Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING PROTECTION AND INCENTIVES FOR 
FREELANCE WORKERS 
EXPLANATORY NOTE 
Freelancing is easily becoming a popular industry in the country and 
the population Filipino freelancers is rapidly burgeoning. Online freelancing 
platforms Upwork and Freelancer.com alone boasts of 1.4 million and 
800,000 Filipino active users, respectively. Furthermore, clients of freelancing 
platforms prefer Filipino workers as we are known for our hardworking 
culture, fast work turnover, and fluency in the English language. 
Indeed, freelancing has become an attractive long-term career track for 
many Filipinos as it offers schedule flexibility, work-life balance, and greater 
financial freedom. But despite these perks, there still remain certain 
challenges faced by an average Filipino freelancer like taxation, job security, 
and employee protection. Thus, this bill. 
This bill recognizes the potential contribution of the freelancing to the 
development of our nation and thus seeks to institutionalize the industry by 
providing protection and incentives to Filipino freelance workers. 
In view of the foregoing, the immediate passage of this bill is 
earnestly sought. 
REP. PM VARGAS   
Fifth District, Quezon City 
September 7, 2022
4:43 pm
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING PROTECTION AND INCENTIVES FOR 
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 “Freelancers 
Protection Act.” 
SECTION 2. Declaration of Policy. – It is the policy of the State to promote 
gainful employment and decent work, protect all workers, and assure their 
right to just and humane condition of work. Towards this end, the State shall 
recognize the right of freelance workers to protection from late or non-
payment for service rendered. It further recognizes and supports workers in 
the freelance industry through fair taxation. 
SECTION 3.  Definition of Terms. – As used in this Act, the following term 
shall mean: 
a) Department refers to the Department of Labor and Employment.
b) Freelance Worker refers to any natural person or entity composed
of no more than one natural person, whether incorporated under
the Securities and Exchange Commission (SEC), 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), that is hired or retained as an independent
contractor by a hiring party to provide services in exchange for
compensation.
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c) Hiring Party refers to any natural person or entity who retains a 
freelance worker to provide any services. 
 
d)  Retaliation refers to any act reasonably likely to deter a person 
from engaging in activity protected by Section 5 or this Act.  
 
SECTION 4. Required Contract. – Any hiring party retaining the services 
of a freelance worker in exchange for compensation of at least ten thousand 
(PHP 10,000) shall execute a written contract with such freelance worker 
before the contracted-for work begins. The contract shall be in plain 
language understood by both parties. Each party to be 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; 
(b) Duration of the work 
(c) the rate and method of compensation; 
(d)  The date on which the hiring party must pay of the above-
referenced compensation or the mechanism by which such due 
date will be determined; and 
(e) Any other terms that the Department may be designate. 
 
SECTION 5. Unlawful Payment Practices. –  Except as otherwise provided 
by law, all compensation earned 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 expressed 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. This provision does not preclude 
the settlement of a good faith dispute regarding performance under the 
contract or preclude a modification of a contract in accordance with other 
applicable laws. 
          
SECTION 6. Retaliation – No person engaged in any activity to which this 
Act applies may retaliate against any person because such person has:  
 
a) Opposed any practice prohibited by this Act; 
b) Filed a complaint, testified or assisted in any proceeding under this 
Act; 
c) Commenced a civil action alleging a violation of this Act; 
d) Assisted the Department in an investigation commenced pursuant 
to this Act; or  
e) Provided any information to the Department pursuant to the terms 
of a mediation or conciliation agreement under this Act. 
 
 


CHAPTER 2 
AGENCY ENFORCEMENT 
 
SECTION 7.  Complaints. –  Any person aggrieved by violation of this Act, 
or such person’s authorized representative, may file a complaint with the 
Department. 
  
SECTION 8. Jurisdiction. – The Department shall not have jurisdiction 
over a complaint if: 
 
(a) The complaint is filed more than two years after the acts alleged 
to violate this Act occurred; 
 
(b) Either party to the agreement previously has initiated a civil 
action in a court of competent jurisdiction alleging a 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 that is the subject of the complaint under in this 
Act, unless such civil action has been dismissed without 
prejudice to future claims; or  
 
(c) Either party to the agreement previously has filed a claim or 
compliant before any other administrative agency alleging a 
breach of contract or any similar claim at law or equity arising 
out of the same transaction or series of transactions that is the 
subject of the complaint under this Act, and such complaint has 
not been withdrawn or dismissed without prejudice to future 
claims.  
 
SECTION 9.    Investigation. –  Upon receiving a complaint alleging a 
violation of this Act, the Department shall notify the respondent in writing 
and investigate such complaint in a timely manner. Within thirty (30) days of 
receiving such written notification, the person or entity identified in the 
complaint shall provide the Department with a written response and such 
other information as the Department may request. The Department shall 
notify each complainant in writing, not less than sixty (60) days after the 
complaint is filed, of the status of the complaint and any resulting 
investigation resolution. 
 
SECTION 10.  Mediation and Conciliation. – The Department may, at any 
time after the filing of complaint, attempt to resolve the complaint by any 
method of dispute resolution including mediation and conciliation.  
 
