When you hire an employee in the Philippines, one of the first things you'll do is send a job offer letter.
It’s crucial to get the employment agreement right: not only will it make the offer of employment and conditions of employment clear to the potential employee, but it will also help keep you compliant with labor laws in the Philippines—so you can avoid costly legal disputes and penalties.
Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in the Philippines.
The Philippines job offer letter checklist
- Position (job title), job description, start date, and probationary period. You should explain that their suitability for their job duties will be evaluated during their probationary period. In the Philippines, the maximum probationary period is six months.
- Working hours. Outline the expected working hours and any overtime policies that the employee will be subject to. The standard Filipino working week is 40 hours. Employees are entitled to extra compensation of at least 25% of their normal wage for additional hours worked. If the employee works overtime during a holiday, they get an additional 30% of their regular wage.
- Compensation and benefits
- Salary. Specify the employee's salary or hourly compensation in PHP, as well as any other compensation they may receive (equity compensation, bonuses, etc.). Specify whether the employee’s salary will be paid bi-weekly or monthly, as required by the Labor Code in the Philippines.
- Equity. If applicable, specify any equity compensation—such as restricted stock units (RSUs), stock purchase plans, or stock options—the employee will receive.
- Benefits. Benefits could be outlined in the offer letter, but be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In the Philippines, the following benefits are mandatory for full-time employees (though not always listed in an offer letter):
- Public health insurance contributions
- Pension fund contributions
- Affordable housing financing
- Vacation entitlements
- Statutory holidays
- Sick leave entitlements
- Maternity and paternity leave
- Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more leave than the required minimum of five days paid time off per year for full-time employees in the Philippines.
- Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and any conditions that may lead to termination. In the Philippines, you can only legally terminate an employee for one of the “Just Causes” or “Authorized Causes” listed in its Labor Code. You must also give at least 30 days’ written notice of termination.
- Confidentiality and non-disclosure. Include in the offer of employment a clause outlining the employee's responsibilities regarding confidentiality and non-disclosure of the company's information. Non-disclosure agreements (NDAs) are considered legally binding in the Philippines.
- Contact information and phone number
- Other key details. If there are any other key details relevant to your company's policies and procedures, include them in the offer letter.
- If the offer is contingent on any conditions—like satisfactory results from a routine background check, signing company policies documents, or proof of eligibility to legally work in the Philippines—then list these out.
- Request that the employee signs and returns the offer letter to confirm their acceptance of the job before their start date, or include an expiration date for the offer letter that serves as a deadline for signature.
- Non-compete and non-solicit agreements. Include provisions outlining the employee’s non-competition and non-solicitation responsibilities after leaving your company—but only if they’re reasonable for your employee.
- Personal data collection. Include information about how you will collect, use, store, and process personal employee information.
- Intellectual property. Convey the expectations for the intellectual property ownership of any improvements, inventions, discoveries, and other modifications to work products by the employee on company time.
- Workplace health and safety. Include information about how you will ensure a safe, hazard-free work environment for your employee.
- Location. Establish expectations for in-office or remote work, if applicable.
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Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.