Republic of the Philippines |
HOUSE OF REPRESENTATIVES |
Quezon City \

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8759

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Creativity and adaptability have never been short among Filipino entrepreneurs, workers,
and citizens in general. Over the period of stringent government measures to prevent the
transmission of the Covid-19 virus, many Filipino entrepreneurs transitioned partially or
fully into the digital and electronic economy in order to sustain or keep business afloat. Of
course, the availability of and access to new technologies have been instrumental in this
regard.

But the online and digital economy in the Philippines is not simply a result of the pandemic.
Co-existing with the “gig economy” — a form of engaging the short-term or contracted
services of freelancers — that has since the late 2010s flourished in the country, social
media platforms and online financial channels have become the new spaces for
transacting business and services not bound by geographic and territorial borders.

Riding on the back of the business process outsourcing (BPO) success in the Philippines,
Filipino freelancers and firms that sub-contract freelancers have significantly grown.
According to PayPal's 2018 Global Freelancer Insights Report, around two percent or
some 1.5 to 2 million Filipinos are or have engaged in one form of freelance work. In 2019,
the Philippines was ranked as the fastest growing market for freelancers and landed 6"
place in a Forbes list of top freelance markets in the world.

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Freelancing today has transformed from an “in-between” jobs engagement into truly
Sustainable source of income. In terms of earnings, a study shows that Filipino freelancers
eam on average about Php39,000, working for about 32 hours weekly". With its flexibility,
the gig economy has consequently attracted the country's millennial and youth workforce”,

In support of this emergent economy, the national government has initiated programs like
the Digital Jobs PH Technical Training project of the Department of Information and
Communications Technology (DICT) which aims to help people find work as digital
entrepreneurs and freelancers in the field of information and communications technology.

With other proposed legislation such as the Innovative Start-Up Act, the Bangko sa Baryo
Bill, the Government E-Commerce Bill, and similar legislative initiatives, the herein
Proposed National Digital Careers Act of 2020 — the House of Representatives
counterpart to Senate Bill No. 1469 filed by Senator Sonny Angara — seeks to further
empower the country’s “gig economy” by integrating it into the overall labor regulatory
framework and providing the needed institutional support. Recognizing the “emergence of
new forms of employment, such as work on digital platforms” requires also that the
government extend social protection systems appropriate to this new mode of work? which
are essential especially in times of economic downturns caused by calamities and public
‘emergencies*.

As the country moves into the New Normal which mandates, promotes, and encourages
the integration of economic and even government activities into the digital landscape,
online-based freelancing is sure to further develop. Through this Act, the government will
be able to map out strategies to promote and strengthen digital careers; institutionalize
‘employment standards for digital career workers; and enhance the competitiveness of our
digital workers through access to necessary trainings, skills development and scholarship
Programs.

Strengthening, empowering, and extending social security as well as institutional
Protections to Filipino enterprises, entrepreneurs, and professionals engaged in freelance
and/or digital services will further the government's industrialization policy by maintaining



a policy environment conducive to and supportive of innovations and creative business
strategies.

In view of the foregoing, the passage of this bill is earnestly sought.

-

Luis IND “4 \Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL no. 2°? 5759

—<—<$<
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

ee

AN ACT SUPPORTING THE GROWTH AND DEVELOPMENT OF DIGITAL CAREERS
IN THE PHILIPPINES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "National Digital Careers Act of
2020".

‘SEC. 2. Declaration of State Policy. - The State, recognizing of the impact of the Fourth
Industrial Revolution to employment and nature of jobs, shall encourage the development
Of digital careers across all sectors of society. In furtherance thereof, the State shall
ensure that Filipino workers remain competitive and possess skills and competencies at
Par with global standards in the digital economy. To this end, the State shall, promote the
killing, upskilling, and re-skilling of the Filipino workforce to support the impact of digital
transformation across all industries and shall create and adopt standards for digital
careers.

