TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
Senate Bill No.
)
)
)
42
25 JUL-2 P5:28
RKti
Introduced by Senator JOEL VILLANUEVA
AN ACT
PROVIDING PROTECTION TO FREELANCERS AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is one of the world's fastest-growing markets for freelance 
work. According to the PayPal Global Freelancer Insights Report, an estimated 
1.5 million Filipinos are actively engaged in the gig economy, positioning the 
country among the top ranks in freelance participation.1 This trend is attributed 
to the increasing attractiveness of freelancing arrangements, which provide 
benefits such as flexibility, autonomy, remote work opportunities, and 
enhanced control over work-life balance.
The COVID-19 pandemic accelerated this shift. As businesses closed 
and traditional employment opportunities dwindled, many displaced 
workers turned to freelance platforms and digital marketplaces to earn a 
livelihood. The post-pandemic landscape continues to see robust growth in 
freelance sectors such as digital marketing, software development, graphic 
design, virtual assistance, content creation, education, and logistics 
services. In fact, prior to the pandemic, the Philippines recorded a 208% 
year-on-year growth in its freelance market—ranking first globally in terms 
of expansion, according to Payoneer's Global Gig Economy Index (2019).2 
Pre-pandemic, Forbes already forecasted that by 2027, the majority of the 
world's workforce will be freelancers.
1 
Rappler. Freelancing taking root in the Philippines - study. Published on 1 April 2018. Available at 
https://rappler.com/business/freelancer-market-growing-philippines-paypal (Accessed on 29 June 
2025).
2 
Inquirer.net. Payoneer: The world's go-to partner for digital commerce everywhere. Published on 20 
October 2021. Available at https://business.inquirer.net/332825/payoneer-the-worlds-go-to-partner- 
for-digital-commerce-everywhere (Accessed on 29 June 2025).


Freelancing is also emerging as a vital component of the country's 
transition into the Fourth Industrial Revolution (4IR). As industries 
increasingly adopt digital technologies and automation, freelancing provides 
an agile and scalable workforce solution. It supports not only domestic 
innovation but also global competitiveness, with Filipino freelancers 
contributing services to clients across the world.
Despite these promising developments, freelancers remain 
vulnerable to abuse, exploitation, and economic insecurity due to the 
absence of legal protections typically afforded to traditional employees. 
Because freelancers operate outside of the formal employer-employee 
relationship, they are often denied basic rights such as guaranteed 
compensation, protection from arbitrary contract changes, access to 
benefits, and avenues for redress in cases of contract violations or non­
payment.
This bill, therefore, seeks to establish a comprehensive legal 
framework that recognizes the unique nature of freelance work while 
ensuring protection for this growing sector of the workforce. Among its key 
features are: (1) Requiring written contracts that detail scope of work, 
compensation, timelines, and terms; (2) Prohibiting unfair practices such as 
unilateral contract changes or fee reductions; (3) Guaranteeing basic rights, 
including just compensation and timely payment, safe and healthy working 
conditions, freedom of association and collective bargaining, and access to 
skills training and digital upskilling; and (4) Clearly defining the 
responsibilities of relevant government agencies to support and enforce 
these protections.
This proposed measure is aligned with international labor standards 
set by the International Labour Organization (ILO), which underscores the 
need to protect all forms of work, including atypical and platform-based 
employment. Countries such as the United States of America, United 
Kingdom, and those within the European Union have already begun 
enacting similar protections in response to the global rise of the freelance 
and gig economy.
In light of these considerations, the Freelancers Protection Act is not 
merely a response to present challenges, but a forward-looking initiative to 
future-proof the Philippine labor market. It promotes a more inclusive, 
resilient, and equitable workforce by acknowledging the legitimate role of 
freelancers in nation-building and economic development.
The immediate passage of this bill is therefore earnes^ sought.
JOEraLLANUEVAQf^


