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Individual Employment Agreement Template for Philippines

A comprehensive employment contract compliant with Philippine labor laws, designed to establish and govern the employment relationship between an employer and an individual employee. This agreement incorporates mandatory provisions required by the Philippine Labor Code and related employment legislation, including terms regarding compensation, benefits, working hours, leave entitlements, and termination procedures. The document ensures compliance with local regulations while protecting both employer and employee interests through clear articulation of rights, obligations, and expectations.

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What is a Individual Employment Agreement?

The Individual Employment Agreement serves as the primary legal document establishing an employment relationship in the Philippines, ensuring compliance with the Labor Code of the Philippines and related employment legislation. This document is essential when hiring new employees or formalizing existing employment relationships, providing clear terms regarding position, compensation, benefits, and working conditions. It incorporates mandatory requirements under Philippine law while allowing flexibility to address specific employment circumstances. The agreement protects both employer and employee interests by clearly defining rights, obligations, and expectations, while ensuring alignment with local labor regulations, including provisions for social security, healthcare, and statutory benefits.

What sections should be included in a Individual 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. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Term: Start date and duration of employment (whether fixed-term or permanent)

6. Probationary Period: Duration and terms of the probationary period, not exceeding 6 months as per Philippine Labor Code

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

8. Compensation and Benefits: Base salary, mandatory benefits (13th month pay, SSS, PhilHealth, Pag-IBIG), and other benefits

9. Leave Entitlements: Various types of leave including service incentive leave, sick leave, vacation leave, and other statutory leaves

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Standards of Conduct: Expected behavior, compliance with company policies, and grounds for disciplinary action

13. Termination: Conditions and procedures for ending employment, notice periods, and final settlements

14. Post-Employment Obligations: Continuing obligations after employment ends

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

16. Entire Agreement: Statement that the agreement supersedes all prior arrangements

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

1. Performance Review: Details of performance evaluation process and frequency, used when company has specific review procedures

2. Commission Structure: For sales or commission-based roles, detailing commission calculations and payment terms

3. Remote Work Provisions: For positions allowing work-from-home arrangements, including specific terms under the Telecommuting Act

4. Non-Compete: Restrictions on working with competitors, used for senior positions while ensuring compliance with Philippine law

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

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

7. Overtime Arrangements: Specific provisions for overtime work and compensation, if applicable to the role

8. Variable Pay: Structure for bonuses or performance-based incentives

9. Company Car/Transportation: Terms for provision of company vehicle or transportation allowance

10. Housing Benefits: Terms for housing allowance or accommodation provisions

What schedules should be included in a Individual Employment Agreement?

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

2. Schedule B - Compensation Details: Breakdown of salary components, benefits, and payment schedule

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

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

5. Schedule E - Code of Conduct: Detailed behavioral expectations and disciplinary procedures

6. Appendix 1 - Confidentiality Agreement: Detailed confidentiality obligations and protected information

7. Appendix 2 - Return of Company Property Form: List of company property provided and return procedures

8. Appendix 3 - Performance Metrics: Specific KPIs and performance expectations for the role

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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