Fixed-term employment contracts are not limited, as they are under the present Labor Code, to those by nature seasonal or for specific projects with predetermined dates of completion; they also include those to which the parties by free choice have assigned a specific date of termination.

A fixed-term employment is valid only under certain circumstances. In Brent School vs. Zamora [G.R. No. 48494, 5 February 1990, 181 SCRA 702], the Court identified several circumstances wherein a fixed-term is an essential and natural appurtenance.

Two criteria validate a contract of employment with a fixed period: (1) the fixed period of employment was knowingly and voluntarily agreed upon by the parties without any force, duress or improper pressure being brought to bear on the employee and without any circumstances vitiating consent or, (2) it satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no moral dominance whatever being exercised by the former on the latter. [Labayog, et al. vs. M.Y. Sans Biscuits, Inc.,G.R. No. 148102, July 11, 2006]

There is practical application for the fixed-term concept. For instance, the company has a regular employee, X, who went on maternity leave. The position temporarily vacated due to child birth is regular in nature. Under the Labor Code any holder of such position would be deemed as regular employee also.

Without the concept of fixed-term, any temporary replacement of the staff on maternity leave would be deemed as regular. Let us say A replaced X. Now, when X returns to work there would be two of them occupying the same position.

The replacement, A cannot be terminated easily because he/she is considered regular also. There are only two ways to terminate A which are for just cause and authorized cause. To dismiss A for redundancy would be too taxing on the part of the employer and would cause unnecessary labor cost in terms of separation pay.

Thus, this is where the fixed-term employment makes sense and is an exception to the rule on regular employment under Article 295 [formerly 280] of the Labor Code. Hence, it does not matter whether the fixed-term employee holds a position considered regular by the company.

The post below is based on the book Human Resource Forms, Notices and Contracts Volume 1 by Human Resource Forms Contract and Notices by Atty Elvin B VillanuevaAtty. Elvin B. Villanueva.

Sample Contract for Fixed-Term Employment



            This CONTRACT FOR FIXED-TERM EMPLOYMENT is entered into by and between

            XYZ Corporation, a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal place of business at 123 Bldg., Ayala Ave., Makati City, Philippines, represented herein by its President, MR. ____________________, hereinafter known as EMPLOYER,


________________________, of legal age, and a resident of _____________________________________________, hereinafter called the FIXED-TERM WORKER,


WHEREAS, the EMPLOYER accepts the offer of the FIXED TERM WORKER to be employed with a fixed term or duration to temporarily replace the staff who went on maternity leave;

WHEREAS, the FIXED TERM WORKER seeks employment, applied for and knowingly and voluntarily agreed to work on fixed term with specific duration;

THEREFORE, the parties hereby covenant:


  1. The FIXED TERM WORKER is engaged as a Driver with duties and responsibilities set forth hereunder subject to provisions on duration or term of engagement and other lawful causes for termination of relationship under the law;
  2. The FIXED TERM WORKER shall report for work on or before 8:30 a.m. and leave not earlier than 5:30 p.m., Monday to Saturday;
  3. The FIXED TERM WORKER, pursuant to this fixed term employment, knowingly and voluntarily agreed to sign the same and shall serve for seventy-eight (78) days commencing ______________ until _______________ and after which the contract shall be deemed automatically expired. There was no moral dominance by the EMPLOYER over the FIXED TERM WORKER;


  1. The FIXED TERM WORKER may be dismissed from service for just causes found under Article 282 of the Labor Code, as amended and other applicable provisions of the Labor Code, in addition to expiration of the service as hereunder set forth;
  2. The employment may likewise be terminated for authorized cause under Articles 283 and Article 284 of the Labor Code, as amended;
  3. Further, the employment may be terminated in the event of violation by the FIXED TERM WORKER of the provisions of the Code of Conduct contained in the HR Manual hereto attached as Annex “A”. The FIXED TERM WORKER undertakes that he has read and understood the provisions therein and were fully explained to his in language and/or dialect that he understands and agrees to abide thereto;
  4. Employment may likewise be validly terminated if the business operation has ceased on account of a law, rules or regulations ordering the cessation of the company;
  5. The employment may likewise be suspended due to causes arising from lack of raw materials, lack of customer order, declining sales, among others as determined by the management;


