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Independent Contractor Release Agreement for Philippines

Independent Contractor Release Agreement Template for Philippines

This document serves as a formal release agreement between a company and an independent contractor under Philippine law, effectively terminating their professional relationship and settling all outstanding obligations. It incorporates provisions compliant with the Civil Code of the Philippines and relevant labor regulations, ensuring a comprehensive release of claims from both parties while protecting confidential information and intellectual property rights. The agreement includes details about final payments, completion of services, return of company property, and ongoing obligations, providing legal certainty and protection for both the company and the contractor.

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What is a Independent Contractor Release Agreement?

The Independent Contractor Release Agreement is a crucial document used in the Philippines when formally concluding a contractor relationship. It's typically implemented when a contract project is completed, terminated early by mutual agreement, or when parties wish to formally document the end of their professional relationship. The agreement, governed by Philippine law including the Civil Code and Labor Code, serves multiple purposes: it confirms the completion of services, settles final payments, releases both parties from future claims, and maintains certain post-termination obligations like confidentiality. This document is particularly important in the Philippine context where clear distinction between independent contractors and employees is crucial for legal compliance. It helps protect both parties from future disputes by providing a comprehensive record of the relationship's conclusion and any surviving obligations.

What sections should be included in a Independent Contractor Release Agreement?

1. Parties: Identifies and defines the parties to the agreement, including the Company and the Independent Contractor

2. Background: Outlines the context of the contractor relationship, including reference to the original contract and reason for termination/release

3. Definitions: Defines key terms used throughout the agreement, including 'Services', 'Claims', and 'Release Period'

4. Acknowledgment of Service Completion: Confirms that all contracted services have been completed and accepted by the company

5. Final Payment and Consideration: Details the final payment amount and terms, serving as consideration for the release

6. Release of Claims: Comprehensive release of all claims, demands, and causes of action by the contractor against the company

7. Company Release: Release of claims by the company against the contractor, if applicable

8. Return of Property: Requirements for returning company property, documents, and materials

9. Continuing Obligations: Identifies obligations that survive termination, such as confidentiality and intellectual property rights

10. Representations and Warranties: Contractor's confirmation of understanding and voluntary execution of the release

11. General Provisions: Standard contract provisions including governing law, severability, and entire agreement

What sections are optional to include in a Independent Contractor Release Agreement?

1. Non-Disparagement: Mutual agreement not to make negative statements about each other, used when there's concern about reputation management

2. Future Cooperation: Provisions for contractor's assistance in transition or future inquiries, included when handover of work is complex

3. Tax Matters: Specific provisions regarding tax obligations and indemnities, used when tax implications are significant

4. Dispute Resolution: Detailed procedures for resolving disputes, included when specific resolution mechanisms are preferred

5. Reference and Communications: Agreement on how future employment references will be handled, used when contractor requests specific terms

6. Insurance: Provisions regarding maintenance of insurance coverage, included when contractor performed high-risk services

7. Social Media and Online Presence: Guidelines for updating professional profiles and online references, used when contractor had significant online presence

What schedules should be included in a Independent Contractor Release Agreement?

1. Schedule A - Project Summary: Detailed list of projects and services completed by the contractor

2. Schedule B - Final Payment Details: Breakdown of final payment, including any outstanding fees, expenses, or deductions

3. Schedule C - Company Property Inventory: List of company property to be returned by the contractor

4. Schedule D - Specific Claims Released: Enumeration of specific claims being released, if any

5. Schedule E - Surviving Obligations: Detailed list of obligations that survive the termination of the contract

6. Appendix 1 - Original Contract: Copy of the original Independent Contractor Agreement being terminated

7. Appendix 2 - Certificate of Completion: Documentation confirming successful completion of contracted services

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

Cost

Free to use
Relevant legal definitions































Clauses






























Relevant Industries

Technology

Construction

Consulting

Professional Services

Creative Industries

Manufacturing

Real Estate

Healthcare

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Financial Services

Marketing and Advertising

Relevant Teams

Legal

Human Resources

Procurement

Finance

Operations

Compliance

Risk Management

Project Management Office

Administrative Services

Executive Leadership

Relevant Roles

Project Manager

HR Director

Legal Counsel

Procurement Manager

Operations Director

Finance Manager

Department Head

CEO

Managing Director

Contract Administrator

Freelance Consultant

Independent Professional

Business Owner

General Manager

Chief Operating Officer

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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