An employment contract sets out the terms on which a worker is hired — the position, compensation, hours, benefits, and the grounds and procedure for ending the relationship. In the Philippines, the relationship is governed primarily by the Labor Code (Presidential Decree No. 442, as renumbered) and the issuances of the Department of Labor and Employment (DOLE). Even where the parties never sign anything, the law fills in mandatory protections such as security of tenure and statutory benefits — but a well-drafted written contract proves the agreed terms and protects both employer and employee if a dispute arises.
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Unlock & Generate — ₱199 or get All-Access — ₱999/30 daysWhat Is an Employment Contract in the Philippines?
An employment contract is the agreement by which an employer engages the services of an employee for compensation, under the employer's control as to the means and methods of the work. The four-fold test of employment — selection and engagement, payment of wages, power of dismissal, and the power of control — determines whether an employment relationship exists, regardless of what the parties call their arrangement.
Whether the heading reads Contract of Employment, Employment Agreement, Job Contract, or kontrata sa trabaho, it is one and the same document under Philippine law.
Because the Labor Code is a social legislation, its protective provisions cannot be waived or bargained away. A contract may add to the employee's rights, but it can never validly reduce the floor set by law. Any stipulation that contravenes the Labor Code, public policy, or good morals is void, and the law is read into every employment contract whether or not the parties wrote it down.
When Is a Written Employment Contract Required?
The Labor Code does not, as a general rule, require employment contracts to be in writing — an oral agreement is enough to create an employment relationship, and regular employees enjoy security of tenure by operation of law. In several situations, however, a written contract is practically indispensable:
- Probationary employment — the reasonable standards for regularization must be made known to the employee at the time of engagement; in practice this requires a written contract or appointment letter.
- Fixed-term, project, and seasonal employment — the agreed period, project, or season must be clearly documented to rebut the presumption of regular employment.
- Contractual / agency arrangements — DOLE Department Order No. 174 requires written service agreements and employment contracts for legitimate contracting.
- Apprenticeship and learnership — must be covered by a written, DOLE-approved agreement.
Outside these cases, a written contract remains strongly advisable. It records the salary, schedule, classification, and termination terms, and it removes the ambiguity that fuels most labor disputes.
Key Provisions of a Philippine Employment Contract
A complete employment contract should address all of the following:
- Parties — the employer (individual or corporation, with its authorized signatory) and the employee, with addresses and civil status.
- Position and job description — the title and the principal duties and responsibilities attached to it.
- Employment status — probationary, regular, fixed-term, or project, with the start date and (for probationary) the period and the regularization standards.
- Place of work — the work location, with the employer's right to reassign within the bounds of management prerogative.
- Hours of work — the normal eight-hour day, the work schedule, and meal and rest periods.
- Compensation and statutory deductions — the gross salary and pay frequency, less withholding tax and the mandatory SSS, PhilHealth, and Pag-IBIG contributions.
- Overtime and premium pay — the rules for work beyond eight hours, on rest days, holidays, and at night (subject to the Article 82 exemptions for managerial and field personnel).
- Statutory benefits and leaves — thirteenth-month pay, service incentive leave, and other benefits required by law.
- Termination clauses — the just causes (Article 297) and authorized causes (Articles 298–299), the due-process requirements, and the employee's thirty-day resignation notice.
Free Sample — Employment Contract
Below is a complete sample of a probationary employment contract for a rank-and-file position. Use Legalia Ultra to generate a notary-ready version with your own details filled in, and to toggle optional clauses such as data privacy, liquidated damages, and the notarial acknowledgment.
This Contract of Employment (the "Contract") is made and entered into this January 15, 2026, at Pasig City, Philippines, by and between:
Roberto Manalo, of legal age, Filipino, with business address at 5th Floor, Ortigas Tower, Pasig City, hereinafter referred to as the "Employer";
-and-
Juan Dela Cruz, of legal age, Filipino, single, with residence and postal address at 123 Mabuhay Street, Barangay San Antonio, Quezon City, hereinafter referred to as the "Employee."
