House bill to mandate 30% downpayment upon hiring freelancers

MANILA, Philippines — A draft legislation passed on third and final reading at the House of Representatives aims to require companies and employers to settle a downpayment upon hiring freelancers.

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."

The bill also requires employers to have a written contract and provides for a 10% night differential, hazard pay and a special lane or assistance at the Bureau of Internal Revenues dealing with freelancers.

Moreover, it seeks the application of the tax code and the Barangay Micro Business Enterprises Act as well as measures for mediation and conciliation, civil action and civil penalty for erring employers.

"Our freelancers will also now be recognized in a way that when credit institutions, embassies, or government agencies see that you are a graphic artist, software developer, events host, musician, photographer, they know you are actually engaged in a career that is codified in an enabling law, and not just 'rumaraket,” De Venecia said.

He hopes that with the measure, freelancers will have more awareness of their rights, privileges and responsibilities.

"Since our freelancers have been working on a 'contract-basis,' there have been horror stories of companies taking advantage of freelance workers by either changing the terms of agreement last minute, not paying on time or at all, forcing them to work ungodly hours or in unsafe environments," De Venecia added.

Once a law, HB 6718 will task the Department of Labor and Employment to submit a report to the Philippine Creative Industries Development Council on the legislation's effectiveness as well as the number of complaints received, investigations initiated and notices issued on violations.

The most recent version of the Freelance Workers Protection Act is similar to House Bill 8817 submitted in the previous 18th Congress.