SERVICE AGREEMENT

_____________2018 – ____________, (year)

SERVICE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
___________________________________________, a corporation duly organized and existing
under and by virtue of Philippine laws with principal office address at
#_____________________________, represented herein by __________________________ in
his capacity as __________________, hereinafter referred as the CONTRACTOR.

-AND-

________________________, a business duly organized and existing under and by

virtue of Philippine Laws with office address at ________________________________,
represented by ______________________, in his capacity as ______________________,
hereinafter referred to as the “ CLIENT “.

WITNESSETH:

WHEREAS, The CONTRACTOR has represented itself that ( a ) it is duly registered as an

Independent Job CONTRACTOR under Department of Labor and Employment Department
Order 18-A Series of 2011 with __________________________ issued by DOLE NCR on
__________________________ and valid until __________________________, ( b ) it is
engaged in the business of providing services, ( c ) it has substantial capital ,equipment, tools,
manpower complement and expertise which are necessary in the conduct of its business.

WHEREAS, the CLIENT requires the expertise to perform specific and/ or specialized jobs,
services /work and has accepted the offer of the CONTRACTOR.

NOW, THEREFORE, for and in consideration of the foregoing premises, the parties have agreed
as follows:

A. DESCRIPTION OF THE JOB, WORK OR SERVICE

1. The CONTRACTOR shall render, undertake and perform certain job orders or projects
outsourced by the CLIENT, subject to the terms and conditions stipulated hereunder
at the CLIENT’ premises located in __________________________.

2. The services to be performed by the CONTRACTOR under this Agreement shall

undertakes to provide temporary manpower assistance /services to the CLIENT with
its manpower services for a specific period for a fixed fee as detailed and listed in
Annex A attached hereto and forming part of this Agreement.

B. DUTIES AND WARRANTIES

3. In fulfillment with its obligations under this Agreement, the CONTRACTOR likewise
undertakes to do the following:

HIRING/ SELECTION / DEPLOYMENT

(A) To hire, select and train the employees to be deployed at the CLIENT’s premises
(“Personnel”). It shall be understood that this Agreement does not create an employer-
employee relationship between the CLIENT and any of said Personnel. The personnel
shall remain employees of the CONTRACTOR.

(B) To make available at all times relievers and/or replacements to ensure continuous and
uninterrupted service, as in the case of absences, and to closely monitor the work and
service results of its personnel.

(C) To provide its Personnel with uniforms, nameplates, and appropriate identification
cards to be worn at all times while on duty. The Personnel shall be properly trained
and thoroughly screened by the CONTRACTOR prior to employment and required to
 present favorable NBI Clearances and medical certificates attesting to their physical
fitness of the work involved.

(D) To provide its Personnel with the equipment, tools, implements, materials and
supplies necessary for the performance of the services called for under this
Agreement.

PAYMENT OF WAGES & OTHER BENEFITS

(A) To pay all the wages, salaries and benefits due to its Personnel under the Labor Code
and General Labor and Standard (GLS). The Monthly Salary shall be in line with the
prevailing Minimum Wage Rate.

(B) To remit to the proper government entities all withholding taxes, premiums and
monthly employer’s share and employee’s contribution to SSS, PHILHEALTH &
HDMF.

(C) To hold the CLIENT free and harmless against any and all claims by any of its
Personnel for, but not limited to, unpaid wages and salaries, unpaid overtime pay,
holiday premium and other compensation as well as benefits for death, injuries and
accidents, sickness, diseases and damages arising from or in connection with their
employment with the CONTACTOR or performance of the services under this
Agreement.

DISCIPLINE/ TERMINATION

(A) To solely exercise the right to discipline its Personnel without prejudice to the
CLIENT’s right to report any untoward act committed by the Personnel of the
CONTRACTOR. All correspondences concerning the performance and behavior of
the Personnel shall be directed to the CONTRACTOR for appropriate action.

(B) To ensure, at all times, that all its Personnel comply with and abide by the policies,
procedures, rules and regulations and standard practices of the CLIENT.

(C) To recall and change any undesirable or erring Personnel upon the recommendation
of the PRINCIPAL.

CONTROL AND SUPERVISION

(A) To exercise control and supervision over the conduct, activities and affairs of all of its
Personnel, whether such Personnel perform services within or outside CLIENT’s
premises. The CONTRACTOR shall retain the right to control the manner and the
means of performing the contracted services under this Agreement, with the CLIENT
having the control only as to the results to be accomplished. For this purpose, it shall
assign one (1) Supervisor/Coordinator to oversee the work of the assigned Personnel
and to properly apprise them of their duties and responsibilities.

(B) In the absence of the CONTRACTOR’s Supervisor/Coordinator and there are

employees who need to leave the Company due to emergency cases, any
representative from the CONTRACTOR’S HR will be authorized to sign the authority
to leave form during day/night shift.

(C) In case of deficient or insufficient results attributable to the performance of the

CONTRACTOR’s employees, the CLIENT may request the CONTRACTOR to recall
the subject Personnel, but it may not directly impose disciplinary sanctions to the
concerned employee.
 4. The CONTRACTOR shall be free to use any means and methods not contrary to law
and the provisions of this Agreement. The CONTRACTOR or any of its employees
shall not be subject to the control and supervision of the CLIENT in so far as the means
and methods to be employed to perform the contracted services. It is understood that
the CLIENT is interested only in the results of the CONTRACTOR’s work under this
Agreement.

