Fixed Term Employment Contract - Philippines

Q: What sections should be included in a Fixed Term Employment Contract

1. Parties: Identification of the employer and employee with complete details as required by Philippine law. 2. Background: Context of the employment relationship and confirmation of fixed-term nature. 3. Definitions: Key terms used throughout the contract. 4. Term of Employment: Specific start and end dates of employment and conditions for any renewal. 5. Position and Duties: Job title, responsibilities, and reporting relationships. 6. Work Location: Primary workplace and any flexibility arrangements. 7. Compensation: Base salary, payment schedule, and statutory deductions. 8. Working Hours: Regular working hours, overtime policies, and rest days. 9. Benefits: Statutory benefits including SSS, PhilHealth, and Pag-IBIG. 10. Leave Entitlements: Vacation, sick leave, and other statutory leave rights. 11. Confidentiality: Protection of company information and trade secrets. 12. Termination: Grounds for termination and notice requirements. 13. Governing Law: Confirmation of Philippine law application. 14. Entire Agreement: Integration clause and amendment procedures.

Q: What sections are optional to include in a Fixed Term Employment Contract

1. Probationary Period: Used when the fixed term is long enough to include a probationary period (up to 6 months). 2. Non-Competition: Used for senior positions or when employee will have access to sensitive information. 3. Intellectual Property: Required when employee will be creating IP in course of employment. 4. Performance Metrics: Used when specific performance targets are part of employment terms. 5. Remote Work Provisions: Needed if role involves remote working arrangements. 6. Commission Structure: Required for sales positions or roles with variable compensation. 7. Training Requirements: Used when specific training or certifications are required. 8. Vehicle/Equipment Provision: Needed when company provides tools or equipment.

Q: What schedules should be included in a Fixed Term Employment Contract

1. Schedule A - Job Description: Detailed outline of role responsibilities and requirements. 2. Schedule B - Compensation Details: Breakdown of salary components and benefits. 3. Schedule C - Company Policies: Key workplace policies applicable to the employee. 4. Schedule D - Performance Metrics: Specific KPIs and evaluation criteria if applicable. 5. Appendix 1 - Statutory Benefits Summary: Overview of mandatory benefits under Philippine law. 6. Appendix 2 - Code of Conduct: Company's code of conduct and ethical standards.

Fixed Term Employment Contract Template for Philippines

A Fixed Term Employment Contract governed by Philippine law establishes a temporary employment relationship with a defined start and end date. This document ensures compliance with the Labor Code of the Philippines and related employment regulations while clearly outlining the terms and conditions of fixed-term employment. It includes provisions for compensation, benefits, working hours, and other employment terms as required by Philippine law, including mandatory benefits such as SSS, PhilHealth, and Pag-IBIG. The contract balances the employer's need for workforce flexibility with employee protections mandated by Philippine labor legislation.

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is essential for businesses operating in the Philippines that require temporary workforce arrangements for specific projects, seasonal work, or other time-bound employment needs. This document is designed in accordance with the Labor Code of the Philippines and subsequent amendments, particularly Republic Act No. 6715 and Department Order No. 18-A. It should be used when there is a legitimate business need for fixed-term employment and when both parties knowingly and voluntarily agree to the arrangement. The contract includes mandatory provisions required by Philippine law, clearly states the employment duration, and outlines all statutory benefits and protections. It's particularly relevant for project-based work, seasonal employment, or temporary replacement of permanent employees.

What sections should be included in a Fixed Term Employment Contract?

1. Parties: Identification of the employer and employee with complete details as required by Philippine law

2. Background: Context of the employment relationship and confirmation of fixed-term nature

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specific start and end dates of employment and conditions for any renewal

5. Position and Duties: Job title, responsibilities, and reporting relationships

6. Work Location: Primary workplace and any flexibility arrangements

7. Compensation: Base salary, payment schedule, and statutory deductions

8. Working Hours: Regular working hours, overtime policies, and rest days

9. Benefits: Statutory benefits including SSS, PhilHealth, and Pag-IBIG

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

11. Confidentiality: Protection of company information and trade secrets

12. Termination: Grounds for termination and notice requirements

13. Governing Law: Confirmation of Philippine law application

14. Entire Agreement: Integration clause and amendment procedures

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

1. Probationary Period: Used when the fixed term is long enough to include a probationary period (up to 6 months)

2. Non-Competition: Used for senior positions or when employee will have access to sensitive information

3. Intellectual Property: Required when employee will be creating IP in course of employment

4. Performance Metrics: Used when specific performance targets are part of employment terms

5. Remote Work Provisions: Needed if role involves remote working arrangements

6. Commission Structure: Required for sales positions or roles with variable compensation

7. Training Requirements: Used when specific training or certifications are required

8. Vehicle/Equipment Provision: Needed when company provides tools or equipment

What schedules should be included in a Fixed Term Employment Contract?

1. Schedule A - Job Description: Detailed outline of role responsibilities and requirements

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

3. Schedule C - Company Policies: Key workplace policies applicable to the employee

4. Schedule D - Performance Metrics: Specific KPIs and evaluation criteria if applicable

5. Appendix 1 - Statutory Benefits Summary: Overview of mandatory benefits under Philippine law

6. Appendix 2 - Code of Conduct: Company's code of conduct and ethical standards

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Alex Denne

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

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Standard Employment Contract For Filipino Domestic Worker

Standard employment contract for Filipino domestic workers, compliant with Philippine Kasambahay Law and labor regulations, outlining employment terms and conditions.

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What is a Fixed Term Employment Contract?

What sections should be included in a Fixed Term Employment Contract?

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

What schedules should be included in a Fixed Term Employment Contract?

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