Janitorial Services Agreement (Philippines)

A Janitorial Services Agreement in the Philippines governs the supply of professional services, fixing the fee, the standard of performance expected and how either side may end the engagement.

Janitorial service companies in the Philippines are legitimate job contractors under DOLE DO 174-17, provided they meet the criteria of having substantial capital (currently at least PHP 5,000,000 in paid-up capital for a corporation under DO 174-17), their own equipment and supplies, and the expertise to independently carry out the cleaning services. Janitorial workers are employees of the janitorial company, not of the principal, and the contractor is primarily liable for their wages, mandatory benefits, and all employer obligations under the Labor Code (PD 442).

However, the principal is solidarily liable for unpaid wages and benefits of janitorial workers deployed at the principal's premises if the janitorial company fails to pay, under DOLE DO 174-17 and the Supreme Court ruling in San Miguel Corporation v. MAERC Integrated Services, Inc. (G.R. No. 144672, July 10, 2003). Principals should protect against this solidary liability by requiring monthly payroll compliance documentation from the janitorial company.

The Bureau of Internal Revenue (BIR) treats janitorial service fees as income subject to 2% expanded withholding tax for labor-intensive services under Revenue Regulations No. 2-98, applicable when the principal is a withholding agent. Janitorial companies with annual gross receipts exceeding PHP 3,000,000 must charge 12% VAT on service fees under the National Internal Revenue Code (NIRC) as amended by the TRAIN Law (Republic Act No. 10963).

For janitorial services in hospital, healthcare, and food processing environments, additional compliance is required under the Food Safety Act (Republic Act No. 10611) and standards of the Department of Health (DOH) for medical waste handling and disinfection protocols.

The legal framework governing the Janitorial Services Agreement (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Janitorial Services Agreement (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Revised Corporation Code (RA 11232, 2019) sets the foundational requirements.

A Janitorial Services Agreement in the Philippines is needed whenever a cleaning or facilities services company provides janitorial, housekeeping, or maintenance services to a client under a commercial arrangement.

A Janitorial Services Agreement is required when an office building or commercial complex engages a janitorial company for daily cleaning, waste disposal, and restroom maintenance. Commercial office buildings in Metro Manila and major cities typically engage janitorial contractors with staffing levels proportional to building floor area, and without a written agreement, there is no documentation of cleaning frequency, staffing levels, and supplies the contractor is obligated to provide.

A Janitorial Services Agreement is needed when a manufacturing plant or factory engages a janitorial company for industrial cleaning, including machinery area cleaning, oil spill management, and compliance with occupational safety standards under the Occupational Safety and Health Standards (OSHS) issued by DOLE under Republic Act No. 11058 (OSH Law).

A Janitorial Services Agreement is required when a school, university, or government agency engages a janitorial contractor under procurement rules. Under Republic Act No. 9184 (Government Procurement Reform Act), government procurement of janitorial services follows the GPPB Alternative Methods of Procurement guidelines and requires a formal service agreement as part of the procurement documentation.

A Janitorial Services Agreement is needed when a condominium corporation or homeowners association engages a janitorial firm for common area maintenance — lobbies, corridors, parking areas, and amenities — under the mandate of the Condominium Act (Republic Act No. 4726).

A Janitorial Services Agreement is required when a hospital, clinic, or healthcare facility engages janitorial services involving bio-medical waste handling, which must comply with the Health Care Waste Management Act (Republic Act No. 9003) and DOH Administrative Order No. 2008-0021 on healthcare waste management.

A valid Janitorial Services Agreement in the Philippines must contain the following essential elements to comply with DOLE DO 174-17, the Civil Code, and applicable labor and tax regulations.

Parties and DOLE Registration: Full legal names of the janitorial company (with SEC Registration Number and DOLE Certificate of Registration as a legitimate contractor under DO 174-17) and the client (principal), with business addresses. Verifying the janitorial company's DOLE Certificate of Registration before signing protects the principal against DOLE findings of labor-only contracting.

Scope of Services: A detailed description of cleaning services to be provided — daily cleaning tasks (sweeping, mopping, vacuuming, restroom sanitation, waste disposal), periodic deep cleaning tasks (window washing, carpet cleaning, floor stripping and waxing), and any specialized services (high-rise window cleaning, industrial cleaning). The agreement should specify the premises area (in square meters) covered and areas excluded from the service scope.

Staffing and Schedule: The number of janitors to be deployed per shift, shift schedules (first shift, second shift, or flexible), and the client's right to request replacement of a specific worker. All workers must be disclosed employees of the janitorial company, not sub-contracted workers.

Billing Rate and Supplies: The monthly billing rate per janitor in PHP ₱ (computed to include minimum wage per applicable RTWPB wage order, mandatory benefits, uniform, and equipment), whether cleaning supplies (chemicals, mops, buckets, protective equipment) are provided by the contractor or by the client, and the billing adjustment mechanism for new RTWPB minimum wage orders.

Solidary Liability and Compliance Documentation: The janitorial company's obligation to submit monthly copies of payroll records, SSS, PhilHealth, and Pag-IBIG remittance receipts to the principal as evidence of compliance. This documentation protects the principal against solidary liability claims under DOLE DO 174-17 and Supreme Court jurisprudence (San Miguel Corporation v. MAERC, G.R. No. 144672).

OSH Compliance: The janitorial company's obligation to comply with the OSH Law (Republic Act No. 11058) and DOLE's Occupational Safety and Health Standards (OSHS) — including provision of personal protective equipment (PPE) for workers handling chemicals, working at heights, or in hazardous environments.

Termination: Notice period for contract termination, the janitorial company's obligation to complete services and remove equipment during the notice period, and the client's obligation to pay outstanding invoices before the contractor's equipment and supplies are removed from the premises.

Additional compliance elements for a Janitorial Services Agreement (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.