Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1925 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT 
PROVIDING PROTECTION AND INCENTIVES TO FREELANCE WORKERS 
EXPLANATORY NOTE 
In recent years, rapid advances in technology and shifts in employment patterns have 
given rise to a dynamic and expanding sector of the labor force: freelance workers. These 
individuals offer specialized services outside the bounds of traditional employer-employee 
relationships, typically on a per-project or temporary basis. This flexible work model has 
emerged as a key contributor to the modern economy, both locally and globally. 
As of recent estimates, approximately 1.5 million Filipinos are engaged in freelance 
work, with women representing about 65% of this growing workforce. Despite their increasing 
numbers and significant contributions, freelance workers in the country remain largely outside 
the protective scope of existing labor regulations. 
In response to this gap, this proposed legislation seeks to institutionalize essential 
safeguards for freelance workers and formally recognize their rights and obligations. At the 
core of the bill is the requirement for a written contract between the hiring party and the 
freelancer. This contract must specify the scope of work, compensation and benefits, work 
duration, grounds for termination, and other applicable terms, as may be determined by the 
Department of Labor and Employment (DOLE). The bill further provides for added protections 
such as night shift differentials and hazard pay. 
To promote accountability and tax compliance, the bill also mandates that freelance 
workers register with the Bureau of Internal Revenue (BIR) and fulfill their annual income tax 
obligations. To deter exploitation or abuse, employers found in violation of this Act may be 
subject to civil penalties ranging from ₱50,000.00 to ₱500,000.00. 
Through this measure, the State affirms its commitment to inclusive labor protection 
and economic empowerment, ensuring that freelance workers – who play an increasingly vital 
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role in the digital and service economy – receive the recognition, rights, and safeguards they 
rightfully deserve. 
We recognize the efforts of Representatives Christopher V.P. De Venecia, Luis 
Raymund “Lray” F. Villafuerte Jr., Miguel Luis R. Villafuerte, Tsuyoshi Anthony G. Horibata, 
and Nicolas C. Enciso VIII, among others, who championed this legislation in the Nineteenth 
Congress, where it was passed on Third Reading. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1925 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
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,