House bill seeks to end free labor for interns

An internship for college students means a grueling period of labor necessary as they gear up for their careers, without them earning even a single peso in their wallets.

But a proposed law in Congress aims to put an end to this longstanding practice of employers exploiting free labor through unpaid internships. 

House Bill 5081, filed by Akbayan lawmakers Chel Diokno, Perci Cendaña, Dadah Kiram Ismula, and Dinagat Islands Rep. Arlene Bag-ao, seeks to protect interns from exploitative practices, abuse, and unsafe working conditions by providing them with enough safeguards and a just compensation of 75 percent stipend or allowance. 

Interns spent hours, money, and effort to perform complex tasks disguised as experience. However, despite their significant contribution to a company, regardless of whether a private or government institution, the only thing they receive in return is the so-called “real-world exposure.”

The proponents stressed that despite CHED Memorandum Order No. 104, s. 2017, which provides guidelines on student internships, numerous reports indicate that abuse of interns persists. 

“Interns perform menial tasks unrelated to their field of study; are exposed to unsafe workplaces; denied proper mentorship; and burdened with excessive hours without just compensation,” the bill read.

Under House Bill 5081, interns in government agencies shall receive a stipend equivalent to 75 percent of Salary Grade 1, Step 1, or the entry-level rate pegged at P14,061 based on a circular released by the Department of Budget and Management last January.

Meanwhile, interns in the private sector shall receive an allowance equal to 75 percent of the minimum wage, prorated according to hours worked.

The bill requires an internship contract between the university and the employer, specifying, among others, the rights and obligations of both parties, the duration and schedule of the internship, which shall not exceed 300 hours or six months, and the compensation.

The contract must be notarized, and the cost shall not be charged to the student.

If enacted, interns would be entitled to at least one hour of rest between their shifts and would only be expected to work on weekdays and during regular office hours. 

In case they are tasked to work on weekends, holidays, or beyond regular hours, interns shall receive a rest day, premium, holiday, or overtime pay similar to that of regular employees in accordance with the Labor Code of the Philippines. 

For absences, employers and the university cannot require the intern to pay to compensate for the missed time; they can only require the intern to make up the exact number of hours missed. 

The bill will also require creating a multi-agency task force composed of the Commission on Higher Education, Department of Labor and Employment, Civil Service Commission, and student representatives to monitor compliance, handle complaints, and impose sanctions on violators. 

A counterpart measure was already filed by Senator Risa Hontiveros, also a former Akbayan lawmaker, in the Senate, increasing the chances of the bill becoming a law. 

Hontiveros filed a similar bill in 2019 during the 18th Congress, but the measure languished at the committee level.