Employment Contract (Philippines)
EMPLOYMENT CONTRACT
Regular Employment — Labor Code of the Philippines (PD 442)
This Employment Contract ("Contract") is entered into this [Contract Date] by and between:
EMPLOYER: [Employer Name], with principal office at [Employer Address] (hereinafter, the "Employer"); AND
EMPLOYEE: [Employee Name], residing at [Employee Address], TIN/SSS: [Employee TIN/SSS] (hereinafter, the "Employee").
1. POSITION AND EMPLOYMENT STATUS
1.1 The Employer hereby employs the Employee as [Job Title] in the [Department], effective [Start Date], at [Work Location].
1.2 The Employee is engaged as a regular employee under Article 294 of the Labor Code of the Philippines (PD 442), with full security of tenure from the date of engagement.
2. COMPENSATION AND BENEFITS
2.1 Basic Salary: [Basic Salary], payable [Payment Schedule] via direct bank transfer or other lawful mode of payment under Articles 102-103 of the Labor Code.
2.2 Allowances: [Allowances].
2.3 Mandatory Benefits: The Employee shall be entitled to all mandatory benefits under Philippine law, including: (a) 13th Month Pay per PD 851, equal to at least 1/12 of annual basic salary, payable on or before December 24; (b) SSS contributions per RA 11199; (c) PhilHealth contributions at 5% of basic monthly salary per RA 7875 (as amended by RA 11223); (d) Pag-IBIG/HDMF contributions per RA 9679; (e) Service Incentive Leave of 5 days per year per Article 95 of the Labor Code; (f) Overtime pay at 25% premium (regular days) and 30% (rest days/holidays) per Article 87; (g) Night differential at 10% premium for work between 10PM and 6AM per Article 86; (h) Holiday pay per Article 94.
3. WORK HOURS AND SCHEDULE
3.1 Regular working hours: [Work Hours], subject to the 8-hour maximum under Article 83 of the Labor Code.
3.2 Leave entitlements: [Leave Entitlements].
4. EMPLOYEE OBLIGATIONS
4.1 The Employee shall perform all duties and responsibilities of the position diligently and in accordance with the Employer's policies, rules, and Code of Conduct.
4.2 Confidentiality: [Confidentiality Obligations].
5. TERMINATION
5.1 The Employee may resign upon providing [Notice Period] days written notice to the Employer under Article 300 of the Labor Code.
5.2 The Employer may terminate the Employee only for just cause under Article 297 of the Labor Code (serious misconduct, willful disobedience, gross neglect, fraud, crime, analogous causes) or authorized cause under Article 298 (retrenchment, redundancy, closure, disease), subject to the twin-notice rule established in King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007).
6. GOVERNING LAW
6.1 This Contract is governed by the Labor Code of the Philippines (PD 442), its implementing rules and regulations, and all applicable DOLE Department Orders. Any dispute arising from this Contract shall be submitted to the DOLE Regional Office or the National Labor Relations Commission (NLRC) as appropriate.
IN WITNESS WHEREOF, the parties have signed this Employment Contract on the date first above written.
[Employer Name]
Employer (Authorized Representative)
[Employee Name]
Employee
Employer (Authorized Representative)
________________
Signature
Employee
________________
Signature
What Is a Employment Contract (Philippines)?
An Employment Contract in the Philippines sets out the terms of employment between employer and worker, covering pay, hours, leave, notice and the duties of the role.
The Labor Code establishes minimum standards for all employment relationships that cannot be waived or lowered by contract: minimum wage rates under the Wage Rationalization Act (Republic Act No. 6727) and Regional Tripartite Wages and Productivity Board (RTWPB) orders; overtime pay at 25% above the regular hourly rate for work beyond 8 hours (Article 87, Labor Code); night differential pay of 10% for work between 10 PM and 6 AM (Article 86); 5 days annual service incentive leave (Article 95); 13th month pay equal to at least 1/12 of the annual basic salary payable on or before December 24 under Presidential Decree No. 851; and mandatory social insurance contributions to SSS (RA 11199), PhilHealth (RA 7875 as amended by RA 11223), and Pag-IBIG/HDMF (RA 9679).
Regular employment — as opposed to probationary, project, seasonal, or fixed-term — carries full security of tenure under Article 3 of the Labor Code. A regular employee may be dismissed only for just cause (Articles 297-299, Labor Code: serious misconduct, willful disobedience, gross and habitual neglect, fraud, crime against the employer, analogous causes) or authorized cause (Articles 298-299: retrenchment, redundancy, installation of labor-saving devices, closure, disease) following the twin-notice rule established by the Supreme Court in King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007): (1) Notice to Explain (NTE) stating the charge with at least 5 calendar days to respond; and (2) Notice of Decision after evaluation of the employee's explanation.
