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REPUBLIC OF THE PHILIPPINES ‘& RECEIVED e

HOUSE OF REPRESENTATIVES MAY 23
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No”__ 8786

Introduced by HON. KRISTINE ALEXIE B. TUTOR
Third District, Bohol

EXPLANATORY NOTE

New technologies have brought about non-traditional ways of earning a li
the midst of the COVID19 pandemic and the extension of the Community Quarantines, more

Filipinos have turned their attention to the digital or electronic economy to ear a living. Yet,

ig, and in

even before the onset of COVID19, Filipinos have been cashing in on the so-called “gig
economy” or digital freelancing.

The term “gig economy” surfaced in recent years as a term to describe the kind of work
freelancers do. In the gig economy, people engage in short-term contracts allowing them to
take several projects at a time. More ‘gigs’ mean more income. According to a 2019 report by
Payoneer on ‘Global Gig Economy Index,” the Philippines placed sixth in the world as the
fastest-growing market for the gig industry, revealing a 35 percent growth in freelance
earnings. Flexible working hours, higher income, and the ability to be their own boss are the
‘main factors why Filipinos engage in freelancing.

In recent years, online freelancing has grown significantly here in the Philippines. In
Paypal’s 2018 Global Freelancer Insights Report, among the 22 countries included and
analyzed, the Philippines has one of the highest freelancers per capita, at around two percent
or roughly 1.5 to 2 million Filipinos, engaged in freelance work. In 2019, Forbes listed the
Philippines in 6" place, for fastest growing market for freelancers, recording a 35% income
growth from the previous year.

Clearly, online freelancing has become a viable option for many Filipinos — not only
for those in urban centers, but also in far-flung, rural areas, where at times long-distance
connectivity is only possible via information and communications technology (ICT). However,

we need to establish a strong structure for this industry flourish.


This measure seeks to establish a legal framework covering online freelancing that
will—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.

By establishing the necessary policies in relation to online freelancing, we hope to
provide ample and profitable employment to Filipinos online benefitting their families and our
country.

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

EXIE B. TUTOR

HON. KRISTIN!



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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _ 6786

Introduced by HON. KRISTINE ALEXIE B. TUTOR
Third District, Bohol

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:

ARTICLE I
STATE POLICIES AND BASIC PRINCIPLES

SECTION I. Short Title. - This Act shall be known as the “National Digital Careers
Act”.

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
skilling, 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.

ARTICLE II
DEFINITION OF TERMS

SEC. 3. Definition of Terms. ~ The following terms as used in this Act shall mean:


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(a)“2ist 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 on a 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;

(e) “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;

()*

new digital technologies, thus creating digital enterprises which are characterized

jigital entrepreneurship” refers to combining traditional entrepreneurship with

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;

(9) “Digital skills” refer to 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

in a digital form such as personal computers and devices like desktop, laptop,


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netbook, tablet computer, smart phones, PDA with mobile phone facilities, games
consoles, media players, e-book readers, as well as digital television, and robots;

(i) “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;

ARTICLE IIT
DEVELOPMENT OBJECTIVES AND STRATEGIES

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;

(b) 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 and careers;

(c) 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


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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), shall 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:

(a) 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;

(c) 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

() 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, and/or
services provided by government or private enterprises or institutions;


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(c) 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 Government 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. E-Readiness of Local Government 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 in the 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.

ARTICLE IV
TRAINING AND SKILLS DEVELOPMENT

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 modelling and CAD, game development,

logo design and illustration, and audio and video production;


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(f) Mobile app development;

(g) Search engine optimization;

(h) Virtual assistance (administrative support or assistance);

(i) Branding and public relations, social media coordinator and community

management;

G) 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.

ARTICLE V
DEVELOPMENTAL PROGRAMS

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.


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ARTICLE VI
SUPPORT ECOSYSTEM

SEC. 14. Digital Libraries and Learning 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.

ARTICLE VIL
IMPLEMENTING GUIDELINES

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.

ARTICLE VIII
GENERAL PROVISIONS

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.


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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,