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Local Employment Contract for Philippines

Local Employment Contract Template for Philippines

A comprehensive employment agreement governed by Philippine law that establishes the formal employment relationship between an employer and employee within the Philippines. This contract ensures compliance with the Philippine Labor Code and related employment legislation while clearly defining the terms and conditions of employment, including position, compensation, benefits, working hours, and other key employment terms. The document incorporates mandatory provisions required by Philippine labor law while providing flexibility to accommodate various industry-specific requirements and position-specific terms.

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Local Employment Contract

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What is a Local Employment Contract?

The Local Employment Contract serves as the primary document establishing an employment relationship in the Philippines, ensuring compliance with the Labor Code of the Philippines and related employment legislation. This document is essential for any employer hiring employees within the Philippine jurisdiction, whether for permanent or fixed-term positions. The contract encompasses mandatory elements required by Philippine law, including statutory benefits, working hours, leave entitlements, and termination provisions, while allowing customization for specific industry requirements or position-specific terms. It provides legal protection for both employer and employee by clearly defining employment terms, responsibilities, and obligations in accordance with local labor regulations.

What sections should be included in a Local Employment Contract?

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief context about 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: Duration and terms of the probationary period as per Philippine Labor Code

7. Compensation: Base salary, payment schedule, and mandatory benefits including 13th month pay

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

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

10. Statutory Benefits: SSS, PhilHealth, Pag-IBIG, and other mandatory benefits

11. Termination: Grounds and procedures for termination of employment

12. Company Policies: Compliance with company rules and regulations

13. Governing Law: Application of Philippine law and jurisdiction

14. Entire Agreement: Integration clause and amendment procedures

What sections are optional to include in a Local Employment Contract?

1. Confidentiality: For positions with access to sensitive information, defining confidential information and non-disclosure obligations

2. Intellectual Property: For creative or technical positions, addressing ownership of work products

3. Non-Compete: For senior positions or those with access to trade secrets, including reasonable restrictions

4. Remote Work Provisions: For positions allowing work-from-home arrangements under the Telecommuting Act

5. Performance Reviews: For positions with formal evaluation processes

6. Commission Structure: For sales positions or roles with variable compensation

7. Relocation Terms: For positions requiring relocation

8. Training Commitments: For positions requiring specific training or certification

9. Vehicle/Equipment Provision: For positions requiring company vehicles or specific equipment

What schedules should be included in a Local Employment Contract?

1. Schedule A - Job Description: Detailed description of job responsibilities and requirements

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

3. Schedule C - Company Policies: Key company policies and procedures

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

5. Appendix 1 - Code of Conduct: Company's code of conduct and ethical standards

6. Appendix 2 - Benefits Summary: Detailed description of all employee benefits

7. Appendix 3 - Statutory Declarations: Required statutory declarations and acknowledgments

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

Technology

Manufacturing

Retail

Financial Services

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Professional Services

Transportation

Agriculture

Real Estate

Media and Entertainment

Energy

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Customer Service

Research and Development

Administration

Production

Quality Assurance

Business Development

Compliance

Executive Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Manager

Supervisor

Staff Accountant

Human Resources Officer

Software Developer

Sales Representative

Customer Service Representative

Administrative Assistant

Marketing Coordinator

Operations Manager

Project Manager

Research Analyst

Technical Support Specialist

Quality Assurance Engineer

Business Analyst

Financial Controller

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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