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE 
Senate Bill No.
25 JUL-2 P5:28
Rix:
Introduced by Senator JOEL VILLANUEVA
AN ACT
PROVIDING PROTECTION TO FREELANCERS AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Freelancers
2 
Protection Act."
3 
SEC. 2. Declaration of Policy. - It is the policy of the State to promote
4 
gainful employment and decent work for all workers. Towards this end, the State
5 
shall provide a regulatory framework that guarantees full protection to all workers
6 
in new forms of work arrangements, such as freelance work, whether in-person or
7 
through online platforms or gig economy, which has grown exponentially with
8 
technological development, weakening labor rights and changing concepts of work
9 
and employer-employee relationship.
10 
SEC. 3. Coverage. - This Act shall cover all freelancers, regardless of the
11 
profession, talent, skills, task, work or service required or to be rendered.
12 
SEC. 4. Definition of Terms. - For purposes of this Act, the following
13 
terms are hereby defined as follows:
14 
a) C/Ze/if-refers to any foreign or Philippine-based person, company or entity,
15 
or platform provider who engages a freelancer to render specific task, work
16 
or service in-person or online;


1 
b) Crowdwork refers to online work through platforms that connect vast
2 
numbers of clients, organizations, and businesses, often across borders. It is
3 
performed online by an infinite number of workers for clients spread over
4 
large geographic distance;
5 
c) 
Freelance worker or freelancer refers to any natural person who offers
6 
or renders a task, work or service through his or her freely chosen means or
7 
methods, free from any forms of economic dependence, control or
8 
supervision by the client, regardless of whether he or she is paid by results,
9 
piece, task, hour, day, job or by the nature of the services required;
10 
d) 
Freelance work refers to work that is infrequent, unpredictable and short
11 
term, and rendered in-person, online, or through any online web platforms,
12 
such as crowdwork, work on-demand or any digital lifestyle applications;
13 
e) 
Platform provider refers to any foreign or Philippine-based online web
14 
platform provider that connects workers with the consumer of work and
15 
facilitate the exchange of goods and services for money such as crowdwork,
16 
work on-demand or any digital lifestyle applications, that provides facilities,
17 
accounts, and training for one or several freelancers in the Philippines;
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f) 
Work on-demand refers to the platform-facilitated yet place-based and
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geographically limited work; and
20 
g) 
Written contract refers to a document, whether electronic file or printed
21 
copy, reflecting the mutual consent of the parties to be bound by the terms
22 
and conditions of their freelance work engagement and the consideration for
23 
the services rendered by the freelancer.
24 
SEC. 5. Contractual Relations. - The relationship between the client and
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the freelancer, absent proof of existence of employer-employee relationship, shall
26 
be governed primarily by applicable civil and commercial laws. In no case
27 
however, shall the terms and conditions thereof derogate the rights of workers
28 
guaranteed by the Philippine Constitution or be lower than the minimum standards
29 
provided by the Labor Code of the Philippines, as amended, or by industry
30 
standards and international labor standards.
31 
SEC. 6. Rights of Freelancers. - The State shall accord to freelancers all
32 
the rights of workers guaranteed under the 1987 Philippine Constitution, applicable


1 
provisions of the Labor Code of the Philippines, as amended, and relevant
2 
international human rights instruments and international labor standards. For this
3 
purpose, the State shall ensure the formulation by concerned agencies of policies
4 
and programs for the free exercise of the following:
5 
a) 
Right to a written contract or agreement;
6 
b) 
Right to just compensation and equal remuneration for work of equal value
7 
without manipulation or distinction of any kind;
8 
c) 
Right to safe and healthy working conditions;
9 
d) 
Right to self-organization and to collectively negotiate with the government,
10 
the client, and other entities for the promotion of their welfare and in the
11 
advancement of their rights and interests;
12 
e) Right to be free from any form of discrimination, violence, sexual harassment,
13 
and abuse;
14 
f) Right to representation and participation in policy and decision-making
15 
processes and social dialogue;
16 
g) Right to access their own data, information and resources for the promotion
17 
and protection of their rights and welfare;
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h) Right to affordable and adequate financial services, including, among others,
19 
collateral-free and gender-balanced credit at low interest;
20 
i) 
Right to education and skills training;
21 
j) 
Right to social protection and social welfare benefits; and
22 
k) Right to speedy redress of grievances, including alternative dispute resolution
23 
processes.
24 
SEC. 7. Standards for Freelance Work. - The Department of Labor and
25 
Employment (DOLE) shall ensure:
26 
a) Compliance with the written contract between the freelancer and the client,
27 
which shall be in a language understood by both parties. Each party to the
28 
contract shall retain a copy thereof, and shall include, at the minimum, the
29 
following:
30 
(1) Itemization of all work and/or services to be provided by the freelancer
31 
and the terms and conditions of the engagement;


