NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
Senate
o( U)c :@>fcrp1.irp
*22 JUL-7 P3fl7
SENATE 
S. B. NO. 136
RtCEIVED BY;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
PROVIDING PROTECTION TO FREELANCERS 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is among the world’s fastest growing market for 
freelancers as more Filipinos resort to freelance arrangements. PayPal, a 
payment system company, noted that the Philippines has one of the highest 
freelancers of the 22 countries surveyed, at an estimated 1.5 million freelancers 
or persons engaged in the gig economy.1 This is not surprising as freelancing 
comes with certain advantages such as flexibility in work schedules, the 
convenience of working from home, and more time with family.
The number of freelancers in the country has also ballooned as the 
country continues to recover from the effects of the COVID-19 pandemic. At 
the height of the pandemic, many Filipinos lost their jobs as a result of the 
economic downturn brought about by the pandemic. Finding themselves 
without a nine to five job, these workers found new work, often online, through 
freelancing sites or online job postings.
Indeed, the emergence of digital or online freelancing has come at an 
opportune time as the country prepares for the 4th industrial revolution. All these 
have contributed to the prevalence of home-based creative workers, on- 
demand professional services, on-demand courier services, and many other 
types of freelance goods and services.
Before the pandemic, the Philippines ranked first among the fastest 
growing gig-economy markets in the world, with a remarkable 208% year-on-
1 Schnabel, C. (2018). Freelancing taking root in the Philippines 
https://rappler.com/business/freelancer-market-growing-philippines-paypal
study. Rappler. Retrieved from


year growth.2 Pre-pandemic, Forbes already forecasted that by 2027, the 
majority of the world’s workforce will be freelancers.3
As the numbers of freelance workers continue to increase, it has 
become more apparent that this new class of workers require protection 
through proper legislative enactments, with due regard to the special nature of 
their engagement (i.e., no formal employer-employee relationship), which 
makes them more prone to abuse and exploitation.
This bill aspires to address the gaps in our labor laws. This bill 
mandates the client and the freelance worker to enter into a written contract 
that specifies all the services that the freelance worker is expected to 
render, his/her compensation, as well as other relevant terms and 
conditions of the engagement. This bill also prohibits contract alterations, 
including the arbitrary reduction of fees.
In addition, this bill seeks to lay out the minimum rights of freelancers 
including right to just compensation, right to safe and healthy working 
conditions, right to self-organize and collectively bargain, and right to 
education and skills training, among others. Finally, this measure clearly 
delineates the roles of different government agencies (e.g., DOLE, DICT, 
TESDA, BIR and PhilHealth) to ensure that the rights of freelancers 
provided under the bill are realized.
The immediate passage of this bill is earnestly sought.
SENATOR JOEL VILLANUEVA>u
2 https://business.inquirer.net/332825/payoneer-the-worids-go-to-partner-for-digital-commerce- 
everywhere#:~:text=The%20Philippines%20ranked%201st%20among,only%2047%25%20in%20North%20America.
3 
Tayao-Juego, A. (2018). Freelancing alive and well in PH. Inquirer.net. Retrieved from 
https://business.inquirer.net/262675/freelancing-alive-and-well-in-ph


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
'.rd;i0| Senate
of flic *c:vftarp
■22 JUL-7 P3:07
SENATE 
S. B. NO. 13G
RECEIVED BY:
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
PROVIDING PROTECTION TO FREELANCERS 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. -
Protection Act."
This Act shall be known as the "Freelancers
SEC. 2. Declaration of Policy. - It is the policy of the State to promote gainful 
employment and decent work for all workers. Towards this end, the State shall 
provide a regulatory framework that guarantees full protection to all workers in 
new forms of work arrangements, such as freelance work, whether in-person 
or through online platforms or gig economy, which has grown exponentially with 
technological development, weakening labor rights and changing concepts of 
work and employer-employee relationship.
SEC. 3. Coverage. - This Act shall cover all freelancers, regardless of the 
profession, talent, skills, task, work or service required or to be rendered.
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall 
mean:
a) 
Client - refers to any foreign or Philippine-based person, company 
or entity, or platform provider who engages a freelancer to render specific 
task, work or service in-person or online;
b) 
Crowdwork - refers to online work through platforms that connect 
vast numbers of clients, organizations, and businesses, often across 
borders. It is performed online by an infinite number of workers for clients 
spread over large geograpt|ic distance;


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c) 
Freelance worker or freelancer - refers to any natural person who 
offers or renders a task, work or service through his or her freely chosen 
means or methods, free from any forms of economic 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;
d) 
Freelance work - refers to work that is infrequent, unpredictable 
and shortterm, and rendered in-person, online, or through any online web 
platforms, such as crowdwork, work on-demand or any digital lifestyle 
applications:
e) 
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, and training for one or several freelancers in 
the Philippines:
f) 
Work on-demand - refers to the platform-facilitated yet place- 
based and geographically limited work;
g) 
Written contract - refers to a document, whether electronic file or 
printed copy, reflecting the mutual consent of the parties to be bound by 
the terms and conditions of their freelance work engagement and the 
consideration for the services rendered by the freelancer.
SEC. 5. Contractual Relations. - The relationship between the client and the 
freelancer, absent proof of existence of employer-employee relationship, shall 
be governed primarily by applicable civil and commercial laws. In no case 
however, shall the terms and conditions thereof derogate 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.
SEC. 6. Rights of Freelancers. - The State shall accord to freelancers all the 
rights of workers guaranteed under the 1987 Philippine Constitution, applicable 
provisions of the Labor Code of the Philippines, as amended, and relevant 
international human rights instruments and international labor standards. For 
this purpose, the State shall ensure the formulation by concerned agencies of 
policies and programs for the free exercise of the following:
(a)
Right to a written contract or agreement;
(b) Right to just compensation and equal remuneration for work of 
equal value without manipulation or distinction of any kind;
(C)
Right to safe and healthy working conditions;


