The Master Employment Contract serves as the foundational document governing the employer-employee relationship in the Philippines. This document is essential for establishing clear, legally compliant employment terms that adhere to the Philippine Labor Code, related employment legislation, and jurisprudence. It is typically used when formalizing permanent employment relationships and should be customized based on the employee's position, industry requirements, and specific terms of employment. The Master Employment Contract includes mandatory provisions required by Philippine law, such as compensation, benefits, working hours, leave entitlements, and termination procedures, while also addressing company-specific policies and requirements. This contract type is particularly important in the Philippine context due to the strong labor protections afforded by local law and the need for clear documentation of employment terms to prevent future disputes.
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1. Parties: Identification of the employer and employee with complete details as required by Philippine law
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Appointment and Job Description: Position, duties, responsibilities, and reporting relationships
5. Term of Employment: Employment start date and nature of employment (permanent/fixed-term)
6. Probationary Period: Length and terms of probationary period, not exceeding 6 months as per Philippine Labor Code
7. Compensation and Benefits: Base salary, mandatory benefits (13th month pay, SSS, PhilHealth, etc.), and other benefits
8. Working Hours and Overtime: Regular working hours, overtime policies, and rest day provisions
9. Leave Entitlements: Vacation, sick, and other statutory leaves as per Philippine law
10. Confidentiality and Data Protection: Protection of company information and compliance with Data Privacy Act
11. Intellectual Property Rights: Ownership of work products and innovations
12. Standards of Conduct: Expected behavior, compliance with company policies, and grounds for disciplinary action
13. Termination: Grounds and procedures for termination, notice periods, and final settlements
14. Post-Employment Obligations: Non-compete, non-solicitation, and return of company property
15. Governing Law: Application of Philippine law and jurisdiction
1. Mobility Clause: Include when the role may require relocation or travel
2. Commission Structure: Include for sales positions or roles with variable compensation
3. Flexible Working Arrangements: Include when offering work-from-home or flexible hours options
4. Vehicle Allowance: Include when providing company vehicle or transportation benefits
5. Housing Allowance: Include when providing accommodation benefits
6. International Assignment Terms: Include for employees who may be assigned overseas
7. Performance Bonus Scheme: Include when offering performance-based incentives
8. Stock Options: Include when offering equity-based compensation
9. Training Requirements: Include when specific training or certifications are required
10. Medical Insurance Supplements: Include when offering additional health benefits beyond PhilHealth
1. Schedule 1 - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Employee Handbook Reference: Reference to relevant sections of the employee handbook
5. Schedule 5 - Confidential Information: Detailed description of what constitutes confidential information
6. Appendix A - Code of Conduct: Detailed behavioral expectations and ethical standards
7. Appendix B - Benefits Summary: Comprehensive overview of all employee benefits
8. Appendix C - Leave Policy: Detailed procedures for requesting and using various types of leave
9. Appendix D - Training Agreement: Terms related to company-provided training and development
10. Appendix E - Data Privacy Notice: Detailed information about the processing of employee personal data
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