Document background
The Independent Contractor Engagement Letter is a crucial document used when companies in the Philippines wish to formally engage individuals or entities as independent contractors rather than employees. It serves as the primary document defining the business relationship between the parties, ensuring compliance with Philippine labor laws, tax regulations, and social security requirements. This document is particularly important given the strict distinctions between independent contractors and employees under Philippine law, as established by the Labor Code and Department of Labor and Employment (DOLE) guidelines. The letter includes essential terms such as scope of services, compensation, intellectual property rights, and confidentiality provisions, while explicitly establishing the contractor's independent status and associated responsibilities. It's designed to protect both parties' interests while maintaining compliance with relevant Philippine regulations and avoiding misclassification risks.
