Independent Contractor Subcontractor Agreement Template for Philippines

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Key Requirements PROMPT example:

Independent Contractor Subcontractor Agreement

"I need an Independent Contractor Subcontractor Agreement for my IT consulting firm in Manila to engage software developers for a 12-month project starting March 2025, with strong IP protection clauses and data privacy provisions to comply with Philippine regulations."

Document background
The Independent Contractor Subcontractor Agreement is essential for businesses operating in the Philippines that need to engage subcontractors while maintaining clear legal distinctions from employment relationships. This document is particularly relevant when a primary contractor needs to delegate specific project components or specialized services to independent professionals or companies. It addresses key requirements under Philippine law, including provisions from the Civil Code, Labor Code, and tax regulations, while establishing clear terms for scope, payment, intellectual property rights, and confidentiality. The agreement helps protect both parties' interests while ensuring compliance with local regulations regarding independent contractor relationships, making it vital for projects requiring specialized expertise or additional resource capacity.
Suggested Sections

1. Parties: Identifies and provides full details of the contractor and subcontractor, including business registration numbers and addresses

2. Background: Explains the context of the agreement, including the contractor's right to subcontract and the subcontractor's qualifications

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Appointment and Scope of Services: Details the engagement terms and comprehensive description of services to be provided

5. Term and Timeline: Specifies the duration of the agreement and any key milestone dates

6. Payment Terms: Outlines fees, payment schedule, invoicing requirements, and expenses policy

7. Independent Contractor Relationship: Explicitly establishes the nature of the relationship and disclaims any employer-employee relationship

8. Obligations of the Subcontractor: Lists the subcontractor's duties, responsibilities, and performance standards

9. Obligations of the Contractor: Specifies what the contractor will provide to enable the subcontractor to perform the services

10. Intellectual Property Rights: Addresses ownership and usage rights of work products and pre-existing IP

11. Confidentiality: Defines confidential information and obligations regarding its protection

12. Data Protection: Ensures compliance with the Data Privacy Act and establishes data handling procedures

13. Representations and Warranties: States the parties' assurances regarding their capacity and authority to enter the agreement

14. Liability and Indemnification: Sets out liability limitations and indemnification obligations

15. Termination: Details circumstances and procedures for ending the agreement

16. Post-Termination Obligations: Specifies obligations that survive the end of the agreement

17. General Provisions: Includes standard clauses like notices, amendments, governing law, and dispute resolution

Optional Sections

1. Insurance Requirements: Required when the services involve significant risks or when contractor requires specific insurance coverage

2. Equipment and Resources: Needed when specific tools or resources are required and their provision needs to be clearly allocated

3. Non-Competition: Include when protecting business interests requires restricting subcontractor's ability to work with competitors

4. Non-Solicitation: Added when there's a need to prevent poaching of clients or other contractors

5. Compliance with Specific Regulations: Required when services are in regulated industries or involve government contracts

6. Security Requirements: Necessary when subcontractor needs access to secure facilities or systems

7. Training and Certification: Include when specific qualifications or ongoing training are required

8. Quality Control: Added when specific quality standards or review processes need to be maintained

9. Force Majeure: Important when services are susceptible to external disruptions or natural disasters

Suggested Schedules

1. Schedule A - Scope of Services: Detailed description of services, deliverables, and performance metrics

2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule C - Service Levels: Specific performance standards and metrics

4. Schedule D - Project Timeline: Detailed project phases, milestones, and deadlines

5. Schedule E - Approved Subcontractor Personnel: List of authorized individuals who will perform the services

6. Appendix 1 - Required Documents: Copies of licenses, certifications, and insurance certificates

7. Appendix 2 - Compliance Requirements: Specific regulatory or industry compliance requirements

8. Appendix 3 - Contact Details: Key contact persons and escalation matrix for both parties

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

Information Technology

Construction

Professional Services

Manufacturing

Business Process Outsourcing

Engineering

Creative Industries

Healthcare

Education

Telecommunications

Real Estate Development

Management Consulting

Digital Marketing

Research and Development

Relevant Teams

Legal

Procurement

Human Resources

Operations

Finance

Compliance

Risk Management

Project Management Office

Business Development

Vendor Management

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Project Manager

Procurement Manager

Human Resources Director

Operations Manager

Business Development Manager

Compliance Officer

Risk Manager

Finance Manager

Department Head

Program Director

Independent Contractor

Freelance Professional

Consulting Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Governs general contract formation, obligations, and rights between parties. Particularly relevant are provisions on service contracts and independent contractors.
Labor Code of the Philippines (Presidential Decree No. 442): While primarily focused on employer-employee relationships, it provides important distinctions between employees and independent contractors, helping define the nature of the relationship.
National Internal Revenue Code (NIRC): Covers tax obligations for independent contractors, including income tax, percentage tax, and VAT requirements for self-employed individuals.
Social Security Law (Republic Act No. 11199): Mandates social security coverage for self-employed persons and independent contractors, including contribution requirements.
Intellectual Property Code (Republic Act No. 8293): Governs ownership and transfer of intellectual property rights, crucial for agreements involving creative or technical work.
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the collection, processing, and handling of personal information, relevant for contractor data protection and privacy provisions.
Anti-Graft and Corrupt Practices Act (Republic Act No. 3019): Important for compliance provisions, especially if the contract involves work related to government projects or public sector clients.
Department of Labor and Employment (DOLE) Department Order No. 174-17: Provides guidelines on contracting and subcontracting arrangements, helping establish legitimate contractor relationships.
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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