Written Contract Of Employment Template for Philippines

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Written Contract Of Employment

"I need a Written Contract of Employment for a senior software developer position in our Manila tech startup, including remote work provisions and intellectual property clauses, with the employment to commence on March 1, 2025."

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What is a Written Contract Of Employment?

The Written Contract of Employment is a fundamental document required for establishing formal employment relationships in the Philippines. It serves as the primary reference point for both employers and employees regarding the terms and conditions of employment, ensuring compliance with Philippine labor laws and regulations. This document is essential whenever a new employee is hired or when an existing employee's terms are substantially modified. It must incorporate mandatory provisions from the Labor Code of the Philippines, including minimum statutory benefits, working hours, leave entitlements, and termination procedures. The contract also typically includes provisions for protecting company interests such as confidentiality clauses and intellectual property rights. Its format and content are influenced by various Philippine legislation including the Labor Code, Social Security Law, and recent developments such as the Telecommuting Act for remote work arrangements.

What sections should be included in a Written Contract Of Employment?

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 term of employment (whether fixed-term or indefinite)

6. Probationary Period: Duration and terms of the probationary period, not exceeding 6 months as per Philippine law

7. Compensation and Benefits: Basic salary, mandatory benefits (13th month pay, holiday pay, etc.), and other compensation components

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

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

10. Social Security Benefits: SSS, PhilHealth, and Pag-IBIG membership and contributions

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

12. Standards of Conduct: Expected behavior, compliance with company policies, and grounds for disciplinary action

13. Termination: Grounds and procedures for termination, notice periods, and final settlements

14. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

15. Execution: Signature blocks and execution details

What sections are optional to include in a Written Contract Of Employment?

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

2. Intellectual Property Rights: Ownership of works created during employment, relevant for creative or technical positions

3. Remote Work Provisions: Terms for work-from-home arrangements under the Telecommuting Act

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

5. International Travel: Terms for international assignments or travel requirements

6. Training Requirements: Mandatory training programs and potential training bond provisions

7. Performance Metrics: Specific KPIs and performance evaluation criteria

8. Stock Options/Equity: Terms of any share or stock option schemes, typically for executive positions

9. Relocation Terms: Provisions for relocation assistance and related benefits

10. Flexible Benefits: Details of flexible benefit schemes where applicable

What schedules should be included in a Written Contract Of Employment?

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

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

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

4. Schedule 4 - Code of Conduct: Detailed behavioral expectations and ethical guidelines

5. Appendix A - Leave Policy: Detailed leave rules and procedures

6. Appendix B - Performance Review Process: Performance evaluation procedures and timing

7. Appendix C - Benefits Summary: Comprehensive list of all employee benefits and eligibility criteria

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

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Telecommunications

Energy

Agriculture

Media and Entertainment

Transportation and Logistics

Business Process Outsourcing

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Compliance

Project Management

Relevant Roles

Chief Executive Officer

Department Manager

Software Engineer

Financial Analyst

Human Resources Officer

Marketing Executive

Sales Representative

Administrative Assistant

Project Manager

Research Analyst

Customer Service Representative

Operations Manager

Technical Support Specialist

Business Development Manager

Legal Counsel

Account Executive

Production Supervisor

Quality Assurance Officer

Data Analyst

Executive Assistant

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, covering working conditions, wages, benefits, termination, and other fundamental aspects of employment
1987 Philippine Constitution (Article XIII): Constitutional provisions protecting workers' rights and promoting full employment, including the right to security of tenure and humane working conditions
Social Security Law (Republic Act No. 11199): Mandates social security coverage and benefits for employees, including provisions for retirement, disability, and death benefits
PhilHealth Law (Republic Act No. 11223): Requires enrollment in the national health insurance program and defines healthcare benefits for employees
Anti-Sexual Harassment Act (Republic Act No. 7877): Defines and prohibits sexual harassment in the workplace, requiring employers to implement preventive measures
Data Privacy Act of 2012 (Republic Act No. 10173): Governs the collection, processing, and protection of employees' personal information
Telecommuting Act (Republic Act No. 11165): Provides the legal framework for implementing work-from-home arrangements and protecting remote workers' rights
Safe Spaces Act (Republic Act No. 11313): Provides protection against gender-based sexual harassment in workplaces and public spaces
Solo Parents Welfare Act (Republic Act No. 8972): Provides additional benefits and privileges to single parent employees
DOLE Department Order No. 18-A: Regulates contracting and subcontracting arrangements, defining parameters for legitimate contracting
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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