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The Employee Loan Promissory Note is a crucial document used in Philippine business operations when employers provide financial assistance to employees through company loan programs. This document is essential for companies operating under Philippine jurisdiction that offer employee loan benefits as part of their compensation and benefits package. It combines elements of both employment law and contract law, ensuring compliance with the Labor Code of the Philippines, Truth in Lending Act, and relevant DOLE regulations. The document typically includes detailed loan terms, repayment schedules through salary deductions, interest calculations, and provisions for employment termination scenarios. It's particularly important in protecting both employer and employee interests while maintaining transparency in the lending process and ensuring proper documentation for accounting, tax, and regulatory purposes.

1. Parties: Identification of the Employer/Lender and the Employee/Borrower with complete details

2. Background: Context of the loan agreement, employment relationship, and purpose of the loan

3. Definitions: Key terms used in the document including Loan Amount, Interest Rate, Payment Period, etc.

4. Loan Details: Specific amount, purpose, and disbursement details of the loan

5. Repayment Terms: Payment schedule, method of payment (salary deduction), and computation of deductions

6. Interest Rate: Agreed interest rate, computation method, and total interest payable

7. Security and Collateral: Details of any security provided, including assignment of benefits/separation pay

8. Events of Default: Circumstances constituting default and consequences

9. Termination of Employment: Handling of loan repayment in case of resignation, termination, or retirement

10. Representations and Warranties: Employee's confirmations regarding financial status and understanding of terms

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

12. Execution: Signature blocks and attestation