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Fixed Term Agreement for Philippines

Fixed Term Agreement Template for Philippines

A Fixed Term Employment Agreement governed by Philippine law that establishes a temporary employment relationship for a specific duration. This agreement complies with the Labor Code of the Philippines and related employment regulations, clearly defining the terms and conditions of fixed-term employment, including compensation, benefits, and termination provisions. The document incorporates mandatory requirements under Philippine labor law, such as statutory benefits, while allowing for customization based on specific industry needs and position requirements. It provides legal protection for both employer and employee by clearly stating the temporary nature of the employment and ensuring compliance with local labor standards.

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Fixed Term Agreement

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What is a Fixed Term Agreement?

The Fixed Term Agreement is specifically designed for use in the Philippines when establishing temporary employment relationships for specific projects, seasonal work, or time-bound assignments. This document type is crucial for companies operating in the Philippines who need to engage employees for a predetermined period while ensuring compliance with the Labor Code of the Philippines and related employment regulations. It includes essential provisions required by Philippine law, such as statutory benefits, working hours, and termination procedures, while also addressing the specific nature of fixed-term employment. The agreement is particularly relevant for project-based work, seasonal employment, or temporary replacements, and must be carefully drafted to avoid misclassification of employment status under Philippine labor laws. Users should note that fixed-term contracts in the Philippines are subject to strict regulatory scrutiny to prevent circumvention of regular employment rights.

What sections should be included in a Fixed Term Agreement?

1. Parties: Identification of the employer and employee with complete details as required by Philippine law

2. Background: Context of the employment relationship and basis for fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Term and Duration: Specific start and end dates of employment, including justification for fixed-term nature as required by Philippine labor law

5. Position and Duties: Job title, responsibilities, and reporting relationships

6. Compensation and Benefits: Salary, mandatory benefits under Philippine law, payment schedule, and method

7. Working Hours and Location: Regular working hours, overtime provisions, and primary work location

8. Statutory Benefits: Mandatory benefits under Philippine law including SSS, PhilHealth, and Pag-IBIG

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

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

11. Termination: Grounds for termination, notice periods, and end-of-contract procedures

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

13. Entire Agreement: Standard clause confirming the agreement represents the complete understanding between parties

What sections are optional to include in a Fixed Term Agreement?

1. Probationary Period: Include if the fixed term is long enough to warrant a probationary period (not exceeding 6 months)

2. Non-Competition: Include for senior positions or roles with access to sensitive information

3. Intellectual Property: Include for creative, technical, or research-based positions

4. Performance Metrics: Include when specific performance targets are part of the employment terms

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

6. Remote Work Provisions: Include if the role allows for remote working arrangements

7. Commission Structure: Include for sales positions or roles with variable compensation

8. Project-Specific Terms: Include when employment is tied to specific project completion

What schedules should be included in a Fixed Term Agreement?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and performance expectations

2. Schedule B - Compensation Details: Breakdown of salary components, benefits, and any variable pay structures

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

4. Schedule D - Confidential Information: Specific details of what constitutes confidential information

5. Appendix 1 - Required Documents: List of documents required from employee (e.g., certifications, IDs)

6. Appendix 2 - Benefits Summary: Detailed breakdown of all benefits, both statutory and company-provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions































Clauses
































Relevant Industries

Information Technology

Construction

Manufacturing

Business Process Outsourcing

Education

Healthcare

Retail

Hospitality

Entertainment

Professional Services

Agriculture

Mining

Telecommunications

Financial Services

Real Estate

Relevant Teams

Human Resources

Legal

Operations

Project Management Office

Administration

Compliance

Finance

Recruitment

Employee Relations

Compensation and Benefits

Relevant Roles

Project Manager

Software Developer

Construction Supervisor

Seasonal Worker

Contract Teacher

Temporary Administrative Assistant

Project Engineer

Campaign Coordinator

Research Assistant

Interim Department Head

Contract Nurse

Seasonal Sales Representative

Project Consultant

Event Coordinator

Temporary Production Worker

Industries








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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