SEC. 3. Definition of Terms. - The following terms as used in this Act shall

mean:


(@)'21st century skills’ refer to skills that are required by new
jobs, such as critical thinking, problem solving, good
communication, collaboration, information and technology
literacy, flexibility and adaptability, and innovativeness and
creativity;

(b)"Advanced skills" refer to those needed by specialists in ICT
professions, such as computer programming and network
management;

(c) "Co-working agency” refers to a company that provides
facilities, accounts, and training for several independent
contractors and engages the latter to provide services to one
or several companies but ona temporary basis;

(d)"Digital career worker, freelancer, and freelance worker"
refers to a person who is self-employed and is not necessarily
committed to a particular employer long-term. Freelance
workers are sometimes represented by a company or a
temporary agency that resells freelance labor to clients; others
work independently or use professional associations or
websites to get work;

(€) "Digital content” refers to any type of content that exists in
the form of digital data that are encoded in a machine-readable
format, and can be created, viewed, distributed, modified and
stored using computers and digital technologies, e.g., the
internet. The content can be either free or paid content such
as web pages and websites, social media, data and
databases, digital audio, such as mp3s, and e-books, digital
imagery, digital video, video games, computer programs and
software;

(f) ‘Digital entrepreneurship” refers to combining traditional
entrepreneurship with new digital technologies, thus creating
digital enterprises which are characterized by a high intensity
of utilization of novel digital technologies, particularly social
media, big data analytics, mobile and cloud solutions to


improve business operations, invent new business models,
sharpen business intelligence, and engage with customers and
stakeholders;

(g) "Digital skills" referto a range of abilities, from basic to more
advanced, encompassing a combination of behaviors,
expertise, know-how, work habits, character traits, dispositions,
and critical understanding on the use of digital devices,
communication applications, and networks to access and
manage information;

(h) "Digital technology” refers to any product that can be
used to create, view, distribute, modify, store, retrieve,
transmit, and receive information electronically ina digital
form such as personal computers and devices like
desktop, laptop, netbook, tablet computer, smart phones,
PDA with mobile phone facilities, games consoles, media
players, e-book readers, as well as digital television, and
robots;

() "Innovation" refers to the creation of new ideas using
new or existing technologies that results in the
development of new or improved products, processes, or
services, which are then spread or transferred across the
market;

() "Intermediate skills" refer to usage of digital
technologies in a more meaningful and beneficial ways,
including the ability to critically evaluate technology or
create content;

(k) "Social inclusion” refers to the process of improving

the terms for individuals and groups to take part in

society;
SEC. 4. Development of Digital Careers. - In promoting careers and jobs that are
enabled and supported by the Internet, information and communications technology


(ICT), digital technology and tools, and systems that allow a person to interact
directly with companies and service users and end-users through remote and virtual
services and systems, the State shall:
(a) Ensure and take pro-active measures to improve the digital

competence of all citizens of working age and equip them

with basic, intermediate and advanced digital skills including

digital entrepreneurship skills in order to gain from the

benefits of the growing number of jobs and opportunities that

are enabled by ICT, Internet and digital communications,

digital technologies and digital tools;

() Ensure that citizens of working age are equipped with
Information and Data literacy, communication and
collaboration skills using digital technologies, digital
content creation skills, virtual safety and security skills,
and 21* century skills required for digital jobs andcareers;

(©) Ensure adequate protection and support for digital career
workers, freelancers, and freelance workers, for the
continuous improvement of their skills to effectively keep up
with global standards; and

(d) Provide support to digital career workers, freelancers, and
freelance workers in terms of co-working or shared service
facilities, free trainings, and exposure programs to improve
their skills and access to different government programs
such as loan facilities for them to secure equipment,
as may be allowed by law, under existing and/or future
programs by relevant government agencies.

SEC. 5. Programs on Digital Careers. - The Department of Information and
Communications Technology (DICT) and the Department of Education (DepEd), in
collaboration with the Commission on Higher Education (CHED), and the Technical
Education and Skills Development Authority (TESDA), shalll immediately create, design,
and develop programs to ensure access to trainings, market, and other forms of
support or innovation strategies for digital careers.


SEC. 6. Standards for Digital Career Workers. - The Department of Labor and
Employment (DOLE) together with the Department of Trade and Industry (DTI), in
consultation with the Bureau of Internal Revenue (BIR), DICT, Department of Interior
and Local Government (DILG), DepEd, CHED, and TESDA shall ensure:

(2) Compliance with the prescribed minimum wage for digital career workers
freelancers, or freelance workers;

(b) Adoption of simple process for the registration of digital career workers,
freelancers, or freelance workers in the local government level;

(\Adoption of simple process for filing of complaints by digital career workers,
freelancers, or freelance workers;

(d) Setting up of minimum requirements for persons to be qualified as digital
career workers in the form of industry-centric certifications or trainings; and

(e) Adoption of simple process and mechanisms for digital career workers,
freelancers or freelance workers in filing taxes and other fees due to the
government.

