Freelancers Protection Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P5:28 RECS: 3. SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT PROVIDING PROTECTION TO FREELANCERS AND FOR OTHER PURPOSES EXPLANATORY NOTE The Philippines is one of the world's fastest-growing markets for freelance work. According to the PayPal Global Freelancer Insights Report, an estimated 1.5 million Filipinos are actively engaged in the gig economy, positioning the country among the top ranks in freelance participation. 1 This trend is attributed to the increasing attractiveness of freelancing arrangements, which provide benefits such as flexibility, autonomy, remote work opportunities, and enhanced control over work-life balance. The COVID-19 pandemic accelerated this shift. As businesses closed and traditional employment opportunities dwindled, many displaced workers turned to freelance platforms and digital marketplaces to earn a livelihood. The post-pandemic landscape continues to see robust growth in freelance sectors such as digital marketing, software development, graphic design, virtual assistance, content creation, education, and logistics services. In fact, prior to the pandemic, the Philippines recorded a 208% year-on-year growth in its freelance market-ranking first globally in terms of expansion, according to Payoneer's Global Gig Economy Index (2019). 2 Pre-pandemic, Forbes already forecasted that by 2027, the majority of the world's workforce will be freelancers. 1 Rappler. Freelancing taking root in the Philippines - study. Published on 1 April 2018. Available at https://rappler.com/business/freelancer-market-growing-philippines-paypal (Accessed on 29 June 2025). 2 Inquirer.net. Payoneer: The world's go-to partner for digital commerce everywhere. Published on 20 October 2021. Available at https://business.inquirer.net/332825/payoneer-the-worlds-go-to-partner- for-digital-commerce-everywhere (Accessed on 29 June 2025).

Freelancing is also emerging as a vital component of the country's transition into the Fourth Industrial Revolution (4IR). As industries increasingly adopt digital technologies and automation, freelancing provides an agile and scalable workforce solution. It supports not only domestic innovation but also global competitiveness, with Filipino freelancers contributing services to clients across the world. Despite these promising developments, freelancers remain vulnerable to abuse, exploitation, and economic insecurity due to the absence of legal protections typically afforded to traditional employees. Because freelancers operate outside of the formal employer-employee relationship, they are often denied basic rights such as guaranteed compensation, protection from arbitrary contract changes, access to benefits, and avenues for redress in cases of contract violations or non- payment. This bill, therefore, seeks to establish a comprehensive legal framework that recognizes the unique nature of freelance work while ensuring protection for this growing sector of the workforce. Among its key features are: (1) Requiring written contracts that detail scope of work, compensation, timelines, and terms; (2) Prohibiting unfair practices such as unilateral contract changes or fee reductions; (3) Guaranteeing basic rights, including just compensation and timely payment, safe and healthy working conditions, freedom of association and collective bargaining, and access to skills training and digital upskilling; and (4) Clearly defining the responsibilities of relevant government agencies to support and enforce these protections. This proposed measure is aligned with international labor standards set by the International Labour Organization (ILO), which underscores the need to protect all forms of work, including atypical and platform-based employment. Countries such as the United States of America, United Kingdom, and those within the European Union have already begun enacting similar protections in response to the global rise of the freelance and gig economy. In light of these considerations, the Freelancers Protection Act is not merely a response to present challenges, but a forward-looking initiative to future-proof the Philippine labor market. It promotes a more inclusive, resilient, and equitable workforce by acknowledging the legitimate role of freelancers in nation-building and economic development. The immediate passage of this bill is therefore earnestly sought. JOEL VILLANUEVA #

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL -2 P5:28 First Regular Session RECa. SENATE Senate Bill No. 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:

SECTION 1. Short Title. - This Act shall be known as the "Freelancers

Protection Act."

SEC. 2. Declaration of Policy. - It is the policy of the State to promote

4 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. - For purposes of this Act, the following

terms are hereby defined as follows: 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 geographic distance; 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 short term, 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; and 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

1 provisions of the Labor Code of the Philippines, as amended, and relevant 2 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; 6 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; 9 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; 9) 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; Right to education and skills training; 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 freelance work engagement, whether electronic or printed, shall be sufficient basis for claim for compensation or payment against the client; 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

DI and other government financial institutions shall provide freelancers access to 7 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 upskilling 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.

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 laws. 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.

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

1 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, NPC, 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 a newspapers of general circulation. Approved,