Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
19th CONGRESS
HOUSE BILL NO. ___
Introduced by Congresswoman Bernadette “BH” Herrera
AN ACT
PROVIDING PROTECTION TO FREELANCERS
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
It is beyond dispute that the lockdowns owing to the COVID 19 pandemic caused the
country’s economy to regress. Once again, the media romanticized the resiliency of
Filipinos during such difficult times.
The common working-class Filipino found himself or herself in difficult times when their
families did not have enough food, and thousands more found themselves unemployed.
Enterprises, big and small, suffered losses, and a good number either closed or
reduced the number of their work force.
As Filipinos relied on their abilities and skills more than in the ability of businesses to
thrive, the number of freelancers also increased. It has been reported that in Financial
Services Company “Payoneer’s Global Gig Economy Index 2019, the Philippines
landed in sixth place as the fastest-growing market in the world, with a 35% growth in
freelance earnings.”1 With mobility restrictions and loss of job security brought about by
the pandemic, Filipinos turned to freelancing. Freelancing gave workers advantages
such as flexibility in work schedules, reduced day to day expenses, and more time to
allot for other responsibilities at home or for family.
More particularly, the type of freelancing that emerged and rose in number are those
that came in digital or online platforms. The “new normal” has also spurred the demand
for goods and services supplied or accessed online. Accordingly, Forbes reported in
early 2022 that the freelancing revolution has just started.2
Thus, as the population of Filipino freelance workers continue to grow in this Bagong
Henerasyon, there is an urgent need to protect the interest and well-being of freelance
workers through legislative enactments considering tha the informal nature of work
arrangement does not totally insulate workers from any possibility of abuse or
exploitation.
Consequently, the objective of the bill is to give the right amount of protection for
freelance
workers
without
sacrificing
their
opportunity
to
secure
projects
or
engagements according to their preferences or needs. This bill aims to prohibit arbitrary
diminution of pay or fees, and lays out the minimum rights of freelancers.
The rights of freelance workers under the proposed measure include the right to just
compensation, and the right to safe and healthy working conditions, among others. In
2
www.forbes.com, 1 February 2022, by Jon Younger.
1
https://www.adobomagazine.com/insight/insight-philippines-freelance-market-2022, 19 August 2022.
5:56 pm
September 19, 2022
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addition, the bill also calls on the participation of key government agencies in the
implementation of the proposed law and the realization of its aims.
In view of the foregoing, the timely passage of this bill is earnestly sought.
BERNADETTE HERRERA
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. __
AN ACT
PROVIDING PROTECTION TO FREELANCERS
AND FOR OTHER PURPOSES
Be it enacted by the House of the Representative of the Philippines in Congress
assembled:
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 afford full protection
to labor, local and overseas, organized, and unorganized. The State shall guarantee the
rights of all workers to humane conditions of work, and a living wage.3 In light of the
State’s commitment to giving high priority to social justice and human rights, the
promotion
of
social
justice
shall
include
the
commitment
to
create economic
opportunities based on freedom of initiative and self-reliance.4 The State then shall
afford workers a framework in law and regulation to guarantee full protection to all
workers in forms of work engagements other than regular employment, like freelance
work, whether onsite or through online digital settings.
SECTION 3. Coverage. – This Act shall cover all freelancers in the private sector,
regardless of the work or service for which the freelancer is engaged, irrespective of all
the other conditions of his or her engagement. The Civil Service Commission shall issue
the appropriate rules and regulations applicable to freelancers in the public sector to
ensure compliance with the rights and privileges granted to freelancers under this Act,
subject to applicable laws, rules and regulations governing workers in the public sector.
SECTION 4. Definition of Terms. – As used in this Act, the following terms shall mean:
a)
Client – refers to any person or entity, juridical or individual, foreign, or
domestic, onsite, or digital platform provider who engages a freelancer to
render work, task, or services.
b)
Freelance worker or freelancer - refers to any natural person who offers or
renders work or service, or produces output for the client, through his or
her freely chosen means or methods, free from any forms of financial
dependence, control, or supervision by the client, regardless of whether
he or she is paid by results, piece, task, hour, day, job or by the nature of
the services required.
c)
Freelance work - refers to work that is not covered by regular employment,
may be infrequent or at regular intervals, unpredictable, for a short term,
or for long term, provided that the freelancer has agreed to the terms
offered by the client, whether rendered onsite, on the field, online, or
4
Section 2, Article XIII on Social Justice and Human Rights of the 1987 Philippine Constitution.
