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Employment Memorandum Of Understanding Template for Philippines

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Key Requirements PROMPT example:

Employment Memorandum Of Understanding

"I need an Employment Memorandum of Understanding for a senior software developer position in our Manila tech startup, including remote work provisions and intellectual property clauses, with employment to commence March 1, 2025."

Document background
The Employment Memorandum of Understanding is commonly used in the Philippine business environment as an initial employment document that precedes a more comprehensive employment contract. It serves to establish clear preliminary understanding between parties while ensuring compliance with Philippine labor laws. This document is particularly useful during the hiring process when parties need to agree on basic terms before finalizing a full employment contract. The MOU typically includes essential employment terms such as position, compensation, and basic duties, while acknowledging mandatory requirements under Philippine labor legislation. It's especially valuable for companies engaged in rapid hiring, particularly in sectors like IT, BPO, and professional services, where quick onboarding is common but legal compliance remains crucial.
Suggested Sections

1. Parties: Identification of the employer and employee, including complete legal names and addresses

2. Background: Context of the employment relationship and purpose of the MOU

3. Definitions: Key terms used throughout the document

4. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Duration of employment (whether fixed-term or indefinite)

6. Compensation and Benefits: Base salary, mandatory benefits as per Philippine law, and payment terms

7. Working Hours: Regular working hours, rest periods, and overtime provisions

8. Leave Entitlements: Statutory leaves including vacation, sick leave, and other mandatory leaves

9. Confidentiality: Protection of company information and trade secrets

10. Compliance with Company Policies: Acknowledgment and adherence to company rules and regulations

11. Termination: Grounds for termination and notice requirements as per Philippine labor laws

12. Governing Law: Specification of Philippine law as governing law

Optional Sections

1. Probationary Period: Include when the position is subject to a probationary period (maximum 6 months under Philippine law)

2. Remote Work Arrangements: Include when implementing telecommuting or flexible work arrangements under RA 11165

3. Non-Competition: Include for senior positions or roles with access to sensitive information

4. Intellectual Property Rights: Include for creative or technical positions where IP creation is part of the role

5. Performance Reviews: Include when implementing formal evaluation processes

6. International Travel: Include for positions requiring overseas work

7. Commission Structure: Include for sales positions or roles with variable compensation

8. Training Requirements: Include when specific training or certifications are required

9. Data Privacy Consent: Include detailed provisions when collecting extensive personal data under RA 10173

Suggested Schedules

1. Schedule A - Job Description: Detailed breakdown of job responsibilities and requirements

2. Schedule B - Compensation Details: Breakdown of salary components, benefits, and allowances

3. Schedule C - Company Policies: Key company policies and procedures applicable to the employee

4. Schedule D - Benefits Summary: Detailed description of all benefits including both statutory and company-specific benefits

5. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix 2 - Confidentiality Agreement: Detailed confidentiality provisions and requirements

7. Appendix 3 - Performance Metrics: Specific KPIs and performance expectations for the role

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Information Technology

Business Process Outsourcing

Manufacturing

Financial Services

Retail

Healthcare

Education

Construction

Professional Services

Telecommunications

Hospitality

Real Estate

Relevant Teams

Human Resources

Legal

Operations

Finance

Sales

Marketing

Information Technology

Customer Service

Quality Assurance

Research and Development

Administration

Relevant Roles

HR Manager

Department Head

Software Developer

Account Executive

Project Manager

Business Analyst

Operations Manager

Financial Analyst

Sales Representative

Marketing Manager

Administrative Officer

Technical Support Specialist

Customer Service Representative

Quality Assurance Analyst

Research and Development Engineer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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