CONTRACT OF EMPLOYMENT
KNOW ALL MEN BY THESE PRESENTS:
This Contract of Employment is executed made this (insert date) by:
(state name of corporation), a corporation duly
organized and existing in accordance with laws of
the Republic of the Philippines, with principal
offices at (state address), represented in this act by
its President, (state name of representative),
hereinafter referred to as the EMPLOYER;
(state name of employee), of legal age, Filipino and
a resident of (state address), herein referred to as
WHEREAS, the Employer is engaged in the business of (state business of employer)
[Example: delivery of information technology and allied services such as but not limited
to software development, internet security encryption, web page development and
internet security solutions.]
WHEREAS, Employee manifests and guarantees that he/she possesses the requisite
qualities and competencies needed by the Employer in the conduct and course of its
NOW THEREFORE, the parties hereby agree as follows:
Employee is hereby appointed as (state position in the company) under probationary
status for a period of six (6) months reckoned from the first day of actual report for work.
Employee will receive a gross basic monthly rate of (state amount of
compensation) (Php_____) subject to withholding tax, SSS, Pag-ibig
contributions, and government-required deductions to be borne by Employee. In
addition, Employer will pay the mandatory 13 th month salary at the end of each
calendar year and EMPLOYER may at its discretion provide midyear or
performance bonuses. Annual and incremental salary adjustments and merit
increases may be effected on a case to case basis and upon the
recommendation of the immediate manager and upon approval of management.
EMPLOYEE may also be entitled to receive a monthly transportation allowance
of (state amount) (Php__), which shall be supported by an Expense Report (ER)
with corresponding receipts, due every 5th of each month.
REGULARIZATION OF EMPLOYMENT
By or before the end of the six-month probationary period, depending on the
recommendations of the immediate supervisor/manager, Employee will become a
regular employee of the company entitled to all company benefits and privileges enjoyed
by regular employees. Vacation and sick leaves shall be based on existing laws and
policies of the company.
VACATION AND BENEFITS
Upon regularization, Employee will be entitled to seven (7) days vacation and
seven (7) days sick leave for each year of actual employment. Employee is
expected to accrue leaves before he can apply for it. Since leave credits are not
convertible to cash, Employee is strongly encouraged to use all leave credits
during the calendar year earned. Any remaining accrued leave not used by
December 31st may only be carried over until March 31 st of the following year.
Should there be cases wherein the Company disapproves any leave application
of an Employee due to hectic workloads and/or urgent deadlines, making it
impossible for the Employee to apply for such leaves prior to its expiration, a
corresponding cash conversion of such leave shall be allowed.
Employee will be paid regular wage during regular holidays including: New
Years’ Day, Maundy Thursday, Good Friday, April 9, Labor Day, Independence
Day, Phil-Am Friendship Day, All Souls Day, Christmas Day, Rizal Day.
Employee will also continue to receive his/her regular pay during special nonworking holidays issued by the President of the Republic of the Philippines.
DUTIES AND RESPONSIBILITIES
Employee shall perform the duties and responsibilities that his position or job
necessarily entails, as may be contained in his job description or as may be
reasonably assigned to him by the company from time to time. The specific
duties and responsibilities of Employee are contained in the corresponding
Scope of Work and Job Description, which herein Employee acknowledges to
have read and understood as a condition for his regularization and entitlement to
other benefits and promotion.
Employee is obliged to perform his duties loyally, independently, industriously to
help meet the goals and objectives of the Company and is expected to carry out
these responsibilities to the best of his knowledge and abilities in order to protect
and advance the interests of the Company, its principals, and its employees. It is
a condition of Employment that Employee maintains the necessary level of
technical expertise in the performance of his job, which may necessitate him to
attend Courses and Certification Programs, locally or internationally.
PLACE OF WORK
Employee’s primary place of work will be Manila, Philippines. Employee agrees
that Employer may transfer him to any other location as may be required by the
exigencies of the business, the organizational requirements of the company and
the responsibilities of Employee’s position. Employee may be required to travel
from time to time.
HOURS OF WORK
Employee shall render a minimum of eight (8) hours of work per day and report
for work at least five (5) days per week. It is understood that Employee is being
employed with a level of confidence and degree of responsibility that may further
require him to render work beyond normal business hours for which Employee
may be justly remunerated with overtime Pay if qualified.
In case the demands of the business or the company would require Employee to
work more than his regular work schedule, he may be required to render
overtime work. Overtime work is not compensable for managerial employees
unless otherwise declared by management. Allowances for meal or
transportation will be provided on a case-to-case basis in accordance with
Employee shall observe and comply with all company rules and regulations,
written or otherwise. Employee shall devote his entire working time to the
Employer and shall have no direct or indirect interest in any firm or entity,
whether for profit or not, directly in competition with or offering the same services
as Employer nor shall Employee take any interest that is conflicting or inimical to
In the event Employee is separated or terminated from employment for whatever
reason, he shall not seek employment in a local or foreign firm doing business in
the Philippines nor establish or set up a business offering similar services for a
period of one (1) year from date of separation or termination, without the prior
notice to Employer.
The Company shall be entitled to sole ownership of any intellectual property
rights including but not limited to software programs, hardware specifications and
other property rights created, developed and discovered by Employee while in
the course of his employment with the Company, including all registrations for the
Employee agrees that he shall promptly disclose to the Company the following:
a) all software programs, inventions, improvements, discoveries and technical
developments (‘Inventions’) made, created or conceived by him/her (either alone
or with others) during the term of employment, b) all Inventions which are based
on proprietary information of the Company and are made or conceived by
employee (either alone or with others), c) any documentation related to the
Inventions, which shall become the company’s property, and d) Web content and
development concepts, ideas, design, and Multimedia graphics, and artwork.