If a conciliation agreement is entered into, the Department shall embody such 
agreement in an order and serve a copy of such order upon all parties to the 
conciliation agreement. The terms of any conciliation agreement may contain 
such provisions as may be agreed upon by the Department, the complainant 
and the respondent. 
 


CHAPTER 3 
ENFORCEMENT AND ADMINISTRATIVE PROCESS 
 
SECTION 11.  Notice of Violation. – If, as a result of an investigation of a 
complaint or an investigation conducted upon its own initiative, the 
Department finds cause to believe that a violation of this Act has occurred, it 
shall issue a notice of violation to the offending person or entity. The 
Department shall prescribe the form and wording of such a notice of violation.  
 
SECTION 12. Remedies. – The Department may impose penalties provided 
for in this Act and may grant a prevailing complainant all appropriate relief. 
Such relief shall include damages, any appropriate equitable relief, and 
attorney’s fees and costs. The Department also may impose civil penalties as 
provided in Section 13. 
 
SECTION 13. Civil Penalties. – Any person found to have violated this Act 
or any rule or regulations promulgated thereunder is liable for a civil penalty 
of not more than two hundred fifty thousand pesos (PHP 250,000). 
              
SECTION14.  Violation of Order. – Any person found to have violated an 
order pursuant to this Act is liable to civil penalty not to exceed two hundred 
fifty thousand pesos (PHP 250,000) and an additional civil penalty of not more 
than five thousand pesos (PHP 5,000) for each day that the violation 
continues. 
 
SECTION 15.  Civil Action. –  Except as otherwise provided by law, the State 
or any person claiming to be aggrieved by a violation of this Act has a cause 
of action in any court of competent jurisdiction for damages, injunctive relief 
and such other remedies as may be appropriate. Such action may be brought 
by the aggrieved person or such person’s authorized representative. A 
prevailing plaintiff in any such action shall be entitled to an award of 
reasonable attorney’s fee, court costs and disbursements. Any claim alleging 
a violation of Section 4 shall be brought within two years of the date the 
person knew or should have known of the alleged violation. 
 
Notwithstanding the first paragraph of this section, no person claiming to be 
aggrieved by a violation of this Act may bring an action in court alleging such 
violation if that person, or the person’s designated representative, has filed a 
complaint with the Department pursuant to section 7,8, and 9 based upon 
the same conduct, unless the complaint has been terminated without 
prejudice to a subsequent civil action.  
 
The Commissioner and the corporation counsel each shall designate a 
representative authorized person to receive copies of civil complaints in 
actions commenced in whole or part pursuant to the first paragraph of this 
section, any plaintiff shall serve a copy upon such authorized representatives. 
Failure to so serve a complaint shall not bar or adversely affect any plaintiff’s 
cause of action. 
 


SECTION 16.  Penalty.  – Any person who knowingly and willfully violates 
the provisions of Section 5 shall be guilty of a misdemeanor punishable by a 
fine or not more than twenty-five thousand pesos (PHP 25,000.00), or by 
imprisonment for not more than three (3) months or by both. 
 
 
SECTION 17.  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. 
 
SECTION 18.  Effect on other Laws.  – The provisions of Section 16 and 17, 
but do not otherwise affect or replace any other basis of liability or 
requirement established by other existing laws. 
 
SECTION 19.  Coverage.  – This Act shall apply only to contracts or 
agreement entered into on or after the effectivity of this Act. 
 
SECTION 20.  Report.  – One year after the effectivity of this Act, and every 
second year thereafter, the Department Secretary shall submit a report to the 
Senate and House Committees of Labor, Employment, and Human Resource 
Development regarding the effectiveness of the provisions of this Act at 
improving freelance contracting and payment practices. The report shall 
include, at a minimum, how many complaints the Department has received 
pursuant to this Act, how many of such complaints were settled by mediation 
or conciliation, how many investigations of alleged violation of this Act the 
Department has issued. 
 
 
CHAPTER 4 
TAXATION 
 
SECTION 21. Taxpayer Registration. – All freelance workers as defined 
under this Act shall be required to register with the Bureau of Internal 
Revenue (BIR). 
 
SECTION 22. Taxpayer Service. – Every BIR Revenue District Office (RDO) 
shall have a lane or a special assistance desk dedicated to freelancers. This 
lane shall have an officer who shall assist freelancers in their application, 
registration, processing of documents, and other inquiries.  
  
SECTION 23. Filing and Payment.  – Except as otherwise provided for by 
law, all freelancers must pay their income taxes annually. 
 
 
CHAPTER V 
OTHER PROVISIONS 
 
SECTION 26. Implementing Rules and Regulations.  –  Within sixty (60) 
days from the effectivity of this Act, the Department of Labor and 
Employment, in coordination with the Bureau of Internal Revenue, and other 


relevant government agencies, shall promulgate the necessary rules and 
regulations for the implementation of this Act. 
 
 SECTION 27. Separability Clause. – Should any provision herein be 
declared unconstitutional, the same shall not affect the validity of other 
provisions of this Act.  
               
SECTION 28. Repealing Clause. – All laws, decrees, order, circulars, rules, 
and regulations or other issuances, or part of inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
  
SECTION 29. Effectivity. – This Act shall take effect fifteen (15) days after 
publications in the Official Gazette or in any two (2) newspapers of general 
circulation in the Philippines. 
 
Approved,