CONTRACT OF EMPLOYMENT

KNOW ALL MEN THESE PRESENTS:

This CONTRACT OF EMPLOYMENT is made and entered by and between:

________________, of legal age, Filipino, and a resident of ______________, Philippines, herein

called the EMPLOYER;

-and-

_________________________, of legal age, Filipino, and a resident of ________________,

Philippines, herein called the EMPLOYEE.

W I T N E S S E T H:

WHEREAS, the EMPLOYER is the sole proprietor of [Business Name], which is engaged in the
business of retailing gift items;

WHEREAS, the EMPLOYEE manifests and guarantees that he/she possesses the requisite qualities and
competencies needed by the EMPLOYER in the conduct and course of its business;

NOW THEREFORE, the parties voluntarily bind themselves to the following terms and conditions of
the EMPLOYEE’s employment at [Business Name]:

1. APPOINTMENT

The EMPLOYEE is hereby appointed as [position] under probationary status for a period of six
(6) months reckoned from the first day of actual report for work.

2. COMPENSATION

The EMPLOYEE will receive a gross basic daily/monthly rate of __________________[state in

words] (Php ) subject to withholding tax, SSS, PhilHealth, Pag-Ibig contributions, and
government required deductions to be borne by the EMPLOYEE. This rate may increase in
compliance with government issued wage orders, laws, rules, and/or regulations. The
EMPLOYER may at her full discretion, make increments to salary, give merit increases, and/or
make salary adjustments not covered by the wage order, laws, rules and/or regulations. In
addition, the EMPLOYER will pay the mandatory 13 th month salary at the end of each calendar
year provided that the EMPLOYEE has worked for at least one (1) month during the calendar
year.

The EMPLOYER may at her full discretion, grant bonuses, allowances, or benefits not defined in
this contract. Such exercise of discretion shall not be considered as established practice or
precedent and shall not be demandable under this Contract of Employment or any other written or
unwritten agreement.

3. EVALUATION

During the probationary employment, the EMPLOYEE will be working with the EMPLOYER on
a trial basis to determine the former’s fitness for regularization. The EMPLOYEE’s conversion to
permanent status shall be primarily conditioned and dependent upon his/her satisfactory service
and performance of the work assigned to him/her and it is within the exclusive discretion of the
Company/EMPLOYER to determine whether or not such service is satisfactorily performed and
on his/her having successfully passed / complied with our established standards for regularization
which include, among others, the following criteria: dependability, trustworthiness, efficiency,
initiative, attitude towards work/ the public/ the Company/EMPLOYER, its authorized
representative/s, manager/s and co-employees, cooperation, client response, judgment,
punctuality, quality/ quantity of work, educability, articulateness and professionalism.

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 These standards and criteria upon which the EMPLOYEE will be evaluated on has likewise been
explained to the EMPLOYEE by the EMPLOYER at the time of engagement.

4. REGULARIZATION OF EMPLOYMENT

By or before the end of the six (6)-month probationary period, the EMPLOYEE may acquire
regular status upon evaluation of the probationary EMPLOYEE.

Upon regularization, the probationary EMPLOYEE shall be entitled to all company benefits and
privileges enjoyed by all regular employees of similar rank and tenure.

5. WORK HOURS

The EMPLOYEE shall work with the following schedule: ____________________

The work schedule may be changed by the EMPLOYER or its management as it may deem
necessary to meet its operational requirements.

The EMPLOYEE may be required to work more than his regular work schedule due to the
demands of the business or the requirements of the EMPLOYER.

6. USE OF EMPLOYER/COMPANY PROPERTY

Any and all materials, papers, effects, gadgets, devices and equipment belonging to the
EMPLOYER shall be monitored and accounted for. There shall be a record of all
equipment/devices that shall be issued to the EMPLOYEE. Each employee who shall receive the
gadget/equipment/device shall be liable for its loss or damage. Defects due to wear and tear are
not included.

The EMPLOYEE should, as much as possible comply with the life span of the device, gadget,
equipment, goods or tools issued to him for use. As such, he shall take the necessary care and
precaution in order to maintain them in good and working condition.

