Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, __ 7048

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Introduced by Representative FREDERICK W. SIAO

AN ACT

SUPPORTING THE GROWTH AND DEVELOPMENT OF DIGITAL CAREERS IN

THE PHILIPPINES

EXPLANATORY NOTE

New technologies have brought about non-traditional ways of earning a living.
This includes online freelancing, which in recent years has grown to what some call a
full-fledged “gig economy.” In essence, the gig economy is composed of short-term
freelance workers with no geographical boundaries in proximity to those employing
them.’ It is powered by social media, global marketplaces and online payment
Platforms* which jointly provide freelance workers the flexibility to chart their own

career paths.

In recent years, online freelancing has grown significantly here 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.

Notably, the Philippine government has launched programs such as the
DigitalJobsPH 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 information and communications technology (ICT)
field. However, much may still be done to for online freelancing to further flourish as a

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viable source of livelihood in the Philippines. Learnings from the current COVID-19
Pandemic show us the potentials in the freelance economy such as workplace flexibility
while at the same time highlighting the disadvantages faced by those engaged full-time
in freelance work such as the lack of basic social protections and safety nets since they
are not part of the formal economy.

With a growing online freelance industry and with the new normal ushered in by
the COVID-19 pandemic, it now behooves the government 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.

Just like its counterpart measure the proposed “National Digital Transformation”
Act, this measure falls under our broad “Tatak Pinoy” industrialization campaign and
policy, where Filipino enterprises, entrepreneurs and professionals are enabled and
empowered to move up the value chain, produce quality goods and services, export
More of their offerings, and ultimately innovate on their endeavors.

This bill was originally filed by Senator Sonny Angara as Senate Bill No. 1469 and
will serve as the House version.

In view of the foregoing, the passage of this bill is &


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, “048

Introduced by Representative FREDERICK W. SIAO

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 1. 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 IT
DEFINITION OF TERMS
SEC. 3. Definition of Terms. — The following terms as used in this Act shall

mean:


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(a)“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;

(©) "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;

(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;

(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

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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, 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;

G) “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

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technologies, digital content creation skills, virtual safety and security
skills, and 21* century skills required for digital jobs and careers;

(©) 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), 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;
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(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,
and/or 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 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:

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(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;

(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;

(j) 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,

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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.

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 VII
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
tules 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,