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Staffing Subcontractor Agreement for Philippines

Staffing Subcontractor Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions between a principal company (main contractor) and a staffing agency (subcontractor) for the provision of temporary or permanent staffing services. The agreement ensures compliance with Philippine labor laws, particularly DOLE regulations on legitimate contracting, while detailing responsibilities for workforce management, statutory benefits, and employment obligations. It includes provisions for service delivery, payment terms, compliance requirements, and risk allocation, all structured within the framework of Philippine employment and contracting regulations.

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What is a Staffing Subcontractor Agreement?

The Staffing Subcontractor Agreement is essential for businesses operating in the Philippines that need to engage external workforce providers while maintaining compliance with strict local labor laws. This document is particularly crucial given the Philippines' comprehensive regulations on contracting and subcontracting, including DOLE Department Order No. 174-17, which sets specific requirements for legitimate contracting arrangements. The agreement typically includes detailed provisions on employer obligations, statutory benefits, workplace safety, and employee rights, while clearly establishing the independence of the subcontractor to avoid issues of labor-only contracting. It's commonly used when companies need flexible staffing solutions, require specialized talent, or want to outsource certain workforce management functions while ensuring full compliance with Philippine labor and employment laws.

What sections should be included in a Staffing Subcontractor Agreement?

1. Parties: Identifies the main contractor and subcontractor, including their complete legal names, addresses, and registration details

2. Background: Explains the context of the agreement, including the main contractor's business, need for staffing services, and subcontractor's expertise

3. Definitions: Defines key terms used throughout the agreement, including 'Services', 'Assigned Employees', 'Work Location', etc.

4. Scope of Services: Details the staffing services to be provided, including types of positions, recruitment, and deployment responsibilities

5. Term and Termination: Specifies the duration of the agreement and circumstances for termination

6. Subcontractor Obligations: Lists the subcontractor's responsibilities including compliance with labor laws, maintaining licenses, and employee management

7. Main Contractor Obligations: Outlines the main contractor's duties including payment, workplace safety, and coordination

8. Payment Terms: Details service fees, payment schedule, invoicing process, and other financial terms

9. Employment and Labor Compliance: Ensures compliance with Philippine labor laws, including maintaining employer-employee relationship

10. Insurance and Benefits: Specifies required insurance coverage and statutory benefits for assigned employees

11. Confidentiality: Protects confidential information exchanged during the relationship

12. Indemnification: Establishes mutual indemnification obligations for various risks

13. Dispute Resolution: Outlines process for resolving disputes under Philippine law

14. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Staffing Subcontractor Agreement?

1. Non-Competition: Restricts subcontractor from competing with main contractor; used when sharing sensitive business information

2. Intellectual Property Rights: Addresses ownership of IP created during service provision; needed when assigned employees may create IP

3. Performance Metrics: Establishes KPIs and performance standards; used for complex or large-scale staffing arrangements

4. Transition Services: Details handover process at contract end; important for long-term or critical staffing arrangements

5. Force Majeure: Addresses unforeseeable circumstances; particularly relevant post-COVID

6. Data Protection: Additional privacy provisions; needed when handling sensitive personal data

7. Training Requirements: Specifies training obligations; used when specific qualifications are needed

8. Security Requirements: Details security protocols; needed for positions with access to sensitive areas/information

What schedules should be included in a Staffing Subcontractor Agreement?

1. Schedule 1 - Service Fees and Payment Terms: Detailed breakdown of fees, markups, and payment calculations

2. Schedule 2 - Minimum Service Levels: Specific performance metrics and service level requirements

3. Schedule 3 - Required Personnel Qualifications: Detailed qualifications and experience requirements for different positions

4. Schedule 4 - Statutory Benefits and Contributions: List of mandatory benefits and contribution rates under Philippine law

5. Schedule 5 - Documentation Requirements: Required employee documents and compliance certificates

6. Schedule 6 - Key Personnel: List of key management contacts from both parties

7. Appendix A - Standard Operating Procedures: Detailed procedures for employee deployment, replacement, and management

8. Appendix B - Compliance Certificates: Copies of required licenses and certificates

9. Appendix C - Insurance Requirements: Detailed insurance coverage requirements and limits

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

Manufacturing

Business Process Outsourcing

Information Technology

Construction

Retail

Healthcare

Hospitality

Logistics and Transportation

Financial Services

Telecommunications

Industrial Services

Agricultural Processing

Mining and Resources

Educational Services

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Finance

Risk Management

Administration

Project Management

Talent Acquisition

Vendor Management

Executive Leadership

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Finance Director

HR Business Partner

Contracts Manager

Talent Acquisition Manager

Risk Manager

Project Manager

Facility Manager

Administrative Manager

Chief Operating Officer

General Counsel

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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