House panels OK bill protecting freelancers

MANILA, Philippines — The bill protecting the rights of freelancers in the country may now be transmitted to the House plenary after getting the approval of two committees in the lower chamber.

During its online meeting on Monday, the committee on ways and means approved the taxation provisions of the Freelancers Protection Act. This came after the House committee on labor approved the same measure last week.

Pangasinan 4th District Rep. Christopher De Venecia, one of the principal authors of the bill, said that freelancers “have been overlooked by the state when it comes to policy.”

“Firstly, they work without the benefit of having a written contract between them and their clients. This makes them very vulnerable to unscrupulous clients who will either change the terms of payment or evade payment altogether,” De Venecia said during the ways and means committee meeting.

“Secondly, freelancers [ay nahihirapan na] habulin ang mga kliyenteng pasaway (are having a hard time going after unscrupulous hiring parties). One reason for this is, sometimes freelancers are not necessarily aware of the workings of our legal system so they don’t know where and how to file cases and also the heavy cost of litigation is another problem,” he added.

Albay Rep. Joey Salceda, who also serves as one of the principal authors of the measure, said that the Labor Code currently does not define “freelancers” and that there is no formal contractual framework for freelancers in the law.

Under the bill, the execution of a written contract between a freelancer and the hiring party is required, making the enforcement of freelancers’ rights easier and more accessible.

The proposal likewise makes it unlawful to:

• Pay the compensation due the freelancer later than fifteen (15) days after the date of payment of compensation stated in the written contract;
• Require as a condition of payment of compensation, at any time after a freelancer has commenced rendition of services, that a freelancer accept less than the specified contract price; and
• Retaliate against a freelancer under certain conditions.

The taxation provision of the measure, meanwhile, states that all freelancers shall register with the Bureau of Internal Revenue (BIR) and shall pay their income taxes annually.

The measure also states that every BIR Revenue District Office shall have a lane or a special assistance desk dedicated to freelancers which will assist freelancers in their application, registration, processing of documents, and other inquiries.

“Freelancing has become the lifeline for millions of Filipinos, especially those who lost their regular jobs during the pandemic. As the economy becomes more digital, there will be more freelancing. Without legal protections, we will also see more labor exploitation,” Salceda said in a statement.

The measure will now be brought to the plenary for further debates for second and third reading approval.

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