Employment Contract

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An employment contract may cover either a regular employee or a project-based employee. In either case, an employer-employee relationship is forged and the benefits provided by the Labor Code of the Philippines and other social legislations will apply to both types of employees. The only difference being that the term of project-based employees ends when the project is completed whereas regular employees enjoy security of tenure until terminated for cause. It is prohibited for employers to provide for a 6 month term for employees renewable for another 6 months as this would violate the right of employees to security of tenure. The employer and employee are not prevented however from stipulating on such terms and conditions that are not covered by the Labor Code but which has been a practice, such as providing employees with sick leave and vacation leave benefits. Employment contract covering overseas employees whether land-based or sea-based is covered by a different set of rules & regulations in addition to the provisions of the Labor Code, and is regulated by the Philippine Overseas Employment Agency (POEA). Employers may accept apprentices and on-the-job training applicants.


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