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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."
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.
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.
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
Information Technology
Business Process Outsourcing
Financial Services
Manufacturing
Professional Services
Shared Services
Consulting
Telecommunications
Healthcare
Retail and Distribution
Engineering Services
Human Resources
Legal
Finance
Compliance
Operations
Tax
Payroll
Corporate Secretarial
Risk Management
Internal Audit
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
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