Preliminary Employment Contract for Philippines

Preliminary Employment Contract Template for Philippines

This document serves as a preliminary employment agreement governed by Philippine labor law, establishing the initial terms and conditions between an employer and a prospective employee before the commencement of regular employment. It outlines essential employment terms including job responsibilities, compensation, probationary period conditions, and basic rights and obligations of both parties, while ensuring compliance with the Labor Code of the Philippines and related employment legislation. The agreement provides a foundation for the employment relationship while allowing for evaluation of the employee's suitability for permanent employment.

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What is a Preliminary Employment Contract?

The Preliminary Employment Contract is a crucial document used in the Philippine employment context when organizations are initiating new employment relationships. This agreement serves as a foundational document that precedes regular employment, typically covering the probationary period of up to six months as permitted under Philippine labor law. It sets out the basic terms and conditions of employment, including job responsibilities, compensation, benefits, and performance expectations, while ensuring compliance with the Labor Code of the Philippines and related employment regulations. The document is particularly important as it provides both parties with clear understanding of their rights and obligations during the initial employment phase, while allowing the employer to evaluate the employee's suitability for permanent employment.

What sections should be included in a Preliminary Employment Contract?

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

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

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Detailed description of the role, job title, and primary responsibilities

5. Employment Status: Nature of employment (probationary, regular, project-based) and conditions for regularization

6. Compensation and Benefits: Basic salary, mandatory benefits, and payment terms

7. Working Hours: Standard working hours, rest periods, and overtime provisions

8. Probationary Period: Duration of probationary period and performance evaluation criteria

9. Confidentiality: Protection of company information and trade secrets

10. Termination: Grounds and procedures for contract termination

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdictions

12. Entire Agreement: Statement that this document represents the complete agreement between parties

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

1. Remote Work Provisions: Terms for remote work arrangements under the Telecommuting Act, used when remote work is permitted

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

3. Intellectual Property: IP rights assignment, used for creative or technical positions

4. Performance Bonus: Structure of performance-based incentives, used when bonus schemes are offered

5. Relocation Terms: Provisions for relocation assistance, used when employee needs to relocate for the position

6. Training Commitments: Training requirements and bond terms, used when significant training investment is involved

7. Commission Structure: Details of commission-based compensation, used for sales positions

8. Flexible Benefits: Description of flexible benefit options, used when company offers cafeteria-style benefits

What schedules should be included in a Preliminary Employment Contract?

1. Schedule A - Job Description: Detailed breakdown of job responsibilities, reporting lines, and performance expectations

2. Schedule B - Compensation Structure: Detailed breakdown of salary components, allowances, and mandatory deductions

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

4. Schedule D - Benefits Package: Detailed description of all benefits including healthcare, insurance, and leave entitlements

5. Schedule E - Performance Metrics: Specific KPIs and performance evaluation criteria for the probationary period

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

7. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms and requirements

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 Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Professional Services

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Recruitment

Compliance

Operations

Administration

Employee Relations

Talent Acquisition

Personnel Management

Relevant Roles

Entry Level Associate

Junior Executive

Senior Executive

Department Manager

Project Manager

Software Developer

Sales Representative

Administrative Assistant

Human Resources Officer

Financial Analyst

Marketing Coordinator

Operations Manager

Research Analyst

Customer Service Representative

Technical Support Specialist

Account Manager

Business Development Executive

Quality Assurance Specialist

Data Analyst

Legal Assistant

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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