Consultancy Services We Offer

- diagnose business, accounting and management problems
- draft blueprint to ensure family wealth survives founder's mortality
- handle property transfers and suggest the most tax-efficient ways
- set up corporations, foundations, and trusts to take care of properties
- assist in structuring scholarship and endowment
- come up with marital property settlement agreement
- plan estate and draft will
- settle inheritance partition


UP Return Service Agreement

Someone asked me, "I have a friend who...

has a son graduating next school year who wants to enter UP Manila. He was informed that if he gets accepted at UP, he needs to execute a return service agreement to render 2 years of service in the Philippines even if he paid his own tuition. Is this contract not tantamount to involuntary servitude?

My answer is this kind of contract is valid legal and enforceable agreement. The rationale for this is the tuition of the UP educational system is heavily subsidized by the state. And by requiring the service, it is a way for the students to pay back the state for this subsidy.

The implementing rules require students enrolled in the following course to sign an agreement to render 2 years of service in the Philippines within 5 years from their graduation:

Doctor of Medicine
Doctor of Dental Medicine
Nursing and Midwifery
Pharmacy and Industrial Pharmacy
Physical Therapy and Educational Therapy
Speech Pathology
Public Health

There is no involuntary servitude because the students have the option not to enroll in UP. And even if he enrolls but decides not to do the service, he can still simply settle the liquidated damage amount. UP cannot force them to do the service. Non compliance with the service agreement means that the student must pay double the cost of his education at prevailing rate from time of entry, plus interest, less total tuition paid. Even at double the tuition fee, the rate at UP will still be comparable to those of other universities offering these course.

Chiang Kai Shek College has a similar program for its BS Education in Chinese Language. Those who availed of the scholarship from Dr. Pao Shih Tien or those enrolled in the 2+2 exchange program with Xiamen, are required to render service teaching chinese language for at least 2 years after graduation. Again, the trade off is scholarship for service. It is a fair exchange.

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