1 
(2) The rate and method of compensation, date on which the client shall
2 
pay the compensation or the mechanism by which such due date shall
3 
be determined;
4 
(3) The name and registered address of the client, and in the case of a
5 
foreign or foreign-based entity, the name and address of the local agent
6 
or representative, or any duly acknowledged representative based in
7 
the Philippines; and
8 
(4) Any other terms and conditions that govern the performance of the
9 
mutual obligations of the parties that 
are not contrary to law, morals,
10 
good customs, public order or public policy.
11 
In the absence of a written agreement, any written exchange or proof
12 
of submission and receipt of completed task, work or service subject of the
13 
freelance work engagement, whether electronic or printed, shall be sufficient
14 
basis for claim for compensation or payment against the client;
15 
b) 
Registration of freelancers or freelancers' association in the DOLE registry of
16 
freelancers and provide them with labor market interventions and assistance;
17 
Provided, That registration with the DOLE shall not be construed as a
18 
requirement to be able to engage as a freelancer;
19 
c) Free exercise of freelancers' right to self-organization and to collectively
20 
negotiate with the government, the client, and other 
entities for the
21 
promotion of their welfare and in the advancement 
of their rights and
22 
interests, and to their representation and participation in policy and decision-
23 
making processes and social dialogue;
24 
d) 
Observance of programs and policies on non-discrimination, absence of
25 
violence, sexual harassment, and abuse in freelance work environment;
26 
e) 
Entering into bilateral or multilateral agreements with countries where online
27 
web platforms are registered or located for the protection and enforcement
28 
of Philippine freelancers' rights.
29 
SEC. 8. Right to Access their Own Data and Information. - The
30 
Department of Information and Communications Technology (DICT) shall conduct
31 
trainings for online freelancers, and in coordination with the appropriate regulatory
32 
agency, such as the National Privacy Commission (NPC) and the Department of


1 
Trade and Industry (DTI), ensure that freelancers engaged with or through
2 
platform providers or online web platforms shall have access to their own data,
3 
information and resources for the promotion and protection of their rights and
4 
welfare.
5 
SEC. 9. Right to Affordable and Adequate Financial services. - The
6 
DTI and other government financial institutions shall provide freelancers access to
7 
affordable and adequate financial services, including, among others, collateral-free
8 
and gender-balanced credit at low interest.
9 
SEC. 10. Right to Education and Skills Training. - The Technical
10 
Education and Skills Development Authority (TESDA) and other government
11 
agencies, such as the Department of Science and Technology (DOST), DTI, and
12 
DICT shall provide training and certifications for upskilling and entrepreneurial
13 
enhancement of freelancers.
14 
SEC. 11. Right to Social Protection and Social Welfare Benefits. -
15 
The Social Security System, Philippine Health Insurance Corporation (PhilHealth)
16 
and Home Development Mutual Fund (HDMF) shall ensure a simplified and online
17 
registration and remittance process for freelancers as self-employed workers and
18 
provide easy access to members' benefits such as sickness and unemployment
19 
benefits.
20 
SEC. 12. Right to Simplified Tax Registration/ Filing and Payment
21 
System. - The Bureau of Internal Revenue (BIR) shall simplify and automate the
22 
registration process and minimize the requirements for the registration of
23 
freelancers. The BIR shall also further enhance the online filing of tax returns and
24 
payment of appropriate taxes, including online submission of requirements. It
25 
shall also provide assistance to freelancers in their application, registration, and
26 
processing of documents, and other inquiries.
27 
SEC. 13. Right to Redress of Grievances, Including Alternative
28 
Dispute Resolution Processes. - The right of freelancers to seek redress for
29 
grievances and to avail of alternative dispute mechanisms in accordance with law
30 
shall be guaranteed. For this purpose, the DOLE shall conduct seminars on the
31 
legal recourses available to freelancers, and as far as practicable, encourage the
32 
parties to a freelance work agreement to avail of alternative dispute mechanisms.


