Regular Employment Contract Template for Philippines

A Regular Employment Contract governed by Philippine law that establishes a permanent employment relationship between an employer and employee. This contract complies with the Philippine Labor Code and related employment legislation, including mandatory benefits, working conditions, and employee protections. It covers essential terms such as compensation, working hours, leave entitlements, and termination provisions while incorporating specific requirements under Philippine employment law such as the mandatory 6-month probationary period, 13th month pay, and social security benefits. The document ensures compliance with local labor standards while protecting both employer and employee interests.

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What is a Regular Employment Contract?

The Regular Employment Contract is the primary document used to establish permanent employment relationships in the Philippines. It serves as a comprehensive agreement between employers and employees, detailing the terms and conditions of employment while ensuring compliance with the Philippine Labor Code, social legislation, and related employment laws. This document is essential when hiring permanent employees (as opposed to fixed-term or project-based workers) and must incorporate mandatory provisions regarding probationary periods, statutory benefits, and working conditions. The contract should be used after the successful completion of pre-employment requirements and before the employee's start date, forming the basis of the ongoing employment relationship and reflecting both parties' rights and obligations under Philippine law.

What sections should be included in a Regular Employment Contract?

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

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

3. Definitions: Key terms used throughout the contract

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

5. Commencement and Term: Start date and nature of employment (permanent/regular status)

6. Probationary Period: Standard 6-month probationary period terms and conditions as per Philippine Labor Code

7. Work Location and Hours: Primary workplace and standard working hours, including rest periods

8. Compensation and Benefits: Base salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), 13th month pay, and other benefits

9. Leave Entitlements: Vacation, sick leave, and other statutory leave entitlements

10. Confidentiality: Protection of company confidential information and trade secrets

11. Company Policies: Compliance with company rules, regulations, and policies

12. Termination: Grounds for termination, notice periods, and procedures as per Labor Code

13. Post-Employment Obligations: Return of company property and continuing obligations

14. Governing Law: Application of Philippine law and jurisdiction

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

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

1. Flexible Work Arrangements: Terms for remote work or flexible schedules under RA 11165, used when telecommuting is permitted

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

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

4. Performance Reviews: Evaluation process and criteria, used when formal review system exists

5. Commission Structure: Sales or performance-based compensation details, used for sales positions

6. International Travel: Terms for international assignments or travel, used for positions requiring overseas work

7. Training Requirements: Mandatory training and professional development, used when specific qualifications are needed

8. Vehicle Allowance: Terms for company vehicle or transportation allowance, used when applicable to the role

What schedules should be included in a Regular Employment Contract?

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

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key workplace policies including code of conduct and disciplinary procedures

4. Schedule 4 - Confidential Information: Definition and examples of confidential information specific to the role

5. Appendix A - Employee Handbook Acknowledgment: Confirmation of receipt and understanding of company policies

6. Appendix B - Data Privacy Consent: Employee consent for personal data processing under the Data Privacy Act

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Philippines

Publisher

GenieAI

Document Type

Employment Contract

Cost

Free to use

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