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Employee Cost Sharing Agreement Template for Philippines

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Key Requirements PROMPT example:

Employee Cost Sharing Agreement

"I need an Employee Cost Sharing Agreement for our Philippine subsidiary sharing IT personnel with our Singapore headquarters, starting January 2025, with particular emphasis on cross-border compliance and data privacy regulations."

Document background
The Employee Cost Sharing Agreement is essential for businesses operating in the Philippines that seek to efficiently allocate human resource costs across multiple entities while maintaining compliance with local regulations. This document is particularly relevant for corporate groups, shared service centers, or collaborative business arrangements where employees provide services to multiple entities. The agreement ensures clear documentation of cost allocation methodologies, primary employer responsibilities, and compliance with Philippine labor laws, social security requirements, and tax regulations. It is commonly used in situations involving regional headquarters, subsidiary relationships, or joint ventures where employee resources are shared to optimize operational efficiency and manage costs effectively.
Suggested Sections

1. Parties: Identifies the participating entities in the cost sharing arrangement, including their complete legal names, addresses, and registration details.

2. Background: Explains the context and purpose of the agreement, including the business relationship between the parties and the rationale for sharing employee costs.

3. Definitions: Defines key terms used throughout the agreement, including 'Shared Employees', 'Cost Sharing Ratio', 'Service Period', etc.

4. Scope of Services: Details the nature of work and services provided by the shared employees and the allocation of their time between parties.

5. Employment Status: Clarifies the primary employer relationship and confirms that the agreement does not create an employer-employee relationship with the secondary company.

6. Cost Allocation: Specifies the methodology for calculating and allocating employee-related costs between the parties.

7. Payment Terms: Outlines the timing, method, and currency of payments between parties for shared costs.

8. Statutory Compliance: Addresses compliance with Philippine labor laws, social security, taxation, and other regulatory requirements.

9. Term and Termination: Specifies the duration of the agreement and conditions for termination or modification.

10. Confidentiality: Establishes obligations regarding the protection of confidential information shared between parties.

Optional Sections

1. Employee Benefits Allocation: Used when there are specific arrangements for sharing discretionary benefits beyond statutory requirements.

2. Intellectual Property Rights: Include when shared employees are involved in creating intellectual property that needs clear ownership designation.

3. Non-Competition: Add when there are concerns about competitive activities between the participating entities.

4. Force Majeure: Include when parties want specific provisions for handling unforeseen circumstances affecting the cost sharing arrangement.

5. Dispute Resolution: Add when parties want to specify particular methods for resolving disagreements, such as mandatory mediation.

6. Insurance and Indemnification: Include when specific insurance requirements or indemnification provisions are needed for shared employees.

Suggested Schedules

1. Schedule A - List of Shared Employees: Details of employees covered by the agreement, including their roles, responsibilities, and time allocation.

2. Schedule B - Cost Allocation Methodology: Detailed breakdown of how various costs are calculated and allocated between parties.

3. Schedule C - Statutory Benefits Calculation: Specification of how mandatory benefits and contributions are handled and divided.

4. Schedule D - Service Level Agreement: Performance metrics and service standards for shared employees, if applicable.

5. Appendix 1 - Timesheet Template: Standard format for tracking and reporting shared employee time allocation.

6. Appendix 2 - Cost Reporting Template: Standard format for monthly/quarterly cost allocation reports.

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Information Technology

Business Process Outsourcing

Financial Services

Manufacturing

Professional Services

Shared Services

Consulting

Telecommunications

Healthcare

Retail and Distribution

Engineering Services

Relevant Teams

Human Resources

Legal

Finance

Compliance

Operations

Tax

Payroll

Corporate Secretarial

Risk Management

Internal Audit

Relevant Roles

Human Resources Director

Legal Counsel

Finance Director

Chief Financial Officer

HR Manager

Compliance Officer

Operations Manager

Regional Director

Shared Services Manager

Employment Law Specialist

Corporate Secretary

Tax Manager

Payroll Manager

HR Business Partner

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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