For employment contracts with foreign nationals, the Alien Employment Permit (AEP) issued by DOLE under Department Order No. 221-21 must be obtained before the foreign employee may legally work in the Philippines.
The legal framework governing the Employment Contract (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 Employment Contract (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Labor Code of the Philippines (PD 442) sets the foundational requirements.
When Do You Need a Employment Contract (Philippines)?
An Employment Contract for regular employment in the Philippines is needed whenever an employer hires a new employee and wishes to document the terms of employment in writing.
An Employment Contract is required at the start of every employment relationship to establish the employee's position, salary, benefits, work schedule, and reporting structure. Under DOLE Labor Advisory No. 06-20 on the Issuance of Employment Contracts, all employers are encouraged to provide written employment contracts to workers at the time of engagement.
An Employment Contract is needed when an employer converts a probationary employee to regular employment status after the employee meets the regularization standards communicated at the start of probation, formalizing the new employment status and updated terms.
An Employment Contract is required when an employee is promoted to a new position with different salary, responsibilities, or benefits, creating a written record of the new terms for payroll, SSS/PhilHealth/Pag-IBIG contribution computation, and NLRC dispute purposes.
An Employment Contract is needed for DOLE Rule 1020 Establishment Report compliance, where employers with 5 or more workers must report all employees to the DOLE Regional Office, and employment contracts serve as supporting documents for the report.
An Employment Contract is required by banks, lending institutions (SSS salary loan, Pag-IBIG housing loan, commercial banks), and government agencies as proof of employment and income when employees apply for loans, government benefits, or visas.
Parties in Philippines should prepare a Employment Contract (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 Employment Contract (Philippines)
A valid Philippines Employment Contract must contain the following essential elements to be Labor Code compliant and effective in NLRC proceedings.
Parties and Position: Full legal names of employer (with SEC Registration Number or DTI Business Name Certificate number) and employee (with Tax Identification Number and SSS/PhilHealth/Pag-IBIG numbers). State the specific job title, department, and supervisor to whom the employee reports. The job description or scope of duties should be attached or summarized.
Employment Status: Explicit statement of the employment category — regular, probationary, project, seasonal, fixed-term, casual, or part-time — which determines security of tenure rights under Articles 294-296 of the Labor Code. For regular employment, specify the effective date of regularization.
Salary and Compensation: The basic monthly salary in Philippine peso (PHP ₱), payment schedule (daily, weekly, semi-monthly), mode of payment (cash, check, or bank transfer as required under DOLE Rules Implementing Articles 102-103 of the Labor Code), and applicable allowances (transportation, meal, rice, COLA). The salary must meet or exceed the minimum wage set by the applicable Regional Tripartite Wages and Productivity Board (RTWPB) wage order.
Mandatory Benefits: An enumeration of mandatory benefits: 13th month pay under PD 851; SSS contributions per the current SSS contribution table (RA 11199); PhilHealth contributions at 5% of basic monthly salary (RA 7875 as amended by RA 11223, PhilHealth Circular No. 2023-0016); Pag-IBIG contributions at PHP 100 minimum (RA 9679); service incentive leave of 5 days per year under Article 95 of the Labor Code.
Work Hours and Overtime: Normal working hours (8 hours per day, 6 days per week maximum under Article 83 of the Labor Code), overtime pay rate (25% premium on regular days, 30% on rest days and holidays under Article 87), and night differential provisions under Article 86.
Termination: Grounds for termination for just cause under Article 297 and authorized cause under Article 298, the twin-notice procedure under King of Kings Transport v. Mamac (G.R. No. 166208), and separation pay entitlements under Article 298 for authorized cause terminations.