WITNESSETH:WHEREAS, the Employer is engaged in a lawful business or undertaking and desires to engage the services of the Employee; and
WHEREAS, the Employee represents that he/she possesses the necessary qualifications, skills, and competencies for the position and is willing to render service to the Employer under the terms and conditions hereinafter set forth;
NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants hereinafter set forth, the parties hereby agree as follows:
1. POSITION AND JOB DESCRIPTION
The Employer hereby engages the Employee to the position of Sales Associate. Handle in-store sales, customer service, and inventory monitoring The Employee shall perform the duties and responsibilities attached to the said position and such other lawful tasks as may reasonably be assigned from time to time by the Employer or its authorized representative, consistent with the Employee's position and the requirements of the business. For purposes of this Contract and applicable labor standards, the Employee is classified as a rank-and-file employee.
2. NATURE AND STATUS OF EMPLOYMENT
The Employee shall commence employment on February 1, 2026. The Employee is hired on a probationary basis for a period of six (6) months reckoned from the said date of commencement, or until August 1, 2026. The reasonable standards required for regularization were made known to the Employee at the time of engagement and form an integral part of this Contract, namely: Meeting the monthly sales quota, satisfactory performance evaluations, and adherence to company policies during the probationary period. Should the Employee meet the said standards and satisfactorily complete the probationary period, he/she shall be deemed a regular employee. Failure to qualify in accordance with the reasonable standards made known at the time of engagement shall be a ground for the termination of probationary employment, in accordance with Article 296 of the Labor Code of the Philippines (as renumbered).
3. PLACE OF WORK
The Employee shall render service at Ortigas Tower, Pasig City. The Employer may, in the reasonable exercise of its management prerogative and as the requirements of the business may demand, assign or transfer the Employee to another work location, branch, or department, provided that such assignment or transfer shall not involve a demotion in rank or a diminution of salary, benefits, or other privileges.
4. HOURS OF WORK
The normal hours of work of the Employee shall not exceed eight (8) hours per day. The Employee's work schedule shall be 8:00 AM to 5:00 PM, Monday to Saturday, subject to such reasonable adjustments as the Employer may implement in accordance with law. The Employee shall be entitled to a meal break and rest periods as provided under the Labor Code of the Philippines.
5. COMPENSATION AND STATUTORY DEDUCTIONS
In consideration of the services to be rendered by the Employee, the Employer shall pay the Employee a gross salary in the amount of Eighteen Thousand Pesos (₱18,000.00), payable on a monthly basis, less applicable withholding taxes and lawful deductions. The Employer shall deduct and remit the Employee's mandatory contributions to the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG Fund), and shall withhold the corresponding income tax, all in accordance with applicable laws and regulations.
6. OVERTIME AND PREMIUM PAY
Work rendered by the Employee in excess of eight (8) hours per day, or on rest days, regular holidays, and special days, when duly authorized in advance by the Employer, shall be compensated with the corresponding overtime pay, premium pay, holiday pay, and night-shift differential as provided under the Labor Code of the Philippines.
7. STATUTORY BENEFITS AND LEAVES
The Employee shall be entitled to all statutory benefits required by applicable labor laws, subject to the eligibility requirements provided therein.
8. DUTIES AND RESPONSIBILITIES
The Employee shall: (a) faithfully and diligently perform the duties and responsibilities of the position and all lawful orders and instructions of the Employer; (b) devote his/her time and attention during working hours to the business of the Employer; (c) observe and comply with all company rules, regulations, policies, and lawful directives of the Employer; (d) exercise due care over the property, equipment, and resources of the Employer entrusted to him/her; and (e) act at all times with honesty, loyalty, and good faith toward the Employer.
9. CONFIDENTIALITY AND NON-DISCLOSURE
During and after the term of employment, the Employee shall hold in strict confidence and shall not disclose, use, or divulge to any unauthorized person any trade secret, proprietary information, business plan, client or customer information, pricing, financial data, or other confidential information of the Employer acquired in the course of employment, except as may be required in the performance of his/her duties or as compelled by law. Upon separation from employment, the Employee shall return all documents, records, devices, and property of the Employer in his/her possession or control. The Employee's obligations under this Section shall survive the termination or expiration of this Contract.
10. INTELLECTUAL PROPERTY
Any work, invention, discovery, design, software, or other intellectual property created or developed by the Employee in the course of and in connection with the employment, and within the scope of his/her assigned duties, shall belong to and be the exclusive property of the Employer, in accordance with the Intellectual Property Code of the Philippines (Republic Act No. 8293). The Employee shall execute such documents and perform such acts as may be necessary to vest and perfect such rights in favor of the Employer.
