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Limited Term Employment Contract Template for Philippines

A Limited Term Employment Contract governed by Philippine law establishes a fixed-duration employment relationship between an employer and employee, compliant with the Labor Code of the Philippines and relevant DOLE regulations. This contract specifies the employment duration, terms and conditions, compensation and benefits, and termination provisions while ensuring adherence to Philippine labor standards and jurisprudence, particularly regarding legitimate fixed-term employment as established by the Brent School vs. Zamora doctrine. The document includes mandatory statutory benefits, leave entitlements, and specific provisions protecting both employer and employee rights under Philippine law.

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What is a Limited Term Employment Contract?

The Limited Term Employment Contract is designed for situations where there is a legitimate business need for temporary or project-based employment in the Philippines. This document is commonly used for seasonal work, project-based assignments, or specific time-bound roles where the fixed-term nature of employment is justified by the circumstances and mutually understood by both parties. The contract ensures compliance with Philippine labor laws, particularly the Labor Code and related Department of Labor and Employment (DOLE) regulations, while incorporating principles established in landmark cases such as Brent School vs. Zamora. It provides comprehensive coverage of employment terms, statutory benefits, and protections required under Philippine law, making it suitable for various industries where temporary or project-based employment is common practice.

What sections should be included in a Limited Term Employment Contract?

1. Parties: Identification of the Employer and Employee with complete legal names and addresses

2. Background: Context of the employment arrangement and basis for fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of employment, including grounds for fixed-term nature

5. Position and Duties: Job title, role description, and key responsibilities

6. Work Location and Hours: Primary workplace 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 rights

10. Probationary Period: Terms of initial probation period if applicable

11. Termination: Grounds and procedures for early termination

12. Confidentiality: Protection of company confidential information

13. Company Policies: Compliance with employer's rules and regulations

14. Governing Law: Application of Philippine law and jurisdiction

15. Entire Agreement: Integration clause and amendment procedures

What sections are optional to include in a Limited Term Employment Contract?

1. Non-Competition: Restrictions on working for competitors, used for senior positions

2. Intellectual Property: IP rights assignment, required for technical or creative roles

3. Performance Metrics: Specific KPIs and evaluation criteria, used for sales or performance-based roles

4. Remote Work Provisions: Terms for remote working arrangements if applicable

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

6. Training Requirements: Mandatory training and certification requirements for specialized roles

7. Travel Requirements: Terms for business travel if role requires mobility

8. Equipment Provisions: Terms for company-provided equipment and tools

9. Housing Allowance: Terms for housing benefits if provided

10. Relocation Terms: Provisions for relocation assistance if applicable

What schedules should be included in a Limited Term Employment Contract?

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

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

3. Schedule C - Company Policies: Key company policies and procedures

4. Schedule D - Performance Metrics: Detailed KPIs and evaluation criteria

5. Appendix 1 - Statutory Benefits Summary: Summary of mandatory benefits under Philippine law

6. Appendix 2 - Required Documents: List of documents required for employment

7. Appendix 3 - Code of Conduct: Company's code of conduct and ethical standards

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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