SEC. 7. Incentives. - A digital worker, freelancer or freelance worker shall be entitled to
the following incentives, subject to guidelines issued by the DICT, DTI, DOLE, TESDA
and other concerned agencies:

(a) Full or partial scholarships for necessary certification trainings, both local

and abroad, on different levels of digital skills and knowledge;

(b) Full or partial subsidy for the use of facilities, office space, equipment,
andlor services provided by government or private enterprises or institutions;

(©) Grants-in-aid for the acquisition of equipment including but not limited to
computers, hardware and software programs;

(d) Such other incentives that may be provided to digital workers, freelancers
or freelance workers in the future.

In addition to the foregoing incentives, qualified digital workers, freelancers


or freelance workers shall be entitled to avail of government support under
existing programs for startups, micro, small and medium enterprises (MSMEs),
and such other programs as may be applicable

‘SEC. 8. Role of the Local Goverment Units. - All local government units shall create
local policies to support the growth and development of digital careers in their respective
communities. The DILG shall ensure compliance of this section.

SEC. 9. Readiness of Local Goverment Units. - The DICT, the Department of Budget
Management (DBM), Department of Public Works and Highways (DPWH) and other
relevant departments and agencies shall ensure universal access to the high-speed,
Quality, and affordable Internet by prioritizing and facilitating the development of
connectivity infrastructures inthe localities across the country. The DILG and DICT shall
jointly assess the e-Readiness of all municipalities, cities, provinces, and regions to
ensure a thriving digital careers ecosystem.

SEC. 10.Trainings, Skills Development, and Scholarships. - The DICT in collaboration
with DOLE, DTI, DepEd, CHED, and TESDA shall prioritize the creation of digital trainings,
including, but not limited to:

(a) Web development and designing;
(b) Online teaching and tutoring;

(c) Content creation (writing and copywriting and others);

(d)Digital marketing (e-commerce, sales and marketing);

(e)Creative design, graphic designing, 3D modellingand CAD, game
development, logo design and illustration, and audio and video
production;

(f) Mobile app development;

(9) Search engine optimization;

(h) Virtual assistance (administrativesupport or assistance);

()) Branding and public relations, social media coordinator and community
management;

) Web research, business intelligence and data analytics;

(k) Transcription and data entry jobs article and blog writing;

(1) Customer service and technical support;

(m) Human resource management and systems; and

(n)Architecture services and other professional services through the Internet.


The TESDA shall give updates to all appropriate government agencies and LGUs,
especially its local investment council for purposes for job creation, with the number of
trainees and their respective courses per city or municipality. TESDA shall also allocate
Scholarships to various LGUs in accordance with an annual job generation plan supported
local industry in the locality and validated by market or business research.

SEC. 11. Skills Map. -In order to ensure equal access to training opportunities,
TESDA shall create a skills map geared towards identifying the sectors in the community
that can be effectively and positively benefited by digital careers training.

SEC. 12. Digital Skills Training. - The DICT shall allocate an appropriate amount of their
annual budget to digital skills training, and other programs to skill, upskill and re-skill
targeted set of citizens in order to equip them with necessary high-level digital skills.
The DICT and TESDA shall ensure that no duplication of trainings for the same skill level
will occur. A qualified citizen is not, however prohibited from availing of training from the
two agencies: Provided, That the trainings are different in terms of level or skill.

‘SEC. 13. Digital Careers Week. - The DICT shall designate a Digital Careers Week
‘every year to promote awareness about the job opportunities in the Digital Age.

SEC. 14. Digital Libraries and Leaming Hubs.- The DICT and the National
Library of the Philippines shall promote the role of libraries in improving digital inclusion
and transform these libraries as providers of digital access, training, and support for
digital career workers, freelancers, and freelance workers.

SEC. 15. Co-Working Agencies or Facilities. - Qualified companies may avail of
exemption from specific provisions of the Labor Code and other pertinent law with respect
to digital career workers, freelancers, and freelance workers who are directly working in
their facilities: Provided, That these workers are covered by independent contractor
agreements, as defined under pertinent laws.

‘SEC. 16. Implementing Rules and Regulations. - Within six (6) months from the
effectivity of this Act, the DOLE and the DICT shall promulgate the necessary rules and
regulations for the implementation of this Act.


SEC. 17. Appropriations. - The amount necessary for the implementation of the
Provisions of this Act shall be included in the General Appropriations Act for the year
following the approval of this Act.

SEC. 18. Repealing Clause. - All other laws, decrees, executive orders and rules and
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

SEC. 19. Separability Clause - If any provision of this Act is held invalid or
Unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof.

SEC. 20. Effectivity - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,