Republic of the Philippines
HOUSE OF REPRESENTATIVES 
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3223
Introduced by REP. EMILIO BERNARDINO L. YULO
EXPLANATORY NOTE
The nature of work in the modern economy is evolving rapidly. Technological
advancements and the rise of the digital economy have given birth to a growing class of
freelance workers who operate outside traditional employer-employee relationships. In
the Philippines, this shift has allowed thousands of Filipinos to earn a livelihood on
flexible terms, offering services across creative, digital, educational, and technical fields
domestically and globally.
Despite their increasing contribution to the economy, freelance workers often face
precarious work conditions. They are vulnerable to late or non-payment of services
rendered, the absence of written contracts, unsafe work environments, and other
exploitative practices without sufficient legal recourse. These gaps undermine the dignity
of freelance labor and the broader effort to protect all forms of work under the law.
This proposed measure seeks to institutionalize a legal framework that promotes
the rights and welfare of freelance workers by ensuring fair treatment, security of
payment, and proper contract enforcement. The bill mandates the execution of written
contracts specifying essential terms such as scope of work, compensation, schedule, and
other pertinent conditions. It provides for a mandatory 30% down payment and
establishes penalties for non-compliance with the terms of engagement.
Because of the challenges freelancers face in navigating government processes,
the bill includes provisions for tax relief within existing legal thresholds and mandates
the Bureau of Internal Revenue (BIR) to establish special assistance lanes for freelancers
to help with registration and compliance.
August 6, 2025
1:01 pm


The bill also empowers the DOLE to enforce the provisions of the Act through
investigation, mediation, and conciliation mechanisms and to submit annual reports to the
legislature on the law’s implementation. An information campaign is also mandated to
increase awareness of freelance rights and obligations under the law.
In view of the foregoing, the passage of this bill is earnestly sought.
REP. EMILIO BERNARDINO L. YULO


Republic of the Philippines
HOUSE OF REPRESENTATIVES 
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3223
Introduced by REP. EMILIO BERNARDINO L. YULO
AN ACT
PROVIDING PROTECTION AND INCENTIVES TO FREELANCE
WORKERS
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. – This Act shall be known as the “Freelance Workers
Protection Act.”
SEC. 2. Declaration of Policy. – Pursuant to Article II, Section 18, and Article
XIII, Section 3 of the Constitution, it is hereby declared the policy of the State to
protect the rights of workers, promote their welfare, and ensure their entitlement
to humane conditions of work and just share in the fruits of production. To this end, the
State shall recognize the right of freelance workers to protection from late or nonpayment
of fees for services rendered.
SEC. 3. Definition of Terms. – As used in this Act:
(a) Freelance worker refers to any natural person or entity composed of no more
than one (1) natural person, whether incorporated under the Securities and
Exchange Commission, registered as a sole proprietorship
under
the
Department of Trade and Industry (DTI) or registered as self-employed with
the Bureau of Internal Revenue (BIR), who is hired or retained
to
provide
services,
in
exchange
for
compensation,
as
an independent
contractor to do work according to one’s own methods and without being
subjected to the control of the hiring party, except only as to the results of the
work;


