Subcontractor Employment Contract Template for Philippines

The Subcontractor Employment Contract is essential for businesses operating in the Philippines that engage external contractors for specific projects or services. This document is particularly crucial given the strict regulations surrounding contracting and subcontracting arrangements in Philippine labor law, including Department Order No. 174-17 which distinguishes legitimate contracting from prohibited labor-only contracting. The contract should be used when engaging independent contractors or specialized service providers, ensuring clear delineation of roles, responsibilities, and the independent nature of the relationship. It includes comprehensive provisions covering scope of work, compensation, compliance requirements, and worker protections as mandated by Philippine legislation. This document is vital for maintaining compliance with local labor standards while establishing clear contractual relationships that benefit both the principal employer and the subcontractor.

1. Parties: Identifies the contracting company (Principal Employer) and the Subcontractor, including their complete legal names, addresses, and tax identification numbers

2. Background: Explains the context of the agreement, the Principal Employer's business, and the need for subcontracted services

3. Definitions: Defines key terms used throughout the contract including 'Services', 'Project', 'Deliverables', and other relevant terminology

4. Scope of Services: Detailed description of the services to be provided by the Subcontractor, including specific responsibilities and deliverables

5. Term and Duration: Specifies the contract duration, start date, and any provisions for extension or early termination

6. Compensation and Payment Terms: Details the payment structure, rates, payment schedule, and invoice requirements

7. Independent Contractor Status: Clearly establishes the Subcontractor's status as an independent contractor, not an employee

8. Compliance with Laws: Requires adherence to Philippine labor laws, tax regulations, and other relevant legislation

9. Work Standards and Quality: Sets performance standards, quality requirements, and evaluation criteria

10. Confidentiality and Data Protection: Outlines obligations regarding confidential information and compliance with data privacy laws

11. Intellectual Property Rights: Addresses ownership and rights to work products created during the engagement

12. Termination: Details grounds for termination, notice requirements, and post-termination obligations

13. Dispute Resolution: Specifies procedures for resolving disputes, including jurisdiction and venue

14. General Provisions: Contains standard clauses including notices, amendments, severability, and entire agreement