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An Employment Contract creates a legal bond between an employer and employee in the Philippines, spelling out their work relationship and mutual obligations. It's the key document that defines your job role, salary, benefits, and work hours while following Philippine labor laws like the Labor Code.

Beyond just meeting legal requirements, this contract protects both parties by clearly stating workplace policies, confidentiality rules, and grounds for termination. For Filipino workers, it serves as proof of employment for bank loans, visa applications, and other official purposes. The Department of Labor and Employment requires these contracts for regular employees and recommends them even for project-based work.

Use an Employment Contract before any new hire starts working in your Philippine company. This is especially important when bringing on regular employees, project-based workers, or consultants. The contract needs to be in place from day one to comply with DOLE regulations and protect both parties.

Create these contracts when promoting employees to new positions, changing work arrangements, or updating compensation packages. Having clear documentation becomes crucial during workplace disputes, government inspections, or when employees need proof of employment for loans or visas. For overseas Filipino workers (OFWs), these contracts must be verified by the POEA before deployment.

• Employee Contract Agreement: Standard comprehensive contract for regular employees, covering full benefits and protections under Philippine labor law
• Contract for Contractual Employees: Fixed-term agreement for project-based or seasonal workers with specific duration and deliverables
• Workers Contract of Employment: Simplified agreement for rank-and-file employees, focusing on basic terms and conditions
• Employment Letter: Brief offer letter format outlining key employment terms, often used as initial agreement
• Employment Agreement: Detailed contract for management positions with additional clauses for confidentiality and non-compete

• Employers/Companies: Draft and issue Employment Contracts through their HR departments or legal teams, ensuring compliance with Philippine labor laws
• Employees: Review, negotiate, and sign contracts before starting work, gaining protection of their rights and clear understanding of duties
• HR Managers: Manage contract creation, updates, and maintenance while ensuring alignment with company policies and DOLE regulations
• Legal Counsel: Review and customize contract terms, especially for executive positions or special arrangements
• DOLE Officials: Monitor contract compliance during inspections and resolve disputes between parties
• Labor Unions: Negotiate collective terms that influence individual Employment Contracts for union members

• Basic Details: Gather employee's complete name, position title, start date, and reporting structure
• Compensation Package: Document salary, benefits, bonuses, and payment schedule following Philippine wage laws
• Work Arrangements: Specify work hours, location, overtime policies, and leave entitlements
• Job Description: List key responsibilities, performance metrics, and expected deliverables
• Company Policies: Include references to employee handbook, code of conduct, and confidentiality rules
• Legal Requirements: Ensure compliance with DOLE regulations, minimum wage laws, and mandatory benefits
• Template Selection: Use our platform to generate a legally-sound contract that includes all required elements

• Party Information: Complete names and addresses of both employer and employee, with TIN numbers
• Position Details: Job title, classification (regular/probationary/project-based), and reporting structure
• Compensation Terms: Base salary, allowances, 13th month pay, and other benefits as per Philippine law
• Working Hours: Regular schedule, overtime rules, and rest day provisions following Labor Code
• Duration: Employment start date and term (indefinite for regular employees)
• Termination Clauses: Valid grounds for ending employment and notice requirements
• Confidentiality: Protection of company trade secrets and proprietary information
• Governing Law: Statement of compliance with Philippine Labor Code and related regulations

An Employment Contract differs significantly from an Employment Offer Letter in several key ways. While both documents relate to hiring, they serve distinct purposes in the Philippine employment process.

• Legal Weight: Employment Contracts are comprehensive, legally binding documents that detail all terms of employment, while offer letters are preliminary documents that outline basic job terms before formal contract signing
• Timing and Use: Offer letters come first during recruitment to propose employment terms, while contracts formalize the final agreement after negotiations
• Content Depth: Contracts contain detailed clauses about confidentiality, non-compete, benefits, and termination procedures; offer letters typically only cover position, salary, and start date
• Enforceability: Employment Contracts provide full legal protection under Philippine Labor Code, while offer letters mainly serve as initial proposals without complete legal binding power