Protektadong Online Workers, Entrepreneurs, Riders at Raketera (Powerr) Act of 2025

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -7 P12:04 SENATE S.B. No._ 213 INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT REGULATING WORK MEDIATED, ORGANIZED, OR ALLOCATED THROUG ONLINE PLATFORMS FOR THE PROTECTION OF PHILIPPINE WORKERS IN THE GIG ECONOMY EXPLANATORY NOTE The so-called "Gig Economy" commonly refers to work mediated, organized, or allocated through an online platform, the objective of which is to contract out the automated monitoring, supervision, evaluation, and decision-making. This encompasses both purely digital work performed remotely, such as virtual assistance, content creation, and software development, and services involving physical presence, such as ride-hailing and food delivery, provided that these services are mediated, organized, or allocated through the algorithmic platforms described in this bill. In the Philippines, a large number of workers moved to platform or gig economy work during the height of the COVID-19 pandemic. In 2020, this led to revenues of USD 625 M for the ride-hailing sector and USD 1.2 B in gross sales for food delivery businesses. However, because gig economy workers are commonly classified as independent contractors or self-employed by online platform providers, they have struggled to access social protection programs and other benefits guaranteed by law to regular employees. Moreover, work conditions in the gig economy are oftentimes precarious, making workers in this sector often adversely and disproportionately affected by economic shocks and the uncertain regulatory environment. Filipino gig workers also face unique and escalating challenges. Their often- informal status means they lack traditional social safety nets, contributing to inherent financial precarity. This vulnerability has been exacerbated by the recent imposition of a 12% Value-Added Tax (VAT) on proprietary digital services, which directly increases the operational costs for essential tools such as Adobe Creative Cloud,

Notion, Canva Pro, and Zoom, representing a significant setback for these workers. Compounding this, the accelerating pace of skill obsolescence, particularly for "low- level skill sets" increasingly vulnerable to automation and displacement by Artificial Intelligence (AI), necessitates continuous re-skilling and upskilling. This creates acute cash flow problems for workers already financially constrained, hindering their ability to adapt and remain competitive. Thus, in accordance with the Constitutional mandate of the government to afford protection to labor, promote full employment, and regulate the relations between workers and employers, there is an urgent need to establish clear and comprehensive regulatory standards to ensure that workers performing services mediated or organized by way of digital labor platforms are provided with access to social protection programs; treated in a fair, transparent, and non-discriminatory manner; and allowed to freely exercise all of the rights guaranteed by the Constitution and applicable law, regardless of their employment status. This proposed legislation also seeks to address these critical barriers by mandating the Technical Education and Skills Development Authority (TESDA) to provide essential tech stacks, including software licenses and access to relevant digital platforms. This provision will enable gig workers to engage in the discovery of new career opportunities and business models at a significantly reduced personal risk. Drawing parallels with TESDA's successful Dual Training System (DTS) and other enterprise-based training initiatives, which integrate learning with practical work experience, this Act introduces a "follow the learner into the workspace" model. Extending this approach to the digital workspace will allow TESDA to better understand the career paths of people in the international digital gig economy, an area where current knowledge is limited and rapidly becoming obsolete. This unique mechanism will enable TESDA to gather crucial, real-time labor market intelligence on effective training modalities, optimal tech stack combinations, and cost-effective support systems. The tech stack subsidy framework proposed herein is temporary and discovery- focused, designed to decrease over time as workers gain sustainable income and are able to invest in their own tools, thereby promoting self-sufficiency and prudent resource allocation. Furthermore, the Act mandates the establishment of a dedicated digital platform within TESDA to accelerate the uptake of new skills and business models through the systematic sharing of innovations and best practices derived from pilot programs and the "follow the learner" initiative. This comprehensive approact ensures that TESDA remains at the forefront of preparing the Filipino workforce fo In view of the foregoing, the passage of this bill is earnestly sought. RISA HONTIVEROS Senator

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -7 P12:05 SENATE S.B. No._ 213 KIT" INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT REGULATING WORK MEDIATED, ORGANIZED, OR ALLOCATED THROUGH ONLINE PLATFORMS FOR THE PROTECTION OF PHILIPPINE WORKERS IN THE GIG ECONOMY Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Protektadong Online

Workers, Entrepreneurs, Riders at Raketera ("POWERR") Act of 2025."

