The Master Labor Contract serves as the foundational document governing the employment relationship between companies and their employees in the Philippines. It is typically used when establishing or updating standardized employment terms for a significant workforce, ensuring compliance with the Philippine Labor Code, relevant DOLE regulations, and other applicable laws. This contract type is particularly crucial for organizations with large workforces or those operating in regulated industries, as it provides a unified framework for employment terms, benefits, workplace policies, and dispute resolution mechanisms. The document must incorporate mandatory provisions required by Philippine labor law while allowing flexibility to address industry-specific requirements and company-specific policies.
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1. Parties: Identification of the employer and the covered employees or labor union
2. Background: Context of the agreement and the relationship between the parties
3. Definitions: Definitions of key terms used throughout the contract
4. Scope and Coverage: Specifies which employees are covered by the agreement and its geographical scope
5. Employment Status and Classification: Defines different employment categories and their respective rights and obligations
6. Working Hours and Schedule: Standard working hours, overtime provisions, and flexible work arrangements
7. Compensation and Benefits: Base salary, allowances, bonuses, and mandatory benefits as per Philippine law
8. Leave Entitlements: Various types of leave including vacation, sick, maternal, paternal, and special leave
9. Social Security and Insurance: Mandatory coverage under SSS, PhilHealth, and other insurance schemes
10. Health and Safety: Workplace safety measures and compliance with OSH standards
11. Disciplinary Procedures: Process for handling misconduct and implementing disciplinary actions
12. Termination of Employment: Grounds and procedures for termination, resignation, and retirement
13. Dispute Resolution: Procedures for handling grievances and resolving conflicts
14. Confidentiality and Data Protection: Protection of company information and employee data privacy
15. Term and Renewal: Duration of the agreement and processes for renewal or modification
1. Training and Development: Include when the company has specific training programs or career development initiatives
2. Performance Management: Include when implementing specific performance evaluation systems
3. Remote Work Provisions: Include when allowing work-from-home or hybrid work arrangements
4. Intellectual Property Rights: Include for positions involving creation of intellectual property
5. Non-Compete and Non-Solicitation: Include for senior positions or roles with access to sensitive information
6. International Assignment: Include if employees may be assigned to work in other countries
7. Commission Structure: Include for sales positions or roles with variable compensation
8. Union Rights and Representation: Include when dealing with unionized workforce
1. Schedule A - Salary Structure: Detailed breakdown of salary grades and ranges
2. Schedule B - Benefits Package: Comprehensive list of benefits and their terms
3. Schedule C - Code of Conduct: Detailed behavioral expectations and workplace rules
4. Schedule D - Leave Policy: Detailed procedures for applying and taking various types of leave
5. Schedule E - Performance Metrics: Key performance indicators and evaluation criteria
6. Schedule F - Job Descriptions: Detailed role descriptions for different positions
7. Schedule G - Health and Safety Procedures: Detailed safety protocols and emergency procedures
8. Appendix 1 - Forms and Templates: Standard forms for various HR processes
9. Appendix 2 - Grievance Procedure: Step-by-step process for filing and resolving grievances
10. Appendix 3 - Company Policies: Additional company policies referenced in the main agreement
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