Employee hereby assigns to the Company his entire right, title and interest in and
to such Inventions and documents, which relate in any way to or are useful in the
Company’s business and in the course of his employment. Employee shall do all
acts necessary and/or required by the Company to give effect to this provision.
Employee further agrees to cooperate with the Company in the procurement and
maintenance of patents, copyrights, and/or other protection of the Company’s
rights to such Inventions/Documents, Content Design and Multimedia Graphics,
at the Company’s expenses. Employee shall keep and maintain adequate and
current written records of all such Inventions, Content Designs and Development,
which shall automatically become the exclusive property of the Company.
Employee also waives his right to file for any copyright application for any such
inventions or concept, designs, ideas while actively employed by the company
and within one (1) year form date of resignation or termination from the company.
If within one (1) year after leaving the Company’s employ, a patent application or
copyright registration is filed by Employee or on his behalf describing and
Invention within the scope of his work for the Company, or which otherwise
relates to a portion of the Company’s business of which he/she had knowledge of
and access to during his/her employment, Employee agrees to specifically state
that “the Invention, Concept, Design was conceived by her/him within the scope
of his employment with Employer.”.
Employee acknowledges and confirms that this contract must remain
confidential. Except as may be legally required by competent authority or
applicable statutes, the parties hereto shall not make any unauthorized
disclosures of the terms and conditions embodied in this contract.
In order to safeguard the Company’s interest and the confidentiality of its
business and affairs, Employee agrees that during the term of his employment
and from and after the actual cessation of his employment, he shall maintain
strict confidentiality and shall not disclose any technical, business, financial or
commercial information, methods, processes, inventions (whether covered by
intellectual property protection or not or whether marked confidential or not)
including but not limited to: customers, customer lists or requirements, price lists,
pricing structures, marketing and sales information, business plans or dealings,
employees or officers, financial information, product lines research activities,
plans designs, formulae whether authored by Employee or otherwise – to suit
Employee’s purpose or those of any other person, company, business entity or
other organization whatsoever.
Employee shall not take out of Employer’s premises any technical plans, charts,
drawings, codes and other materials containing technical data and information
unless with the prior written consent or permission of the Employer.
A trade secret is any information, process or idea that is not generally known in
the industry, that the Company considers confidential, and that gives the
Employer a competitive advantage. Examples of trade secrets include:
technical plans, charts, drawings, and other materials
containing technical data and information
computer program listings, source codes and object codes
all information relating to programs now existing or
currently under development
customer lists and records, sources of purchasing and all
other information related to vendors and suppliers.
During and after Employee’s term with the company, he shall at all times practice
good discretion, ask permission and seek prior approval from the company in the
use or disclosure of any company documents – technical or business
information, or any information which one might reasonably expect the company
to regard as confidential, whether transmitted or acquired from the Company’s
customers, suppliers, or other persons – to any person, company or entity.
Employee must formally declare that he has properly tendered his resignation
from his previous employer and is free from any obligation to them, not bound to
any other company, or subject to any non-competition clause. Employee shall
neither disclose to the Company nor induce the Company to use any confidential
information or material, which belongs to his former employer.
The obligations contained in this paragraph shall cease to apply to any
information or knowledge, which may subsequently come into the public domain
after the termination of employment, other than by way of notarized disclosure.
Failure to comply with this confidentiality undertaking shall be construed and
considered as Gross Misconduct and shall be deemed a ground for the
termination of his employment.
Employee shall work exclusively for the benefit of the company. Employee warrants
that he shall comply with all his undertakings and obligations set forth in this Contract
and shall indemnify Employer of any actual losses, damages, costs and expenses,
including attorney’s fees, incurred as a result of the breach of this Agreement or his
willful act, omission, fraud or negligence.
Employer reserves the right to terminate or cancel this Contract after observing due
process for just or valid causes. Termination may be due to any, but not necessarily
limited to the following:
Breach of confidentiality and non-disclosure
Violation of company’s intellectual property rights
Just and authorized causes enumerated in Article 282, 283, and 284 of the
(h) Other causes provided in the Company Rules and Regulations; and
(i) Other analogous causes.
STOCK OPTION PLAN
Employee shall be eligible to apply for a stock option plan pursuant to company policies,
rules and regulations existing at the time of lodgment after the second year of
employment with the company.
ACCEPTANCE OF TERMS AND CONDITIONS OF EMPLOYMENT
Employee’s affixing of his signature on the herein Employment contract means that:
Employee has read and fully understood the terms and conditions hereof and
accepts the same;
The terms and conditions for the regularization of his employment have been
clearly communicated to and accepted by him/her at the time of his
IN WITNESS WHEREOF, we have set our hands this (state date) at (state place).
SIGNED AND WITNESSED BY:
REPUBLIC OF THE PHILIPPINES)
BEFORE ME, this (insert date) in (insert place), personally appeared:
known to me to be the same persons who executed the foregoing instrument consisting
(state number of pages) pages including this Acknowledgment, and who acknowledged
to me that the same is their voluntary and free act and deed and those of the parties
IN WITNESS WHEREOF, I set my hand and affix my notarial sea on the date and place
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of ______.