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Standard Employment Agreement for Philippines

Standard Employment Agreement Template for Philippines

A comprehensive employment agreement template designed in accordance with Philippine labor laws and regulations, including the Labor Code of the Philippines and related employment legislation. This document establishes the formal employment relationship between employer and employee, outlining essential terms and conditions such as job responsibilities, compensation, benefits, working hours, leave entitlements, and other employment terms while ensuring compliance with Philippine statutory requirements, including mandatory benefits like SSS, PhilHealth, and Pag-IBIG contributions. The agreement incorporates necessary protections for both parties while maintaining flexibility for customization across different industries and roles.

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What is a Standard Employment Agreement?

The Standard Employment Agreement serves as a foundational document for establishing formal employment relationships in the Philippines. This agreement is essential for businesses operating in the Philippine jurisdiction who need to ensure compliance with local labor laws while clearly defining the terms of employment. It incorporates all mandatory provisions required by the Labor Code of the Philippines and related employment legislation, including working conditions, compensation structures, statutory benefits, and termination procedures. The document is particularly useful for companies establishing new employment relationships, converting probationary employees to regular status, or updating existing employment terms to ensure current legal compliance. It provides comprehensive coverage of essential employment terms while maintaining sufficient flexibility to be adapted for various industries, position levels, and employment types.

What sections should be included in a Standard Employment Agreement?

1. Parties: Identification of the employer and employee with complete details including addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: 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 (regular, fixed-term, etc.)

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

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

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. Code of Conduct: Expected behavior, compliance with company policies and procedures

12. Termination: Grounds for termination, notice periods, and procedures

13. Post-Employment Obligations: Return of company property and continuing obligations

14. Governing Law: Application of Philippine law and jurisdiction

15. General Provisions: Standard clauses including amendments, severability, and entire agreement

What sections are optional to include in a Standard Employment Agreement?

1. Mobility Clause: Required when the employee may need to work at different locations or be transferred

2. Non-Compete: Used for senior positions or roles with access to sensitive information, must be reasonable in scope and duration

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

4. Flexible Work Arrangements: When offering work-from-home or hybrid working options under the Telecommuting Act

5. International Travel: For roles requiring overseas travel or assignments

6. Training Requirements: When specific training or certifications are required for the role

7. Performance Metrics: When including specific KPIs or performance measurement criteria

8. Stock Options/Equity: For companies offering employee stock ownership programs

9. Relocation Package: When providing relocation assistance or benefits

10. Language Requirements: For positions requiring specific language proficiencies

What schedules should be included in a Standard Employment Agreement?

1. Schedule A - Job Description: Detailed description of role, 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 - Confidential Information: Specific types of confidential information covered by the agreement

5. Schedule E - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

6. Appendix 1 - Code of Conduct: Detailed company code of conduct and ethical guidelines

7. Appendix 2 - IT Policy: Rules for use of company IT systems and equipment

8. Appendix 3 - Leave Policy: Detailed leave policies and procedures

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

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Telecommunications

Real Estate

Energy

Agriculture

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Operations

Finance

Information Technology

Sales

Marketing

Customer Service

Research and Development

Production

Quality Assurance

Supply Chain

Administration

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Operations Manager

Human Resources Manager

Sales Representative

Administrative Assistant

Software Developer

Project Manager

Marketing Coordinator

Customer Service Representative

Finance Analyst

Production Supervisor

Research Scientist

Business Development Manager

Legal Counsel

IT Support Specialist

Account Manager

Quality Assurance Analyst

Supply Chain Coordinator

Executive Assistant

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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