NextGen Day

Two laws to safeguard freelancers from mistreatment and exploitation have been submitted to the Senate in response to the rapidly expanding market for them.

According to the most recent data, there were between 1.7 million and 2 million freelance workers, thus Senator Lito Lapid introduced Senate Bill No. 1998, or an Act Providing Protection and Incentives to Freelancers.

“Many Filipino independent contractors accept employment from both domestic and foreign clients. They desire not to be bound to any one company in particular. This is due to a variety of factors, including their ability to manage their workload, freedom from a set employer, and increased earning potential from many sources of income, according to Lapid’s explanation.

Additionally, the legislation offers protection from non-payment, a lack of benefits, and the prevalent practice of a party quitting without warning at the expense of the freelancer.

In accordance with SB 1998, a down payment for the freelancer’s services must be given at the time of hiring.

There will also be a night shift differential, tax relief, and hazard pay.

The bill provides a grievance redress process for any unlawful practice or act.

Similar to this, Senator JV Ejercito introduced Bill 2006, also known as the Freelance Workers Protection Act, which calls for a written agreement covering the services to be rendered by the worker between the employer and the freelancer.

The contract must outline the terms of pay and benefits, the duration of the employment relationship, grounds for contract breach, and any additional requirements the Department of Labor and Employment may specify (DOLE).

Ejercito stated that upon agreement, a down payment equal to at least 30% of the contract price must be made.

“It also calls for a civil penalty of PHP50,000 to PHP500,000 for unlawful practices, which include engaging with a freelancer without a written contract; paying the freelancer’s compensation later than 15 days after the date of payment stated in the written contract; or requiring as a condition of payment of compensation that a freelancer accept less than the specified contract price,” Ejercito said in his explanatory note.

The bills were decisively adopted by the House of Representatives on February 5.

According to House Bill No. 6718, a freelance worker is any natural person or entity made up of no more than one natural person, regardless of whether it is registered as a sole proprietorship with the Department of Trade and Industry, incorporated with the Securities and Exchange Commission, or registered as self-employed with the Bureau of Internal Revenue.

The House measure incorporates the Senate’s proposals as well as tax relief up to the amount allowed by Republic Acts Nos. 10963 (Tax Reform for Acceleration and Inclusion Act) and 9178. (Barangay Micro Business Enterprises Act).

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