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Employment Letter Template for Philippines

An Employment Letter under Philippine law serves as an official document outlining the terms and conditions of employment between an employer and employee. It must comply with the Labor Code of the Philippines and related employment legislation, including mandatory provisions for benefits, working hours, and compensation. The document establishes the fundamental aspects of the employment relationship while incorporating specific requirements under Philippine labor law, such as probationary periods, statutory benefits, and basic employee rights and obligations. It serves as a primary reference point for both parties throughout the employment relationship.

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What is a Employment Letter?

The Employment Letter is a crucial document used in the Philippine employment context to formalize the employment relationship between an employer and employee. It serves as the primary document confirming the offer of employment and outlining essential terms and conditions, including position, compensation, benefits, and working arrangements. This document must align with the Labor Code of the Philippines and various employment-related legislation, incorporating mandatory provisions for employee protection and benefits. The Employment Letter is typically issued after successful recruitment and before the commencement of employment, forming the basis of the employment contract. It should be drafted to ensure compliance with local labor laws while clearly communicating the terms of employment to the prospective employee.

What sections should be included in a Employment Letter?

1. Company Letterhead and Date: Official company letterhead with complete contact information and date of issuance

2. Employee Information: Full name and address of the employee

3. Position and Employment Classification: Job title, employment status (regular, probationary, fixed-term), and department/reporting relationship

4. Start Date and Work Location: Commencement date of employment and primary work location

5. Compensation Package: Basic salary, allowances, and other monetary benefits

6. Working Hours and Schedule: Regular working hours, days, and flexible arrangement policies if applicable

7. Benefits: Statutory and additional company benefits including leaves, insurance, and other perks

8. Probationary Period: Duration and terms of the probationary period if applicable

9. Confidentiality and IP: Basic confidentiality obligations and intellectual property rights

10. Acceptance and Signature: Space for both employer and employee signatures and date of acceptance

What sections are optional to include in a Employment Letter?

1. Relocation Terms: Include when the position requires relocation of the employee

2. Commission Structure: Include for sales positions or roles with variable compensation

3. Remote Work Provisions: Include when the role involves regular work-from-home arrangements

4. Performance Bonus Structure: Include when the role includes performance-based incentives

5. International Assignment Terms: Include for positions involving international assignments

6. Training Commitments: Include when specific training requirements or bonds are involved

7. Non-Compete Clause: Include for senior positions or roles with access to sensitive information

What schedules should be included in a Employment Letter?

1. Job Description: Detailed outline of role responsibilities and requirements

2. Benefits Schedule: Detailed breakdown of all company benefits and eligibility criteria

3. Company Policies: Key company policies that form part of employment terms

4. Performance Metrics: Specific KPIs and performance evaluation criteria

5. Statutory Benefits Summary: Summary of mandatory benefits under Philippine law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Philippines

Document Type

Employment Contract

Cost

Free to use

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