Sec. 2. Declaration of Policy. - It is the policy of the state to afford protection to

4 labor, promote full employment, and regulate the relations between workers and 5 employers. Towards this end, the State shall establish clear and comprehensive 6 regulatory standards to ensure that workers performing services mediated, organized, 7 or allocated by way of digital labor platforms are provided with access to social protection programs; treated in a fair, transparent, and non-discriminatory manner; and allowed to freely exercise all of the rights guaranteed by the Constitution and applicable law, regardless of their employment status.

Sec. 3. Coverage. - This Act shall cover workers performing platform work, or

12 services within the Philippines mediated, organized, or allocated through the use of online platforms, regardless of their employment status.

Sec. 4, Definition of Terms. - As used in this Act, the following terms shall be

defined as follows: (A) The term "Online Platform" shall refer to a digital service that facilitates interactions between two or more distinct but interdependent sets of

users, whether persons or juridical entities, who interact through the service by way of the Internet (B) The term "Platform Work" shall refer to paid work mediated, organized, or allocated through an Online Platform, involving three parties, namely the online platform provider, the end-user or customer, and the worker, the objective of which is to contract out the performance, on demand, of specific services. (C) The term "Online Platform Provider" shall refer to the person or juridical entity who owns, manages, or operates an Online Platform that mediates, organizes, or allocates the performance of specific services within the Philippines for end-users or customers. (D) The term "Online Platform Worker" shall refer to workers performing specific services mediated, organized, or allocated by an Online Platform, regardless of employment status under Philippine law. (E) The term "Algorithmic Management System" shall refer to technological tools and techniques used to remotely manage workers, relying on data collection and surveillance to enable automated or semi-automated monitoring, supervision, evaluation, and decision-making.

Sec. 5. Determination of Employment Status. - Pursuant to this Act, the

Department of Labor and Employment ("DOLE") shall issue rules for the purpose of ensuring that Online Platform Workers who would otherwise be classified as regular employees under Philippine law, are not misclassified as independent contractors, self- employed, or any other classification falling outside the ambit of an employer- employee relationship. For this purpose, the correct determination of the employment status should be guided primarily by the facts relating to the actual performance of work, and not by how the relationship between the Online Platform Worker and Online Platform Provider is contractually defined, taking the following circumstances into account: the selection and engagement of the employee; the payment of wages and other benefits; the power of dismissal; and the power to control the employee's conduct as to both the end achieved and the manner and means used to achieve that end.

Sec. 6. Regulatory Standards for Online Platform Workers, - The State shall

ensure that the following regulatory standards are observed vis-à-vis the services performed by Online Platform Workers: (A) Written Agreement. The agreements between the Online Platform Worker and the Online Platform Provider shall specify, at the minimum, a description of the specific services to be performed by the Online Platform Worker as well as the other terms and conditions of the engagement; the rate and method of compensation; and the name and registered address of the Online Platform Provider or, in the case of a foreign Online Platform Provider, the name and address of its local representative. In the absence of a written agreement, any written exchange or proof of submission and receipt of completed services, whether electronic or printed, shall be sufficient basis for claiming compensation or any other form of redress. Any provision purporting to waive any of the rights provided under this Act shall be void as against public policy. Online Platform Providers shall publish through their webpages and apps, or otherwise make available to the public, the full text of all current and previous written agreements entered into with Online Platform Workers. (B) Equitable Compensation. Online Platform Workers shall be entitled to compensation not less than the minimum wage provided under Philippine law, computed on an hourly or per-task basis, considering the specific services mediated, organized or allocated by the Online Platform Provider, as well as the depreciation of any equipment owned by the Online Platform Worker used in the performance of said services. If the rate or price for the specific service to be performed is regulated by a government agency, said agency shall ensure that these rates or prices are set or updated in a timely manner for the purpose of ensuring that Online Platform Workers are equitably compensated. Once performance of the service has commenced, no Online Platform Worker 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. 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 or social protection program contributions. (C) Transparency in the Use of Algorithmic Management Systems. Online Platform Providers shall provide adequate written or published notice to the Online Platform Workers performing the services organized, mediated, or allocated by their Online Platforms of the use and key features of their Algorithmic Management Systems, including information on the automated monitoring systems used to monitor, supervise or evaluate their work performance, and the automated decision-making systems used to take or support decisions significantly affecting their working conditions. The information to be provided shall include the categories of actions monitored, supervised and evaluated, and the main parameters that such systems take into account for automated decisions. The operation of Algorithmic Management Systems shall be placed under human oversight and supervision in such a way as to ensure that they do not put undue pressure on Online Platform Workers, or otherwise put their physical and mental health at risk. In accordance with applicable law, Online Platform Workers shall also have the right to request a copy of any stored or retained data related to the worker's engagement with the Online Platform Provider. For regulatory purposes, Online Platform Providers shall store or retain the data produced or processed by their Algorithmic Management Systems for a period of at least five (5) years, and provide the government with access to, and copies of, said data upon request. (D) Due Process. Online Platform Workers shall have the right to information related to any decision or action taken by an Online Platform Provider, whether or not taken or supported by an Algorithmic Management System, affecting their continued engagement with the Online Platform Provider or their working conditions. For this purpose, the Online Platform Provider shall provide Online Platform Workers with the opportunity to clarify the facts, circumstances, and reasons for such

