Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

18" CONGRESS.
First Regular Session

2359

HOUSE BILL N

EXPLANATORY NOTE

It is a declared policy of the State to promote self-employment as a primary tool for poverty alleviation
to recognize and protect the rights of self-employed workers and the organizations that they may form under
existing law, to ensure their fair treatment and humane conditions of work, including the basic right to a decent
living wage. and to respect the principle of subsidiary, promote self-reliance and the spirit of enterprise ‘The
State shall further promote their right to self-organization including but not limited to craft unions, guilds,
workers cooperatives, and other forms of group entrepreneurship.

As such, self-employed workers are entitled to occupational continuity, decent living wage, and basic
social benefits. These basic rights can be enhanced and strengthened through legitimate organizations duty
organized under existing laws which are dedicated to protecting their rights and interests

Thus, urgent passage of this bill is sought A

ae G, ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

18" CONGRESS
First Regular Session

2359

HOUSE BILL NO

Introduced by REP. EVELINA G. ESCUDERO.

AN ACT

‘TO FURTHER STRENGTHEN THE STANDARD OF PROTECTION AND ENHANCEMENT OF
‘THE WELFARE OF SELF-EMPLOYED WORKERS AND CRAFTSMEN AND THE PROMOTION
OF ENTREPRENEURSHIP THEREBY AMENDING FOR THIS PURPOSE, SECTION 8 OF
REPUBLIC ACT 8282 OTHERWISE KNOWN AS THE SOCIAL SECURITY ACT OF 19977

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled

SECTIO!
Enhancement Act”

1, Short Title, ~ This Act shall be known as the “Self-Employed Workers Protection and

SEC. 2. Declaration of Policy. ~ The State shall promote self-employment as a primary tool for
Poverty alleviation. The State shall recognized and protect the rights of self-employed workers and the
organizations that they may form und@r existing law. The State shall ensure their fair treatment anid humane
conditions of work, including the basic right to a decent living wage. The State shall respect the principle of
subsidiary, promote self-reliance and the spirit of enterprise. The State shall further promote their right to self-
organization including but not limited to craft unions, guilds, workers cooperatives, and other forms of group
entrepreneurship

SEC. 3. Guiding Principles. ~ Self-employed workers are entitled to occupational continuity. decent
living wage, and basic social benefits. These basic rights can be enhanced and strengthened through legitimate
organizations duly organized under existing laws which are dedicated to protecting their rights and interests

SEC. 4, Definition of Terms ~ As used in this Act, the following terms shall be defined as

Craft Union ~refers to a labor union with membership limited to workers of the same craft,

Entrepreneurship ~ refers to the self-organization and management of a business or enterprise by an

c ean heen — refers to the association of different entrepreneurial organizations of
common interests,

4. Guild ~ refers to an association of people with similar interests or pursuits,

Self-employed ~ refers to a person who has his own occupational capacity put to productive use by
applying his own capital raised by himself or together with other self-employed persons pursuing

, :


related occupational and entrepreneurial interest_A self-employed individual eams form his labor as
well as from his own capital. He may be contingent, non-regular, or an overseas worker,

£ Workers cooperative ~ refers to a cooperative owned and controlled by the workers themselves. It is
organized by workers including self-employed, who are at the same time the members and owners
of the enterprise. As understood herein, the term ownership shall mean actual contribution to the
share capital of the cooperative up to the maximum allowed by the law and the bylaws. All share
capital shall be entitled to interest as may be declared form time to time. The term control shall
‘mean the exercise of right to vote. As mandated by law, each regular member shall only have one
vote regardless of the number of shares actually held. Its principal purpose is to provide jobs and
business opportunities to its members and manage it in accordance with cooperative principles

SEC. 5. Contractual Relations — Contracts with self-employed workers are governed primarily by the civil
and commercial laws of the Philippines. Therefore, the provisions under Book III of Presidential Decree No
442, as amended, otherwise known as the Labor Code of the Philippines, shall not be applicable to self
employed workers who have the right to determine the terms and conditions of their own engagements

Notwithstanding the foregoing, agricultural, industrial, commercial, and, service sectors engaging self-
employed workers shall ensure that the terms and conditions of their service should be above or comparable to
the benefits provided in their respective sectors, as mandated by all social legislations

SEC. 6, Training — Training and certification by Technical Education and Skills Development
Authority (TESDA) shall be accessible to self-employed workers in order to continuously enhance and upgrade
the entrepreneurial and occupational capacity of self-employed individuals, For this purpose, TESDA may enter
into agreements with various associations of self-employed workers to effect this policy

SEC. 7. Social Security ~ All government agencies mandated to render services and extend social
security are hereby mandated to ensure that all self-employed workers as defined under this Act are covered by a
social security program and shall be allowed to enroll as members of the Social Security System (SSS) under
Article 9-A of Republic Act 8282, otherwise known as the Social Security Act of 1997

The enrollment can be done directly by the self-employed workers or thru their respective guilds, eraft
tunions, worker cooperatives, or other associations acting as their collecting agent for premiums due to

Paragraph (s) of Section 8 under Republic Act $282, is hereby amended to read as follows

“(s) Self-employed ~ A self-employed is a person who has his own occupational capacity put to

productive use by applying his own capital raised by himself or together with other self-employed persons
pursuing related occupational interest.”

SEC. 8. Disputes — disputes involving workers under this Chapter shall be under the jurisdiction of the
regular courts, without prejudice to the provisions of Article 137 of Republic Act 9520, otherwise known as the
Philippine Cooperative Code of 2008, insofar as worker cooperatives are concerned

SEC. 9. Reportorial Requirement — Worker guilds, craft unions, worker cooperatives, and other
associations organized and representing self-employed workers must register with the Department of Labor and
Employment (DOLE) and Department of Trade and Industry (DTI) and other regulatory agencies under such
forms, conditions, and frequency as may be determined by each particular regulatory goverment agency


SEC. 10. Penalty Clause — Any individual, association, entity or institution found in violation of this
Act shall be punished with a fine of not less than Fifty Thousand Pesos (Php 50,000.00) nor more than One
Hundred Thousand Pesos (Php 100,000.00),

SEC. 11. Implementing Rules and Regulations ~ All government agencies are hereby mandated to
implement rules and regulations that will enact the express policies of this Act, to encourage and promote self
employment as a primary tool for poverty alleviation and enhance the welfare of the self-employed

SEC. 12, Mandatory Assistance — Government agencies with special concern on employment and.
Poverty alleviation such as but not limited to Department of Labor and Employment (DOLE), Cooperative
Development Authority (CDA), Department of Trade and Industry (DTI), Department of Interior and Locel
Government (DILG), Department of Agriculture (DOA), Bureau of Internal Revenue (BIR), National Ant
Poverty Commission (NAPC), and all local government units (LGUs) shall draw and adopt sustainable
Programs for the empowerment and encouragement of self-employment in support of the express intentions of
this Act

SEC. 13. Separability Clause — If any part, section or provision of this Act is held invalid or
unconstitutional, other provisions not affected thereby shall remain in full force and effect.

SEC. 14. Repealing Clause ~ All laws, decrees, Orders, issuances, rules and regulations contrary to or
‘consistent with the provisions of this Act are hereby repealed, amended or modified accordingly

SEC. 15. Effectivity ~ This Act shall take effect fifteen (15) days after its publication in at least two (2)
newspapers of national circulation

Approved,