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Labour Contract Agreement for Philippines

Labour Contract Agreement Template for Philippines

A comprehensive employment agreement governed by Philippine labor laws that establishes the formal relationship between an employer and employee. This document outlines the terms and conditions of employment in compliance with the Labor Code of the Philippines and related legislation, including compensation, benefits, duties, working hours, leave entitlements, and other employment terms. The agreement incorporates mandatory provisions required by Philippine labor laws while allowing for customization based on specific industry requirements and position-specific terms.

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What is a Labour Contract Agreement?

The Labour Contract Agreement serves as the primary document establishing an employment relationship in the Philippines, governed by the Labor Code of the Philippines (Presidential Decree No. 442) and related employment legislation. This agreement is essential for both employers and employees as it clearly defines their rights, obligations, and expectations while ensuring compliance with local labor laws. It should be used when hiring new employees, converting temporary workers to permanent status, or updating employment terms. The document typically includes comprehensive details about compensation, benefits (including mandatory benefits like SSS, PhilHealth, and Pag-IBIG), working conditions, leave entitlements, and termination procedures. It's designed to protect both parties' interests while maintaining compliance with Philippine employment regulations and industry-specific requirements.

What sections should be included in a Labour Contract 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: Definitions of key terms used throughout the agreement

4. Position and Duties: Job title, role description, responsibilities, and reporting relationships

5. Term of Employment: Employment start date, probationary period if applicable, and employment status (permanent/fixed-term)

6. Work Location and Hours: Primary workplace location and standard working hours, including rest days

7. Compensation and Benefits: Base salary, mandatory benefits (13th month pay, SSS, PhilHealth, Pag-IBIG), payment schedule

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

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

10. Intellectual Property: Ownership of work products and innovations created during employment

11. Standards of Conduct: Expected behavior, compliance with company policies, and grounds for disciplinary action

12. Termination: Conditions for termination, notice periods, and separation procedures

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

14. Entire Agreement: Integration clause confirming the contract as the complete agreement between parties

What sections are optional to include in a Labour Contract Agreement?

1. Remote Work Provisions: Used when allowing work-from-home arrangements, specifying terms under the Telecommuting Act

2. Non-Compete: Used for senior positions or roles with access to sensitive information, restricting post-employment competition

3. Performance Metrics: Used when specific KPIs or performance standards are crucial to the role

4. Commission Structure: Used for sales positions or roles with variable compensation

5. International Travel: Used when the role requires regular international travel

6. Training Requirements: Used when specific training or certification requirements exist

7. Flexible Benefits: Used when offering cafeteria-style benefits beyond statutory requirements

8. Stock Options/Equity: Used when offering company shares or stock options as part of compensation

What schedules should be included in a Labour Contract Agreement?

1. Schedule A - Job Description: Detailed description of role, responsibilities, and required qualifications

2. Schedule B - Compensation Package: Detailed breakdown of salary, allowances, and benefits

3. Schedule C - Company Policies: Key company policies and procedures applicable to the employment

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

5. Schedule E - Confidential Information: Detailed list of what constitutes confidential information

6. Appendix 1 - Employee Handbook: Reference to company handbook containing detailed policies

7. Appendix 2 - Code of Conduct: Detailed behavioral expectations and ethical guidelines

8. Appendix 3 - Benefits Guide: Comprehensive explanation of all available benefits and how to access them

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

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Agriculture

Tourism and Hospitality

Telecommunications

Mining

Transportation and Logistics

Media and Entertainment

Professional Services

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Production

Quality Assurance

Business Development

Administration

Supply Chain

Project Management

Relevant Roles

Chief Executive Officer

Department Manager

Software Engineer

Administrative Assistant

Sales Representative

Human Resources Manager

Financial Analyst

Production Supervisor

Marketing Coordinator

Customer Service Representative

Project Manager

Research Analyst

Operations Director

Quality Assurance Specialist

Business Development Manager

Technical Support Engineer

Account Executive

Executive Assistant

Data Analyst

Office 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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