SERVICE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Agreement is entered into this ______ day of ____________, 2019, by
and between:
NAME OF SCHOOL with office address at ________________
Mandaue City, Cebu, Philippines, herein represented by NAME OF
PRINCIPAL, School Head, herein referred to as the “FIRST PARTY”
and
NAME OF SERVICE CONTRACTOR, herein represented by NAME
OF OWNER OR AUTHORIZED REPRESENTATIVE, Position, with
business address at _____________________________, herein referred to
as the “SECOND PARTY”;
WITNESSETH: That
WHEREAS, the FIRST PARTY is in need of the services of a bona
fide service provider/contractor which specializes in janitorial services;
WHEREAS, the SECOND PARTY represents itself as a bona fide
SECOND PARTY under Department of Labor and Employment Department
Order No. 174 and is legally permitted under the laws of the Philippines to
do business, and duly licensed under a valid and existing Certificate of
Registration No. ________________________ issued by the Department of
Labor and Employment to enter into a contracting/subcontracting
arrangement;
WHEREAS, the SECOND PARTY further represents itself as
financially and technically capable, and with substantial capital and/or
investment in the form of tools, equipment, machinery and office premises,
to provide, perform or complete for the FIRST PARTY the aforementioned
specific and/or specialized job, work or service;
WHEREAS, the SECOND PARTY warrants and represents that it
carries on a business distinct and independent from the business of the
FIRST PARTY, and undertakes to perform or complete the specific and/or
specialized job, work or service ON ITS OWN ACCOUNT and under its own
responsibility according to its own manner and method, and FREE FROM
ANY CONTROL AND DIRECTION of the FIRST PARTY in all matters
connected with the performance of the work except as to the results thereof.
WHEREAS, the SERVICE PROVIDER/ CONTRACTOR has offered
its service and expertise to perform or complete the aforementioned specific
and/or specialized job, work or service for the FIRST PARTY and the latter
has accepted the offer of the former;
NOW THEREFORE, for and in consideration of the foregoing premises, the
parties hereby enter, as they enter into Service Agreement, subject to the following terms
and conditions:
1.0 DESCRIPTION OF THE JOB, WORK OR SERVICE
0000 SA 2019 Page 1 of 11 F-00-00 Rev.01 26/02/19G
1.A. SCOPE AND NATURE
The SECOND PARTY shall provide and perform or complete for the FIRST PARTY
the following specific and/or specialized kind or type of service/s:
Janitorial Services
Responsible for cleaning building premises, removing debris, and keeping
areas neat and tidy. Vacuums, sweeps, mops and buffs floors, shampoos
carpets, empties trash receptacles, and replace lining of trash cans. Use
cleaning solutions to remove stains and clean surfaces. Clean windows,
glass partitions, and mirrors, using soapy water or other cleaners, sponges,
and squeegees. Dust furniture and scrub surfaces clean. Mow lawns, trim
shrubbery, plant flowers, and apply pesticides. Move heavy equipment and
furniture. Identify and report possible repairs. Spray insecticides and
fumigants to prevent insect and rodent infestation. Provide utility work when
necessary.
1.B. EXPECTED OR DESIRED RESULTS
The SECOND PARTY shall provide prompt, efficient, trustworthy and expert and
reliable services, which are the results expected or desired by the FIRST PARTY under
this Agreement.
In case the SECOND PARTY fails or refuses to meet the results expected or
desired by the FIRST PARTY, the FIRST PARTY may, at its option, elect to have the
deficiencies removed or have another execute the same, all at the cost of the SECOND
PARTY.
2.0. PLACE OF WORK; COMPLIANCE WITH LABOR STANDARDS AND
OCCUPATIONAL HEALTH AND SAFETY, AND ADMINISTRATIVE FEE
2.A. PLACE OF WORK
The SECOND PARTY shall provide and perform or complete the specific and/or
specialized job, work or services at ________________________________(location of
the school) including such other places as may be designated by the SECOND PARTY,
taking into account the immediate need of the FIRST PARTY.
2.B. COMPLIANCE WITH LABOR STANDARDS AND
OCCUPATIONAL HEALTH AND SAFETY
The SECOND PARTY, shall pay its workers their wages including but not limited to
the mandated minimum wage, overtime pay, night shift differential pay, rest day pay,
premium pay, holiday pay, among others, in accordance with the provisions of the Labor
Code, and other employment benefits under other labor laws, and labor-related special
laws including, but not limited to, social or welfare legislations, assuming all obligations
and responsibilities appurtenant thereto, including assumption of liabilities. For this
purpose, the SECOND PARTY shall submit on a monthly basis certified true copies of the
receipt of the remittances for mandatory benefits and hereby authorizes the FIRST PARTY
to inspect, examine, and copy and reproduce, the employment records of the SECOND
PARTY’s workers which under existing laws, must be kept and maintained at the main
office or branch where the SECOND PARTY’s workers are regularly assigned to work.
The SECOND PARTY shall further GUARANTEE its workers entitlement to all
labor and occupational safety and health standards, by strict adherence and
implementation of the aforementioned laws and standards.
