NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE
s.B. No. 945
m
tHe feecretar/
72 A® H Si 36
-::dU
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROVIDING PROTECTION TO FREELANCERS 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Advancements in information and technology platforms, the adaptability of 
freelancers even prior to the pandemic due to their international clientele, and the 
nature of work of freelancers, are strong bases for an upward projection in the 
freelance economy. As of June 2021, the Creative Economy Council of the 
Philippines (CECP) said that around 1.5 million Filipinos are contributing to the gig 
economy. Freelance jobs in the Philippines are mostly web design, writing, graphic 
design, real estate, and photography,1 or professions that are mostly part of the 
creative or copyrights-based economy.
A study conducted by the IPOPHL and the World Intellectual Property 
Organization showed that in 2010, the creative or copyright-based industries' 
contribution to the country's gross domestic product (GDP) was P661.23 billion, or 
7.34 percent of the Philippine economy. In terms of employment, the creauve
to stay?,'
1 Hermoso, Cholo. "Freelancing in the Philippines: A Fad or Here 
https://www.bria.com.ph/articles/freelancing-in-the-philippines-a-fad-or-here-to- 
stay/#:~:text=As%20of%20June%202021%2C%20around,work%2C°/o20and%20even%20employe 
d%20internationally.


industries accounted for 14.14 percent or 560,665 workers in 2010.2 Since 2019, the 
CECP has been pushing for greater visibility and tracking of the economic contribution 
of creative industries to the national economy. The last available national level data 
on the contribution of creative industries was the said 2010 report, where it was 
unfortunate that the unregistered creative businesses and freelance creative workers 
were not counted. The CECP further posited that "in a "pandemic] crisis period such 
as this, the lack of visibility on the magnitude and state of creative industries makes 
the sector vulnerable to being deprioritized when it comes to short term aid, subsidies 
and recovery funds that will be essential for the community to rebound./,:3
Thus, this bill seeks to provide multiple social protections to the ever-growing 
sector of freelance workers in the country, especially in tune with the demands of the 
global economy, and the consequences of this global pandemic, the foremost of which 
is providing an avenue to formalize the sector. Formalization can lead to better rights7 
protection, and provision of social services such as credit opportunities and trainings, 
among others, for our new normal workforce.
With all these considerations, support for this legislation's earr>estly sought.
2 
Philippine Star, "Creative industry contributed P661B to Phi economy in 2010," 
https://www.philstar.eom/business/2014/ll/30/1397319/creative-industry-contributed-p661b-phl- 
economy-2010
3 Mercado, Paolo, "Insight: Paolo Mercado, President of Creative Economy Council of the Philippines, 
on Creative Disruption During a Global Pandemic," https://www.adobomagazine.com/digital- 
news/insight-paolo-mercado-president-of-creative-economy-council-of-the-philippines-on- Teative- 
disruption-during-a-global-pandemic/


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. B. No.
SENATE
945
RECeVEOgV;
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROVIDING PROTECTION TO FREELANCERS 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Freelancers 
Protection Act."
SEC. 2. Declaration of Policy. - It is the policy of the State to promote 
gainful employment and decent work for all workers. Towards this end, the 
State shall provide a regulatory framework that guarantees full protection to all 
workers in new forms of work arrangements, such as freelance work, whether 
in-person or through online platforms or gig economy, which has grown 
exponentially with technological development, weakening labor rights and 
changing concepts of work and employer-employee relationship.
SEC. 3. Coverage. - This Act shall cover all freelancers, regardless of the 
profession, talent, skills, task, work or service required or to be rendered.
SEC. 4. Definition of Terms. - As used in this Act, the following terms 
shall mean:


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a) Client refers to any foreign or Philippine-based person, company or
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entity, or platform provider, who engages a freelancer to render specific task,
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work or service in-person or online;
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b) Crowdwork refers to online work through platforms that connect vast
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numbers of clients, organizations, and businesses, often across borders. It is
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performed online by an infinite number of workers for clients spread over large
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geographic distance;
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c) Freelance worker or freelancer refers to any natural pterson who offers
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or renders a task, work or service through his or her freely chosen means or
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methods, free from any forms of economic dependence, control or supervision
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by the client, regardless of whether he or she is pa:d by results, piece, task,
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hour, day, job or by the nature of the services required;
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d) Freelance work refers to work that is infrequent, unpredictable and
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short term, and rendered in-person, online, or through any online web
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platforms, such as crowdwork, work on-demand or any digital lifestyle
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applications;
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e) Platform provider refers to any foreign or Philippine-based online web
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platform provider that connects workers with the consumer of work and
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facilitate the exchange of goods and services for money sucn as crowdwork,
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work on-demand or any digital lifestyle applications, that provides facilities,
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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;
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g) Written contract refers to a document, whether electronic file or
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printed copy, reflecting the mutual consent of the parties to be bound by the
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terms and conditions of their freelance work engagement and the consideration
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for the services rendered by the freelancer.
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SEC. 5. Contractual Relations. - The relationsfiip between the client and
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the freelancer, absent proof of existence of employer-employee relationship,
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shall be governed primarily by applicable civil and commercial laws.


