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Employee Leasing Agreement for Philippines

Employee Leasing Agreement Template for Philippines

This Employee Leasing Agreement is a comprehensive legal document governed by Philippine law that establishes the terms and conditions under which an employee leasing company (lessor) provides staffing services to a client company (lessee). The agreement ensures compliance with the Labor Code of the Philippines, DOLE Department Order No. 174-17, and other relevant Philippine labor regulations. It covers essential aspects including employee rights, benefits administration, workplace safety requirements, and the specific responsibilities of both the lessor and lessee companies. The document incorporates provisions for social security compliance, tax regulations, and data privacy requirements under Philippine law.

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What is a Employee Leasing Agreement?

The Employee Leasing Agreement serves as a crucial legal framework for businesses operating in the Philippines that wish to engage workers through a professional employer organization or staffing company. This arrangement is particularly relevant in the Philippine business environment, where companies often seek flexible staffing solutions while ensuring compliance with strict labor regulations. The agreement outlines the triangular relationship between the employee leasing company (lessor), the client company (lessee), and the leased employees, detailing responsibilities for payroll, benefits, workplace safety, and day-to-day management. It ensures compliance with Philippine labor laws, including the Labor Code, DOLE regulations, social security requirements, and data privacy laws. The document is essential for businesses looking to optimize their workforce management while maintaining legal compliance and protecting the rights of all parties involved.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identification of the Employee Leasing Company (Lessor) and Client Company (Lessee)

2. Background: Context of the agreement, including the lessor's authority to provide employee leasing services and the lessee's need for workforce

3. Definitions: Key terms used throughout the agreement including 'Leased Employees', 'Services', 'Workplace', etc.

4. Scope of Services: Detailed description of employee leasing services, including recruitment, placement, and management responsibilities

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Responsibilities of the Lessor: Obligations of the employee leasing company including payroll, benefits administration, and compliance with labor laws

7. Responsibilities of the Lessee: Client company's obligations regarding workplace safety, supervision, and day-to-day management of leased employees

8. Employee Rights and Benefits: Provisions ensuring compliance with Philippine labor laws regarding employee benefits, rights, and protections

9. Fees and Payment Terms: Service fees, payment schedule, and other financial arrangements

10. Compliance with Laws: Commitment to comply with relevant Philippine labor laws, DOLE regulations, and other applicable legislation

11. Indemnification and Insurance: Risk allocation between parties and required insurance coverage

12. Confidentiality: Protection of confidential information and trade secrets

13. Dispute Resolution: Process for resolving disputes between parties

14. General Provisions: Standard contractual provisions including notices, amendments, and governing law

What sections are optional to include in a Employee Leasing Agreement?

1. Non-Competition: Restrictions on hiring leased employees directly, used when the lessor wants to protect their workforce

2. International Deployment: Additional provisions for cases where employees may be deployed internationally

3. Training and Development: Provisions regarding employee training responsibilities and cost allocation, used when specific training requirements exist

4. Performance Management: Detailed procedures for employee performance evaluation and management, used in long-term arrangements

5. Intellectual Property Rights: Provisions regarding ownership of IP created by leased employees, used in technical or creative roles

6. Data Protection: Additional provisions for handling sensitive personal data, used when extensive data sharing is required

7. Force Majeure: Provisions for handling unforeseen circumstances, particularly relevant in light of recent global events

What schedules should be included in a Employee Leasing Agreement?

1. Schedule A - Leased Employee Positions and Qualifications: Detailed list of positions covered and required qualifications

2. Schedule B - Fee Structure and Payment Terms: Detailed breakdown of service fees, markups, and payment arrangements

3. Schedule C - Benefits Package: Details of employee benefits, including statutory and additional benefits

4. Schedule D - Service Level Agreement: Performance metrics and service standards

5. Schedule E - Workplace Safety Requirements: Specific safety protocols and requirements for the workplace

6. Appendix 1 - Required Forms and Documentation: Templates for necessary documentation and reporting

7. Appendix 2 - DOLE Compliance Checklist: Checklist ensuring compliance with DOLE regulations

8. Appendix 3 - Emergency Contact Information: Contact details for key personnel from both parties

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions


















































Clauses







































Relevant Industries

Manufacturing

Information Technology

Business Process Outsourcing

Construction

Retail

Hospitality

Healthcare

Logistics and Transportation

Agriculture

Mining

Financial Services

Education

Relevant Teams

Human Resources

Legal

Executive Leadership

Operations

Finance

Procurement

Compliance

Risk Management

Labor Relations

Facility Management

Relevant Roles

Human Resources Director

Legal Counsel

Chief Executive Officer

Chief Operating Officer

HR Manager

Compliance Officer

Operations Manager

Procurement Manager

Finance Director

Facility Manager

Project Manager

Risk Manager

Labor Relations Manager

Recruitment Manager

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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