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One Year Fixed Term Contract for Philippines

One Year Fixed Term Contract Template for Philippines

A Fixed Term Employment Contract governed by Philippine law that establishes a defined one-year employment relationship between an employer and employee. This document ensures compliance with the Philippine Labor Code and related regulations, including mandatory benefits, working conditions, and termination provisions. It addresses key employment terms such as compensation, duties, working hours, leave entitlements, and statutory benefits while incorporating specific requirements under Philippine employment law for fixed-term contractual arrangements. The agreement provides clear terms for both parties while maintaining the standards set by the Department of Labor and Employment (DOLE) and relevant Supreme Court decisions.

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What is a One Year Fixed Term Contract?

This One Year Fixed Term Contract is designed for use in the Philippines when establishing temporary employment relationships with a defined duration of one year. It is particularly suitable for project-based work, seasonal employment, or temporary business needs where the fixed term is justified by legitimate business requirements, as required by Philippine labor law. The document incorporates mandatory provisions from the Labor Code of the Philippines, relevant DOLE regulations, and precedents set by the Supreme Court regarding valid fixed-term employment. It includes comprehensive terms covering compensation, benefits, working conditions, and termination provisions, ensuring compliance with local employment laws while protecting both employer and employee interests. This contract type requires careful consideration of the legitimate business reason for the fixed term to ensure it meets the standards established in jurisprudence, particularly the Brent School vs. Zamora doctrine.

What sections should be included in a One Year Fixed Term Contract?

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 fixed-term contract

3. Definitions: Key terms used throughout the contract

4. Term and Duration: Specific start and end dates of the one-year fixed term contract

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

6. Work Location: Primary workplace location and any mobility requirements

7. Hours of Work: Regular working hours, breaks, and overtime provisions

8. Compensation: Base salary, payment schedule, and method of payment

9. Mandatory Benefits: SSS, PhilHealth, Pag-IBIG, and other statutory benefits

10. Leave Entitlements: Vacation, sick leave, and other statutory leave provisions

11. Probationary Period: Initial evaluation period if applicable within the fixed term

12. Confidentiality: Protection of company information and trade secrets

13. Termination: Grounds for termination and notice requirements

14. Post-Employment Obligations: Return of company property and continuing obligations

15. Governing Law: Specification of Philippine law as governing law

16. Entire Agreement: Integration clause and relationship to other agreements

17. Execution: Signature blocks and execution requirements

What sections are optional to include in a One Year Fixed Term Contract?

1. Performance Requirements: Specific KPIs and performance evaluation criteria, used when role has measurable targets

2. Additional Benefits: Non-mandatory benefits such as health insurance or allowances, included when offering above-statutory benefits

3. Remote Work Provisions: Terms for working from home or remote locations, needed if remote work is permitted

4. Intellectual Property: IP assignment and protection, important for creative or technical roles

5. Non-Compete: Post-employment competition restrictions, relevant for senior or specialized positions

6. Training Requirements: Mandatory training or certification requirements, included when specific qualifications are needed

7. Commission Structure: Details of commission or bonus schemes, used for sales or performance-based roles

8. Data Privacy Consent: Detailed data protection provisions, required when processing sensitive personal data

9. Mobility Clause: Terms for potential relocation or travel, needed for roles requiring mobility

What schedules should be included in a One Year Fixed Term Contract?

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

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

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

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

5. Schedule 5 - Benefits Summary: Comprehensive list of statutory and additional benefits

6. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements

7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and requirements

8. Appendix C - Return of Company Property Form: Checklist of company property to be returned upon termination

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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