Security Services Agreement (Philippines)
SECURITY SERVICES AGREEMENT
Republic of the Philippines — Civil Code (Republic Act No. 386), Private Security Agency Law (Republic Act No. 5487), DOLE Department Order No. 174-17
This Security Services Agreement ("Agreement") is entered into this [Agreement Date] by and between:
SECURITY AGENCY: [Agency Name], with address at [Agency Address], PNP LTO No.: [PNP LTO No.], DOLE Reg. No.: [DOLE Reg. No.] (hereinafter, the "Agency"); AND
CLIENT (PRINCIPAL): [Client Name], with address at [Client Address] (hereinafter, the "Client").
1. GUARD DEPLOYMENT
1.1 Deployment Location: [Deployment Location]
1.2 Guards per Shift: [Guards Per Shift]
1.3 Shift Schedule: [Shift Schedule]
1.4 Guard Type: [Armed Status]
1.5 Contract Term: [Contract Term]
1.6 All deployed guards shall hold valid PNP security guard licenses under the Private Security Agency Law (Republic Act No. 5487) and shall have completed mandatory 200-hour basic security guard training under PNP Memorandum Circular No. 2016-001.
2. BILLING AND PAYMENT
2.1 Monthly Billing Rate Per Guard: [Billing Rate Per Guard]
2.2 Total Monthly Billing: [Total Monthly Billing]
2.3 Payment Terms: [Payment Terms]
2.4 Wage Adjustment: [Wage Adjustment Clause]
3. LABOR COMPLIANCE AND SOLIDARY LIABILITY
3.1 The Agency, as the employer of all deployed guards, is primarily liable for the guards' wages, mandatory benefits (SSS under RA 11199, PhilHealth under RA 7875, Pag-IBIG under RA 9679), 13th month pay under PD 851, and service incentive leave under Article 95 of the Labor Code.
3.2 The Client acknowledges its solidary liability for unpaid guard wages under DOLE Department Order No. 174-17 and the Labor Code of the Philippines. The Agency shall submit the following monthly compliance documents: [Payroll Compliance Docs]
3.3 Liability for Security Incidents: [Liability Provision]
4. GOVERNING LAW
4.1 This Agreement is governed by the laws of the Republic of the Philippines, including the Civil Code (RA 386), the Private Security Agency Law (RA 5487), and DOLE Department Order No. 174-17.
IN WITNESS WHEREOF, the parties have signed this Security Services Agreement on the date first above written.
[Agency Name]
Security Agency (Authorized Representative)
[Client Name]
Client / Principal (Authorized Representative)
Security Agency (Authorized Representative)
________________
Signature
Client / Principal (Authorized Representative)
________________
Signature
What Is a Security Services Agreement (Philippines)?
A Security Services Agreement in the Philippines engages an independent contractor to supply services and records the scope of work, fees, timetable and ownership of any deliverables.
The Private Security Agency Law (RA 5487) requires all private security agencies to be licensed by the Philippine National Police (PNP) Civil Security Group. Security agencies must apply for a License to Operate (LTO) from the PNP-CSG, and all security guards must hold individual PNP-issued licenses under Republic Act No. 5487. Security guards must also undergo mandatory 200-hour basic security guard training at a PNP-accredited training school before deployment under PNP Memorandum Circular No. 2016-001.
DOLE Department Order No. 174-17 (Rules Implementing Articles 106 to 109 of the Labor Code on Contracting and Subcontracting) governs the relationship between the security agency (as contractor), the security guards (as agency employees), and the principal (the client). Under DO 174-17, security agencies are legitimate job contractors — they must have a PNP LTO, DOLE Certificate of Registration as a legitimate contractor, sufficient capital, and equipment. Security guards are employees of the agency, not of the principal, and the agency is primarily liable for the guards' wages, benefits, and 13th month pay.
However, DOLE DO 174-17 imposes solidary liability on the principal for unpaid wages and statutory benefits if the agency fails to pay guards deployed at the principal's premises. The Supreme Court in Alilin v. Petron Corporation (G.R. No. 177592, June 9, 2014) affirmed that the principal is solidarily liable with the agency for wage violations. Security services agreements must address this solidary liability risk.