1 
SEC. 14. Payment; Burden of Proof. - Except as otherwise provided
2 
under the contract entered into by the parties, the agreed compensation shall be
3 
paid in full not later than thirty (30) days after the completion of the task, work or
4 
service subject of the freelance work engagement.
5 
The burden of proving the payment of the compensation or consideration
6 
due to the freelancer as agreed under the contract shall rest on the client, upon
7 
proof of performance or completion of the job or service contracted.
8 
SEC. 15. Prohibited Acts. - The following acts shall be prohibited under
9 
this Act:
10 
a) 
Contract Aiteration. Once performance of the work or service under the
11 
contract has commenced, no freelancer shall be required to accept less than
12 
the specified or agreed contract price, as a condition for the payment of the
13 
service or work rendered: Provided, That nothing herein precludes the parties
14 
from arriving at a settlement in good faith of a dispute arising out of or in
15 
connection with the contract or from agreeing to a modification of the
16 
contract in accordance with applicable laws.
17 
b) 
Deduction. No deduction shall be made on the agreed contract price or
18 
compensation, unless the parties have agreed otherwise, or such deduction
19 
is on account of payment of applicable taxes.
20 
c) 
Waiver. Except as otherwise provided by law, any provision of any contract
21 
entered into by a freelancer and a client purporting to waive any of the rights
22 
provided under this Act shall be void as against public policy.
23 
Any person who commits any of the foregoing prohibited acts shall be meted
24 
a fine equivalent to up to three times the contract price or compensation agreed
25 
upon in the contract between the freelancer and the client.
26 
SEC. 16. Pubiic Awareness Program. - The DOLE, DTI, DICT, and other
27 
relevant agencies shall raise public awareness on the rights and welfare of
28 
freelancers. Information dissemination on the provisions of this Act, its
29 
implementing rules and regulations and capacity building on reasonable pricing of
30 
task, work or service, payment methods, entrepreneurship and career
31 
development in freelance work shall also be conducted.
32 
SEC. 17. Prospective Appiication. - This Act shall apply to contracts or


1 
agreements entered into on or after the effectivity of this Act.
2 
SEC. 18. Applicability to Freelancers in the Public Sector. - The Civii
3 
Service Commission shaii issue the appropriate ruies and reguiations appiicabie to
4 
freelancers in the public sector to ensure compiiance with the rights and priviieges
5 
granted to freeiancers under this Act, subject to appiicabie iaws, ruies and
6 
reguiations governing workers in the pubiic sector.
7 
SEC. 19. Implementing Rules and Regulations - Within sixty (60) days
8 
from the effectivity of this Act, the DOLE, DTI, DICT, DOST, TESDA, NPC, upon
9 
consultation with the BIR, SSS, PhilHealth and HDMF, and other reievant agencies
10 
and sectors, shall promulgate the implementing rules and regulations as may be
11 
necessary to carry out the provisions of this Act.
12 
SEC 20. Separability Clause. - If any part of this Act shall be held
13 
unconstitutional or invalid, other parts not otherwise affected thereby shall remain
14 
in force and effect.
15 
SEC. 21. Repealing Clause. - Aii iaws, decrees, resolutions, orders, or
16 
ordinances or parts thereof inconsistent with this Act are hereby repeaied,
17 
amended or modified accordingiy.
18 
SEC. 22. Effectivity. - This Act shaii take effect fifteen (15) days after its
19 
publication in the Official Gazette or in a newspapers of generai circuiation.
Approved,