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Third Party Work Contract for Philippines

Third Party Work Contract Template for Philippines

This document is a comprehensive Third Party Work Contract governed by Philippine law, specifically designed to establish and regulate the contractual relationship between a principal company and a contractor/service provider for the provision of workforce services. It incorporates all necessary provisions to comply with Philippine labor laws, particularly Department Order No. 174-17, while protecting the interests of all parties involved. The contract addresses crucial aspects including service scope, worker rights and benefits, compliance requirements, payment terms, and operational procedures, all within the framework of Philippine employment and contract law.

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Third Party Work Contract

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What is a Third Party Work Contract?

The Third Party Work Contract is essential for businesses operating in the Philippines that engage external workforce through legitimate contractors or service providers. This document type is specifically designed to comply with Philippine labor laws, particularly Department Order No. 174-17, which regulates contracting and subcontracting arrangements. It's crucial for companies seeking to outsource certain functions while ensuring proper documentation and protection of all parties' rights and obligations. The contract encompasses all necessary provisions required by Philippine law, including worker benefits, social security compliance, health insurance coverage, and proper working conditions. It's particularly relevant in the context of the growing outsourcing industry in the Philippines and the need for clear, legally-compliant workforce arrangements.

What sections should be included in a Third Party Work Contract?

1. Parties: Identifies and provides full details of all parties involved: the Principal Company, the Contractor/Agency, and reference to the Workers

2. Background: Explains the context of the agreement, the Principal Company's need for services, and the Contractor's capability to provide workers

3. Definitions: Defines key terms used throughout the contract, including but not limited to 'Services', 'Workers', 'Work Site', and 'Service Fees'

4. Scope of Services: Detailed description of the services to be provided, including the type of work, location, and specific requirements

5. Term and Renewal: Duration of the contract and conditions for renewal or extension

6. Responsibilities of the Contractor: Contractor's obligations including worker management, compliance with labor laws, and service delivery standards

7. Responsibilities of the Principal Company: Principal Company's obligations including workplace safety, access, and cooperation requirements

8. Worker Requirements and Management: Specifications for worker qualifications, replacement procedures, and performance standards

9. Compensation and Payment Terms: Details of service fees, payment schedule, and billing procedures

10. Compliance with Labor Laws: Specific provisions ensuring compliance with Philippine labor laws, including wages, benefits, and working conditions

11. Insurance and Liability: Required insurance coverage and allocation of risks between parties

12. Confidentiality: Protection of confidential information and trade secrets

13. Termination: Grounds and procedures for contract termination, including notice requirements

14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

15. General Provisions: Standard legal provisions including governing law, amendments, and notices

What sections are optional to include in a Third Party Work Contract?

1. Intellectual Property Rights: Required when workers may create or have access to intellectual property during their service

2. Non-Competition: Optional clause restricting the Contractor from providing similar services to competitors

3. Training and Development: Include when specific training requirements or professional development programs are part of the service

4. Performance Metrics and KPIs: When specific performance measurements and standards are required

5. Technology and Equipment Provisions: Include when specific tools, equipment, or technology will be provided by either party

6. Business Continuity and Disaster Recovery: Required for critical services or when continuous operation is essential

7. Data Protection and Privacy: Required when workers will handle personal or sensitive data

8. Transition Services: Include when specific provisions for handover or transition of services are needed

What schedules should be included in a Third Party Work Contract?

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and performance standards

2. Schedule B - Rate Card: Detailed pricing structure, including regular rates, overtime rates, and special conditions

3. Schedule C - Required Worker Qualifications: Specific qualifications, skills, and experience requirements for workers

4. Schedule D - Key Performance Indicators: Detailed metrics for measuring service quality and performance

5. Schedule E - Mandatory Benefits and Compliance Requirements: List of required benefits and specific compliance obligations under Philippine law

6. Appendix 1 - Operating Procedures: Detailed procedures for day-to-day operations and service delivery

7. Appendix 2 - Health and Safety Requirements: Specific health and safety protocols and requirements

8. Appendix 3 - Required Forms and Documentation: Templates and forms for reporting, billing, and other administrative requirements

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

Manufacturing

Information Technology

Business Process Outsourcing

Construction

Facilities Management

Healthcare

Retail

Logistics and Supply Chain

Banking and Financial Services

Telecommunications

Industrial Services

Food and Beverage

Hospitality

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Finance

Risk Management

Supply Chain

Vendor Management

Project Management

Administration

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Facilities Manager

Project Manager

Contract Administrator

Risk Manager

Chief Financial Officer

General Manager

Business Unit Head

Supply Chain Manager

Vendor Relations 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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