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Job Agreement Letter Template for Philippines

A Job Agreement Letter under Philippine law serves as a formal employment offer and preliminary employment contract that outlines the fundamental terms and conditions of employment between an employer and employee. This document must comply with the Labor Code of the Philippines and related employment legislation, including mandatory benefits under Philippine law such as SSS, PhilHealth, and Pag-IBIG. It establishes the basic employment relationship while adhering to local labor standards regarding working hours, compensation, probationary periods, and other essential terms of employment. The document provides a foundation for the employment relationship while ensuring compliance with Philippine labor regulations and statutory requirements.

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What is a Job Agreement Letter?

The Job Agreement Letter is a crucial document in Philippine employment relations, typically used as the initial formal agreement between an employer and a prospective employee. It serves multiple purposes: establishing the employment relationship, outlining key terms and conditions, and ensuring compliance with Philippine labor laws. This document is particularly important as it needs to incorporate mandatory provisions required by the Labor Code of the Philippines and related employment legislation, while also being clear and accessible to both parties. The Job Agreement Letter should be issued before the commencement of employment and must include essential elements such as compensation, benefits, working hours, and job responsibilities. It forms the basis of the employment relationship and can be referenced throughout the duration of employment. In the Philippine context, this document must carefully balance being comprehensive enough to cover legal requirements while remaining clear and understandable for all parties involved.

What sections should be included in a Job Agreement Letter?

1. Letter Header: Company letterhead, date, and recipient's address

2. Salutation: Formal greeting to the employee

3. Opening Paragraph: Statement of offer and position title

4. Role and Responsibilities: Overview of the position and key duties

5. Employment Start Date: Specified commencement date and employment status (probationary/regular)

6. Compensation and Benefits: Salary, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other benefits

7. Working Hours and Location: Regular working hours, work location, and any flexibility arrangements

8. Probationary Period: Duration of probationary period and conditions for regularization

9. Confidentiality: Basic confidentiality requirements

10. Closing: Acceptance instructions and deadline

11. Signature Blocks: Space for employer and employee signatures

What sections are optional to include in a Job Agreement Letter?

1. Reporting Structure: Used when there's a need to clarify direct supervisors and reporting lines

2. Travel Requirements: Include when the role involves regular travel

3. Remote Work Provisions: Include when offering remote or hybrid work arrangements

4. Performance Metrics: Used for roles with specific KPIs or performance targets

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

6. Training Requirements: Include when specific training or certifications are required

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

What schedules should be included in a Job Agreement Letter?

1. Schedule A - Benefits Package: Detailed breakdown of all company benefits and eligibility criteria

2. Schedule B - Job Description: Detailed job description and responsibilities

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

4. Schedule D - Compensation Structure: Detailed breakdown of salary components and any variable pay elements

5. Appendix 1 - Required Documents: List of documents required for employment processing

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

Cost

Free to use

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