EIGHTEENTH
REPUBLIC OF PHILIPPINES }

First Regular Ses

HOUSE OF REPRESENTATIVES
House Bill No.§132

Introduced by Representative Victor A. Yap

The twe
it the kind of em
jobs were the onl
work or service
contractor. Now:
economy. A

PayPal
capita, at around
women taking uj
39 years old, mal
already be consi

However,

freelancers equal
imperative that tl
concerning their

This Bill

EXPLANATORY NOTE

'-first century saw a new economy rise through the Internet, and along with
loyment that took over traditional jobs. Long gone are the days when these
reliable avenues for earning. One such novelty is the freelancer, who sells
without any regular salary, because he or she is as an “independent”
lays, freelancers have taken up a formidable niche in the Philippine
by Forbes says that by 2027, the majority of the world’s workforce will be

jorted in 2018 that the Philippines has one of the highest freelancers per
% of the population, making an estimated 1.5 million freelancers, and with
65% of that figure. Furthermore, around 75% of freelancers are from 24 to
ing young demographics play a huge part in this market.” In fact, they can

ed as part of the majority of the labor market as informal-sector workers.’

their rights to associate and form organizations of their own are limited,
h in enabling laws for the recognition and exercise of such rights, leading
rds on contracts, fees and work metrics. As part of the labor force, these
ly deserve the recognition and protection of their rights. It is therefore
ey be given the same treatment as any other traditional laborer in matters
mployment

aims 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, as

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

https

well as providing penalties for infractions thereof.

" https: /fousiness inquiter.neV262675/freelancing-alive-and-well-in-ph
2 htps: ifaw separ fsnca market.



eCavaneune

10
1
2
SE
14
15
16
7
18

20
a
2
23
24

EIGHTEENTH CONGRESS OF THE}
REPUBLIC OF THE PHILIPPINES —}
First Regular Session }

HOUSE OF REPRESENTATIVES

|
|
| House Bill Nog. 32

Introduced by Representative Vietor A. Yap

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

Be it endeted by the Seruie and House of Representatives of the Philippines tn
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Freelance Workers

}
Protection Act." —

|
SEC. 2, Declaration of Policy. - It isthe 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.

Defini ion 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

‘SEC. 3.

registered with the Securities and Exchange Commission (SEC), or registered as a sole
proprietorship with the Department of Tradeand 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 Hiring party refers to any Philippine-based person or entity who retains a
freelance worker to provide any service, particularly through a local agent, hiring website,
firm or corporation,

(©) Non-local hiring Party refers to any person or entity not currently registered,
domiciled or bi in the Philippines who retains a freelance worker through a hiring
website, portal or agent.

SEC. 4. Required Contract. - The hiring party and the freelance worker shall enter
into a written #9 governing the terms of their engagement prior to the commencement

| a


“

wear nanunun

n
2

14
15
16
7

19
20
a
22
23
24
25
26
a

29

31
32
33
34
35
36
37
38

of their engagement. The contract shall be in plain language and in a language understood by
both parties. Each party to the contract shall retain a copy thereof.

The written 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;

(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 eamed 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).

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 Twenty 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.


Cor annawn

SEC. 9. Prospective Application. - This Act shall apply only to contracts or
agreements entered into on 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. 11. 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,