Outsourced Employee Contract Template for Philippines

The Outsourced Employee Contract is essential for businesses operating within the Philippine outsourcing industry, which must comply with specific local regulations including the Labor Code of the Philippines and Department Order No. 174-17. This contract type is specifically designed for situations where employees are hired by an outsourcing agency for assignment to client companies, creating a three-party employment relationship. It contains comprehensive provisions covering employment terms, compensation, benefits, client assignment procedures, and statutory requirements unique to Philippine law. The document is particularly relevant given the Philippines' position as a global outsourcing hub and includes specific protections and obligations for all parties involved, ensuring compliance with local labor laws while facilitating flexible workforce arrangements. Use this contract when establishing formal employment relationships for outsourced workers in the Philippines, whether for local or international client assignments.

1. Parties: Identifies the three parties to the agreement: the Employee, the Outsourcing Agency (Employer), and the Client Company

2. Background: Explains the context of the outsourcing arrangement and the intention to engage the employee for client assignments

3. Definitions: Defines key terms used throughout the contract, including 'Services', 'Client Assignment', 'Workplace', and other relevant terms

4. Appointment and Term: Details of the employment relationship, including position, commencement date, and term (fixed or indefinite)

5. Nature of Employment: Specifies the outsourcing arrangement and relationship between parties, confirming compliance with DO 174-17

6. Duties and Responsibilities: Outlines the employee's key duties, reporting relationships, and obligation to follow both employer and client policies

7. Work Location and Hours: Specifies work location(s), regular working hours, and overtime arrangements

8. Compensation and Benefits: Details salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), bonuses, and other compensation elements

9. Client Assignment Terms: Procedures for assignment to clients, potential changes in assignment, and related protocols

10. Confidentiality: Obligations regarding confidential information of both the employer and client companies

11. Intellectual Property: Ownership and rights regarding work products created during employment

12. Data Privacy and Protection: Compliance with Data Privacy Act and handling of personal information

13. Leave Entitlements: Details of various leave types including vacation, sick, and statutory leaves

14. Termination: Grounds and procedures for contract termination, notice periods, and final settlements

15. Post-Employment Obligations: Non-compete, non-solicitation, and other post-employment restrictions