Minimum Term Employment Contract for Philippines

Minimum Term Employment Contract Template for Philippines

A Minimum Term Employment Contract governed by Philippine law establishes a fixed-term employment relationship between an employer and employee for a specified duration. This contract complies with the Labor Code of the Philippines and related employment regulations, including DOLE guidelines. It outlines essential terms such as job responsibilities, compensation, benefits, working hours, and conditions for termination, while ensuring adherence to mandatory employee protections under Philippine labor law. The document serves as a legally binding agreement that protects both employer and employee interests while maintaining compliance with local employment standards and statutory requirements.

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What is a Minimum Term Employment Contract?

The Minimum Term Employment Contract is essential for businesses operating in the Philippines that need to engage employees for a specific duration or project. This contract type is regulated under the Labor Code of the Philippines and various DOLE orders, requiring careful attention to both mandatory and optional provisions. It's commonly used for project-based work, seasonal employment, or temporary positions where the duration of employment is predetermined. The document must incorporate all statutory benefits and protections required under Philippine law, including social security, health insurance, and housing fund contributions. This contract format is particularly relevant in industries with project-based work structures or seasonal operations, and it must clearly specify the employment term, justified reason for the fixed term, and ensure compliance with local labor regulations regarding contract employment.

What sections should be included in a Minimum Term Employment Contract?

1. Parties: Identification of the employer and employee with complete details as required by Philippine law

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

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specific duration of employment, start date, and end date

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

6. Work Location and Hours: Place of work, regular working hours, and work schedule

7. Compensation and Benefits: Salary, mandatory benefits, and payment terms

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

9. Leave Entitlements: Vacation, sick leave, and other leave benefits

10. Probationary Period: Length and terms of probation period if applicable

11. Confidentiality: Protection of company information and trade secrets

12. Termination: Grounds for termination and notice requirements

13. Post-Employment Obligations: Continuing obligations after employment ends

14. Governing Law: Application of Philippine law and jurisdiction

15. Entire Agreement: Integration clause and relationship to other agreements

What sections are optional to include in a Minimum Term Employment Contract?

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

2. Intellectual Property Rights: Assignment of IP rights, needed for creative or technical roles

3. Performance Reviews: Evaluation process and criteria, used for positions with defined career progression

4. Commission Structure: Details of commission-based compensation, for sales or similar roles

5. Mobility Clause: Provisions for potential relocation or travel, for positions requiring mobility

6. Training Requirements: Mandatory training and professional development, for regulated professions or specialized roles

7. Remote Work Provisions: Terms for working from home or remote locations, if applicable

8. Company Property: Rules regarding use and return of company equipment, for roles requiring specific tools or equipment

What schedules should be included in a Minimum Term Employment Contract?

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

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary, allowances, and other monetary benefits

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

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

5. Schedule 5 - Benefits Package: Detailed description of all benefits, both statutory and company-provided

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

7. Appendix B - Confidential Information: Definition and examples of confidential information

8. Appendix C - Required Certifications: List of required professional certifications or licenses if applicable

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
Clauses
Relevant Industries

Manufacturing

Information Technology

Business Process Outsourcing

Financial Services

Retail

Healthcare

Construction

Education

Hospitality

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Professional Services

Relevant Teams

Human Resources

Legal

Operations

Project Management Office

Information Technology

Finance

Sales

Marketing

Production

Quality Assurance

Research and Development

Customer Service

Administration

Business Development

Compliance

Relevant Roles

Project Manager

Software Developer

Construction Supervisor

Seasonal Worker

Contract Engineer

Research Assistant

Marketing Coordinator

Financial Analyst

HR Coordinator

Sales Representative

Production Supervisor

Teaching Assistant

Customer Service Representative

IT Consultant

Administrative Assistant

Project Coordinator

Quality Control Inspector

Business Development Executive

Operations Manager

Technical Support Specialist

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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