11. COMPANY RULES AND CODE OF CONDUCT
The Employee agrees to abide by the company rules, regulations, code of conduct, and policies of the Employer, as the same may be promulgated, amended, or modified from time to time in the reasonable exercise of management prerogative. Violations thereof shall be dealt with in accordance with the company's disciplinary rules and applicable law, subject to the requirements of due process.
12. DATA PRIVACY
The Employee consents to the collection, use, processing, storage, and retention by the Employer of his/her personal and sensitive personal information for purposes reasonably necessary and related to the employment, including recruitment, payroll, statutory remittances, benefits administration, performance management, and compliance with legal and regulatory obligations, in accordance with the Data Privacy Act of 2012 (Republic Act No. 10173), its implementing rules and regulations, and the issuances of the National Privacy Commission. The Employer shall implement reasonable and appropriate organizational, physical, and technical measures to protect such information and shall process it only for legitimate and declared purposes.
13. TERMINATION
The employment may be terminated in accordance with the Labor Code of the Philippines. The Employer may terminate the employment of the Employee for any of the just causes under Article 297, or for any of the authorized causes under Articles 298 and 299, of the Labor Code of the Philippines (as renumbered by Department of Labor and Employment Department Advisory No. 01, Series of 2015), subject to the observance of substantive and procedural due process. The Employee may likewise terminate the employment by serving a written notice on the Employer at least thirty (30) days in advance, or without such notice for any of the just causes recognized by law. Termination for an authorized cause shall entitle the Employee to separation pay as provided by law.
ENTIRE AGREEMENT
This Contract constitutes the entire agreement between the parties with respect to the employment of the Employee and supersedes all prior agreements, understandings, and representations, whether oral or written. Any amendment hereto shall be valid only if made in writing and signed by both parties. Should any provision of this Contract be declared invalid or unenforceable, the remaining provisions shall remain in full force and effect. The terms of this Contract shall be construed in accordance with, and shall at all times be subject to, the Labor Code of the Philippines and other applicable laws; in case of conflict, the law shall prevail.
ACCEPTANCE OF TERMS
The Employee acknowledges that he/she has read and fully understood the terms and conditions of this Contract, that the same have been explained to him/her, and that he/she voluntarily accepts and agrees to be bound thereby.
IN WITNESS WHEREOF, the parties have hereunto set their hands this January 15, 2026 at Pasig City, Philippines.
BEFORE ME, a Notary Public for and in the above jurisdiction, personally appeared:
| Name | Competent Evidence of Identity |
|---|---|
| ROBERTO MANALO | |
| JUAN DELA CRUZ | Philippine Passport No. P1234567A |
known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and at the place first above written.
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Unlock & Generate — ₱199 or get All-Access — ₱999/30 daysStep-by-Step: Generate an Employment Contract with Legalia
- Log in and open the Employment Contract. Sign in to your Legalia dashboard and, under the Other Legal Documents category, select Employment Contract. The two-panel editor opens — form on the left, live preview on the right.
- Enter the employer and employee details. Choose whether the employer is an individual or a corporation (and name the authorized signatory), then fill in both parties' names, addresses, and the employee's civil status and citizenship.
- Set the position, status, and pay. Enter the position and classification (rank-and-file, supervisory, managerial, or field personnel), choose probationary or regular status, the start date and probationary period, the regularization standards, the salary and pay frequency, and the working hours.
- Toggle the optional clauses. Turn the data privacy, liquidated damages, witness, and notarial acknowledgment blocks on or off to match your situation, then review the live preview.
- Print or export. Click Print and choose Save as PDF, or export to Word. If you opted to include the acknowledgment, have both parties appear before a notary public to convert it into a public document.
Probationary vs. Regular Employment
A probationary employee is hired on trial for a period that generally may not exceed six (6) months, during which the employer evaluates whether the employee meets the reasonable standards for regularization that were made known at the time of engagement. A probationary employee still enjoys security of tenure during the period and may only be dismissed for a just or authorized cause, or for failure to meet those standards. A regular employee — one who performs work necessary or desirable to the usual business of the employer, or who is allowed to work beyond six months — enjoys full security of tenure and may be dismissed only for a just or authorized cause with due process. The single most common employer mistake is failing to put the regularization standards in writing at the start: without them, the worker is deemed a regular employee from day one.