By Billy Begas
Davao City Rep. Paolo Duterte has pushed for the passage of a law that would protect freelance workers.
Duterte made the push following the ruling issued by the National Labor Relations Commission (NLRC) holding an online food delivery company in Davao City liable for illegally dismissing its riders.
“We won’t be commenting on the details of the case as this is still a continuing legal battle between the two parties. What we would like to point out, though, is that this issue has highlighted the lack of protection and benefits for freelancers. This could be corrected by passing a pending measure in Congress that squarely addresses this longstanding concern in our fast-growing gig economy,” Duterte said.
Duterte was referring to the case of seven delivery riders in Davao City who were suspended by the operator of an app-based food delivery platform from using the app for 10 years. The riders called for transparency on how their pay was computed by the company before their services were terminated.
The NLRC affirmed its Labor Arbiter’s decision that an employer-employee relationship existed between the company and the riders. The NLRC said the termination of the riders and barring them from using the company’s mobile app for 10 years is tantamount to “constructive dismissal,” and upheld the Labor Arbiter’s award of monetary claims to the riders.
Duterte, Benguet Rep. Eric Yap, and ACT-CIS party-list Representatives Edvic Yap and Jeffrey Soriano have jointly filed House Bill 3738 to protect the rights of freelancers like couriers and delivery riders.
Due to the absence of a law, Duterte said many freelancers are hired with vague and unclear conditions, leaving them to fend off for themselves in instances when payments for their services are delayed, unreasonably reduced, or worse, not given to them at all.
Under the proposal, written contracts will be mandatory in obtaining the services of freelancers, along with providing them with night differential and hazard pay when applicable.
The bill also makes it unlawful for a hiring party to pay them later than 15 days after the stated payment date in their contracts; or require them to accept less than the specified contract price as a condition for receipt of compensation.
Duterte said the bill encourages freelancers to register with the Bureau of Internal Revenue (BIR) and file and pay taxes. Freelancers will also be included in the coverage of tax relief provided under the Tax Reform for Acceleration and Inclusion (TRAIN) law and the Barangay Micro Business Enterprises Act.
