Labour Employment Contract for Philippines

Labour Employment Contract Template for Philippines

A Philippine Labor Employment Contract is a legally binding agreement that establishes an employment relationship between an employer and employee under Philippine jurisdiction. This document comprehensively outlines the terms and conditions of employment in compliance with the Philippine Labor Code and related employment legislation. It covers essential elements including job responsibilities, compensation, benefits, working hours, leave entitlements, and other employment terms while ensuring adherence to local labor laws, social security requirements, and mandatory employee protections specific to the Philippine legal framework.

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What is a Labour Employment Contract?

The Labour Employment Contract is a fundamental legal document used in the Philippines to formalize employment relationships between employers and employees. It serves as the primary instrument for defining the terms and conditions of employment while ensuring compliance with the Philippine Labor Code, social legislation, and related employment laws. This document is essential when hiring new employees, converting probationary employees to regular status, or updating employment terms. It includes mandatory provisions required by Philippine law such as compensation, benefits, working hours, and leave entitlements, while also incorporating protections for both employer and employee interests. The contract must align with minimum labor standards set by the Department of Labor and Employment (DOLE) and account for specific industry regulations where applicable.

What sections should be included in a Labour Employment Contract?

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Employment start date and type (probationary/regular) with probation period if applicable

6. Work Location and Hours: Primary workplace and standard working hours including rest periods

7. Compensation: Basic salary, payment schedule, and mandatory benefits

8. Statutory Benefits: SSS, PhilHealth, Pag-IBIG, and other mandatory benefits

9. Leave Entitlements: Vacation, sick leave, and other statutory leave provisions

10. Confidentiality: Protection of company confidential information and trade secrets

11. Termination: Grounds for termination, notice periods, and procedures

12. Governing Law: Specification of Philippine law as governing law

13. Entire Agreement: Integration clause confirming the contract as complete agreement

14. Execution: Signature blocks and execution details

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

1. Non-Compete: Restrictions on working with competitors, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment, needed for creative or technical roles

3. Performance Reviews: Details of evaluation process and frequency, useful for roles with performance-based compensation

4. Remote Work Provisions: Terms for work-from-home arrangements, relevant if telecommuting is allowed

5. Commission Structure: Details of commission calculations, needed for sales positions

6. International Travel: Terms for international assignments, relevant for roles requiring travel

7. Training Requirements: Mandatory training and development commitments, useful for specialized roles

8. Stock Options/Benefits: Details of equity compensation, relevant for executive positions

9. Relocation Terms: Relocation assistance and terms, needed if employee must relocate

10. Post-Employment Obligations: Post-employment restrictions and obligations, relevant for senior positions

What schedules should be included in a Labour Employment Contract?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and reporting relationships

2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule C - Company Policies: Key company policies that form part of employment terms

4. Schedule D - Performance Metrics: Specific KPIs and performance expectations

5. Schedule E - Benefits Package: Detailed description of all benefits and eligibility criteria

6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix 2 - Health and Safety Protocols: Workplace safety guidelines including COVID-19 protocols

8. Appendix 3 - IT Policy: Rules regarding use of company IT resources and systems

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Construction

Business Process Outsourcing

Hospitality

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Energy

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Recruitment

Employee Relations

Compensation and Benefits

Training and Development

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Software Engineer

Financial Analyst

Human Resources Officer

Sales Representative

Administrative Assistant

Production Supervisor

Marketing Coordinator

Research Analyst

Customer Service Representative

Operations Manager

Project Manager

Technical Support Specialist

Business Development Manager

Quality Assurance Engineer

Account Executive

Legal Counsel

Data Analyst

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, covering areas such as hiring, termination, working conditions, benefits, and employee rights
Philippine Constitution of 1987, Article XIII (Social Justice and Human Rights): Constitutional provisions protecting workers' rights, including the right to security of tenure, humane working conditions, and living wages
Republic Act No. 8282 (Social Security Act): Mandates social security coverage and benefits for employees, including disability, retirement, and death benefits
Republic Act No. 7875 (National Health Insurance Act): Requires PhilHealth coverage for employees, providing access to health insurance benefits
Republic Act No. 11223 (Universal Health Care Act): Ensures all Filipino citizens have access to healthcare, including employed individuals
Republic Act No. 6971 (Productivity Incentives Act): Provides guidelines for implementing productivity incentive programs in private enterprises
Republic Act No. 6727 (Wage Rationalization Act): Establishes regional minimum wage rates and wage-related benefits
Republic Act No. 10911 (Anti-Age Discrimination in Employment Act): Prohibits discrimination against employees based on age
Republic Act No. 11058 (Occupational Safety and Health Standards Law): Sets standards for workplace safety and health requirements
Republic Act No. 11165 (Telecommuting Act): Provides framework for alternative working arrangements including work-from-home policies
DOLE Department Order No. 215-20: Guidelines on COVID-19 prevention and control at the workplace
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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