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Joint Employment Contract Template for Philippines

This document establishes a formal joint employment arrangement under Philippine law, where an employee simultaneously works for two or more employers. It comprehensively outlines the shared and individual responsibilities of each employer, including compensation structure, benefits allocation, working hours distribution, and reporting relationships. The contract ensures compliance with Philippine labor laws, particularly the Labor Code and relevant DOLE regulations, while clearly defining the rights and obligations of all parties involved. It includes provisions for statutory benefits, leave management, performance evaluation, and termination procedures in a multiple-employer context.

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What is a Joint Employment Contract?

A Joint Employment Contract is essential when an employee will be providing services to multiple employers in the Philippines, whether within a group of companies or between independent organizations. This arrangement is common in shared service centers, consortium projects, or when specialized skills are needed across multiple entities. The document must comply with Philippine labor laws, including the Labor Code and Department of Labor and Employment regulations, while clearly delineating employer responsibilities, compensation arrangements, and benefit allocations. It addresses crucial aspects such as statutory compliance, tax implications, social security contributions, and healthcare coverage, ensuring that all employers fulfill their legal obligations. The contract is particularly important for protecting the rights of employees while providing a clear framework for employers to manage shared resources efficiently.

What sections should be included in a Joint Employment Contract?

1. Parties: Identification of all parties: the employee and all joint employers

2. Background: Context of the joint employment arrangement and purpose of the agreement

3. Definitions: Key terms used throughout the contract, including specific roles and responsibilities of each employer

4. Term of Employment: Duration of employment, including start date and whether fixed-term or indefinite

5. Nature of Employment: Description of the joint employment relationship and allocation of employer responsibilities

6. Position and Duties: Employee's role, responsibilities, and reporting relationships to each employer

7. Work Location and Schedule: Primary workplace(s) and working hours for each employer

8. Compensation and Benefits: Salary, benefits, and how these are allocated between employers

9. Statutory Benefits: SSS, PhilHealth, Pag-IBIG, and other mandatory benefits, including employer contributions

10. Leave Entitlements: Vacation, sick leave, and other leave benefits, including administration

11. Performance Management: Performance evaluation process and criteria from each employer

12. Confidentiality and Data Protection: Obligations regarding confidential information of all employers

13. Termination: Grounds and procedures for termination, including the effect of termination by one employer

14. Governing Law: Confirmation of Philippine law application and jurisdiction

15. Execution: Signature blocks for all parties

What sections are optional to include in a Joint Employment Contract?

1. Mobility Clause: Required when employee may need to work at different locations or be transferred between employers

2. Intellectual Property Rights: Needed when work involves creation of IP for either/both employers

3. Non-Competition: Include when employers want to restrict employee's ability to work for competitors

4. Training and Development: Include when specific training requirements exist and how costs are shared

5. Overseas Work: Required when job involves international assignments

6. Commission Structure: Include for sales or performance-based roles with commission

7. Dispute Resolution: Optional detailed procedure for handling disputes between parties

8. Benefits Allocation: Detailed breakdown of how specific benefits are shared when arrangement is complex

What schedules should be included in a Joint Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles and responsibilities for each employer

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary and benefits from each employer

3. Schedule 3 - Work Schedule: Detailed timetable showing allocation of time between employers

4. Schedule 4 - Company Policies: Relevant policies from each employer that apply to the employee

5. Appendix A - Statutory Benefits Calculation: Breakdown of statutory benefits and employer contributions

6. Appendix B - Performance Metrics: Detailed performance evaluation criteria from each employer

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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