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Exclusive Employment Agreement for Philippines

Exclusive Employment Agreement Template for Philippines

A comprehensive employment agreement governed by Philippine law that establishes an exclusive employment relationship between an employer and employee. The agreement encompasses all essential elements required under the Philippine Labor Code and related employment legislation, including terms of employment, compensation, benefits, confidentiality obligations, and termination provisions. It specifically addresses the exclusive nature of the employment relationship, prohibiting the employee from engaging in other employment or business activities during the term of employment, while ensuring compliance with local labor standards and statutory requirements.

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What is a Exclusive Employment Agreement?

The Exclusive Employment Agreement is a crucial document used in the Philippines when establishing a formal employment relationship that requires the employee's full commitment and exclusive service to the employer. This agreement is particularly important for positions requiring complete dedication, access to confidential information, or specialized skills. The document must comply with the Philippine Labor Code, relevant employment legislation, and jurisprudence, while protecting both employer and employee interests. It typically includes comprehensive provisions on employment terms, compensation, benefits, confidentiality, intellectual property rights, and termination procedures, all tailored to meet Philippine legal requirements. The agreement is especially relevant when employers need to ensure employees' undivided attention and prevent potential conflicts of interest through competing activities.

What sections should be included in a Exclusive Employment Agreement?

1. Parties: Identification of the employer and employee with complete legal names and addresses

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment status, and duration of employment

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

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

7. Compensation and Benefits: Base salary, mandatory benefits, and payment terms

8. Statutory Benefits: SSS, PhilHealth, Pag-IBIG, and other mandatory benefits

9. Leave Entitlements: Vacation, sick leave, and other statutory leave provisions

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

11. Confidentiality: Protection of company confidential information

12. Intellectual Property: Ownership of work product and innovations

13. Non-Competition: Restrictions on competing activities during employment

14. Termination: Grounds and procedures for termination of employment

15. Governing Law: Application of Philippine law and jurisdiction

16. Entire Agreement: Integration clause and relationship to other agreements

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

1. Remote Work Provisions: Terms for remote work arrangements, if applicable

2. Commission Structure: Details of commission-based compensation for sales roles

3. International Travel: Terms for international assignments or travel requirements

4. Performance Metrics: Specific KPIs and performance evaluation criteria

5. Stock Options: Terms of any equity compensation package

6. Training Requirements: Mandatory training programs and professional development

7. Non-Solicitation: Restrictions on soliciting employees or customers post-employment

8. Relocation Terms: Provisions for relocation assistance if offered

9. Flexible Benefits: Additional non-mandatory benefits and allowances

10. Data Privacy Consent: Specific provisions for handling employee personal data under the Data Privacy Act

What schedules should be included in a Exclusive Employment Agreement?

1. Schedule A - Job Description: Detailed outline of position responsibilities and requirements

2. Schedule B - Compensation Structure: Breakdown of salary components and benefits

3. Schedule C - Company Policies: Reference to applicable company policies and procedures

4. Schedule D - Performance Bonus Scheme: Details of any applicable bonus or incentive programs

5. Schedule E - Confidential Information: Specific types of confidential information covered

6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical standards

7. Appendix 2 - Benefits Summary: Summary of all benefits, both statutory and additional

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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