Additional compliance elements for a Employment Contract (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:
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title = {Employment Contract (Philippines) (Philippines)},
year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/employment/contracts/employment-contract-philippines}},
note = {Free legal document template. Based on Labor Code of the Philippines (PD 442)}
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Frequently Asked Questions
A Philippine Employment Contract must reflect the mandatory benefits required by law regardless of what the contract states — these benefits cannot be waived by employee agreement. Mandatory benefits under Philippine labor law include: 13th Month Pay (PD 851) — at least 1/12 of annual basic salary, paid on or before December 24 each year, applicable to all rank-and-file employees; Service Incentive Leave — 5 days per year with pay after 1 year of service under Article 95 of the Labor Code; SSS contributions — employer contributes 10% and employee 5% of the monthly salary credit (15% total, effective January 2025) under the current SSS contribution schedule (RA 11199); PhilHealth contributions — 5% of basic monthly salary split equally between employer and employee (max combined PHP 5,000 monthly under PhilHealth Circular No. 2023-0016); Pag-IBIG/HDMF — minimum PHP 100 employer and PHP 100 employee contributions per month (RA 9679); Holiday Pay — 200% of daily rate for regular holidays, 130% for special non-working holidays under Article 94 of the Labor Code; Overtime Pay — 25% premium on regular days, 30% on rest days and holidays under Article 87; Night Differential — 10% premium for work between 10 PM and 6 AM under Article 86. Maternity leave (105 days under RA 11210) and paternity leave (7 days under RA 8187) are also mandated by law.
Under Article 296 of the Labor Code of the Philippines (as renumbered by DOLE D.O. 147-15), an employee who has rendered at least 6 months of service — whether continuous or broken — becomes a regular employee by operation of law, regardless of whether the employer formally declares the employee regular. This rule applies unless the employment is project-based, seasonal, fixed-term (under the Brent School doctrine), or casual employment incidental to the main business. For probationary employees, Article 296 requires that the employer communicate the standards for regularization to the employee on or before the date of engagement. If the employer fails to communicate regularization standards on or before Day 1, the employee is deemed a regular employee from Day 1 — a rule confirmed by the Supreme Court in Abbott Laboratories Philippines v. Alcaraz (G.R. No. 192571, July 23, 2013). After 6 months of satisfactory performance meeting the communicated standards, the probationary employee is automatically deemed regular. An Employment Contract should state the regularization standards in writing to avoid this common source of NLRC disputes.
An employer in the Philippines cannot unilaterally reduce an employee's salary below the amount stipulated in the employment contract or below the applicable minimum wage. Under Article 100 of the Labor Code (Non-Diminution of Benefits rule), benefits, whether given through written contract, company policy, or long practice, may not be eliminated or reduced unilaterally. A salary reduction is considered a constructive dismissal — the equivalent of actual dismissal entitling the employee to separation pay and backwages — as held by the Supreme Court in Jarcia Machine Shop and Auto Supply, Inc. v. NLRC (G.R. No. 118706, March 29, 1996). The minimum wage applicable to the employee's region and industry is set by the Regional Tripartite Wages and Productivity Board (RTWPB) under RA 6727. As of 2025, the minimum wage in the National Capital Region (NCR) is set by the RTWPB-NCR's most recent wage order. Any salary adjustment must be upward (salary increase), not downward. Salary may only be reduced with the employee's free, voluntary, and informed written consent — but even then, the reduction cannot go below the applicable minimum wage.
The twin-notice rule in the Philippines is the procedural due process requirement that an employer must follow before dismissing an employee for just cause under Article 297 of the Labor Code. Established by the Supreme Court in King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007) and codified in DOLE Department Order No. 147-15, the rule requires two written notices: (1) First Notice (Notice to Explain or NTE) — a written notice specifying the ground(s) for which dismissal is being considered, giving the employee at least 5 calendar days to submit a written explanation; the employee must be given a real opportunity to be heard and to present evidence and witnesses; and (2) Second Notice (Notice of Decision) — after evaluating the employee's explanation and holding a hearing if requested, the employer issues a written notice of the decision to dismiss, stating clearly the reasons. Failure to comply with the twin-notice rule does not invalidate the dismissal if there is valid just cause, but the employer must pay nominal damages — fixed at PHP 30,000 per Agabon v. NLRC (G.R. No. 158693, November 17, 2004) for procedural due process violations in just-cause dismissals.
A Philippine Employment Contract does not need to be signed before a DOLE (Department of Labor and Employment) officer to be valid. Under the principle of consensuality in the Civil Code (Article 1356), a contract is binding from the moment of meeting of minds regardless of formality. DOLE signing or attestation is not required for the contract to be enforceable between the employer and employee. However, certain specific employment categories require DOLE involvement: (1) OFW employment contracts must be processed through the DMW (Department of Migrant Workers, formerly POEA) and verified by POLO offices abroad before deployment under the Migrant Workers Act (RA 10022); (2) Kasambahay (domestic worker) employment contracts are governed by the Kasambahay Law (RA 10361) and must be registered with the barangay where the employer resides under Section 12 of RA 10361; (3) Employers with 5 or more employees must file a DOLE Rule 1020 Establishment Report online but need not submit employment contracts with it. Written employment contracts are strongly advisable even when not legally required, as they are the primary documentary evidence in NLRC labor disputes.
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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