, including quality standards, reporting requirements, and compliance commitments

6. Client's Obligations: Client company's responsibilities, including provision of necessary information, access, and cooperation

7. Data Protection and Confidentiality: Provisions for handling sensitive HR data in compliance with the Data Privacy Act of 2012

8. Service Levels: Performance metrics, KPIs, and service level requirements

9. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

10. Term and Termination: Duration of the agreement, renewal terms, and termination provisions

11. Compliance with Laws: Commitment to comply with Philippine labor laws and regulations

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard clauses including force majeure, notices, and amendments

Optional Sections

1. International Data Transfers: Required when HR data will be processed or stored outside the Philippines

2. Transition Services: Include when there's a transition from existing HR systems or providers

3. Business Continuity: Detailed disaster recovery and business continuity provisions for critical HR functions

4. Intellectual Property Rights: Include when the service involves development of custom HR software or materials

5. Sub-contracting: Include when the service provider may need to engage sub-contractors

6. Performance Bonuses and Penalties: Optional incentive and penalty structures tied to service levels

7. Training and Knowledge Transfer: Include when significant training or knowledge transfer is required

Suggested Schedules

1. Schedule 1 - Detailed Service Descriptions: Comprehensive breakdown of each HR service to be provided

2. Schedule 2 - Service Level Agreement: Detailed metrics, measurement methods, and reporting requirements

3. Schedule 3 - Fee Schedule: Detailed pricing, payment terms, and calculation methods

4. Schedule 4 - Key Personnel: List of key team members and their roles from both parties

5. Schedule 5 - Data Processing Requirements: Detailed data handling procedures and compliance requirements

6. Schedule 6 - Implementation Plan: Timeline and milestones for service implementation

7. Appendix A - Required Reports: Templates and specifications for required reports

8. Appendix B - Security Protocols: Detailed security requirements and procedures

9. Appendix C - Compliance Checklist: Checklist of regulatory requirements and compliance measures

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

Technology

Manufacturing

Business Process Outsourcing

Financial Services

Healthcare

Retail

Education

Telecommunications

Construction

Hospitality

E-commerce

Professional Services

Logistics

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Operations

Finance

Procurement

Risk Management

Executive Leadership

Administration

Corporate Services

Relevant Roles

HR Director

Chief Human Resources Officer

Legal Counsel

Compliance Officer

Operations Manager

Chief Executive Officer

Chief Financial Officer

HR Operations Manager

Procurement Manager

Contract Manager

Business Development Manager

Risk Management Officer

HR Business Partner

General Counsel

Chief Operating Officer

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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