  1. The initial place of posting of the FIXED TERM WORKER shall be in the principal office of the EMPLOYER. However, the FIXED TERM WORKER agrees to be assigned anywhere in the Philippines when the exigencies of business require;
  2. The place of work may change when the EMPLOYER moves to another principal place of business and in such case, the FIXED TERM WORKER agrees to relocate;


  1. The FIXED TERM WORKER shall perform duties and responsibilities hereto attached as Annex “B,” and such other responsibilities that may be assigned relevant thereto;
  2. In addition, the FIXED TERM WORKER shall observe the law, rules and regulations, standards of fairness, justice, good customs and fair play in the discharge of his duties;

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  1. The FIXED TERM WORKER shall receive a salary of TWELVE THOUSAND ONE HUNDRED FIFTY FOUR 83/100 PESOS (PHP12,154.83) per month which will be paid every 15th and 30th of the each month subject to the following payroll cut-off period;
  2. For the payroll period of 15th of the month, attendance cut-off shall be 26th of the previous month until the 10th of present month. While for the payroll period of 30th or 31st of the month, the cut-off shall be from the 11th to 25th of the present month;
  3. The salary of the FIXED TERM WORKER shall be deducted an amount representing his contribution to social legislation benefits such as Social Security Systems (SSS), Pag-Ibig and Philhealth. He is likewise entitled to 13th month pay provided he has served at least one (1) month of service;
  4. The FIXED TERM WORKER shall hold in strict confidence all information that he may have obtained by reason of his employment and shall not divulge or disclose the same to anyone without prior written permission from the EMPLOYER;
  5. During his employment, the FIXED TERM WORKER shall not engage in any employment, whether part-time or full-time, or in any capacity with other entities or companies while this agreement is in force and effect;
  6. The compensation and benefits are customized for each employee. Thus, the FIXED TERM WORKER undertakes to treat with strict confidentiality his compensation and benefits information. He shall refrain from discussing with anyone whether connected with the EMPLOYER or not. Violation of this prohibition shall be considered as ground for disciplinary action;
  7. This written contract and its annexes constitute the entire agreement between the parties binding between them and their assigns, heirs and successors-in-interest;
  8. The FIXED TERM WORKER undertakes that he executed this agreement on his own volition, freely and without any force or intimidation. He knowingly and voluntarily agreed to the execution and signing thereof and no force, duress or improper pressure was placed upon him. The contents and terms of this engagement were explained in Filipino to him which he fully understood and agreed upon;
  9. The FIXED TERM WORKER acknowledges that he had the option of not accepting this contract and had the freedom not to sign or to walk away if he finds any provision disagreeable. He acknowledges that with such option, both parties are on equal terms and that the EMPLOYER did not exert any moral dominance over him.

IN WITNESS WHEREOF, the parties have hereby affixed their respective signature this ____ day of _______, 2018, in the City of ____________.


__________________                                                      _____________________

President                                                                              FIXED TERM WORKER

Signed in the presence of:

__________________________                                   _________________________


Republic of the Philippines           )

City of _______________ ) S.S.

            BEFORE ME, a notary public for and in the City of ______________, the parties appeared and presented their respective identification cards as competent proof of identity and are known to me and to me known to be the same persons who executed the foregoing Contract for Fixed Term Employment consisting of four (4) pages, including this page where the Acknowledgment is written and affirmed to me that the same is their own, free, voluntary act and deed.

            WITNESS MY HAND AND SEAL, this _____ day of __________, 20____.


Doc. No.: _________;
Page No.: _________;
Book No.: _________;
Series of 20___

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