The billing rate for security guard services must reflect the guard's minimum wage per the applicable RTWPB wage order, mandatory benefits (SSS, PhilHealth, Pag-IBIG, 13th month pay, service incentive leave), uniform and equipment allowances, and the agency's service fee. DOLE-prescribed minimum billing rates are periodically updated through DOLE Labor Advisories.
The legal framework governing the Security 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 Security 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.
When Do You Need a Security Services Agreement (Philippines)?
A Security Services Agreement in the Philippines is needed whenever a licensed private security agency is engaged to provide security guard services, access control, or related security services to a client's premises.
A Security Services Agreement is required when a commercial building, mall, or office tower engages a security agency to provide lobby security, access control, and perimeter security for the building. Without a written agreement, there is no documentation of the number of guards deployed, shift schedules, chain of command, incident reporting procedures, or liability allocation for security incidents.
A Security Services Agreement is needed when an industrial company, factory, or warehouse engages guards for asset protection, equipment security, and prevention of pilferage. Industrial security agreements typically involve armed or unarmed guards deployed on rotating 8-hour shifts under the schedule agreed with the principal.
A Security Services Agreement is required when a residential subdivision, condominium corporation, or homeowners association (HOA) engages a security agency under a contract subject to the Subdivision and Condominium Buyers' Protective Decree (Presidential Decree No. 957) and the rules of the Housing and Land Use Regulatory Board (HLURB, now DHSUD).
A Security Services Agreement is needed when an event organizer engages a security agency for crowd control, VIP protection, or venue security for a concert, convention, or public gathering requiring PNP Event Security clearance under PNP Security Guidelines for Mass Gatherings.
A Security Services Agreement is required when a bank or financial institution engages armed security guards under PNP Firearms and Explosives Office regulations, which require that armed guards be licensed for the specific firearms they carry. The agreement must specify the number of armed versus unarmed guards and compliance with PNP firearms regulations.
Parties in Philippines should prepare a Security Services Agreement (Philippines) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. 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. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Security Services Agreement (Philippines)
A valid Security Services Agreement in the Philippines must contain the following essential elements to comply with the Private Security Agency Law (RA 5487), DOLE DO 174-17, and the Civil Code.
Parties and Licensing: Full legal names of the security agency (with PNP License to Operate number and DOLE Certificate of Registration as legitimate contractor) and the client, with addresses. Verifying the agency's PNP LTO and DOLE registration is the client's due diligence obligation under DO 174-17.
Scope of Security Services: The type of services — uniformed security guard deployment, access control, CCTV monitoring, armed escort, VIP protection — the number of guards to be deployed per shift, the deployment location (with full address), shift schedules (typically three 8-hour shifts per day), and whether guards will be armed or unarmed.
Guard Qualifications and Training: The agency's representation that all deployed guards hold valid PNP security guard licenses, have completed the mandatory 200-hour basic training under PNP Memorandum Circular No. 2016-001, and have passed background checks. The right of the principal to reject a specific guard and require a replacement.
Billing Rate and Payment: The monthly billing rate per guard in PHP ₱, computation basis (reflecting minimum wage, mandatory benefits, uniform and equipment allowances, and agency service fee), payment schedule, and adjustment mechanism when RTWPB issues new minimum wage orders.
Solidary Liability Management: A provision acknowledging the principal's solidary liability for unpaid guard wages under DOLE DO 174-17 and Supreme Court jurisprudence (Alilin v. Petron, G.R. No. 177592), with the agency's obligation to submit monthly proof of payment of guard wages (payroll records) and statutory contributions (SSS, PhilHealth, Pag-IBIG receipts) to the principal.
Liability for Security Incidents: Allocation of liability for theft, damage, or injury occurring at the principal's premises — whether the agency is liable for guard negligence or whether liability is shared. The agency's professional liability insurance coverage should be specified.
Termination: Notice period for contract termination (standard: 30 days), the agency's obligation to provide replacement guards during the notice period, and the return of access credentials and equipment upon termination.
