One Year Contract Employment Letter Template for Philippines

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One Year Contract Employment Letter

"I need a One Year Contract Employment Letter for a senior software developer position in our Manila tech startup, starting March 1, 2025, including remote work provisions and special clauses for intellectual property protection."

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What is a One Year Contract Employment Letter?

The One Year Contract Employment Letter is a crucial document used in the Philippine employment context when organizations need to hire employees for a fixed term of one year. This document type is commonly used for project-based roles, temporary positions, or when there is a specific business need for a fixed-term arrangement. The letter must comply with Philippine labor laws, particularly the Labor Code's provisions regarding fixed-term employment, and includes mandatory elements such as compensation, benefits (including statutory benefits like SSS, PhilHealth, and Pag-IBIG), working conditions, and termination provisions. It's essential to note that under Philippine law, fixed-term contracts must satisfy the requirement of having a valid business purpose for the fixed term, and the document should clearly establish this to ensure legal compliance.

What sections should be included in a One Year Contract Employment Letter?

1. Opening and Date: Formal letter opening with complete date and letterhead

2. Employee Information: Full name and address of the employee

3. Position and Employment Status: Job title, employment classification, and start date of employment

4. Term of Employment: Specific duration of one year with exact start and end dates

5. Compensation and Benefits: Detailed breakdown of salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other benefits

6. Work Schedule: Working hours, days, and location of work

7. Duties and Responsibilities: Key responsibilities and expectations of the role

8. Probationary Period: Standard 6-month probationary period terms and conditions

9. Confidentiality and IP: Confidentiality obligations and intellectual property rights

10. Termination Provisions: Conditions for contract termination and notice requirements

11. Governing Law: Statement of Philippine law governance

12. Acceptance and Signatures: Signature blocks for both employer and employee

What sections are optional to include in a One Year Contract Employment Letter?

1. Performance Review: Include if the company has specific performance review policies and schedules

2. Non-Compete Clause: Include for positions with access to sensitive information or client relationships

3. Relocation Terms: Include if the position may require relocation during the contract period

4. Commission Structure: Include for sales positions or roles with variable compensation

5. Remote Work Provisions: Include if the role allows for remote work arrangements

6. Training Requirements: Include if specific training or certifications are required

7. Company Policies Reference: Include if referring to specific company handbooks or policy documents

What schedules should be included in a One Year Contract Employment Letter?

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

2. Schedule B - Benefits Package: Comprehensive list of benefits and their terms

3. Schedule C - KPIs: Key Performance Indicators and performance expectations

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

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

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