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House Bill No, _ 311

Introduced by REP. JAVIER MIGUEL L. BENITEZ

EXPLANATORY NOTE

‘The 1987 Constitution declares as a State policy the protection of the rights of
workers and the promotion of their welfare’. It further guarantees access to just
and humane conditions of work and a fair share in the fruits of production’. As
freelance work becomes more prevalent in the modern economy, the absence
of formal protections has left many freelance workers vulnerable to non-
payment, contract violations, and unsafe working conditions.

This bill establishes clear legal protections for creative freelance workers,
including the right to a written contract, timely payment, hazard pay, night
shift differential, and safeguards against retaliation. These are necessary
safeguards given the absence of employer-employee relationships in freelance
arrangements, which often lead to non-payment and exploitative practices.

Furthermore, the bill institutionalizes the enforcement and accountability
mechanisms to support freelance workers through administrative, civil, and,
where applicable, criminal remedies. It further empowers the Department of
Labor and Employment to enforce compliance through administrative
processes and civil remedies, while supporting tax registration and public
awareness through the Bureau of Internal Revenue and other agencies.

By recognizing creative freelance work as a legitimate form of labor, this
measure promotes fairness, accountability, and access to redress, while
aligning labor protections with evolving forms of employment.

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

J [GUEL, SENITEZ

4 1987 Constitution of the Republic of the Philippines, Article ll, Section 18.
2 ibid. Article XIll, Section 3.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS

311

HOUSE BILL NO.

Introduced by REP. JAVIER MIGUEL L. BENITEZ

AN ACT
PROVIDING PROTECTION AND INCENTIVES TO CREATIVE
FREELANCE WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

CHAPTERI
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 Il, 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 the field of creative industries as defined
in Section 3 of Republic Act No. 11904 (2004), 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) 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 asigned copy of the contract.

The contract shall be written in plain language, understood by both parties.
Itshall 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;

(0) 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;

(©) 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;

(6) 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 (P50,000.00) but not more than
Five hundred thousand pesos (P500,000.00).


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
acivilaction in a court of competent jurisdiction if such aggrieved
person, or one’s representative, has filed a complaint with the DOLE
pursuant to Chapter Il 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
knownas 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.

CHAPTERV
FINAL PROVISIONS

SEC. 21. Report. - One (1) year after the effectivity of this Act, and every
ear

thereafter, the Secretary of Labor and Employment shall submit a
report to theCommittee 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