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In no case however, shall the terms and conditions thereof derogate the
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rights of workers guaranteed by the Philippine Constitution or be lower than
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the minimum standards provided by the Labor Code of the Philippines, as
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amended, or by industry standards and international labor standards.
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SEC. 6. Rights of Freelancers. - The State shall accord to freelancers all
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the rights of workers guaranteed under the 1987 Philippine Constitution,
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applicable provisions of the Labor Code of the Philippines, as amended, and
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relevant international human rights instruments and international labor
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standards.
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For this purpose, the State shall ensure the formulation by concerned
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agencies of policies and programs for the free exercise of the following:
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(a) Right to a written contract or agreement;
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(b) Right to just compensation and equal remuneration for work of equal
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value without manipulation or distinction of any kind;
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(c) Right to safe and healthy working conditions;
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(d) Right to self-organization and to collectively negotiate with the
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government, the client, and other entities for the promotion of their welfare
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and in the advancement of their rights and interests;
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(e) Right to be free from any form of discrimination, violence, sexual
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harassment, and abuse;
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(f) Right to representation and participation in policy and decision-
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making processes and social dialogue;
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(g) Right to access their own data, information and resources for the
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promotion and protection of their rights and welfare;
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(h) Right to affordable and adequate financial services, ncluding, among
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others, col lateral-free and gender-balanced credit at low interest;
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(i) Right to education and skills training;
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(j) Right to social protection and social welfare benefits; and
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(k) Right to speedy redress of grievances, including alternative dispute
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resolution processes.


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SEC. 7. Standards for Freelance Work. - The Department of Labor and
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Employment (DOLE) shall ensure:
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a) Compliance with the written contract between the freelancer and the
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client, which shall be in a language understood by both parties. Each party to
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the contract shall retain a copy thereof, and shall include, at the minimum, the
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following:
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1) Itemization of all work and/or services to be provided by the
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freelancer and the terms and conditions of the engagement;
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2) The rate and method of compensation, date on which the client
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shall pay the compensation or the mechanism by which such due date
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shall be determined;
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3) The name and registered address of the client, and in the case
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of a foreign or foreign-based entity, the name and address of the local
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agent or representative, or any duly acknowledged representative based
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in the Philippines; and
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4) Any other terms and conditions thar govern the performance
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of the mutual obligations of the parties that are not contrary to law,
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morals, good customs, public order or public policy.
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In the absence of a written agreement, any written exchange or proof
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of submission and receipt of completed task, work or service subject of the
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freelance work engagement, whether electronic or printed, shall be sufficient
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basis for claim for compensation or payment against the client;
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b) Registration of freelancers or freelancers' association in the DOLE
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registry of freelancers and provide them with labor market interventions and
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assistance; Provided, That registration with the DOLE shall no: be construed as
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a requirement to be able to engage as a freelancer;
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c) Free exercise of freelancers' right to self-organization and to
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collectively negotiate with the government, the client, and other entities for the
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promotion of their welfare and in the advancement of their rights and interests,
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and to their representation and participation in policy and decision-making
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processes and social dialogue;


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d) Observance of programs and policies on non-discrimination, absence 
of violence, sexual harassment, and abuse in freelance work environment;
e) Entering into bilateral or multilateral agreements with countries where 
online web platforms are registered or located for the protection and 
enforcement of Philippine freelancers' rights.
SEC. 8. Right to Access Their Own Data and Information. - The 
Department of Information and Communications Technology (DICT) shall 
conduct trainings for online freelancers, and in coordination with the 
appropriate regulating agency, such as the Department of Transportation 
(DOTr) and the Department of Trade and Industry (DTI), ensure that 
freelancers engaged with or through platform provide: s or online web platforms 
shall have access to their own data, information and resources for the 
promotion and protection of their rights and welfare.
SEC. 9. Right to Affordable and Adequate Financial Services. - The DTI 
and other government financial institutions shall provide freelancers access to 
affordable and adequate financial services, including, among others, collateral- 
free and gender-balanced credit at low interest.
SEC. 10. Right to Education and Skills Training. - The Technical 
Education and Skills Development Authority (TESDA) and other government 
agencies, such as the Department of Science and Technology (DOST), DTI and 
DICT shall provide training and certifications for upskilling and entrepreneurial 
enhancement of freelancers.
SEC. 11. Right to Soda! Protection and Soda! Welfare Benefits. - The 
Social Security System (SSS), Philippine Health Insurance Corporation 
(PhilHealth) and Home Development Mutual Fund (HDMF) shall ensure a 
simplified and online registration and remittance process for freelancers as self- 
employed workers and provide easy access to members' benefits such as 
sickness and unemployment benefits.


