Joint Employment Contract Template for Philippines

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Joint Employment Contract

"I need a Joint Employment Contract for a senior software developer who will work 60% of their time for our tech company and 40% for our sister company in Manila, starting March 1, 2025, with specific provisions for intellectual property rights and data protection."

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What is a Joint Employment Contract?

A Joint Employment Contract is essential when an employee will be providing services to multiple employers in the Philippines, whether within a group of companies or between independent organizations. This arrangement is common in shared service centers, consortium projects, or when specialized skills are needed across multiple entities. The document must comply with Philippine labor laws, including the Labor Code and Department of Labor and Employment regulations, while clearly delineating employer responsibilities, compensation arrangements, and benefit allocations. It addresses crucial aspects such as statutory compliance, tax implications, social security contributions, and healthcare coverage, ensuring that all employers fulfill their legal obligations. The contract is particularly important for protecting the rights of employees while providing a clear framework for employers to manage shared resources efficiently.

What sections should be included in a Joint Employment Contract?

1. Parties: Identification of all parties: the employee and all joint employers

2. Background: Context of the joint employment arrangement and purpose of the agreement

3. Definitions: Key terms used throughout the contract, including specific roles and responsibilities of each employer

4. Term of Employment: Duration of employment, including start date and whether fixed-term or indefinite

5. Nature of Employment: Description of the joint employment relationship and allocation of employer responsibilities

6. Position and Duties: Employee's role, responsibilities, and reporting relationships to each employer

7. Work Location and Schedule: Primary workplace(s) and working hours for each employer

8. Compensation and Benefits: Salary, benefits, and how these are allocated between employers

9. Statutory Benefits: SSS, PhilHealth, Pag-IBIG, and other mandatory benefits, including employer contributions

10. Leave Entitlements: Vacation, sick leave, and other leave benefits, including administration

11. Performance Management: Performance evaluation process and criteria from each employer

12. Confidentiality and Data Protection: Obligations regarding confidential information of all employers

13. Termination: Grounds and procedures for termination, including the effect of termination by one employer

14. Governing Law: Confirmation of Philippine law application and jurisdiction

15. Execution: Signature blocks for all parties

What sections are optional to include in a Joint Employment Contract?

1. Mobility Clause: Required when employee may need to work at different locations or be transferred between employers

2. Intellectual Property Rights: Needed when work involves creation of IP for either/both employers

3. Non-Competition: Include when employers want to restrict employee's ability to work for competitors

4. Training and Development: Include when specific training requirements exist and how costs are shared

5. Overseas Work: Required when job involves international assignments

6. Commission Structure: Include for sales or performance-based roles with commission

7. Dispute Resolution: Optional detailed procedure for handling disputes between parties

8. Benefits Allocation: Detailed breakdown of how specific benefits are shared when arrangement is complex

What schedules should be included in a Joint Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles and responsibilities for each employer

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary and benefits from each employer

3. Schedule 3 - Work Schedule: Detailed timetable showing allocation of time between employers

4. Schedule 4 - Company Policies: Relevant policies from each employer that apply to the employee

5. Appendix A - Statutory Benefits Calculation: Breakdown of statutory benefits and employer contributions

6. Appendix B - Performance Metrics: Detailed performance evaluation criteria from each employer

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

Shared Services

Construction

Manufacturing

Professional Services

Banking and Finance

Healthcare

Education

Retail

Hospitality

Telecommunications

Media and Entertainment

Business Process Outsourcing

Consulting

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Administration

Compliance

Project Management Office

Corporate Services

Business Development

Risk Management

Training and Development

Quality Assurance

Research and Development

Corporate Communications

Relevant Roles

Project Manager

IT Consultant

Financial Analyst

Human Resources Specialist

Operations Manager

Software Developer

Business Analyst

Legal Counsel

Account Manager

Research Specialist

Marketing Coordinator

Administrative Officer

Technical Support Specialist

Quality Assurance Engineer

Sales Executive

Training Coordinator

Corporate Communications Officer

Data Analyst

Process Improvement Specialist

Risk Management 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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