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The SECOND PARTY also allows free exercise of the right to self-organization,
PROMOTES SECURITY OF TENURE and provides social and welfare benefits.
3.0. CAPACITY TO CARRY OUT THE CONTRACT
3.A. SUBSTANTIAL CAPITAL OR INVESTMENT
The SECOND PARTY warrants that it has SUBSTANTIAL CAPITAL or investment.
By this is meant, the SECOND PARTY has adequate resources that are actually and
directly used in the performance of its business and operations. It may refer to capital
stocks and subscribed capitalization in the case of corporations, tools, equipment,
implements, machinery, uniforms, protective gear, or safety devices actually used in the
performance of the job, work or service contracted out. It likewise includes operating costs,
administrative costs such as training and overhead costs, and such expenses as are
necessary to enable the SECOND PARTY to exercise control, supervision or direction
over its employees in all aspects of performing or completing the job, work or service
contracted out.
3.B. TECHNICAL CAPACITY
The SECOND PARTY warrants that it has the expertise and technical know-how,
ability, experience and capacity to carry out promptly and efficiently the job, work or
services stipulated in this Agreement.
4.0. PAYMENT
4.A. AGREED AMOUNT OF CONSIDERATION
The FIRST PARTY shall pay the SECOND PARTY all-inclusive total contract price
of PESOS: _________________________________________ per personnel per month,
inclusive of the standard administrative fee, as consideration for the performance or
completion of the job, work or services stipulated in this Agreement, abiding faithfully with
the following minimum rules and guidelines:
i) Billing/s shall not be more than twice in a given month;
ii) Upon receipt of such billing/s, the FIRST PARTY shall, within five (5)
working days from the receipt thereof, confirm and verify the
correctness and veracity of such billing vis-à-vis the services actually
rendered;
iii) Payment shall be made not later than fifteen (15) working days,
including the 5-day period verification as stated above) from receipt of
such billing/s; and
iv) Billing/s shall be in writing, duly signed and authenticated by the
owner or authorized representative.
The submitted Cost Contract Breakdown is made integral part of this Agreement.
4.B. REMITTANCE FOR SSS/ECC/PHILHEALTH/PAG-IBIG
CONTRIBUTIONS
The SECOND PARTY, being the EMPLOYER, shall directly remit to the
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appropriate government agencies the prescribed monthly contributions both for its share,
and that of its workers without any delay, pursuant to and in accordance with the
applicable social and welfare laws, rules and regulations.
5.0. TERM OF THE SERVICE AGREEMENT
5.A. TERM
This Service Agreement shall be valid for a period of __________________
beginning on ________________________ and ending on DECEMBER 31, 2019, unless
sooner terminated, extended, or renewed by mutual agreement of the parties.
5.B. PRE-TERMINATION AND TERMINATION
A. WITHOUT CAUSE. Either party may terminate this Agreement without cause
(pre-termination of the Service Agreement not due to authorized causes under the Labor
Code), before the end of the term or expiration of the term agreed upon, by giving the
other party a written notice of termination (non-renewal), at least thirty (30) days before the
intended expiration of the contract term.
B. WITH CAUSE. Either party may also terminate this Agreement for a valid cause
(e.g. breach of contract) without need of court action, effective upon notice to the other
party of such termination with a right to claim damages and indemnity, if any, against the
party at fault.
Regardless of the cause of the termination, the SECOND PARTY shall accord the
concerned employees their unpaid wages, other unpaid benefits, including legal
mandatory contributions, e.g., SSS, PhilHealth, Pag-IBIG, among others, whenever
applicable.
5.C. EFFECT OF TERMINATION UPON EFFECTIVITY
The SECOND PARTY shall immediately stop, cease and desist from further
providing and performing, or completing its services to the FIRST PARTY, and the
employees of the SECOND PARTY assigned to the FIRST PARTY shall peacefully vacate
the office, building and premises of the FIRST PARTY without any delay.
6.0. OTHER PROVISIONS
6.A. NO EMPLOYER-EMPLOYEE RELATIONS
This Agreement shall not be deemed in any way to constitute a contract of
employment, or in any way establish an employer-employee relationship between the
FIRST PARTY and the SECOND PARTY. Moreover, this Agreement shall not be deemed
in any way to constitute a contract of employment, or in any way establish an employer-
employee relationship between the FIRST PARTY and the EMPLOYEES OF THE
SECOND PARTY, but merely as a contract specifying the terms and conditions under
which the latter shall provide and render services to the former.
6.B. TRILATERAL RELATIONSHIP
Under this SERVICE AGREEMENT, the parties warrant that there exists a
trilateral relationship under which there is a:
i. CONTRACT for a specific job, work or service between the FIRST PARTY
and the SECOND PARTY, wherein the FIRST PARTY decides to farm out a
job or service to a contractor or subcontractor, and where the contractor or
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subcontractor which has the capacity to independently undertake the
performance of the job, work or service; and
ii. CONTRACT OF EMPLOYMENT between the SECOND PARTY and ITS
EMPLOYEES, assigned to accomplish the aforementioned work.
6.C. NO AGENCY RELATIONSHIP
The SECOND PARTY is not an agent of the FIRST PARTY. It has no authority to
hire any person for or in behalf of the latter.
