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Contract To Hire Agreement for Philippines

Contract To Hire Agreement Template for Philippines

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Contract To Hire Agreement

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What is a Contract To Hire Agreement?

The Contract to Hire Agreement is commonly used in the Philippines when organizations wish to evaluate potential permanent employees through a structured temporary employment period. This arrangement, governed by Philippine labor laws including the Labor Code and related DOLE regulations, provides a formal framework for both employers and workers during the evaluation period. The document typically includes detailed terms of employment, performance expectations, evaluation criteria, and the process for conversion to permanent employment. It's particularly relevant in industries with high-skill requirements or where extensive training investment is needed. The agreement must carefully balance the employer's need for evaluation with the worker's rights under Philippine employment law, including provisions regarding probationary employment and regularization.

What sections should be included in a Contract To Hire Agreement?

1. Parties: Identification of the employer and the contract worker, including complete legal names and addresses

2. Background: Context of the agreement, including the employer's desire to evaluate the worker for potential permanent employment

3. Definitions: Key terms used throughout the agreement, including 'Contract Period', 'Permanent Employment', 'Evaluation Criteria', etc.

4. Term and Contract Period: Duration of the contract period, typically 3-6 months, in compliance with Philippine Labor Code provisions on probationary employment

5. Position and Duties: Detailed description of the role, responsibilities, and performance expectations during the contract period

6. Compensation and Benefits: Salary, statutory benefits, and any additional benefits during the contract period

7. Performance Evaluation: Specific criteria and process for evaluating the worker's suitability for permanent employment

8. Conversion to Permanent Employment: Process, conditions, and terms for converting to permanent employment upon successful completion

9. Confidentiality and Intellectual Property: Protection of company information and ownership of work product

10. Termination: Conditions and process for early termination of the agreement

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

12. General Provisions: Standard clauses including amendments, entire agreement, and severability

What sections are optional to include in a Contract To Hire Agreement?

1. Non-Competition: Restrictions on working with competitors, used when the role involves access to sensitive business information

2. Training Requirements: Specific training programs or certifications required during the contract period

3. Remote Work Provisions: Terms and conditions for remote work arrangements, if applicable

4. Equipment and Resources: Details about company-provided equipment and resources, if applicable

5. Travel Requirements: Terms related to business travel, if required for the position

6. Performance Bonuses: Additional compensation based on performance during the contract period

7. Relocation Provisions: Terms related to relocation assistance, if applicable

What schedules should be included in a Contract To Hire Agreement?

1. Schedule A - Job Description: Detailed description of the position, responsibilities, and reporting structure

2. Schedule B - Compensation and Benefits Package: Detailed breakdown of salary, statutory benefits, and additional benefits

3. Schedule C - Performance Evaluation Criteria: Specific metrics and standards for evaluating performance

4. Schedule D - Permanent Employment Terms: Proposed terms of permanent employment upon successful completion

5. Appendix 1 - Company Policies: Relevant company policies applicable during the contract period

6. Appendix 2 - Confidentiality Agreement: Detailed confidentiality obligations and restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses































Relevant Industries

Information Technology

Business Process Outsourcing

Manufacturing

Financial Services

Professional Services

Healthcare

Retail

Education

Construction

Telecommunications

Media and Entertainment

Real Estate

Hospitality

Logistics and Transportation

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Quality Assurance

Administration

Product Development

Relevant Roles

Software Developer

Business Analyst

Project Manager

Account Executive

Financial Analyst

HR Coordinator

Marketing Specialist

Operations Manager

Customer Service Representative

Sales Representative

Quality Assurance Specialist

Research Analyst

Administrative Assistant

Technical Support Specialist

Data Analyst

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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