(b) Hiring party refers to any person or entity that obtains or retains the services
of a freelance worker; and
(c) (c) Retaliation refers to any act reasonably likely to prevent a freelance
worker from further being offered freelance work and contracts.
SEC. 4. Written Contract. – Any hiring party obtaining or retaining the services
of a freelance worker shall execute a written contract with the freelance worker before
the services are rendered. The hiring party and the freelance worker shall each retain a
signed copy of the contract.
The contract shall be written in plain language, understood by both parties. It shall
include, at the minimum, the following:
(a) Itemization of all services to be provided by the freelance worker;
(b) Details of compensation and other worker’s benefits, including rate, method and
schedule of payment;
(c) Period of employment;
(d) Grounds for breach of contract on the part of the hiring party and of the
freelance worker; and
(e) Any other condition, term or clause that the Department of Labor and
Employment (DOLE) may direct, subject to the provisions of this Act.
The contract must state the necessary personal circumstances of the freelance
worker, such as but not limited to the freelance worker’s name, address and the worker’s
Tax Identification Number. No modification of the terms of the contract shall be
enforceable unless signed by both the hiring party and the freelance worker.
SEC. 5. Down Payment. – An initial partial payment for the contracting of
services of the freelance worker shall be made upon engagement, which shall be not
less than thirty percent (30%) of the contract price.
SEC. 6. Night Shift Differential. – Freelance workers who are required to be
physically present in the workplace, or those on field assignments, shall be paid a night
shift differential of not less than ten percent (10%) of their regular compensation for each
hour of work performed between ten o’clock in the evening and six o’clock in the morning,
unless there is a more favorable fee stipulated in the contract.
SEC. 7. Hazard Pay. – All freelance workers deployed in dangerous areas such
as strife-torn or embattled locations, distressed or isolated stations, prison camps, mental
hospitals, radiation-exposed clinic, laboratories or disease-infested areas, or in areas


declared under a state of calamity or emergency for the duration of deployment and
unduly exposes them to great danger, contagion, radiation, occupational risks or perils to
life, shall be compensated with a hazard pay equivalent to at least twenty-five percent
(25%) of the total payment for the period of such deployment as agreed upon in the
contract, unless there is a more favorable fee stipulated therein.
SEC. 8. Unlawful Practices. – It shall be unlawful for any hiring party to:
(a) Engage with a freelance worker without a written contract;
(b)
Pay the compensation due the freelance worker later than fifteen (15)
days after the date of payment of compensation stated in the written
contract or after the rendition of services in cases where there is no
written contract;
(c)
Require as a condition of payment of compensation at any time after a
freelance worker has commenced rendition of services, that the latter accept
less than the specified contract price; or
(d)
Commit any act of retaliation against any freelance worker for:
(1) Opposing any practice prohibited by this Act;
(2) Filing a complaint authorized under this Act;
(3) Testifying or assisting in any proceeding authorized under this Act;
(4) Commencing a civil action alleging a violation of this Act;
(5) Assisting the DOLE in an investigation commenced pursuant to this Act;
or
(6) Providing information to the DOLE pursuant to the terms of a
mediation or conciliation agreement under this Act.
SEC. 9. Civil Penalty. – A person who commits any of the unlawful practices
enumerated in Section 8 of this Act shall be punished by a fine of not less than Fifty
thousand pesos (₱50,000.00) but not more than Five hundred thousand pesos
(₱500,000.00).
CHAPTER II
AGENCY ENFORCEMENT AND ADMINISTRATIVE PROCESS
SEC. 10. Complaints. – Any person or such person’s authorized representative
aggrieved by a violation of this Act, may file a complaint with the DOLE, through the


Undersecretary for Workers with Special Concerns, without prejudice to the filing of civil
action in appropriate cases.
SEC. 11. Prohibition Against Forum Shopping. – When a civil action has been
initiated in a court of competent jurisdiction arising from any violation of this Act, a breach
of contract, or any similar claim at law or equity arising out of the same transaction or
series of transactions, no other case involving the same cause of action shall be filed
with the DOLE.
SEC. 12. Investigation. – Upon receiving a complaint alleging a violation of this
Act, the DOLE shall notify the respondent in writing and investigate such complaint in a
timely manner. Within fifteen (15) calendar days of receiving such written notification, the
respondent shall provide the DOLE with a written response and such other information
as the DOLE may request. The DOLE shall notify each complainant in writing, not less
than thirty (30) calendar days after the complaint is filed, of the status of the complaint
and any resulting investigation.
SEC. 13. Mediation and Conciliation. – The DOLE may, at any time after the
filing of a complaint, attempt to resolve the complaint by any method of dispute resolution,
including mediation and conciliation. If a conciliation agreement is entered into, the DOLE
shall embody such agreement in an order and serve a copy thereof upon all parties to
the conciliation agreement.
CHAPTER III
CIVIL ENFORCEMENT
SEC. 14. Notice of Violation and Order of Payment. – If, as a result of an
investigation of a complaint or an investigation conducted upon its own initiative, the
DOLE finds cause to believe that a violation of this Act has occurred, it shall issue
a notice
of
violation
to
the
respondent
and
order the
corresponding
payment
of compensation due to the prevailing party.
SEC. 15. Violation of Order of Payment. – The order of payment shall include
an interest rate of six percent (6%) per annum which shall be awarded to the prevailing
party in case the violation continues.
SEC. 16. Civil Action. – Except as otherwise provided by law, any person
aggrieved by a violation of this Act may file a complaint in a court of competent jurisdiction
for damages, injunctive relief and such other remedies as may be appropriate, without
prejudice to the filing of a criminal action in appropriate cases. The prevailing party shall
be entitled to an award of reasonable attorney’s fees and costs.
No person claiming to be aggrieved by a violation of this Act may bring a civil action
in
a
court
of
competent
jurisdiction
if
such
aggrieved
person,
or
one’s
representative, has filed a complaint with the DOLE pursuant to Chapter II of this Act and


