House passes bill on protection of freelancers
The House of Representatives unanimously approved on third and final reading Thursday, March 25, the measure that would protect and promote the welfare of freelance workers.
House Bill No. 8817 garnered 195 affirmative votes, and no rejection and abstention from the congressmen during the last day of their plenary session before going on a two-month break.
The proposed "Freelance Workers Protection Act" includes a provision mandating the execution of written contracts before tapping the services of freelancers.
The contract must specify the services to be provided by the freelance worker, their compensation and benefits, employment period, grounds for breach of contract, their tax identification number, and any other conditions as may be directed by the Department of Labor and Employment.
The measure also mandates the provision of night shift differential and hazard pay to freelance workers.
In relation to this, employers would be prohibited to delay the payment of the compensation, among other "unlawful" acts.
Those found to be engaged in the practices enumerated in the proposed law would be penalized with a fine ranging from P50,000 to P500,000 as civil penalty.
The bill also provides for the registration of freelancers with the Bureau of Internal Revenue, and the grant of tax relief for those within the thresholds provided under Republic Act No. 10963 or the TRAIN Law, and Republic Act No. 9178, or the Barangay Micro Business Enterprises (BMBE) Act of 2002.
Pangasinan Rep. Christopher “Toff” de Venecia, one of the principal authors of the bill, said it is high time to enact a law protecting freelancers, noting that they comprise around two percent of the working population.
"This is actually the biggest figure per capita in the world," he pointed out in his statement.
"Many corporations and hiring parties rely heavily on freelancers who are extremely talented and knowledgeable at their craft. One of the biggest drawbacks of a Filipino freelancer is the non-payment for services rendered. More often than not, the freelancer does not pursue any course of action to demand payment for lack of remedial channels, fear of retribution, or lack of resources to pursue legal action," De Venecia lamented.