Non Fixed Term Contract for Philippines

Non Fixed Term Contract Template for Philippines

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Non Fixed Term Contract

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What is a Non Fixed Term Contract?

This Non Fixed Term Contract serves as the primary employment agreement for regular, permanent positions in the Philippines. It is designed for use when establishing long-term employment relationships where the duration is not predetermined or fixed. The document incorporates all mandatory provisions required by the Philippine Labor Code, relevant DOLE regulations, and recent employment legislation, including provisions for statutory benefits, worker protections, and proper termination procedures. It is particularly relevant for companies establishing permanent workforce arrangements and needs to be customized based on the specific role, industry requirements, and company policies while maintaining compliance with Philippine employment laws. The contract ensures both employer and employee interests are protected while promoting stable, long-term employment relationships.

What sections should be included in a Non Fixed Term Contract?

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

2. Background: Brief context of the employment relationship and basis for the contract

3. Definitions: Key terms used throughout the contract

4. Appointment and Job Title: Specific position and role of the employee

5. Commencement Date: Start date of employment and confirmation of indefinite term

6. Duties and Responsibilities: Detailed description of the employee's role and expectations

7. Place of Work: Primary work location and potential for relocation or remote work

8. Hours of Work: Regular working hours, breaks, and overtime provisions

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

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

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

12. Confidentiality: Protection of company information and trade secrets

13. Data Privacy: Handling of employee personal information in compliance with Data Privacy Act

14. Company Policies: Adherence to company rules and regulations

15. Termination: Grounds and procedures for contract termination

16. Governing Law: Application of Philippine law and jurisdiction

17. Entire Agreement: Integration clause and relationship to other documents

What sections are optional to include in a Non Fixed Term Contract?

1. Probationary Period: Details of probationary period if applicable to new employees

2. Mobility Clause: Required for positions that may involve relocation or travel

3. Non-Compete: Restrictions on post-employment competition, if reasonable and necessary

4. Intellectual Property: For roles involving creative or innovative work

5. Commission Structure: For sales or performance-based roles

6. Flexible Working Arrangements: For positions allowing work-from-home or flexible schedules

7. Training Requirements: For positions requiring specific ongoing training or certifications

8. Company Car/Equipment: When company assets are provided for employee use

9. Performance Reviews: If specific performance evaluation processes apply

10. Stock Options/Equity: For positions eligible for company ownership programs

What schedules should be included in a Non Fixed Term Contract?

1. Schedule 1 - Job Description: Detailed outline of role, responsibilities, and reporting structure

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures referenced in main agreement

4. Schedule 4 - Confidential Information: Specific details of what constitutes confidential information

5. Appendix A - Code of Conduct: Company's code of conduct and ethical standards

6. Appendix B - Benefits Summary: Comprehensive list of all benefits and eligibility criteria

7. Appendix C - Performance Metrics: Specific KPIs and performance evaluation criteria 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

Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Professional Services

Telecommunications

Energy

Agriculture

Transportation

Real Estate

Relevant Teams

Human Resources

Operations

Finance

Information Technology

Sales

Marketing

Customer Service

Research and Development

Production

Quality Assurance

Business Development

Administration

Legal

Supply Chain

Project Management

Relevant Roles

General Manager

Department Manager

Senior Executive

Administrative Officer

Technical Specialist

Sales Representative

Customer Service Representative

Operations Manager

Financial Analyst

Software Developer

Human Resources Officer

Marketing Manager

Production Supervisor

Research Analyst

Account Manager

Project Manager

Quality Assurance Specialist

Business Development Manager

Executive Assistant

Operations Supervisor

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, covering minimum terms and conditions, rights and obligations of both employer and employee, termination procedures, and other fundamental aspects of employment
Republic Act No. 11058: Strengthens compliance with occupational safety and health standards and provides penalties for violations thereof
Social Security Law (Republic Act No. 11199): Mandates social security coverage and benefits for employees, including provisions for retirement, disability, death, and other benefits
National Health Insurance Act (Republic Act No. 10606): Requires PhilHealth coverage for employees, providing access to healthcare benefits
Data Privacy Act of 2012 (Republic Act No. 10173): Governs the handling and protection of personal information in employment records
DOLE Department Order No. 174-17: Regulates contracting and subcontracting arrangements, ensuring proper employment relationships
Wage Rationalization Act (Republic Act No. 6727): Provides for the mechanism of minimum wage setting and periodic review
Sexual Harassment Law (Republic Act No. 7877): Requires inclusion of anti-sexual harassment policies in employment contracts and workplace regulations
Solo Parents Welfare Act (Republic Act No. 8972): Provides special benefits and privileges for solo parent employees
Philippine Constitution of 1987, Article XIII (Social Justice and Human Rights): Establishes fundamental labor rights and protections that must be reflected in employment contracts
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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