5. The CONTRACTOR shall answer for and indemnify the CLIENT for the cost of any
physical damage to or any physical loss of the CLIENT’S properties, or to those for
which the CONTRACTOR is responsible, consequential losses expected, which the
CLIENT may sustain thru the fault and /or negligence of the CONTRACTOR’s
personnel, the CONTRACTOR having the option of their paying for the cost of
damages or loss in cash, or replacing, repairing or reinstating the item lost or
damaged. In this connection, the persons who the CONTRACTOR may assign to
perform the services called for shall submit themselves to bodily search by the security
guards of the CLIENT as a precaution against property losses and it shall be the
responsibility of the client to ensure compliance with the strict and diligent observance
of such precautionary measure.

6. Any damage or loss incurred by the CLIENT as described above must be reported in
writing to the CONTRACTOR within forty-eight (48) hours of the occurrence or
discover of the same so that the CONTRACTOR is provided with a reasonable period
of time within which to investigate the damage or loss.

7. Conversely , the CLIENT shall answer for and indemnify the CONTRACTOR for the
cost of any physical damage to or physical loss of the CONTRACTOR’s tools,
equipment and/or supplies delivered to and assigned for use and consumption at the
CLIENT’s premises which the CONTRACTOR may sustain thru the default and
negligence of the CLIENT’s personnel, employees, agents /and or representatives
or as occasioned by burglary ,fire .lightning, and/ or falling objects .As a precaution ,
the client shall provide CONTRACTOR with the free use of a suitable space with lock
and key at the premises to be serviced for the storage and safekeeping of the property
of the CONTRACTOR . The CLIENT agrees to carry sufficient premises liability
insurance covering personal injuries to the third parties reasonably expected to be
within the CLIENT’s premises for such injuries as may be occasioned through no fault
or negligence of the CONTRACTOR.

8. The CONTRACTOR shall not be answerable and/or held liable for any damage or loss
incurred by the CLIENT or any of its officers and staff who have extended personal
loans and/or entrusted cash or checks to the CONTRACTOR’s personnel. Deductions
from the CONTRACTOR’s billing are not allowed.

C. CAPACITY TO CARRY OUT THE CONTRACT

9. The CONTRACTOR hereby warrants that it has a Net Financial Contracting Capacity
of Three Million Pesos (3,000,000.00) which is sufficient to perform the services
under this contract pursuant to section 9 (b) (iv) of DOLE DO No. 18-A.

D. PAYMENT

10. In consideration of the services to be performed by the CONTRACTOR under this

Agreement the CLIENT shall pay unto the CONTRACTOR based on the rates
provided for in Annex “A”. The CLIENT agrees to pay the agreed service fees to the
CONTRACTOR within (_) days respectively, after presentation by the latter of the
service bill and proof of payment of its employee’s wages as shown below;
 11. The CLIENT hereby understands and acknowledges that the monthly consideration
above –stated and payable by the CLIENT to the CONTRACTOR has been arrived
at on the basis of the CONTRACTOR’s labor cost for rendering the services called for
a plus a mark-up of TEN PERCENT ( 10%) PLUS TWELVE PERCENT (12%) VAT
inclusive as shown in detail in the Cost/Contract Rate schedule attached hereto as
ANNEX ”A” and forming part of this Agreement. Supplies and Equipment Cost are
also subjected to Ten Percent (10%) Administrative Fee and Twelve Percent (12%)
Vat. Thus ,the CLIENT hereby agrees that should the CONTRACTOR’s Cost for
rendering the services called for increase at any time during the term of this Agreement
as may be occasioned by, not limited to , any lawful imposition be assessed against
ANNEX “A” then the contract are provided by hereunder shall be escalated upwards,
any such escalation to observe the cost-plus formula in the attached annexes, any
such escalation to take effect on the same date when the CONTRACTOR’s cost for
rendering the services increases.

E. SURETY BOND

12. The CONTRACTOR shall furnish the CLIENT with a good and sufficient bond in the
amount of THREE HUNDRED FIFTY THOUSAND FIFTY PESOS (P 350,000.00) to
ensure the payment of the wages and other lawful benefits due to the employees
assigned to perform the contracted services

F. TERM OF THE SERVICE AGREEEMENT

13. This agreement should take effect on _________, 2018 up to __________, ___,
renewable upon the mutual consent of the parties by serving written notice within (30)
days before contract termination.

14. The CLIENT is aware that the employees of the CONTRACTOR can only render
services in their worksite as long as this agreement subsists. Non-renewal of this
Agreement shall automatically result in the removal of the employees 0f the
CONTRACTOR from the CLIENT’s premises.

15. Both parties to this agreement are aware that the assigned Personnel can only render
services at the CLIENT’s worksite for as long as the CONTRACTOR’s Certificates of
Registration both with its principal and regional places of operation are valid.

G. MISCELLANOEUS
16. It is understood that failure by the either party to exercise any of the rights granted to
it under this Agreement shall not be construed as a waiver of abandonment of such
rights.

IN WITNESS WHEREOF, the parties herein have hereunto set hand on this day of
____________, 2017 at __________________________, Philippines.

Signed and in behalf of:

__________________________ __________________________

______________________ __________________________
President President
CLIENT CONTRACTOR
 SIGNED IN THE PRESENCE OF:

_______________________ __________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

__________________________ ) S.S.

BEFORE ME, a Notary Public for and in the above place and Jurisdiction personally appeared:
NAME CTC NO DATE/PLACE
1.
2.
3.

Known to me and to me known to be known the same person who executed the foregoing
instrument and have acknowledge to me that the same is their true and voluntary act and deed
and that of the corporations/CLIENT they present.
This instruments refers to an Agreement consisting of seven (7) pages including this page
whereon this acknowledgement is written & signed by the parties and their instrumental witnesses
on each every page hereof.

WITNESS MY HAND AND SEAL on the date and place first above written.

Doc. No. : ______________ NOTARY PUBLIC

Page No. : ______________
Book No. : ______________
Series of : ______________