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(d) 
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 their own data, information and resources for the 
promotion and protection of their rights and welfare;
(h) 
Right to affordable and adequate financial services, including, 
among others, collateral-free and gender-balanced credit at low interest;
(i) 
Right to education and skills training;
0) Right to social protection and social welfare benefits; and
(k) Right to speedy redress of grievances, including alternative 
dispute resolution processes.
SEC. 7. Standards for Freelance Work. - The Department of Labor and 
Employment (DOLE) shall ensure:
a) Compliance with the written contract between the freelancer and 
the client, which shall be in a language understood by both parties. Each 
party to the contract shall retain a copy thereof, and shall include, at the 
minimum, the following;
1) Itemization of all work and/or services to be provided by the 
freelancer and the terms and conditions of the engagement;
2) The rate and method of compensation, date on which the client 
shall pay the compensation or the mechanism by which such due 
date shall be determined;
3) The name and registered address of the client, and 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.
In the absence of a written agreement, any written exchange or proof of 
submission and receipt of completed task, work or service subject of the


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freelance work engagement, whether electronic or printed, shall be 
sufficient basis for claim for compensation or payment against the client;
b) 
Registration of freelancers or freelancers’ association in the 
DOLE registry of freelancers and provide them with 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 welfare and in the advancement of their rights and 
interests, and to their representation and participation in policy and 
decision-making processes and social dialogue;
d) 
Observance of programs and policies on non-discrimination, 
absence of violence, sexual harassment, and abuse in freelance work 
environment;
e) 
Entering into bilateral or multilateral agreements with countries 
where online web platforms are registered or located for the protection 
and enforcement of Philippine freelancers’ rights.
SEC. 8. Right to access their own data and information. -- The Department 
of Information and Communications Technology (DICT) shall conduct trainings 
for online freelancers, and in coordination with the appropriate regulatory 
agency, such as the National Privacy Commission (NPC) and the Department 
of Trade and Industry (DTI), ensure that freelancers engaged with or through 
platform providers or online web platforms shall have access to their own data, 
information and resources for the promotion and protection of their rights and 
welfare.
SEC. 9. Right to affordable and adequate financial services. - The DTI and
other government financial institutions shall provide freelancers access to 
affordable and adequate financial services, including, among others, collateral- 
free and gender-balanced credit at low interest.
SEC. 10. Right to education and skills training. - The Technical Education 
and Skills Development Authority (TESDA) and other government agencies, 
such as the Department of Science and Technology (DOST), DTI and DICT 
shall provide training and certifications for upskiiling and entrepreneurial 
enhancement of freelancers.
SEC. 11. 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 
online registration and remittance process for freelancers as self-employed 
workers and provide easy access to members’ benefits such as sickness and 
unemployment benefits.


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SEC. 12. 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, 
and processing of documents, and other inquiries.
SEC. 13. Right to redress of grievances, including alternative dispute 
resolution processes. - The right of freelancers to seek redress for 
grievances and to avail of alternative dispute mechanisms in accordance with 
law shall be guaranteed. For this purpose, the DOLE shall conduct seminars 
on the legal recourses available to freelancers, and as far as practicable, 
encourage the parties to a freelance work agreement to avail of alternative 
dispute mechanisms.
SEC. 14. Payment; Burden of Proof. — Except as otherwise provided under 
the contract entered into by the parties, the agreed compensation shall be paid 
in full not later than thirty (30) days after the completion of the task, work or 
service subject of the freelance work engagement.
The burden of proving the payment of the compensation or consideration due 
to the freelancer as agreed under the contract shall rest on the client, upon 
proof of performance or completion of the job or service contracted.
SEC. 15. Prohibited Acts. - The following acts shall be prohibited under this 
Act:
a) 
Contract Alteration. Once performance of the work or service 
under the contract has commenced, no freelancer shall be required to 
accept less than the specified or agreed contract price, as a condition for 
the payment of the service or work rendered: Provided, That nothing 
herein precludes the parties from arriving at a settlement in good faith of 
a dispute arising out of or in connection with the contract or from agreeing 
to a modification of the contract in accordance with applicable ia ws.
b) 
Deduction. No deduction shall be made on the agreed contract 
price or compensation, unless the parties have agreed otherwise, or such 
deduction is on account of payment of applicable taxes.
c) 
Waiver. Except as otherwise provided by law, any provision of 
any contract entered into by a freelancer and a client purporting to waive 
any of the rights provided under this Act shall be void as against public 
policy.
Any person who commits any of the foregoing prohibited acts shall be meted a 
fine equivalent to up to three times the contract price or compensation agreed 
upon in the contract between the freelancer and the client.


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SEC. 16. Public Awareness Program. - The DOLE, DTI, DICT and other 
relevant agencies shall raise public awareness on the rights and welfare of 
freelancers. Information dissemination on the provisions of this Act, its 
implementing rules and regulations and capacity building on reasonable pricing 
of task, work or service, payment methods, entrepreneurship and career 
development in freelance work shall also be conducted.
SEC. 17. Prospective Application. - This Act shall apply to contracts or 
agreements entered into on or after the effectivity of this Act.
SEC. 18. Applicability to Freelancers In the Public Sector. - 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.
SEC. 19. 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.
SEC 20. 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.
SEC. 21. Repealing Clause. - All laws, decrees, resolutions, orders, or 
ordinances or parts thereof inconsistent with this Act are hereby repealed, 
amended or modified accordingly.
SEC. 22. 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,