Employment Contract Sample in the Philippines: Guidelines and Template

Are you an employer in the Philippines who needs help drafting an employment contract? Look no further! In this article, we’ll provide you with samples of employment contracts that you can use as a reference. You can easily edit and customize these samples to meet your specific needs as an employer. Whether you’re hiring a new employee or re-negotiating an existing contract, having a solid employment contract is crucial to protect your business and ensure a smooth relationship with your employee. Keep reading and find the perfect contract sample for your business.

The Best Structure for Employment Contract Sample in The Philippines

When it comes to creating an employment contract in the Philippines, it’s essential to make sure that the structure is accurate, complete, and complies with Philippine labor laws and regulations. A well-structured employment contract is vital to protect both the employer and employee’s interests, ensuring that expectations are understood and met.

Here is the best structure for your employment contract sample in the Philippines:

1. Introduction

The introduction should state the employer’s and employee’s identities and background information. It should also explain the reason for the agreement, job title, and employment status. This section should also specify the duration of employment, whether it’s permanent or fixed-term. The introduction should also define the organization’s business activities and the department in which the employee is assigned.

2. Duties and Responsibilities

The next section should outline the employee’s job duties and responsibilities. It should detail the tasks, expectations, and any performance standards, such as key performance indicators, targets, and deadlines. This section should explicitly state if the job requires any overtime, evening or night shifts, and weekend work.

3. Compensation and Benefits

The compensation section should provide the employee’s salary, frequency of payment, allowances, bonuses, and incentives. The benefits section should detail the mandatory benefits required by law, such as social security, health insurance, and retirement plans, and any voluntary benefits that the employer offers, such as dental or vision care, transportation allowance, and other fringe benefits.

4. Terms and Conditions

In this section, the employment contract should specify the terms and conditions, such as the probationary period, the notice period for termination, confidentiality agreements, intellectual property agreements, and other agreements regarding the employee’s conduct and adherence to company policies and guidelines. The terms and conditions section should also specify the grounds for disciplinary action and the process for resolving disputes.

5. Signature and Date

The last section should include the date and the signatures of both the employer and the employee. Both parties should also receive a copy of the agreement for their reference, and in case of a dispute, it can be used as evidence during legal proceedings.

A well-crafted employment contract protects both parties and promotes a positive employer-employee relationship. By following these guidelines, you can create an employment contract sample in the Philippines that’s legally binding and mutually beneficial.

Sample Employment Contracts in the Philippines

Employment Contract for Regular Employee

Greetings!

We are pleased to offer you regular employment with our company as (position) effective (start date). Your duties and responsibilities include (job description) and you will be reporting to (supervisor or department head).

The terms and conditions of your employment are specified in the attached contract. Among them are your monthly salary, health and other benefits, working hours, and leave entitlements. Please read and understand the contract carefully before signing it and returning it to us. Let us know if you have any questions or concerns that we can address.

We believe that you will contribute positively to our company’s growth and success and we look forward to working with you.

Sincerely,

(Employer’s name and signature)

Employment Contract for Project-Based Employee

Dear (Employee’s name),

We are pleased to offer you a position as (position) for the (project name) project. Your employment will be on a project basis, from (start date) to (end date). During that period, you will be responsible for (job description).

The terms and conditions of your employment are detailed in the attached contract. You will receive hourly compensation for your work, as well as other benefits as specified in the contract. Your schedule may vary depending on the project’s needs, but we will give you advance notice.

We believe that your skills and experience will be an asset to our team and we look forward to working with you on this exciting project.

Thank you.

Best regards,

(Employer’s name and signature)

Employment Contract for Seasonal Employee

Dear (Employee’s name),

We are pleased to invite you to join our company for the holiday season as (position). Your employment will begin on (start date) and end on (end date) or at the discretion of management.

Your duties and responsibilities include (job description) and you will be reporting to (supervisor or department head). You will receive an hourly rate as well as other benefits as stated in the attached contract. Your schedule may vary depending on the demands of the season, but we will give you advance notice.

We are confident that you will contribute to our company’s success during this busy season and we look forward to working with you. Please review and sign the attached contract and return it to us.

Thank you.

Sincerely,

(Employer’s name and signature)

Internship Employment Contract

Dear (Intern’s name),

We are glad to offer you an internship position with our company as (position) starting (start date) and ending on (end date). Your duties and responsibilities include (job description) and you will be supervised by (supervisor or department head).

Your compensation and benefits are defined in the attached contract, which you must read and sign before starting your internship. You will receive hands-on experience and mentorship in your role, as well as opportunities to collaborate and learn from other professionals in the company.

We believe that your skills and enthusiasm will be valuable to our team as we help you develop your career goals and interests. Please let us know if you have any questions or concerns.

Thank you and welcome aboard!