decisions with a human contact person. The Online Platform Provider shall also provide the Online Platform Worker with a written statement of the basis for any decision to restrict, suspend or terminate the worker's engagement, refuse compensation for services or performed, or affect the worker's contractual status. Any dispute arising under this Act shall be cognizable by the DOLE, which shall promulgate the rules and regulations necessary therefor. Online Platform Workers filing complaints pursuant to this Act shall be provided with immediate protection against adverse treatment or discrimination from the Online Platform Providers involved. (E) Portability of Social Protection Programs. Online Platform Providers shall ensure that Online Platform Workers are enrolled with the Philippine Health Insurance Corporation (PhilHealth"), Social Security System ("SSS"), Home Development Mutual Fund ("Pag-IBIG"), and all other applicable social protection programs managed or administered by the government. For this purpose, in accordance with the rules promulgated to implement this Act, a portion of each amount collected by an Online Platform Provider shall be used to pay the social protection program contributions of the Online Platform Worker performing the services involved. The government agencies and instrumentalities administering or managing the relevant public social protection programs shall ensure that these amounts are credited to the proper Online Platform Worker, whatever Online Platform the said amounts may have been sourced from. (F) Right to Organize. Online Platform Workers shall have the right to self- organization, to collectively bargain and negotiate with Online Platform Providers, and to engage in peaceful concerted activities. Online Platform Providers shall not discriminate, or take any adverse action against, Online Platform Workers for exercising these rights, or any of the other rights provided in this Act. Organizations of Online Platform Workers, including unions, cooperatives, social and solidarity economic units, shall have the right to freely function and act as the

representatives of their members in policy and decision-making processes, collective negotiations, and other similar bodies and processes in the context of tripartism, as well as establish, join or affiliate with local unions, national and international federations and organizations as a protected and supported right. (G) Occupation Safety and Health Standards. Online Platform Providers shall ensure that the performance of the services organized, mediated, or allocated by their online platforms does not put the safety and health of the Online Platform Workers performing these services at risk. Online Platform Providers shall be liable in the concept of an employer for injuries sustained by Online Platform Workers arising from the performance of above-described services. (H) Non-discrimination. Discrimination, particularly in the recruitment and selection of workers and the granting of emoluments and benefits, on the sole basis of religion, race, color, marital status, age, disability, sexual orientation, gender identity and expression shall be prohibited; Provided, that any distinction, exclusion or preference in respect of a particular job based on the inherent requirements shall not be deemed to be discrimination; Provided further, that a maternity benefit shall be provided to female Online Platform Workers upon childbirth in a manner and amount determined by the SSS pursuant to paragraph C of this Section. CHAPTER III SKILLS DEVELOPMENT AND DIGITAL EMPOWERMENT FOR ONLINE PLATFORM WORKERS

Sec. 7. Definition of Terms for this Chapter. As used in this Chapter:

(A) The term "Tech Stacks" shall refer to a collection of essential digital tools, software applications, and platforms, including proprietary software licenses, access to premium features on relevant digital platforms, and specialized digital learning resources necessary for Online Platform Workers

to perform their tasks, enhance productivity, and adapt to evolving technological demands. (B) The term "Discovery Period" shall refer to a defined timeframe during which an Online Platform Worker explores various digital business models and identifies viable income streams with reduced financial risk, supported by subsidized tech stacks. (C) The term "Innovation Voucher" shall refer to a financial mechanism, akin to a credit or grant, provided to individual Online Platform Workers to procure specific tech stacks or related digital services, designed to encourage technology adoption and innovation. (D) The term "Trainee" refers to any individual enrolled in or having recently completed a technical-vocational education and training program under the supervision of TESDA.

