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Hiring Contract for Philippines

Hiring Contract Template for Philippines

A comprehensive employment agreement compliant with Philippine labor laws, designed to establish and formalize the employment relationship between an employer and employee. This document outlines essential terms and conditions of employment including position, compensation, benefits, working hours, and other key terms as required by Philippine legislation. It incorporates mandatory provisions from the Labor Code of the Philippines while allowing for customization based on specific employment circumstances, industry requirements, and company policies. The contract ensures compliance with local employment regulations while protecting both employer and employee interests.

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What is a Hiring Contract?

The Hiring Contract serves as a fundamental legal document in establishing employment relationships under Philippine law. It is essential for any new employment arrangement, whether for permanent, fixed-term, or probationary positions. This document should be used when onboarding new employees or formalizing existing employment relationships, ensuring compliance with the Labor Code of the Philippines and related employment legislation. The contract includes mandatory provisions regarding compensation, benefits, working conditions, and termination procedures, while also allowing for additional terms based on specific employment requirements. It provides legal protection for both parties and clarity regarding employment terms, helping prevent future disputes and ensuring alignment with Philippine labor regulations. Regular review and updates may be necessary to maintain compliance with changing employment laws and regulations in the Philippines.

What sections should be included in a Hiring Contract?

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

2. Background: Brief context of the hiring and purpose of the employment

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date, employment type (regular, probationary, fixed-term), and duration if applicable

6. Compensation and Benefits: Base salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other compensation components

7. Working Hours and Location: Regular working hours, work schedule, and primary work location

8. Leave Entitlements: Vacation, sick leave, and other statutory leave entitlements

9. Performance Expectations: Performance standards, evaluation process, and review periods

10. Termination: Grounds for termination, notice periods, and separation procedures

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

What sections are optional to include in a Hiring Contract?

1. Confidentiality and Non-Disclosure: Required for roles with access to sensitive information or trade secrets

2. Non-Compete Clause: For senior positions or roles with access to strategic information, subject to reasonable limitations under Philippine law

3. Mobility Clause: For positions that may require relocation or travel

4. Intellectual Property Rights: For creative, technical, or research-based roles

5. Remote Work Provisions: For positions allowing work-from-home arrangements

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

7. Training Requirements: For positions requiring specific training or certification maintenance

8. Stock Options or Equity: For senior positions or companies offering employee stock programs

What schedules should be included in a Hiring Contract?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and reporting relationships

2. Schedule B - Compensation Details: Breakdown of salary components, benefits, and computation methods

3. Schedule C - Company Policies: Key company policies that form part of the employment terms

4. Schedule D - Benefits Schedule: Detailed description of all benefits and eligibility criteria

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

6. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms if applicable

7. Appendix 3 - Performance Metrics: Specific KPIs and performance evaluation criteria

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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