Any device/gadget/tool/equipment issued to the EMPLOYEE should be returned and accounted

for before leaving the Company/EMPLOYER.

7. EMPLOYER RULES AND REGULATIONS

The EMPLOYEE is required to follow all the Employer/Company rules, regulations and policy,
written or otherwise. All existing and future company rules, regulations and policies shall be
deemed incorporated in this Contract.

It shall be the duty and responsibility of the EMPLOYEE to be aware of and comply with the
EMPLOYER’s rules and regulations.

8. TERMINATION OF PROBATIONARY EMPLOYMENT

The EMPLOYER reserves her right to terminate the probationary employment even prior to the
expiration of the probationary period upon failure of the probationary EMPLOYEE to
satisfactorily meet the standards and/or criteria of the EMPLOYER or for any of the just or
authorized causes provided by law, including analogous causes specified in the
company/employer rules and regulations or policy.

9. RESIGNATION OF THE EMPLOYEE

The EMPLOYEE shall give a written notice of his/her intention to resign from his/her
employment at least thirty (30) days prior to the effective date of his/her resignation.

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10. NON-DISCLOSURE

The EMPLOYEE shall not divulge to any third party any part of this Contract, including salaries
and other renumerations unless legally required by law, statute, or any competent authority.

11. CONFIDENTIALITY

The EMPLOYEE understands and acknowledges that all records, documents, trade secrets,
marketing plans, business practices, intellectual property rights, and other information, written or
otherwise, are confidential and shall not be disclosed during and after employment with the
EMPLOYER. The EMPLOYEE agrees that any breach of nondisclosure and/or confidentiality
will constitute as sufficient ground for immediate termination of employment for cause and/or
civil and/or criminal liability.

12. NON-COMPETE CLAUSE

In consideration of the employment opportunity provided by the EMPLOYER, the EMPLOYEE,

intending to be legally bound, agrees that at no time during the term of his/her employment with
the Company/Employer will he/she engage in any business activity which is competitive with the
Company/Employer nor work for any company which competes with the EMPLOYER. The
EMPLOYEE agrees that any breach of this agreement will constitute as sufficient ground for
immediate termination of employment for cause and/or civil and/or criminal liability.

For a period of one (1) year immediately following the termination of the employment, the
EMPLOYEE will not, for his/herself or on behalf of any other person or business enterprise,
engage in any business activity which competes with the Company/EMPLOYER within two
hundred (200)-kilometer radius of the EMPLOYER’s facility/workplace.

13. LIQUIDATED DAMAGES

In case of breach by the EMPLOYEE of any of the terms and/or conditions herein set forth in the
Contract of Employment, such as: breach in the Non-Disclosure, Confidentiality, Non-Compete
Clause, the EMPLOYER shall be entitled to liquidated damages in the maximum amount of
One Hundred Thousand Pesos (Php 100,000.00), which may be enforceable in the proper court/s
of Davao City.

14. ENTIRETY OF AGREEMENT/AMENDATORY AND MODIFICATION

FINALLY, this Contract of Employment represents the entire agreement between the
EMPLOYER and the EMPLOYEE and supersedes all prior negotiations, representations,
agreements, either oral or written. This agreement may not hereafter be modified or altered except
by instrument in writing duly signed by the parties thereto.

If any provision of this Contract of Employment is declared invalid or null and void, the other
provisions not affected thereby shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this
____________________ at _________________, Philippines.

_______________ _______________________
Employer Employee

Signed in the presence of:

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 _________________________ _________________________

ACKNOWLEDGMENT

Republic of the Philippines }

}S.S.
x------------------------------------------\

BEFORE ME, a Notary Public, for and in the City of ____________________, Philippines,
personally appeared the above-named persons with competent proofs of identity described-above who
represented to me to be the same persons who executed this instrument and acknowledged to me that the
same are their free and voluntary act and deed.

This instrument consists of four (4) pages including the page on which this acknowledgment is
written, the principal hereto together with their witnesses have signed each and every page hereof.

WITNESS MY HAND AND SEAL this __________________ at ______________,

Philippines.

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2021.