THE House of Representatives has approved on third and final reading a measure that provides protection and relief to over 1.5 million Filipino freelance workers who may fall prey to abusive employers due to a lack of a grievance system in the digital economy.
With an overwhelming 250 votes, the chamber passed House Bill (HB) No. 6718 or the “Freelance Workers Protection Act,” which also mandates the institutionalization of benefits such as night differential and hazard pay for freelance workers whenever they are applicable.
“As the digital economy expands, the number of Filipino freelance workers also increases. And if no laws are in place to protect our gig economy freelancers or to establish a formal grievance system to enforce their rights, they will be susceptible to all kinds of abuse,” Speaker Ferdinand Martin G. Romualdez said. “This is the reason a majority of lawmakers in the House threw their support behind this measure. As a sector with an exploding growth spurt in the coming years, they need protective cover under our laws to ensure their transition as a significant driver of our economy,” Speaker Romualdez added.
Freelance workers in the Philippines account for over 1.5 million people working in the gig economy. HB 6718 defines a freelance worker as any natural person or entity composed of no more than one natural person, whether incorporated under the Securities and Exchange Commission, registered as a sole proprietorship under the Department of Trade and Industry (DTI) or registered as self-employed with the Bureau of Internal Revenue (BIR).
This person must be “hired or retained to provide services, in exchange for compensation, as an independent contractor to do work according to one’s own methods and without being subjected to the control of the hiring party, except only as to the results of the work.”
The measure mandates that a written contract be executed by any hiring party with the freelance worker that contains the extent of the services retained or obtained and important details such as the amount of compensation and the schedule of payment.
“No modification of the terms of the contract shall be enforceable unless signed by both the hiring party and the freelance worker,” the bill read.
Also, the measure listed down unlawful practices such as engaging a freelance worker without a contract or payment of compensation later than 15 days after the date stipulated by both parties.
These unlawful practices carry a fine of not less than P50,000 but not more than P500,000.
“Any person or such person’s authorized representative aggrieved by a violation of this Act may file a complaint with the DoLE, through the Undersecretary for Workers with Special Concerns, without prejudice to the filing of civil action in appropriate cases,” HB 6718 read.
The principal authors of the measure are Reps. Christopher V.P. De Venecia, Luis Raymund “Lray” F. Villafuerte Jr., Miguel Luis R. Villafuerte, Tsuyoshi Anthony G. Horibata, Nicolas C. Enciso VIII, Joey Sarte Salceda, Christian Tell A. Yap, Eduardo “Bro. Eddie” C. Villanueva, Paolo Z. Duterte, Eric G. Yap, Edvic Yap, Jeffrey Soriano, Patrick Michael D. Vargas, Bernadette “BH” Herrera, Ernesto M. Dionisio Jr., Juan Fidel Felipe F. Nograles, Mary Mitzi L. Cajayon-Uy, Charisse Anne C. Hernandez, Keith Micah “Atty. Mike” D.L. Tan, Allan U. Ty, Christopherson “Coco” M. Yap, Munir N. Arbison Jr., Arlene D. Brosas, France L. Castro, Edcel C. Lagman, Romeo M. Acop, Bonifacio L. Bosita, Carl Nicolas C. Cari, Jonathan Keith T. Flores, Edwin L. Gardiola, Go, Teodorico T. Haresco Jr., Gerville “Jinky Bitrics” R. Luistro, Marissa “Del Mar” P. Magsino, Khymer Adan T. Olaso, Rodolfo “Ompong” M. Ordanes, Florida “Rida” P. Robes, Geraldine B. Roman, Roman T. Romulo, Ma. Alana Samantha T. Santos, Leody “Odie” F. Tarriela, Jocelyn P. Tulfo, Midy N. Cua, Horacio P. Suansing Jr., Sonny “SL” L. Lagon, Nicanor M. Briones, Rosanna “Ria” V. Vergara, Reynante U. Arrogancia, Ray T. Reyes, Rex Gatchalian, Jose C. Alvarez, Ma. Rachel J. Arenas, Dagooc, Wilter Y. Palma, Jude A. Acidre, Peter John D. Calderon, Gus S. Tambunting, Kristine Singson-Meehan, Lianda B. Bolilia, Noel “Bong” N. Rivera, Kristine Alexie B. Tutor, Shernee A. Tan-Tambut, Joseph Stephen “Caraps” S. Paduano and House Majority Leader Manuel Jose “Mannix” M. Dalipe.
