Model Contract for Filipino Household Workers

Legal basis, policy, and intent

The circular provides a model contract that establishes minimum terms and conditions for the employment of Filipino household workers worldwide.
The circular states that the model contract shall not be prejudicial to other employment contracts that provide provisions and benefits over and above the minimum terms in the model contract.
The circular directs employers and parties to use the model contract for guidance and compliance with its minimum standards.

Model contract parties and execution

The employment contract is executed between:
- A. Employer (with address, P.O. Box, telephone number, and agent/company representation in the Philippines), and
- B. Helper (with civil status, passport number, date/place of issue, and address).
The parties voluntarily bind themselves to the enumerated terms and conditions in the contract.
The contract’s operational terms are structured as numbered clauses addressing salary, rest, housing, medical care, leave, insurance, death and repatriation, remittance assistance, termination, and dispute settlement.

Scope: Filipino household employment model

The contract governs employment of a Helper as a household worker in the site of employment that is the residence of the employer.
The contract’s “worldwide” coverage applies to household workers employed under this model for overseas service.
The contract limits the helper’s work to the employer and immediate household and prohibits assignment to other locations or enterprises.

Core employment benefits and conditions

Site of Employment: The site of employment is the residence of the employer, identified with an address.
Contract Duration: The helper is employed for _____ years commencing from the helper’s departure from the point of origin to the site of employment.
Basic Monthly Salary: The contract states the basic monthly salary in an assigned amount.
Rest Day: The helper is entitled to at least one (1) rest day per week, preferably Sunday.
Free transportation: The employer provides free transportation:
- to the site of employment, and
- back to the point of origin upon expiration of contract or when the contract is terminated through no fault of the helper and due to force majeure.
Living quarters and food: The employer furnishes the helper free of charge with suitable and sanitary living quarters and adequate food or food allowance.
Medical and dental services: The employer provides free medical and dental services, including facilities and medicine.

Leave, insurance, remittance assistance

Vacation leave: The helper receives vacation leave with full pay of not less than 15 calendar days for every year of service, to be availed of upon completion of the contract.
Renewal ticket: For contract renewal, the employer provides a free round-trip economy class air ticket.
Insurance / compensation: The employer provides personal life and accident insurance for the helper or provides workmen’s compensation benefits for work-connected illness or injuries or death, consistent with the pertinent laws of the host country.
Remittance assistance: The employer assists the helper in remitting a percentage of salary through proper banking channels.

Death, repatriation, and disposition rules

In the event of the death of the helper during the term of the contract, the employer repatriates:
- the helper’s remains, and
- the helper’s personal belongings,
  to the Philippines at the expense of the Employer.
If repatriation of remains is not possible, the remains may be disposed of upon prior approval of the helper’s next of kin or by the Philippine Embassy.

Termination rules and who bears repatriation

Termination by Employer: The employer may terminate only for the following just causes:
- serious misconduct or willful disobedience of lawful orders of the employer or immediate household members in connection with the helper’s work;
- gross habitual neglect of the helper’s duties; or
- violation of the laws of the host country.
When terminated by the employer under the just causes above, the helper shall shoulder the repatriation expenses.
Termination by the Helper (without just cause):
- The helper may terminate without just cause by serving a written notice to the employer at least one month in advance.
- Without the required notice, the helper shall shoulder the helper’s return transportation.
Termination by the Helper (with just cause):
- The helper may terminate without serving any notice for these just causes:
  - when the helper is maltreated by the employer or any member of the employer’s household;
  - when the employer violates the terms and conditions of the contract; or
  - when the employer commits any of these acts: deliberate non-payment of salary, physical molestation, and physical assault.
- When the helper terminates for a just cause, the employer shall pay for the repatriation expenses.
Termination due to illness:
- Either party may terminate on grounds of illness, disease or injury suffered by the helper where continued employment is prohibited by law or is prejudicial to the helper’s health as well as the health of the employer and the employer’s household.
- Under illness/disease/injury termination, repatriation expenses are shouldered by the employer.

Dispute settlement through Philippine Embassy

When a dispute arises between the helper and the employer, either party must refer the matter to the Philippine Embassy.
The Philippine Embassy must endeavor to settle the issue amicably to the best interest of both parties.
If the dispute remains unresolved, the embassy official refers the matter to the appropriate labor authorities of the host country for adjudication, without prejudice to any legal action the aggrieved party may take against the other.

Special provisions and mandatory limits

The employer must treat the helper in a just and humane manner and shall not use physical violence on the helper.
The helper shall work solely for the employer and the employer’s immediate household.
The employer shall not require the helper to work in any other residence, nor assign the helper in any commercial, industrial or agricultural enterprise.
Salary deductions prohibition:
- No amount may be deducted from the helper’s regular salary except for compulsory contributions prescribed by law.
- Any such deductions must be accompanied by a corresponding receipt.
The employer must provide the helper a copy of the employment contract that is duly verified/processed by POEA.

Non-alteration, governing law, and incorporation

No provision of the contract may be altered, amended, or substituted without the written approval of the Philippine Embassy of POEA.
Other terms and conditions of employment are governed by the pertinent laws of the Philippines or the host country.
Any applicable provisions on labor and employment of the host country are incorporated as part of the contract.

Signatures and acknowledgment

The parties sign the contract on a __________ day of ____________ 19_____ at Manila, Philippines.
The contract includes the signatures of Helper and Employer and a section for Acknowledgment.