6.D. FREE AND HARMLESS
The SECOND PARTY shall hold the FIRST PARTY free and harmless from any
claim or demand, or any obligation or liability it may incur in, carrying out this Agreement,
provided it is without fault or malice on the part of the FIRST PARTY.
The SECOND PARTY shall further hold the FIRST PARTY free and harmless from
any claim or demand which may be filed, including any judgment or award obtained, by its
workers against the FIRST PARTY by reason of their employment, or assignment under
this Agreement involving but not limited to violation of the Labor Code, and other labor
laws, decree, order, rules and regulations, which are now in effect or which may hereafter
be enacted, the intent and purpose being to absolve, free and discharge the FIRST
PARTY absolutely and unconditionally from any and all such claim, or demand.
In case a labor inspection is made at the premises of the FIRST PARTY where
violations of labor laws, standards and social legislations are found on account of this
agreement, the SECOND PARTY shall defend the FIRST PARTY in such complaint or
proceeding all at its own expense, further indemnifying the FIRST PARTY for any
damages including such expenses it may incur therein such as lawyer's fees and litigation
expenses, the intent and purpose being to absolve, free and discharge the FIRST PARTY
absolutely and unconditionally from any and all liability, claim, or demand.
Finally, any and all expenses incurred by the FIRST PARTY in prosecuting and/or
enforcing a claim against the SECOND PARTY including litigation and attorney’s fees, or
defending its right or interest under this Agreement from the latter or any third person, shall
be for the sole and exclusive account of the SECOND PARTY. The intent and purpose
being to absolve, free and discharge the FIRST PARTY absolutely and unconditionally
from incurring such expenses.
6.E. INDEMNIFICATION FOR LOSS OR DAMAGE
The SECOND PARTY shall indemnify the FIRST PARTY in full for any and all loss,
damage or injury to the latter's property if upon and after proper investigation by the FIRST
PARTY, the loss, damage or injury was due to the willful or negligent act or omission of the
SECOND PARTY’S officers, employees and workers. These acts shall include but not
limited to theft, robbery, arson, damage to property and other felonious and unlawful acts.
The liability shall likewise include indemnification for consequential losses and damages.
6.F. LICENSES/PERMITS/FEES AND COMPLIANCE WITH OTHER LAWS
AND GOVERNMENT RULES AND REGULATIONS
The SECOND PARTY shall secure all licenses, or permits, and comply with all
government requirements necessary to lawfully operate its business and provide and
perform or complete the job work or services stipulated herein including payment of
applicable taxes levied upon by the local and national government.
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The SECOND PARTY warrants that no law has been violated and no law will be
violated in the performance or completion of the services covered by this Agreement.
6.G. NON-DISCLOSURE
Any data and information learned or acquired by the SECOND PARTY in
connection with or relative to the business operations or activities of the FIRST PARTY, its
trademarks, brand names, trade or business secrets, or processes, accounting and
financial records, and security details are considered the exclusive proprietary information
of the FIRST PARTY and shall remain confidential perpetually, and not to be disclosed in
any manner to any person not a party to this AGREEMENT.
6.H. ASSIGNMENT OF RIGHT AND SUB-CONTRACTING
The SECOND PARTY is prohibited from assigning or transferring this Agreement,
and any interest or rights it may have to another person without the prior written approval
of the FIRST PARTY.
The SECOND PARTY is likewise expressly prohibited and disallowed from sub-
contracting the job, work or service covered by this Agreement without the prior written
approval of the FIRST PARTY.
6.I. VENUE OF ACTION
Any action, suit or proceeding to enforce and/or defend this Agreement shall be
filed exclusively in the proper court of the City of Mandaue only, to the exclusion of any
other applicable venue.
6.J. SEPARABILITY CLAUSE
If any portion or provision of this Agreement is legally contested in court and
eventually declared void, the uncontested or remaining portion shall not be affected,
and therefore, shall remain in full force and effect
IN WITNESS WHEREOF, the parties have hereunto set their hands this _____ day
of __________, 2019 at Cebu City.
NAME OF SCHOOL NAME OF SERVICE PROVIDER
(FIRST PARTY) (SECOND PARTY)
__________________________________
________________________________
Proprietor/Authorized Representative School Head
Signed in the Presence of:
_______________________________
__________________________________
Supplier’s Representative Public Schools District Supervisor
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ACKNOWLEDGMENT
Republic of the Philippines)
City of ___________________) S.S.
BEFORE ME, a Notary Public for and in the City and Province of _________, this
_____ day of _______________, 2019 personally appeared the following with their
respective proof of identification, to wit:
Name Gov. I.D I.D # Date/Place Issued
_________________________ ________________ ______________________
_________________________ ________________ ______________________
known to me and to me known to be the same persons who executed the foregoing
instrument and they acknowledged to me that the same is their own free and voluntary
acts and deeds and that of the corporation/entity which they respectively represent.
WITNESS MY HAND AND NOTARIAL SEAL at the place and on the place above
stipulated.
NOTARY PUBLIC
Doc. No. ____;
Page No. ____;
Book No. ____;
Series of 2019.
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