3
See Section 3, Article XIII on Social Justice and Human Rights of the 1987 Philippine Constitution.
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through any online web platforms or digital applications, whether secured
by the freelancer on his or her own, or through a Platform provider.
d)
Platform provider - refers to any foreign or Philippine-based online web
platform provider that connects workers with the consumer of work and
facilitate the exchange of goods and services for money such as
crowdwork, work on-demand or any digital lifestyle applications, that
provides
facilities, accounts, work opportunities for one or several
freelancers in the Philippines.
e)
Work on-demand - refers to the platform-facilitated yet place- based and
geographically limited work.
SECTION 5. Minimum Standards. –In no case shall the terms and conditions of the
arrangement or relations between Client and the Freelancer diminish or downgrade the
rights of workers guaranteed by the Philippine Constitution or be lower than the
minimum standards provided by the Labor Code of the Philippines, as amended, or by
industry standards and international labor standards.
SECTION 6. Rights of Freelancers. – The rights of Freelancers are as follows:
(a)
The right to a written contract or agreement. In the absence of a written
contract, or notwithstanding any informal arrangement without a written
contract, the Freelancer is still entitled to his or her minimum rights under this
Act.
(b)
Right to just compensation for work of equal value without manipulation or
distinction of any kind.
(c)
Right to safe, healthy, just, and humane working conditions.
(d)
At the election of the Freelancer, the right to self-organization and to
collectively negotiate with the government, the client, and other entities for
the promotion of their welfare and in the advancement of their rights and
interests.
(e)
Right to be free from any form of discrimination, violence, sexual harassment,
and abuse.
(f)
Right to representation and participation in policy and decision-making
processes and social dialogue.
(g)
Right to access or demand access from the Client, or the Platform Provider,
for their own data, information and resources for the promotion and
protection of their rights and welfare.
(i)
At the election of the Freelancer, right to education and skills training that
may or may not be provided by the Client or Platform Provider.
(j)
The right to social protection and social welfare benefits, subject to an
equitable arrangement with the Client when it came to contributions for
coverage. In this regard, the Freelancer, also has the right to elect to apply
his or herself as an “independent” or “voluntary” contributor or member,
irrespective of the Client’s participation.
(k)
Right
to
speedy
redress
of
grievances,
including
alternative
dispute
resolution processes.


SECTION 7. Standards for Freelance Work. – The Department of Labor and
Employment (DOLE) shall formulate rules, regulations, and guidelines to ensure:
a) Compliance and observance of the terms and conditions of the written contract
between the freelancer and the client. The contract shall contain, at the
minimum, the following:
1)
Itemization of all work, services, or output to be provided by and
expected of the freelancer, and the terms and conditions of the
engagement.
2)
The compensation, rate, date, and frequency on which the client shall
pay
the
compensation,
or
any
other
conditions
for
the
said
compensation or fee to be due.
3)
The name and registered address of the freelancer, and the client. In
the case of a foreign or foreign-based entity, the name and address of
the
local
agent
or
representative,
or
any
duly
acknowledged
representative based in the Philippines; and
4)
Any other terms and conditions that govern the performance of the
mutual obligations of the parties that are not contrary to law, morals,
good customs, public order, or public policy. Should the Freelancer be
amenable to, or propose, mutually accepted terms and conditions that
will allow him or her to work for other clients, the same shall be
honored, provided that the terms have been freely and voluntarily
accepted and agreed to by the Freelancer with full information disclosed
to both parties.
Despite the absence of a written agreement, any written exchange or proof of
submission, transmittal, or receipt of completed task, work, service, or output,
subject of the freelance work engagement, whether electronic or printed, shall be
sufficient basis for claim for compensation or payment against the client.
b) The maintenance of a Registry of Freelancers and Clients or Platform
Providers; and provision to Freelancers of labor market interventions and
assistance. Provided, that registration with the DOLE shall not be construed as
a requirement to be able to engage as a Freelancer.
c) Free exercise of freelancers’ right to self-organization and to collectively
negotiate with the government, the client, and other entities for the promotion of
their rights and welfare, and to their representation and participation in policy
and decision-making processes and dialogue.
d) Upholding programs and policies on non-discrimination, absence of violence,
anti-sexual harassment, and anti-abuse in freelance work arrangements.
e) Giving support to the Philippine government in entering bilateral or multilateral
agreements with countries where online web platforms are registered or located
for the protection and enforcement of Philippine Freelancers’ rights.
