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1 CONTRACT AND EMPLOYMENT on Fri Jul 12, 2013 5:48 pm


Arresto Menor
Hi, my name is Jan and I need a legal advice.
I work as a manager in an online tutorial center.
My boss wants me to make a new contract which would be very legal. though there are a few things that I am not pretty sure whether is legal or not and here are as follows:

1. The contract is for 2 years. She wanted me to indicate in the contract that there would be a penalty if someone would breach the contract or would choose to resign or leave the job.
Would it be fine?

2. Since the company is just a small company for now, we couldn't give benefits and double pays on some Holidays, but yearly we choose 9 holidays which pays the employees double,
is it okay?

3. We choose not to give Certificate of Employment to those employees who were terminated and failed to render a grace period of 1 month.

If I need to provide more details please just feel free to leave me a message.

I hope someone help me with this Smile
Thank you in advance for your answer and help


Last edited by jane1111 on Mon Jul 15, 2013 1:03 pm; edited 1 time in total

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2 Reply to JAN on Sat Jul 13, 2013 12:45 am


Arresto Menor
Hi Jan,

Here's my response in chronological order:

1. As far as I know, contractual employment is prohibited by Labor Code of the Philippines. Please read the provisions of the Labor Code pertaining to Employments.

2. The company is required and mandated by law to pay the holiday premiums. For legal holiday, it should be 200% of the basic rate. For special holiday, it should be 130%.

3. I believe it is recommended to issue COE for all employees who are leaving the company.

If you need more info, please contact me at 09178635223

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3 Re: CONTRACT AND EMPLOYMENT on Mon Jul 15, 2013 1:29 pm


Arresto Menor
Thank you for the response. As I read your messages I got a bit confused and found more questions to ask like for number 1. Are you telling me that it is not right to have a 2 year contract?

2. How about if the company is a bit unstable due to the performance of it's employee? won't there be considerations?

3. Even for those employees who are terminated and didn't perform well? Or even to those employees who didn't tender a one month grace period for their resignation?

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