Unlimited Employment Contract Template for Philippines

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Unlimited Employment Contract

"I need an Unlimited Employment Contract for a senior software developer position in our Manila tech startup, starting March 1, 2025, with specific clauses for intellectual property protection and remote work arrangements."

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What is a Unlimited Employment Contract?

The Unlimited Employment Contract is the standard form of employment agreement in the Philippines for permanent positions, offering security of tenure to employees as protected by the Labor Code of the Philippines. This document is essential when establishing long-term employment relationships and is distinct from fixed-term or project-based contracts. It should be used when hiring permanent employees in any capacity, from entry-level to executive positions. The contract incorporates all mandatory provisions required by Philippine labor laws, including statutory benefits, working conditions, and grounds for termination. It also addresses modern workplace considerations such as data privacy, intellectual property rights, and potential remote work arrangements. The document serves as a comprehensive reference point for both employer and employee throughout the employment relationship, ensuring clarity of terms while maintaining compliance with current labor regulations and jurisprudence.

What sections should be included in a Unlimited 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 Duration: Start date and confirmation of unlimited/permanent nature of employment

6. Probationary Period: Duration and terms of the probationary period (maximum 6 months as per Philippine law)

7. Work Location and Hours: Primary workplace and standard working hours

8. Compensation and Benefits: Base salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other compensation components

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

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

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Code of Conduct: Expected behavior, compliance with company policies and procedures

13. Termination: Grounds for termination, notice periods, and procedures as per Philippine law

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

15. Governing Law: Confirmation of Philippine law as governing law and jurisdiction

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

1. Mobility Clause: Include when the employee may be required to work at different locations

2. Remote Work Provisions: Include when offering work-from-home or hybrid arrangements

3. Non-Compete: Include for senior positions or roles with access to sensitive information

4. Performance Bonus: Include when offering variable compensation based on performance

5. Company Car/Transportation: Include when providing vehicle or transportation benefits

6. Housing Allowance: Include when offering accommodation benefits

7. Training Requirements: Include when specific training or certifications are required

8. Overseas Travel: Include when position requires international travel

9. Commission Structure: Include for sales positions or roles with commission-based compensation

10. Flexible Benefits: Include when offering cafeteria-style benefits options

What schedules should be included in a Unlimited Employment Contract?

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

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

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

4. Schedule 4 - Confidential Information: Definition and examples of confidential information

5. Schedule 5 - Performance Metrics: Key performance indicators and evaluation criteria

6. Appendix A - Employee Handbook Reference: Reference to relevant sections of the employee handbook

7. Appendix B - Benefits Summary: Summary of all benefits and eligibility criteria

8. Appendix C - Required Documents: List of documents required for employment records

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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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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