The Contractor Offer Letter is a crucial document used when a company wishes to formally engage an independent contractor in the Philippines. It serves as the initial written communication extending an offer for professional services while clearly establishing the contractor status of the relationship. This document is essential for compliance with Philippine labor laws, particularly the Labor Code and Civil Code, which distinguish between employees and independent contractors. The letter should be used when engaging individuals or entities for specific projects or services where an employment relationship is not intended. It typically includes key information such as project scope, compensation, duration, deliverables, and terms of engagement, while incorporating necessary provisions to maintain compliance with local regulations. The document helps protect both parties by clearly defining the nature of the relationship and setting clear expectations from the outset.
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1. Letter Header: Company letterhead, date, and contractor's contact information
2. Opening: Formal greeting and expression of interest in engaging the contractor
3. Role Overview: Brief description of the contractor position and project scope
4. Engagement Terms: Key details including start date, contract duration, and payment terms
5. Independent Contractor Status: Clear statement of independent contractor relationship and not employment
6. Project Scope and Deliverables: Summary of main responsibilities and expected deliverables
7. Payment Details: Compensation rate, payment schedule, and invoicing requirements
8. Term and Termination: Duration of engagement and notice periods for termination
9. Confidentiality Statement: Brief overview of confidentiality obligations
10. Acceptance Instructions: How to accept the offer and deadline for response
11. Closing: Professional closing, signature lines for both parties
1. Equipment and Resources: Include when the company will provide specific tools or resources for the contractor
2. Travel Requirements: Add when the role involves travel and related compensation
3. Performance Metrics: Include when specific KPIs or performance standards need to be met
4. Training Requirements: Add when specific training or certifications are required
5. Intellectual Property Rights: Include for creative or technical work where IP ownership needs to be clearly defined
6. Non-Compete Clause: Add when contractor will have access to sensitive information or client relationships
7. Insurance Requirements: Include when contractor needs to maintain specific insurance coverage
1. Schedule A - Detailed Scope of Work: Comprehensive description of project deliverables, timelines, and specifications
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, milestones, and invoicing procedures
3. Schedule C - Confidentiality Agreement: Detailed non-disclosure terms and confidentiality obligations
4. Schedule D - Project Timeline: Detailed project milestones and delivery dates
5. Appendix 1 - Required Documents: List of documents contractor needs to provide (tax registration, permits, etc.)
6. Appendix 2 - Company Policies: Relevant company policies applicable to contractors
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