SECTION 8. Right to Access Their Own Data and Information. – The Department of
Information and Communications Technology (DICT), in coordination with the National
Privacy Commission (NPC), and the Department of Trade and Industry (DTI) shall
conduct trainings for online freelancers and ensure that freelancers engaged with or


through platform providers or online web platforms shall have access to their own data,
information and resources at all times.
SECTION 9. Right to Education and Skills Training. – The Technical Education and
Skills Development Authority (TESDA), the Department of Science and Technology
(DOST), DTI, DICT, that may be in partnership with the private sector, shall provide
training and certifications for knowledge and skills transfer or upgrade to freelancers.
SECTION 10. Right to Social Protection and Social Welfare Benefits. – The Social
Security System, Philippine Health Insurance Corporation (PhilHealth) and Home
Development Mutual Fund (HDMF) shall ensure a simplified and accessible online
registration and remittance process for freelancers as self-employed, voluntary, or
independent workers, and provide easy access to members’ benefits that are available
to employed members or workers, such as sickness.
SECTION 11. Right to Simplified Tax Registration, Filing and Payment system. –
The Bureau of Internal Revenue (BIR) shall simplify and automate the registration
process and minimize the requirements for the registration of freelancers. The BIR shall
also further enhance the online filing of tax returns and payment of appropriate taxes,
including online submission of requirements. It shall also provide assistance to
freelancers in their application, registration, submission, and processing of documents,
filing of tax returns, payment of taxes, and other inquiries.
SECTION 12. Right to Redress Of Grievances, including Alternative Dispute
Resolution Processes. – The freelancers have the right to seek redress for grievances
and to avail of alternative dispute resolution mechanisms in accordance with law. For
this purpose, the DOLE shall conduct seminars on such dispute resolution recourses
available to freelancers and encourage the parties to a freelance work agreement to
avail of alternative dispute mechanisms.
SECTION 13. Timing of Payment – Except as otherwise provided under the contract
entered by the parties, the agreed compensation shall be paid in full not later than ten
(10) days after the completion of the task, work or service subject of the freelance work
engagement, or for that specific monthly period.
The burden of proving the payment of the compensation due to the freelancer for
completed work, or for work rendered for a specific period as agreed upon by the
parties, shall rest on the client.
SECTION 14. Prohibited Acts. – The following acts shall be prohibited under this Act:
a)
Contract Alteration or Diminution of Compensation. The Freelancer shall not
be required to accept less than the specified or agreed contract price.
Provided, that nothing herein precludes the parties from arriving at a
settlement in good faith arising out of or in connection with the contract or
work arrangement, from agreeing to a modification of the contract in mutual
terms.
b)
Deduction. No deduction shall be made on the agreed contract price or
compensation, unless the parties have agreed otherwise in writing, or the
Freelancer has consented to such deduction in writing, or such deduction is
on account of payment of applicable taxes.
Any person who commits any of the foregoing prohibited acts shall be penalized with a
fine equivalent to up to three times the contract price or compensation agreed upon in
the contract between the freelancer and the client. 


SECTION 15. Implementing Rules and Regulations. – Within sixty (60) days from the
effectivity of this Act, the DOLE, DTI, DICT, DOST, TESDA, DOTr, upon consultation
with the BIR, SSS, PhilHealth and HDMF, and other relevant agencies and sectors,
shall promulgate the implementing rules and regulations as may be necessary to carry
out the provisions of this Act.
SECTION
16.
Separability
Clause.
–
If
any
part of this Act shall be held
unconstitutional or invalid, other parts not otherwise affected thereby shall remain in
force and effect.
SECTION 17. Repealing Clause. – All laws, decrees, resolutions orders, or ordinances
or parts thereof inconsistent with this Act are hereby repealed, amended, or modified
accordingly.
SECTION 18. Effectivity. – This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.
Approved,