Additional compliance elements for a Security 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.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Security Services Agreement (Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/business/services/security-services-agreement-philippines
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author = {{Forms Legal}},
title = {Security Services Agreement (Philippines) (Philippines)},
year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/business/services/security-services-agreement-philippines}},
note = {Free legal document template. Based on Revised Corporation Code (RA 11232, 2019)}
}
Frequently Asked Questions
Under DOLE Department Order No. 174-17 and the Labor Code of the Philippines (PD 442), security guards are employees of the licensed private security agency, not of the client (principal). The security agency is the guard's employer and is primarily responsible for paying wages, mandatory benefits (SSS, PhilHealth, Pag-IBIG), 13th month pay under PD 851, and service incentive leave under Article 95 of the Labor Code. However, the principal is solidarily liable with the agency for unpaid wages and benefits of guards deployed at the principal's premises, as established by the Supreme Court in Alilin v. Petron Corporation (G.R. No. 177592, June 9, 2014) and codified in DOLE DO 174-17. This solidary liability means the guard can claim unpaid wages directly from the principal if the agency fails to pay. Principals should protect themselves by requiring monthly payroll proof from the agency.
A private security agency in the Philippines must obtain a License to Operate (LTO) from the Philippine National Police Civil Security Group (PNP-CSG) under the Private Security Agency Law (Republic Act No. 5487, as amended). The LTO is renewable annually and requires the agency to maintain a minimum paid-up capital (currently PHP 500,000 for agencies deploying up to 200 guards), a licensed security agency operator (who must have undergone security management training), and compliance with PNP-CSG regulations. In addition, security agencies that engage in labor contracting of guards must obtain a Certificate of Registration from the Department of Labor and Employment (DOLE) as a legitimate contractor under DOLE Department Order No. 174-17. Clients (principals) should verify both the agency's PNP LTO and DOLE Certificate of Registration before signing a security services agreement, as engaging an unlicensed agency exposes the principal to administrative liability.
The monthly billing rate for security guards in the Philippines is computed to cover all labor costs plus the agency's service fee. The billing rate components include: (1) basic wage at or above the applicable RTWPB minimum wage for the guard's region (e.g., NCR minimum wage as of the latest RTWPB-NCR wage order); (2) mandatory benefits — SSS contributions (employer share), PhilHealth (employer share at 2.5% of basic monthly salary), Pag-IBIG (employer share of PHP 100 minimum), 13th month pay (PD 851), and service incentive leave (Article 95, Labor Code); (3) uniform and equipment allowance; (4) relief and holiday pay; and (5) the agency's service fee (typically 20-35% of total labor cost). DOLE periodically issues Labor Advisories prescribing the minimum billing rate per guard per region following RTWPB wage order updates. Security services agreements should include an automatic billing rate adjustment clause triggered by new RTWPB wage orders to avoid renegotiation disputes.
A client (principal) in the Philippines may request the security agency to withdraw or replace a specific security guard deployed at the principal's premises, but the client cannot directly dismiss the guard because the guard is an employee of the agency, not the client. Under the Labor Code (PD 442) and DOLE DO 174-17, only the agency as employer can dismiss a guard, following the twin-notice rule under King of Kings Transport v. Mamac (G.R. No. 166208, June 29, 2007). If the principal requests a guard's withdrawal for reasons constituting just cause (e.g., theft, misconduct at the principal's premises), the principal should formally notify the agency in writing with supporting documentation. The agency then conducts its own disciplinary proceedings against the guard. A security services agreement should include a provision for the principal's right to request guard replacement and the agency's obligation to comply within a specified timeframe (typically 24-48 hours for urgent replacements).
A Security Services Agreement does not require a specific form to be legally valid under the Civil Code of the Philippines — contracts are generally binding regardless of form under Article 1356. However, DOLE Department Order No. 174-17 effectively requires written service agreements between security agencies and principals as part of the documentation that establishes the agency as a legitimate job contractor and not as a labor-only contractor. Under DO 174-17, a labor-only contracting arrangement — where the agency merely supplies workers without a genuine service agreement — is prohibited, and the workers are deemed regular employees of the principal. A written security services agreement with specific terms about service scope, supervision, equipment, and billing demonstrates that the agency provides a genuine independent service. The NLRC and DOLE use the written service agreement as key evidence in determining contractor legitimacy.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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