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Valid Employment Contract Template for Philippines

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Key Requirements PROMPT example:

Valid Employment Contract

"I need a Valid Employment Contract for a senior software developer position in our Manila office, starting March 1, 2025, with specific clauses for intellectual property rights, remote work flexibility, and performance-based bonuses."

What is a Valid Employment Contract?

The Valid Employment Contract serves as the foundational document establishing the legal relationship between employers and employees in the Philippines. It is essential for any employment arrangement, whether for permanent, fixed-term, or probationary positions, and must comply with the Labor Code of the Philippines and related employment legislation. This contract type is required whenever a new employee is hired or when existing employment terms are significantly modified. It includes mandatory provisions on compensation, benefits, working conditions, and termination procedures, while also incorporating specific requirements for social security, healthcare, and housing fund contributions. The document protects both parties' interests by clearly defining rights, obligations, and expectations while ensuring adherence to Philippine labor laws and regulations. Its proper execution is crucial for legal compliance and risk management in employment relationships within Philippine jurisdiction.

What sections should be included in a Valid Employment 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 agreement

3. Definitions: Key terms used throughout the contract

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

5. Commencement and Term: Start date, employment type (permanent/fixed-term), and probationary period if applicable

6. Work Location and Hours: Primary workplace and standard working hours

7. Compensation and Benefits: Base salary, mandatory benefits (13th month pay, SSS, PhilHealth, Pag-IBIG), and other benefits

8. Leave Entitlements: Various types of leave including service incentive leave, sick leave, vacation leave, and other statutory leaves

9. Confidentiality and Data Protection: Obligations regarding company information and compliance with Data Privacy Act

10. Company Policies: Reference to and incorporation of company policies and procedures

11. Termination: Grounds for termination, notice periods, and procedures

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

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

14. Signatures: Execution block for both parties

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

1. Remote Work Provisions: Include when the role involves work-from-home or hybrid arrangements under the Telecommuting Act

2. Non-Compete Clause: Include for senior positions or roles with access to sensitive information, subject to reasonable restrictions under Philippine law

3. Intellectual Property Rights: Include for creative, technical, or research-based roles involving creation of IP

4. Commission Structure: Include for sales positions or roles with variable compensation

5. International Travel: Include for roles requiring regular international travel

6. Training Commitments: Include when the employer provides specialized training with training bond requirements

7. Flexible Benefits: Include when offering cafeteria-style benefits programs

8. Stock Options/Equity: Include for senior positions or when equity compensation is offered

What schedules should be included in a Valid Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting relationships

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

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

4. Schedule 4 - Code of Conduct: Expected behavioral standards and professional conduct guidelines

5. Appendix A - Benefits Summary: Detailed description of all benefits and eligibility criteria

6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and protected information

7. Appendix C - Performance Metrics: Key performance indicators and evaluation criteria

8. Appendix D - Training Agreement: Terms of training provisions and bond requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴视频 | 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

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Professional Services

Telecommunications

Agriculture

Mining

Real Estate

Transportation and Logistics

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Software Engineer

Account Executive

Human Resources Officer

Financial Analyst

Marketing Coordinator

Operations Supervisor

Sales Representative

Administrative Assistant

Project Manager

Research Analyst

Customer Service Representative

Production Worker

Technical Support Specialist

Business Development Manager

Quality Assurance Officer

Legal Counsel

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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