NINETEENTH CONGRESS ) AEP RESEGS
OF THE REPUBLIC OF THE PHILIPPINES) oS %
First Regular Session ) Y RECEIVED

HOUSE OF REPRESENTATIVES

House Bill No,_ 593

| Introduced by Representative Christian Tell A. Yap

Driven by digital technology and high internet penetration, more Filipinos are choosing
freelance jobs. An estimated 1.5 million Filipinos are engaged in freelance ICT-enabled and internet-
based employment. According to the 2018 Global Freelancer Insights Report by US-based company
Paypal, Philippines has one of the highest freelancers per capita among the 22 countries they surveyed,
at around 2% of the population - an estimated 1.5 million freelancers, 65% of which were women, and

72% were aged 24 to 39 years old.

In 2019, Forbes listed the Philippines in 6" place, for the fastest growing market for freelancers,
recording a 35% income growth from the previous year.

Freelance work from overseas and flexible working time are among the advantages enjoyed by
freelancers in the Philippines, especially at the present where the COVID-19 pandemic has changed
the lives of millions of people. As reported by a company of professionals and freelancers called
Payoneer, the freelance economy is continuously showing signs of recovery after the pandemic,

According to the latest study of the Philippine Statistics Authority for December 2021, 3.27
million Filipinos are jobless amid the COVID-19 pandemic.

In the wake of this pandemic, it is incumbent upon government to provide alternative
employment opportunities to all citizens. The freelancer workers protection act will not only protect
the current freelance service workers but will certainly entice the recently unemployed to explore such
opportunities due to the fact that freelancers will be protected from unlawful practices through the
passage of this measure.

This legislation seeks to provide protection to freelancers by setting the standard requirements
in terms of written contracts and payment of salaries between the employer and the freelancer.



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|
NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESE! IVES
House Bill No. 393)

Introduce by Representative Christian Tell A. Yap

AN ACT
PROVIDING PROTECTION TO FREELANCERS, PROVIDING PENALTIES
THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Represematives of the Philippines In Congress
assembled:

SECTION L. Short Title. - This Act shall be known as the "Freelance Workers Protection
Act."

SEC. 2. Declaration of Policy. - It is the policy of the State to promote gainful
employment and decent work, protect all workers from abusive and inhumane conditions of work,
and assure their right to just and humane conditions of work. Towards this end, the State shall

establish mechanisms to ensure that freelancers are protected from late or non-payment of fees.

SEC. 3. Definition of Terms. - As used in this Act, the following terms shall mean:

(a) Freelance worker refers to any natural person or a One Person Corporation registered with
the Securities and Exchange Commission (SEC), or registered as a sole proprietorship with the
Department of Trade and Industry (DTI), or registered as self-employed with the Bureau of
Internal Revenue (BIR), that is hired or retained as an independent contractor by a hiring party to

provide services in exchange for compensation

(b) Local
worker to provide any service, particularly through a local agent, hiring website, firm or

iring party refers to any Philippine-based person or entity who retains a freelance
corporation.

© oe hiring Party refers to any person or entity not currently registered, domiciled
or based in the Philippines who retains a freelance worker through a hiring website, portal or

agent,


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SEC. 4. Required Contract. - The hiring party and the freelance worker shall enter into
a written contract governing the terms of their engagement prior to the commencement of their
engagement. ‘The contract shall be in plain language and in a language understood by both parties.
Each party tthe contract shall retain a copy thereof

The ten contract shall include at a minimum the following:

(a) Itemization of all services to be provided by the freelance worker and the rate and method
of compensation;

(b) The date on which the hiring party must pay the compensation or the mechanism by
which such due date will be determined;

(©) The name and registered address of the local hiring party;
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(d) In the case of non-local hiring parties, the name and address of the local agent or

representative of the duly-designated hiring firm, website or any duly acknowledged

representative based in the Philippines; and

(©) Any other terms and conditions that govern the performance of the mutual obligations
of the parties that are not contrary to good morals, public order and public policy.

SEC. 5, Unlawful Payment Practices. - Except as otherwise provided by law, all
compensation earned by the freelance worker shall be paid or provided no later than thirty (30) days
after the completion of the freelance worker's services under the contract or the date such payment

is due under the express terms of the contract, whichever comes first.

Once a freelance worker has commenced performance under the contract, no hiring party may
require as a condition of payment that a freelance worker accept less than the specified contract
price; Provided, That nothing herein precludes the parties from arriving at a settlement in good faith
of a dispute regarding the performance under the contract or from agreeing to a modification of the
contract in accordance with other applicable laws.

SEC. 6. Civil Penalties. - Any person found to have violated this Act or any rule or
regulation promulgated in relation to this Act is liable for a civil penalty of not more than Two
Hundred Fifty Thousand Pesos (P250,000.00)

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SEC. 7,

Criminal Penalty. - Any person who knowingly and willfully violates the

provisions of Section 5 of this Act shall be guilty of a misdemeanor punishable by a fine of not

more than Twe

snty Five Thousand Pesos (P25,000.00), or by imprisonment of not more than three

(3) months, or both, at the discretion of the court

SEC. 8.

Waiver. - Except as otherwise provided by law, any provision of any contract or

agreement purporting to waive rights under this Act is void as against public policy.

SEC. 9.
entered into on]

Prospective Application. - This Act shall apply only to contracts or agreements
or after the effectivity of this Act.

SEC. 10. Separability Clause. - If any part of this Act shall be held unconstitutional or

invalid, other parts not otherwise affected thereby shall remain in force and effect.

SEC.1

. Repealing Clause. - All laws, decrees, resolutions, orders, or ordinances or parts

thereof inconsistent with this Act are hereby repealed, amended or modified accordingly

SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in one newspaper of general circulation.

Approved,