Best regards,

(Employer’s name and signature)

Contract for Probationary Employment

Dear (Employee’s name),

We are offering you a probationary position in our company as (position) starting on (start date). Your responsibilities include (job description) and you will be assisted in your duties by (supervisor or department head).

During your probationary period, you will be evaluated on a regular basis to determine your suitability for a regular employment status. You will receive compensation and other benefits as described in the attached contract, which you must read and sign before starting your employment. Please note that the probationary period may be extended or terminated based on your performance.

We are confident that you will perform well and contribute to our company’s growth. We look forward to working with you during your probationary period.

Thank you.

Sincerely,

(Employer’s name and signature)

Employment Contract for Fixed-Term Employee

Dear (Employee’s name),

Thank you for accepting our offer of employment as (position) starting on (start date) and ending on (end date) or upon completion of the specified project. Your duties include (job description) and you will be supervised by (supervisor or department head).

You will receive compensation and benefits as stated in your attached contract. Your employment will be terminated at the end of the fixed-term, unless otherwise extended or renewed by mutual agreement of both parties. Please read and understand the contract before signing it and returning it to us.

We are confident that you will perform excellently and contribute positively to our company’s growth during your employment. We look forward to working with you during this period.

Best regards,

(Employer’s name and signature)

Employment Contract for Freelance Employee

Greetings!

We are pleased to offer you employment as a freelance (position) in our company. You will work remotely but will be required to attend online meetings as necessary.

Your duties and responsibilities include (job description) and you will be expected to complete them within the specified deadline. Your hourly rate and other benefits are as stated in the attached contract, which you must read and sign and return to us before you start working with us.

We believe that your skills and talent will contribute positively to our company’s growth and reputation. Please let us know if you have any questions or concerns.

Thank you.

Sincerely,

(Employer’s name and signature)

Tips for Employment Contract Samples in the Philippines

Employment contracts are an essential part of any job offer, providing clarity and structure for both the employer and employee. In the Philippines, these contracts must comply with the Labor Code, which sets out minimum terms and conditions of employment. Here are some tips to keep in mind when drafting or reviewing an employment contract sample in the Philippines:

  • Ensure that the contract is written in clear and simple language, with all terms and conditions clearly defined.
  • Include a clear job description, outlining the role and responsibilities of the employee, as well as any required qualifications or experience.
  • Specify the salary and benefits package, including any bonuses or allowances.
  • Include details of working hours, breaks, and overtime pay, as well as any other expectations around attendance and punctuality.
  • Specify the duration of the contract, whether it is a fixed-term or indefinite agreement.
  • Include provisions for termination of the contract, both by the employer and employee, and specify any notice periods or severance pay.
  • Specify any non-compete or confidentiality agreements, ensuring that they are reasonable and necessary for the protection of the employer’s business interests.
  • Include provisions for dispute resolution, such as mediation or arbitration, in case of any disagreements or breaches of contract.

It’s important to note that the Philippine Labor Code mandates certain benefits for employees, regardless of what is stated in the contract. These include at least one day off every week, 13th-month pay, and social security and healthcare benefits. Make sure that your contract is compliant with these legal requirements, and seek legal advice if necessary.

Ultimately, an employment contract should be fair and reasonable for both parties, providing a clear framework for the employment relationship. By following these tips, you can ensure that your contract sample meets the legal requirements and protects the interests of both the employer and employee.

Employment Contract Sample FAQs

What is an employment contract?

An employment contract is a legal agreement between an employer and an employee that outlines the terms and conditions of their working relationship.

What should be included in an employment contract?

An employment contract in the Philippines should include the names and addresses of the employer and employee, the duration of employment, the job description and responsibilities, compensation and benefits, working hours and schedule, and termination conditions.

Is an employment contract mandatory in the Philippines?

Yes, a written employment contract is required in the Philippines under the Labor Code and failure to provide one may result in legal penalties and liabilities for the employer.

Can an employment contract be changed or modified?

Yes, an employment contract can be changed or modified with the agreement of both the employer and employee, provided that the changes are in compliance with the Philippine Labor Code.

What are the consequences of breaching an employment contract?

Breaching an employment contract may subject the breaching party to legal penalties and liabilities, as well as damages for any loss or harm suffered by the other party as a result of the breach.

What is probationary employment?

Probationary employment is a period of employment where an employee is placed under observation and evaluation to determine if he or she is fit for regular employment.

Can probationary employment be extended?

Yes, probationary employment may be extended for a specified period but it should not exceed the maximum probationary period allowed under the Philippine Labor Code.

Thanks for reading this article about employment contract samples in the Philippines. We hope this has given you a clearer idea of what to expect when entering into a work agreement. Remember to always read and understand the terms and conditions of any contract before signing. If you have any questions or comments, feel free to leave them below. We invite you to stay tuned for more informative articles and updates, so don’t forget to bookmark our page and visit us again soon!