Sec. 8. Mandate for TESDA to Provide Tech Stacks. The Technical Education

and Skills Development Authority (TESDA) is hereby mandated to identify, procure, and provide access to essential Tech Stacks for its Trainees, with a particular focus on 17 those pursuing careers in the Digital Gig Economy. This provision shall include, but 18 not be limited to, licenses for proprietary software, access to premium features on 19 relevant digital platforms, and other necessary digital learning resources. The selection 20 of Tech Stacks shall be based on criteria emphasizing industry relevance, market demand, and the integration of Artificial Intelligence (AI) capabilities to ensure future- proofing of skills.

Sec. 9. The "Follow the Learner into the Workspace" Program. A

comprehensive program, to be known as the "Follow the Learner into the Workspace" Program, is hereby established. Under this program, TESDA's support and monitoring shall extend beyond traditional training venues into the actual digital workspace of Online Platform Workers. TESDA shall establish mechanisms for systematic monitoring of Tech Stack usage, career progression, income generation, and skill application in real-world gig projects. The data collected and analyzed through this program shall generate real-time labor market intelligence on effective training modalities, successful Tech Stack combinations, and cost-effective support systems in the international

1 Digital Gig Economy. TESDA shall periodically report on these findings to relevant 2 government bodies to inform policy and program adjustments.

Sec. 10, Tech Stack Subsidy Framework. A tiered, temporary, and decreasing

4 tech stack subsidy framework shall be established to support the initial "discovery of 5 gigs at low risk" for Online Platform Workers. TESDA shall develop detailed guidelines 6 specifying clear eligibility criteria for different subsidy levels, including initial Trainees, 7 those in a defined Discovery Period, and those demonstrating consistent income growth. The subsidy shall not provide lifetime access but shall cover a defined period 9 when new technology emerges or new types of gigs become available, assisting workers in discovering viable business models. The subsidy shall decrease over time as workers gain sustainable income and are able to invest in their own tools, promoting 12 a transition to self-investment. TESDA is authorized to implement an "Innovation 13 Voucher' or similar credit-based system as a mechanism for subsidy delivery.

Sec. 11, Innovation Sharing Platform. A dedicated digital platform shall be

15 established and maintained within TESDA. The platform's purpose shall be to facilitate 16 the sharing of innovations, best practices, successful gig business models, and insights derived from the "Follow the Learner into the Workspace" Program and other pilot initiatives. This platform shall promote peer-to-peer learning, collaboration, and the accelerated uptake of new skills and business models among Online Platform Workers and TESDA stakeholders. Sec, 12, Funding. Such sums as may be necessary for the effective implementation of this Act shall be included in the annual General Appropriations Act. TESDA is authorized to seek and accept grants, donations, and other forms of assistance from local and international sources, subject to existing laws and regulations.

Sec. 13, Construction in Favor of Online Platform Workers. - All doubts in the

implementation of this Act, including its implementing rules and regulations, as well as in contracts between the Online Platform Workers and the Online Platform Providers, shall be resolved in favor of the Online Platform Workers. Sec, 14, Application of the Labor Code. - The provisions of the Labor Code, particularly on general labor standards and occupational safety and health standards,

1 shall apply to work arrangements under this Code. Other provisions of the Code shall 2 : apply in suppletory manner where applicable.

Sec. 15. Implementing Rules and Regulations. - Within sixty (60) days from the

4 effectivity of this Act, the DOLE, Department of Information and Communications 5 Technology, and Department of Transportation shall promulgate the implementing rules and regulations as may be necessary to carry out the provisions of this Act. 7 TESDA, in consultation with relevant government agencies, including the Department 8 of Information and Communications Technology (DICT), Department of Trade and Industry (DTI), Department of Labor and Employment (DOLE), and the Bureau of Internal Revenue (BIR), as well as private sector stakeholders such as gig platforms, tech providers, and freelancer associations, shall promulgate the comprehensive Implementing Rules and Regulations (IRR) necessary for the effective implementation 13 of this Act, particularly for Chapter III.

Sec. 16. Separability Clause. - If any provision of this Act or the application

15 thereof to any person or circumstance is declared invalid or unconstitutional, the other 16 provisions or sections of this Act and the application of such provision or section to 17 other persons or circumstances, not affected thereby shall continue to be in full force and effect.

Sec. 17. Repealing Clause. - All laws, presidential decrees or issuances,

executive orders, letters of instruction, administrative orders, rules or regulations contrary to or inconsistent with the provisions of this Act are hereby repealed, modified or amended accordingly.

Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,