House Approves “Freelance Workers Protection Act”

Freelancers can be protected by the law with the approval of “Freelance Workers Protection Act” on the Third and Final Reading in the House of Representatives.

195 members of the lower chamber approved on final reading House Bill No. House Bill No. 8817 or the “Freelance Workers Protection Act.” The bill will require contracts between a freelancer and a hiring party. It will also require the hiring party to pay night differentials of no less than 10% of one’s regular compensation for hourly work between 10:00pm to 6:00am if the freelancer is required to be physically present in a workplace or on the field for different assignments.

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With the bill, it will be unlawful if the freelancer is not compensated 15days after the set date in the contract. It will also protect freelancers from different payment conditions despite the completion of the project.

Freelancers shall register with Bureau of Internal Revenue and shall pay their income taxes annually.

“A person who commits any of the unlawful practices aggrieved by a violation of this Act may file a complaint with the Department of Labor and Employment, through the Undersecretary for Workers with Special Concerns, without prejudice to the filing of a civil action in appropriate cases,” the bill read.

The bill also covers the civil penalty of PHP50,000 to PHP500,000 for unlawful practices under the law.