Bill On Protection Of Freelance Worker’s Rights Filed

Four lawmakers have filed a bill in the House of Representatives that aims to protect the rights of freelance workers, as their numbers – estimated between 1.5 million to two million – are expected to grow even more in the digital era.

The filing of House Bill No. 3738 was spearheaded by Davao City Rep. Paolo Duterte, who was joined by Reps. Eric Yap (Benguet) and Edvic Yap and Jeffrey Soriano, both of party-list ACT-CIS.

“Freelancers mostly belong to what we now call the ‘gig economy’ and have risen in numbers especially during the pandemic. Despite contributing significantly to the country’s economic growth, they remain vulnerable to abuse and exploitation,” Duterte said.

“With their numbers expected to grow even more as we shift to a digital economy, we need an enabling law to protect their rights and welfare,” Duterte added.

The measure seeks to make written contracts mandatory in obtaining the services of freelancers, along with providing them with night differential and hazard pay when applicable.

The congressmen likewise acknowledged that the current number of freelancers is expected to grow exponentially as the country transitions to a digital economy.

The Philippines ranks sixth among countries with the fastest-growing market for freelancers, according to the 2019 Global Gig Economy Index of the financial services provider Payoneer.

Payoneer said this growth has contributed to a 35 percent rise in freelance earnings.

Independent estimates show that there are about 1.5 million to two million Filipino freelancers in the country.

Written contracts made mandatory under the bill in hiring freelancers shall include itemization of all services to be provided; details of compensation and other benefits, including rate, method and schedule of payment; period of employment; grounds for breach of contract on the part of both the hiring party and the freelancer, and tax identification number of the freelancer.

The bill also states that “no modification of the terms of the contract shall be enforceable unless signed by both the hiring party and the freelance worker.”

It also provides for the grant of night shift differential pay of not less than 10 percent of the freelance worker’s regular compensation for those who are required to be physically present in the workplace or those on field assignments.

The bill also encourages freelancers to register with the Bureau of Internal Revenue and file and pay taxes.

Complaints about any violation of the bill’s provisions may be filed with the Department of Labor and Employment through the undersecretary for workers with special concerns.

It is also unlawful to commit any form of retaliation arising from the acts of freelancers meant to protect their rights as workers.

These unlawful practices are penalized with a fine of not less than P50,000, but not more than P500,000 under the bill.

The top three freelance jobs Filipinos take are in sales and marketing (32 percent), customer service (21 percent), and data entry/internet research (20 percent), according to a joint survey done by Payoneer and mobile wallet GCash.

The rise of social media has also paved the way for freelancers in creative/media graphic design (seven percent), the survey results show.

Key issues and concerns that freelancers face include lack of company-sponsored benefits (37 percent), uncertainty about future income (29 percent) and isolation from working alone (23 percent).