Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3216
Introduced by HON. BRIAN RAYMUND S. YAMSUAN 
AN ACT 
PROVIDING PROTECTION AND INCENTIVES TO FREELANCE WORKERS 
EXPLANATORY NOTE 
In recent years, particularly in the aftermath of the COVID-19 pandemic, the 
Philippines’ gig economy has expanded to comprise of 1.5 million freelancers1. These 
workers have turned to non-traditional labor arrangements out of necessity, flexibility, 
or opportunity. However, these arrangements have likewise exposed them to various 
vulnerabilities such as absence of written contracts, delayed payment of services, and 
other unlawful practices.  
Unfortunately, our laws have yet to keep up with the realities faced by freelance 
workers. Having been part of the gig economy myself, I have personally experienced 
the uncertainties that these alternative work arrangements entail. Through our music 
sessions and collaborative engagements with professionals in the music industry, we 
have gained first-hand experience working with freelance musicians. This experience 
has given us valuable insight into the challenges they face. In fact, a survey conducted 
by the Department of Science and Technology – National Research Council of the 
Philippines found that the majority of Filipino musicians are freelance artists who rely 
on income from non-music-related sources to sustain their daily needs.2 These 
challenges underscore the urgent need for legislation that provides both protection 
and incentives to freelance workers. 
In pursuit of the Constitutional mandate to “protect the rights of workers and promote 
their welfare”,3 this measure seeks to recognize the contributions of freelance workers 
by granting them rights, protections, and entitlements afforded to other members of 
the workforce. This is a step towards a more inclusive Philippine labor policy – one 
that reflects the realities of the evolving workforce and affirms the dignity of all forms 
of work. 
1 https://www.pids.gov.ph/details/news/in-the-news/the-filipino-online-freelancers-digital-workforce-of-
theworld#:~:text=The%20online%20freelancing%20sector%20has,to%20local%20and%20national%20economie
s. 
2 https://www.bworldonline.com/arts-and-leisure/2024/05/03/592401/over-half-of-filipinos-in-the-music-industry-
earn-less-than-p20000/ 
3 1987 Constitution, Article II, Section 18, 
August 6, 2025
12:42 pm


In view of the foregoing, the passage of this bill is earnestly sought. 
BRIAN RAYMUND YAMSUAN 
Representative 
2nd District of Parañaque 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3216 
Introduced by HON. BRIAN RAYMUND S. YAMSUAN 
AN ACT 
PROVIDING PROTECTION AND INCENTIVES TO FREELANCE WORKERS 
CHAPTER I  
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “Freelance Workers 
Protection Act of 2025.” 
SECTION 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. 
SECTION 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) Retaliation refers to any act reasonably likely to prevent a freelance worker from
further being offered freelance work and contracts.


 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
 
 


SECTION 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 or no provision 
on time of payment in the 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;  
(d) Make deductions from the compensation of the freelance worker, except in 
cases authorized under the law; or 
(e) 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. 
SECTION 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 
 
SECTION 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 
Bureau for Workers with Special Concerns, without prejudice to the filing of civil action 
in appropriate cases. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 18. Coverage. – This Act shall apply only to contracts or agreements 
entered into upon the effectivity of this Act. 
 


CHAPTER IV 
TAXATION 
 
SECTION 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.” 
 
SECTION 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 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 


SECTION 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. 
 
SECTION 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. 
 
SECTION 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,