The Formal Employment Contract serves as the primary legal document establishing an employment relationship in the Philippines. This document is essential when hiring full-time employees and must comply with the Philippine Labor Code, relevant employment legislation, and Department of Labor and Employment (DOLE) regulations. The contract typically includes mandatory provisions regarding compensation, benefits, working hours, leave entitlements, and termination procedures, while also allowing for additional terms specific to the role or industry. It provides legal protection for both employer and employee by clearly defining rights, obligations, and expectations in accordance with Philippine employment law. This document is particularly important given the strong employee protection framework in Philippine labor law and should be reviewed by legal counsel to ensure compliance with current regulations.
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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. Term of Employment: Employment start date and whether fixed-term or permanent
6. Probationary Period: Length and conditions of the probationary period, not exceeding 6 months as per Philippine law
7. Compensation and Benefits: Base salary, mandatory benefits, 13th month pay, and other compensation elements
8. Working Hours and Overtime: Regular working hours, overtime policies, and rest day provisions
9. Leave Entitlements: Vacation, sick leave, and other statutory leave benefits
10. Social Security and Insurance: SSS, PhilHealth, and Pag-IBIG membership and contributions
11. Confidentiality: Protection of company confidential information and trade secrets
12. Termination: Grounds for termination, notice periods, and procedures
13. Governing Law: Specification of Philippine law as governing law
14. Dispute Resolution: Process for resolving employment-related disputes
15. Entire Agreement: Statement that the contract represents the complete agreement between parties
1. Non-Compete: Restrictions on working for competitors, used for senior positions or when handling sensitive information
2. Intellectual Property Rights: Ownership of work products and inventions, relevant for creative or technical positions
3. Remote Work Provisions: Terms and conditions for remote work arrangements, if applicable
4. Commission Structure: Detailed commission terms for sales or similar roles
5. Performance Metrics: Specific KPIs and performance evaluation criteria for roles with quantifiable targets
6. International Assignment: Additional terms for employees working internationally
7. Training Requirements: Mandatory training programs and professional development requirements
8. Vehicle/Equipment Provision: Terms for company-provided vehicles or equipment
1. Schedule A - Job Description: Detailed description of job responsibilities and requirements
2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule C - Company Policies: Key company policies that form part of the employment terms
4. Schedule D - Performance Bonus Structure: Detailed bonus calculation methodology and criteria
5. Schedule E - Confidential Information: Specific list of information considered confidential
6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix 2 - Benefits Summary: Detailed overview of all employee benefits and eligibility criteria
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Information Technology
Banking and Finance
Retail
Healthcare
Education
Business Process Outsourcing
Construction
Hospitality
Telecommunications
Real Estate
Professional Services
Transportation and Logistics
Energy and Utilities
Agriculture
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Production
Quality Assurance
Business Development
Administration
Executive Management
Corporate Communications
Relevant Roles
Chief Executive Officer
Department Manager
Software Engineer
Financial Analyst
HR Manager
Marketing Director
Sales Representative
Administrative Assistant
Operations Manager
Project Manager
Research Analyst
Customer Service Representative
Production Supervisor
Quality Assurance Specialist
Business Development Manager
Technical Support Engineer
Account Executive
Legal Counsel
Data Scientist
Executive Assistant
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