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Fixed Term Employment Agreement for Philippines

Fixed Term Employment Agreement Template for Philippines

This Fixed Term Employment Agreement is designed for use in the Philippines, complying with the Labor Code of the Philippines and relevant employment legislation. The agreement establishes a definite period of employment between an employer and employee, clearly outlining the terms and conditions of the fixed-term employment relationship. It includes comprehensive provisions for compensation, benefits, working hours, and other employment terms while ensuring compliance with Philippine labor laws, including mandatory benefits such as SSS, PhilHealth, and Pag-IBIG contributions. The document incorporates necessary safeguards to protect both employer and employee interests while maintaining alignment with local regulatory requirements regarding fixed-term employment contracts.

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What is a Fixed Term Employment Agreement?

The Fixed Term Employment Agreement serves as a legally binding contract between employers and employees in the Philippines for employment relationships with a specific duration. This document is particularly useful for project-based work, seasonal employment, or temporary replacements where a defined employment period is necessary and legally justifiable under Philippine labor law. The agreement encompasses all essential elements required by the Labor Code of the Philippines, including employment terms, compensation, benefits, and termination provisions. It's designed to protect both employer and employee interests while ensuring compliance with local employment regulations, particularly DOLE (Department of Labor and Employment) requirements regarding fixed-term employment. The document is structured to clearly define the employment period, responsibilities, and expectations, making it suitable for various industries and roles where temporary or project-based employment is common.

What sections should be included in a Fixed Term Employment Agreement?

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 agreement

4. Term of Employment: Specific start and end dates of the fixed-term employment, including any conditions for renewal

5. Position and Duties: Job title, role description, and key responsibilities

6. Work Location: Primary workplace location and any mobility requirements

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

8. Compensation: Base salary, payment schedule, and method of payment

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

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

11. Probation Period: Length and terms of the probationary period if applicable

12. Termination: Grounds for termination and notice requirements

13. Confidentiality: Protection of company confidential information

14. Company Policies: Adherence to company policies and procedures

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

16. Entire Agreement: Integration clause and amendment procedures

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

1. Mobility Clause: Required when the role may involve temporary or permanent relocation

2. Intellectual Property: Necessary for roles involving creation of IP or creative work

3. Non-Competition: Used for senior positions or roles with access to sensitive information

4. Performance Metrics: Include when employment continuation is tied to specific performance targets

5. Commission Structure: Required for sales positions or roles with variable compensation

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

7. Remote Work Provisions: Necessary for roles allowing work from home or remote work

8. Data Protection: Required when employee will handle personal or sensitive data

9. Safety Protocols: Important for roles in industrial or high-risk environments

10. International Travel: Include for roles requiring international travel

What schedules should be included in a Fixed Term Employment Agreement?

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

2. Schedule 2 - Compensation Details: Breakdown of salary components and benefits

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

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Appendix A - Statutory Benefits: Details of all statutory benefits under Philippine law

6. Appendix B - Confidential Information: Definition and examples of confidential information

7. Appendix C - Return of Company Property: List of company property provided to employee

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

Employment Contract

Cost

Free to use
Relevant legal definitions










































Clauses






































Relevant Industries

Information Technology

Manufacturing

Construction

Education

Healthcare

Retail

Business Process Outsourcing

Tourism and Hospitality

Entertainment

Agriculture

Mining

Financial Services

Media and Communications

Transportation and Logistics

Energy

Relevant Teams

Human Resources

Legal

Operations

Project Management Office

Administration

Finance

Compliance

Talent Acquisition

Relevant Roles

Project Manager

Software Developer

Construction Supervisor

Seasonal Worker

Contract Teacher

Research Assistant

Marketing Specialist

Event Coordinator

Production Worker

Technical Consultant

Sales Representative

Customer Service Representative

Project Engineer

Administrative Assistant

Healthcare Professional

Financial Analyst

Content Creator

Quality Control Inspector

Site Manager

Campaign Manager

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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