based upon the same transaction or series of transactions, unless that complaint has
been terminated without prejudice to a subsequent civil action.
SEC. 17. Non-Waiver. – Except as otherwise provided by law, any provision of
any contract or agreement purporting to waive rights under this Act is against public
policy and shall be null and void.
SEC. 18. Coverage. – This Act shall apply only to contracts or agreements
entered into upon the effectivity of this Act.
CHAPTER IV
TAXATION
SEC. 19. Tax Relief. – Freelancers, as defined under this Act, shall be entitled to
tax relief within the threshold provided under the National Internal Revenue Code of
1997, as amended, and Republic Act No. 9178, otherwise known as the “Barangay Micro
Business Enterprises (BMBEs) Act of 2002.”
SEC. 20. Special Assistance. – Every BIR Revenue District Office shall
designate a lane or a special assistance desk that shall be manned by an officer who
shall assist freelance workers on their inquiries and in complying with the processing of
documents, including the registration requirement under this Act.
CHAPTER V
FINAL PROVISIONS
SEC. 21. Report. – One (1) year after the effectivity of this Act, and every year
thereafter, the Secretary of Labor and Employment shall submit a report to the
Committee on Labor and Employment of the House of Representatives and the
Committee on Labor, Employment and Human Resources Development of the Senate of
the Philippines regarding the effectiveness of the provisions of this Act in improving
freelance contracting and payment practices. Similarly, the DOLE shall submit the report
to the Philippine Creative Industries Development Council, through its Creative Workers’
Welfare Standing Committee. The report shall include, at the minimum, the number of
complaints received, investigations initiated and notices issued by the DOLE on
violations of this Act, and complaints settled by mediation or conciliation.
SEC. 22. Information Campaign. – The DOLE shall, in coordination with the DTI,
BIR, local government units and other relevant agencies, initiate a program with the
objective of informing freelance workers of their rights and obligations, the proper
procedure of registering as a taxpayer, and the modes of legal redress as provided for in
this Act, and in other laws and regulations.
SEC. 23. Suppletory Application. – The provisions of Republic Act No. 11058,
entitled “An Act Strengthening Compliance with Occupational Safety and Health


Standards and Providing Penalties for Violations Thereof” shall be applied suppletorily
to this Act.
SEC. 24. Implementing Rules and Regulations. – Within fifteen (15) days from
the effectivity of this Act, the Secretary of Labor and Employment shall, in coordination
with the BIR and other relevant agencies, issue the rules and regulations from the
implementation of this Act.
SEC. 25. Separability Clause. – If any part, section or provision of this Act is
declared invalid or unconstitutional, the other provisions not affected by such declaration
shall remain in full force and effect.
SEC. 26. Repealing Clause. – All laws, decrees, orders, rules, and regulations,
or other issuances or parts thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.
SEC. 27. Effectivity. – This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,