I AM very happy indeed that 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.
Who is a freelancer?
HB 6718 defines a freelance worker as any person working for a firm, whether incorporated under the Securities and Exchange Commission or registered as a sole proprietorship under the Department of Trade and Industry, or as a self-employed registered with the Bureau of Internal Revenue (BIR), and 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 for the results of his work.
In a statement, Rep. Christopher de Venecia (Pangasinan), plenary sponsor of the Freelance Workers Protection Act or House Bill 6718, said it “gives freelancers legit status in law and in business transactions.”
Speaker Ferdinand Martin G. Romualdez added that “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.”
Some basic benefits of HB 6718
Among the benefits cover those freelance workers who are deployed in dangerous areas such as strife torn or embattled locations, distressed or isolated stations, areas under state of calamities or emergencies, contagions, radiations and the likes. They will be granted hazard pay equivalent to not less than 25 percent of the total payment stated in the contract.
It also provides a civil penalty of P50,000 to P500,000 for unlawful practices of companies that pay compensation due to freelance worker later than 15 days after the date of payment of compensation stated in the written contract; or requiring as a condition of payment of compensation that a freelance worker accepts less than the specified contract price.
Sec. 19 of the bill mandates that freelancers shall be entitled to tax relief “within the threshold provided under the National Internal Revenue Code of 1997, as amended, and Republic Act No. 9178, otherwise known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2002.”
The BIR is also mandated to designate a special lane or assistance desk to assist freelancers with their inquiries and in complying with the processing of documents, including the registration requirement under the bill.
The increasing number of freelancers
According to Creative Economy Council of the Philippines President Paolo Mercado, up to 1.5 million Filipinos are registered on international online platforms for freelancing services.
Of that number, I don’t know for sure how many are residing in Dumaguete City or in Negros Oriental but I know for a fact that there are many freelancers residing in the city and I know some of them.
As stated in the Philippines Freelance Market 2022 Report, many Filipinos are thriving as freelancers, benefitting from growing overseas freelancing opportunities.
The increase in the number of people who take on freelance jobs — despite the unpredictability of a steady income stream and job stability – is due to the benefits of freelancing such as job flexibility, workload control, and greater earning potential from multiple income streams. Many Filipinos now prefer this flexible livelihood option better than traditional employment.
With the government promoting entrepreneurship and digital innovation, freelancers in the Philippines are driven to find work opportunities through online marketplaces and apps. Digital platforms have made it easier for Filipino freelancers to find clients who need services such as photography, blogging or vlogging, graphic design, writing, videography, as well as architecture and engineering.
With the passage of HB 6718, freelance work will become more attractive to those people who constantly seek higher standards of well-being while earning their bread and butter.