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SEC. 12. Right to Simplified Tax Registration, Filing and Payment 
System. - The Bureau of Internal Revenue (BIR) shall simplify and automate 
the registration process and minimize the requirements for the registration of 
freelancers. The BIR shall also further enhance the online filing of tax returns 
and payment of appropriate taxes, including online submission of requirements. 
It shall also provide assistance to freelancers in their application, registration, 
and processing of documents, and other inquiries.
SEC. 13. Right to Redress of Grievances, Including Alternative Dispute 
Resolution Processes. - The right of freelancers to seek redress for grievances 
and to avail of alternative dispute mechanisms in accordance with law shall be 
guaranteed.
For this purpose, the DOLE shall conduct seminars on the legal recourses 
available to freelancers, and as far as practicable, encourage the parties to a 
freelance work agreement to avail of alternative dispute mechanisms.
SEC. 14. Enforceability of the Rights Provided under this Act-Ihe rights 
granted under this Act shall be implemented in compliance with the 
requirements mandated by Republic Act No. 11032, otherwise known as the 
"Ease of Doing Business and Efficient Government Service Delivery Act of 
2018".
SEC. 15. Payment; Burden of Proof - Except as otherwise provided 
under the contract entered into by the parties, the agreed compensation shall 
be paid in full not later than thirty (30) days after the completion of the task, 
work or service subject of the freelance work engagement.
The burden of proving the payment of the compensation or 
consideration due to the freelancer as agreed under the contract shall rest on 
the client, upon proof of performance or completion of the job or service 
contracted.


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SEC. 16. Prohibited Acts. - The following acts shall be prohibited under 
this Act:
a) Contract Alteration. Once performance of the work or service under 
the contract has commenced, no freelancer shall be required to accept less 
than the specified or agreed contract price, as a condition for the payment of 
the service or work rendered: Provided, That nothing herein precludes the 
parties from arriving at a settlement in good faith of a dispute arising out of or 
in connection with the coiitract or from agreeing to a modification of the 
contract in accordance with applicable laws.
b) Deduction. No deduction shall be made on the agreed contract price 
or compensation, unless the parties have agreed otherwise, or such deduction 
is on account of payment of applicable taxes.
c) Waiver. Except as otherwise provided by law, any provision of any 
contract entered into by a freelancer and a client purporting to waive any of 
the rights provided under this Act shall be void as against public policy.
SEC. 17. Penalty - Any person who commits any of the foregoing 
prohibited acts shall be meted with a fine equivalent to up to three times the 
contract price or compensation agreed upon in the contract between the 
freelancer and the client.
SEC. 18. Public Awareness Program. - The DOLE, DTI, DICT and other 
relevant agencies shall raise public awareness on the rights and welfare of 
freelancers. Information dissemination on the provisions of this Act, its 
implementing rules and regulations and capacity building on reasonable pricing 
of task, work or service, payment methods, entrepreneurship and career 
development in freelance work shall also be conducted.
SEC. 19. Prospective Application. - This Act shall apply to contracts or 
agreements entered into on or after the effectivity of this Act.


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SEC. 20. Applicability to Freelancers in the Public Sector. - The Civil 
Service Commission shall issue the appropriate rules and regulations applicable 
to freelancers in the public sector to ensure compliance with the rights and 
privileges granted to freelancers under this Act, subject to applicable laws, rules 
and regulations governing workers in the public sector.
SEC. 21. Implementing Rules and Regulations. - Within sixty (60) days 
from the effectivity of this Act, the DOLE, DTI, DICT, DOST, TESDA, DOTr, 
upon consultation with the BIR, SSS, PhilHealth and HDMF, and other relevant 
agencies and sectors, shall promulgate the implementing rules and regulations 
as may be necessary to carry out the provisions of this Act.
SEC. 22. Separability Clause. - If any provision of this Act is declared 
invalid or unconstitutional, the provisions not affected thereby shall remain in 
full force and effect.
SEC. 23. Repealing Clause. - All laws, presidential decrees, executive 
orders, presidential proclamations, resolutions, orders, rules and regulations, 
ordinances or parts thereof contrary to or inconsistent with this Act are hereby 
repealed or modified accordingly.
SEC. 24. Effectivity. -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette ov in a newspaper of general circulation in the 
Philippines.
Approved,