Republic of the Philipy
HOUSE OF REPRES:
Quezon City

RECENVED
pare: 0.6 SEP 2016
TIME: \ daria

REGISTRATION UNIT
BILLS aN INDE x SERVICE

17" CONGRE
First Regular 8

ion

HOUSE BILL no, 8481

RESENT TIVES

Introduced by REP. LINA G, ESCUDERO

EXPLANATORY NC

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 subsidiarity.
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 basie 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
inter

Thus, urgent passage of this bill is sought.

'SCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon C

17" CONGRESS.
First Regular Session

Qas
HOUSE BILL NO. 3481

Introduced by REP, EVELINA G.,

UDERO.

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 TI BY
AMENDING FOR THIS PURPOSE, SECTION 8 OF REPUBLIC ACT 8282 OTHERWISE
KNOWN AS THE SOCIAL SECURITY ACT OF 1997

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

SECTION 1. Short Title. - This Act shall be known as the “Self-Employed Workers
Protection and Enhancement Act”.

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 under existing law. The State shall ensure their
fair treatment and humane conditions of work, including the basic right to a decent living wage.
The State shall respect the principle of subsidiarity, 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,

s Guiding, Principles. 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:

‘a. Craft Union — refers to a labor union with membership limited to workers of the same
craft;

b. Entrepreneurship — refers to the
enterprise by an individual

self-organization and management of a business ot

c. Group Entrepreneurship — re
organizations of common inte

to the association of different entrepreneurial

sts


d. Guild — refers to an association of people with similar interests or pursuits;

e. 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 earns form his labor as well as from his own capital, He may be
contingent, non-regular, or an overseas worker:

f Workers cooperative ~ refers to a cooperative owned and controlled by the work
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. AI 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 Ili 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 selemployed workers or thru their respective
guilds, craft unions, worker cooperatives, or other associations acting as their collecting agent for
premiums due to SSS.

Paragraph (s) of Section 8 under Republic Act 8282, is hereby amended to read as follows.

“(g) 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.”

a


SEC. 8. Disputes — disputes involving workers under this Chapter shall be under the
jutisdiction 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 (DTT) and
other regulatory agencies under such forms, conditions, and frequency as may be determined by
cach particular regulatory government agency

10, Penalty Clause — Any individual, ion, 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 concer 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 Local Government (DILG), Department of Agriculture
(DOA), Bureau of Internal Revenue (BIR), National Anti-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.

SI
or uncons

*. 13, Separability Clause ~ If any part, section or provision of this Act is held invalid
tional, 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 inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

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

Approved,