Work Contract Template for Philippines

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Key Requirements PROMPT example:

Work Contract

"I need a standard Work Contract for hiring a full-time software developer in Manila, Philippines, starting March 1, 2025, with standard confidentiality and IP clauses, including a 6-month probationary period."

Document background
The Work Contract serves as a fundamental legal document in Philippine employment relationships, essential for formalizing employment terms while ensuring compliance with the Labor Code of the Philippines and related employment legislation. This document is required when establishing any formal employment relationship in the Philippines, whether for permanent, fixed-term, or probationary employment. It encompasses mandatory provisions protecting both employer and employee interests, including statutory benefits, working conditions, and termination procedures. The contract must align with minimum requirements set by the Department of Labor and Employment (DOLE) while allowing flexibility to address specific industry needs and employment arrangements.
Suggested Sections

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. Term of Employment: Employment start date and whether fixed-term or permanent

6. Compensation and Benefits: Salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other benefits

7. Working Hours and Schedule: Regular working hours, rest days, and overtime provisions

8. Leave Entitlements: Vacation, sick leave, and other statutory leaves

9. Probationary Period: Duration and terms of probation period if applicable

10. Termination: Grounds for termination, notice periods, and procedures

11. Confidentiality: Protection of company confidential information

12. Governing Law: Specification of Philippine law as governing law

13. Data Privacy: Consent and provisions relating to employee data handling

14. Entire Agreement: Integration clause confirming the contract as complete agreement

Optional Sections

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

2. Intellectual Property: IP rights assignment, needed for creative or technical roles

3. Remote Work Provisions: Terms for telecommuting or remote work arrangements

4. Commission Structure: Detailed commission terms for sales or similar roles

5. Performance Metrics: Specific KPIs and evaluation criteria for performance-based roles

6. International Travel: Terms for roles requiring international travel

7. Training Requirements: Mandatory training commitments and associated bonds

8. Stock Options/Equity: Terms for equity compensation, typically for executive positions

Suggested Schedules

1. Schedule A - Job Description: Detailed breakdown of job responsibilities and requirements

2. Schedule B - Compensation Details: Detailed breakdown of salary components and benefits

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

4. Schedule D - Performance Bonus Structure: Detailed bonus calculation methodology if applicable

5. Schedule E - Mandatory Government Benefits: Details of statutory benefits and contribution rates

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

7. Appendix 2 - IT and Communications Policy: Rules regarding use of company IT resources

8. Appendix 3 - Health and Safety Guidelines: Workplace safety protocols and procedures

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Business Process Outsourcing

Financial Services

Retail

Healthcare

Education

Construction

Hospitality

Professional Services

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Support

Administration

Quality Assurance

Business Development

Production

Supply Chain

Corporate Communications

Relevant Roles

Chief Executive Officer

Department Manager

Software Engineer

Administrative Assistant

Sales Representative

Human Resources Officer

Financial Analyst

Production Supervisor

Marketing Coordinator

Customer Service Representative

Project Manager

Research Analyst

Operations Manager

Technical Support Specialist

Business Development Executive

Quality Assurance Engineer

Legal Counsel

Accountant

Data Scientist

Product Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): The primary law governing employment relationships in the Philippines, covering working conditions, hours of work, wages, termination, and other fundamental aspects of employment
Republic Act No. 11165 (Telecommuting Act): Provides the legal framework for telecommuting as an alternative work arrangement, particularly relevant in modern work settings
Republic Act No. 7877 (Anti-Sexual Harassment Act): Defines and prohibits sexual harassment in the workplace, requiring employers to implement preventive measures
Republic Act No. 10173 (Data Privacy Act): Protects individual personal information in information and communications systems, including employee data
Republic Act No. 8282 (Social Security Law): Mandates Social Security System (SSS) coverage and contributions for employees
Republic Act No. 7875 (National Health Insurance Act): Requires PhilHealth coverage for employees, providing health insurance benefits
Republic Act No. 9679 (Home Development Mutual Fund Law): Governs Pag-IBIG Fund contributions and benefits for housing and short-term loans
Republic Act No. 11058 (Occupational Safety and Health Standards): Sets standards for workplace safety and health requirements
DOLE Department Order No. 174-17: Regulates contracting and subcontracting arrangements, protecting workers' rights in these arrangements
Republic Act No. 6971 (Productivity Incentives Act): Encourages implementation of productivity incentives programs and profit-sharing schemes
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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