Labor Supply Contract Template for Philippines

The Labor Supply Contract is a crucial document used in the Philippines when a company (Principal) engages a contractor (Service Provider) to provide workers for specific services or operations. This arrangement must comply with strict regulations under Philippine labor laws, particularly DOLE Department Order 174-17, which distinguishes legitimate contracting from prohibited labor-only contracting. The document outlines the responsibilities of both parties, ensures proper worker benefits and protections, and establishes clear supervision and control parameters. It's essential for businesses seeking to outsource certain functions while maintaining compliance with local labor standards, social security requirements, and other statutory obligations. The contract must carefully balance operational flexibility with worker protection, incorporating all mandatory provisions required by Philippine labor laws.

1. Parties: Identification of the Service Provider (Contractor) and the Client (Principal), including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, establishing the legitimate business operation of the contractor and the client's need for contracted services

3. Definitions: Key terms used in the agreement, including 'Deployed Workers', 'Services', 'Work Location', and other relevant terminology

4. Scope of Services: Detailed description of the services to be provided, including the type of work, number of workers, and specific job functions

5. Term and Renewal: Duration of the contract and conditions for renewal or extension

6. Service Provider Obligations: Core responsibilities of the service provider, including worker recruitment, supervision, and compliance with labor laws

7. Client Obligations: Responsibilities of the client, including workplace safety, access, and cooperation requirements

8. Payment Terms: Service fees, payment schedule, and computation method

9. Employment Terms and Conditions: Confirmation of employment terms meeting statutory requirements, including wages, benefits, and working hours

10. Statutory Compliance: Compliance with labor laws, social security, and other mandatory requirements

11. Supervision and Control: Clear delineation of supervision responsibilities between service provider and client

12. Representations and Warranties: Legal declarations regarding licensing, permits, and capacity to perform

13. Termination: Grounds and procedures for contract termination

14. General Provisions: Standard contractual clauses including notices, amendments, and governing law