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Philippines: Contracts of employment

Original and updating authors: Luisito V. Liban, Marianne M. Miguel and Patricia A. Madarang, SyCip Salazar Hernandez & Gatmaitan

Summary

  • The employer-employee relationship is contractual in character, and arises from an agreement that the employee will render services in exchange for remuneration from the employer. (See General)
  • Probationary periods are permitted and must not generally exceed six months. (See Probationary periods)
  • In addition to "regular" open-ended employment, various other types are permitted, including fixed-term, "project", casual and seasonal employment. (See Types of contract)
  • There is no general requirement that employment contracts must be in writing or that employers must provide employees with a written statement of their terms and conditions, except in relation to certain categories of employee. (See Written contracts of employment)
  • Employment contracts may be modified by the mutual consent of the employer and employee. Unless the employee gives consent, the employer's scope to amend contractual terms and conditions unilaterally is limited. (See Variation of contract)
  • Employers are generally free to include confidentiality provisions in the employment contract, while post-employment non-competition covenants are valid if they are limited to a specific time, territory and trade or activity, and the restraint is not greater than reasonably necessary to protect the former employer's interests. (See Confidentiality and non-competition clauses)