Understanding the preferences of people their own age group, Camarines Sur Reps. Migz Villafuerte (5th district) and Luigi Villafuerte (2nd district) are pushing for the swift approval of a package of work protection mechanisms and incentives for the so-called freelance or gig economy.

This, as the solon-siblings recognize that there is an increasing number of Filipino millennials and Gen Z who opt for side gigs or part-time jobs.

Rep. Migz, the chairman of the Committee on Information and Communications Technology, is 37 while Rep. Luigi, a deputy majority leader, is 29.

“In place of the traditional working set-up, more and more forty-something and younger Filipinos are being drawn to freelance work, especially on online platforms, for their principal or extra incomes  in the informal economy,” said Rep. Migz.

For his part, Rep. Luigi said “The popular freelance jobs include virtual assistance, delivery of creative services, digital marketing, and other forms of services that are project-based and primarily focused on output compliance.”

According to the 2020 Global Gig Economy Index by global online payment account Payoneer, the Philippines is No. 1 on the list of fastest-growing freelancing countries with a revenue growth of over 200 percent.

Meanwhile, the country is No. 3—after the United States (US) and India—when it comes to market size for freelance workers.

However, the Villafuertes said that in the absence of job contracts forged with their employers, our freelance workers are at risk with concerns about inadequate legal and labor protection, social security and taxation. 

Hence, their push for the congressional approval of House Bill (HB) No. 1988, which aims  to safeguard freelancers who are highly vulnerable to unfair labor practices by errant employers.

The other authors of HB No. 1988--titled An Act providing protection and incentives to freelance workers--are Camarines Sur 1st district Rep. Tsuyoshi Anthony Horibata and Bicol Saro Party-list Rep. Terry Ridon.

The lawmakers re-filed the measure following the release by business consulting firm Deloitte Philippines of a global survey in 2023 showing that 71 percent of Filipino millennials and 65 percent of Gen-Zers have acquired side gigs or extra full-time jobs, from the previous year’s 61 percent and 64 percent, respectively, for additional sources of income. 

Such figures were higher than the global averages of 37 percent for millennials and 46 percent for Gen Z-ers.

"With the increasing demand for Filipino workers in the global freelance economy, the Congress needs to pass new legislation to help the Marcos administration better protect Filipino freelancers against unfair labor practices in this new, non-conventional business environment where job contracts are no longer the norm," Rep. Migz said.

He said that, “The ideal workplace scenario of secured job contracts for Filipino freelancers can only happen if and when  the 20th Congress writes new legislation requiring employers to seal  written contracts with their gig workers,  and provide them with job-related benefits akin to those accorded employees with regular jobs in traditional or conventional workplaces.”

Referring to freelancing, Rep. Luigi said, “Its very non-conventional setup has taken away some of the positives that traditional employment offers, such as the right to organize in the workplace and their right to economic benefits due workers under our labor laws.”

Under HB No.1988, the requisites in contracts to be forged by employers with their freelance workers should include the following:

·       Down Payment—An initial partial payment for the contracting of services of the freelance worker shall be made upon engagement, which shall be not less than 30 percent of the contract price.

·       Differential or Night Pay—freelancers  who are required to be physically present in the workplace, or those on field assignments are entitled to night shift differential pay equivalent to at least 10 percent of the agreed-upon  regular compensation for each hour of work performed between 10 p.m. and 6 a.m., unless the contract stipulates a more favorable fee for their freelance workers. 

·       Hazard Pay—All freelance workers deployed in “dangerous areas” shall be compensated with hazard pay equivalent to at least 25 percent of the total payment for the period of such deployment as agreed upon in the contract, unless there is a more favorable fee stipulated therein.

As for unlawful practices, HB No.1988 prohibits any employer or hiring party to do the following:

·       Engage the services of a freelance worker without first entering into a written contract with the freelancer;  

·       Pay the compensation due the freelance worker later than 15 days after the date of payment of compensation stated in the written contract or after the rendition of services in cases where there is no written contract;  and/or   

·       Commit any act of retaliation against any freelance worker for filing a complaint or commencing a civil action alleging a violation of this Act, assisting the DOLE in an investigation commenced pursuant to any violation of the contract, or providing information to the DOLE pursuant to the terms of a mediation or conciliation agreement.

HB No.1988 slaps on any hiring party guilty of violating any of the unlawful practices under this Act a fine ranging from P50,000 to P500,000 per offense.

Also, this bill entitles every freelancer to tax relief within the threshold provided under the National Internal Revenue Code (NIRC) of 1997, as amended, and Republic Act (RA) No. 9178, otherwise known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2002".