FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
s.No._3241 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
• :!! 
Self-employment and entrepreneurship go hand-in-hand. 
The pursuit of 
economic growth and development is spurred by capital put forth by entrepreneurs, 
and entrepreneurs more often come from the ranks of specialized workers such as those 
from the self-employed and trade craftsmen sectors and offering their specific products 
or services. 
In line with this, it is the duty of the State to not only protect the rights but also 
enhance the welfare of these specialized workers, thus urgent passage of this bill is 
sought. 
FRANCIS G. ESCUDERO 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
S.No. 3241 
! '): 11i' 
- , \ c':·I·~ 
Introduced by Senator FRANCIS 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 1997 
Be it enacted by the Senate and the House of Representatives of the Philippines m 
Congress assel1lbled: 
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SECTION 1. Short Title. - This Act shall be known as the "SELF-EMPLOYED 
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WORKERS PROTECTION AND ENHANCEMENT ACT". 
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SECTION 2. Declaration of Policy. - The State shall promote self-employment 
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as a primary tool for poverty alleviation. The State shall recognized and protect the 
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rights of self-employed workers and the organizations that they may form under 
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existing law. The State shall ensure their fair treatment and humane conditions of work, 
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including the basic right to a decent living wage. The State shall respect the principle of 
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subsidiarity, promote self-reliance and the spirit of enterprise. The State shall further 
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promote their right to self-organization including but not limited to craft unions, guilds, 
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workers cooperatives, and other forms of group entrepreneurship. 
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SECTION 3. Guiding Principles. - Self-employed workers are entitled to 
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occupational continuity, decent living wage, and basic social benefits. These basic rights 
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can be enhanced and strengthened through legitimate organizations duly organized 
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under existing laws which are dedicated to protecting their rights and interests. 
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SECTION 4. Definition of Terms -
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As used in this Act, the following terms shall be defined as: 
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a. Craft Union - refers to a labor union with membership limited to workers of the 
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same craft. 
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b. Entrepreneurship - refers to the self-organization and management of a business 
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or enterprise by an individual 
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c. Group Entrepreneurship - refers to the association of different entrepreneurial 
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organizations of common interests. 
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d. Guild - refers to an association of people with similar interests or pursuits. 
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e. Self-employed - refers to a person who has his own occupational capacity put to 
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productive use by applying his own capital raised by himself or together with 
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other self-employed persons pursuing related occupational and entrepreneurial 
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interest. A self-employed individual earns form his labor as well as from his own 
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capital. He may be contingent, non-regular, or an overseas worker. 
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f. 
Workers cooperative - refers to a cooperative owned and controlled by the 
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workers themselves. It is organized by workers including self-employed, who 
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are at the same time the members and owners of the enterprise. As understood 
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herein, the term ownership shall mean actual contribution to the share capital of 
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the cooperative up to the maximum allowed by the law and the bylaws. All share 
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capital shall be entitled to interest as may be declared form time to time. The 
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term control shall mean the exercise of right to vote. As mandated by law, each 
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regular member shall only have one vote regardless of the number of shares 
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actually held. Its principal purpose is to provide jobs and business opportunities 
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to its members and manage it in accordance with cooperative principles. 
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SECTION 5. Contractual Relations - Contracts with self-employed workers are 
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governed primarily by the civil and commercial laws of the Philippines. Therefore, the 
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provisions under Book III of Presidential Decree No. 442, as amended, otherwise known 
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as the Labor Code of the Philippines, shall not be applicable to self-employed workers 
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who have the right to determine the terms and conditions of their own engagements. 
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Notwithstanding the foregoing, agricultural, industrial, commercial, and service 
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sectors engaging self-employed workers shall ensure that the terms and conditions of 
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their service should be above or comparable to the benefits provided in their respective 
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sectors, as mandated by all social legislations. 
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SECTION 6. Training - Training and certification by Technical Education and 
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Skills Development Authority (TESDA) shall be accessible to self-employed workers in 
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order to continuously enhance and upgrade the entrepreneurial and occupational 
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capacity of self-employed individuals. For this purpose, TESDA may enter into 
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agreements with various associations of self-employed workers to effect this policy. 
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SECTION 7. Social Security - All government agencies mandated to render 
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services and extend social security are hereby mandated to ensure that all self-
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employed workers as defined under this Act are covered by a social security program 
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and shall be allowed to enroll as members of the Social Security System (SSS) under 
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Article 9-A of Republic Act 8282, otherwise known as the Social Security Act of 1997. 
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The enrollment can be done directly by the self-employed workers or thru their 
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respective guilds, craft unions, worker cooperatives, or other associations acting as their 
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collecting agent for premiums due to SSS. 
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Paragraph (5) of Section 8 under Republic Act 8282, is hereby amended to read as 
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follows. 
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"(s) Self-employed - A self-employed is a person who has his own occupational 
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capacity put to productive use by applying his own capital raised by himself or together 
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with other selt-employed persons pursuing related occupational interest." 
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SECTION 8. Disputes - disputes involving workers under this Chapter shall be 
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under the jurisdiction ot the regular courts, without prejudice to the provisions of 
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Article 137 of Republic Act 9520, otherwise known as the Philippine Cooperative Code 
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of 2008, insofar as worker cooperatives are concerned. 
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SECTION 9. Reportorial Requirement - Worker guilds, craft unions, worker 
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cooperatives, and other associations organized and representing self-employed workers 
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must register with the Department of Labor and Employment (DOLE) and Department 
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of Trade and Industry (DTI) and other regulatory agencies under such forms, 
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conditions, and frequency as may be determined by each particular regulatory 
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government agency. 
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SECTION 10. Penalty Clause - Any individual, association, entity or institution 
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found in violation of this Act shall be punished with a fine of not less than Fifty 
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Thousand Pesos (Php 50,000.00) nor more than One Hundred Thousand Pesos (Php 
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100,000.00). 
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SECTION 11. Implementing Rules and Regulations - All government agencies 
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are hereby mandated to implement rules and regulations that will enact the express 
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policies of this Act, to encourage and promote self-employment as a primary tool for 
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poverty alleviation and enhance the welfare of the self-employed. 
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SECTION 12. Mandatory Assistance - Government agencies with special 
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concern on employment and poverty alleviation such as but not limited to Department 
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of Labor and Employment (DOLE), Cooperative Development Authority (CD A), 
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Department of Trade and Industry (DTI), Department of Interior and Local Government 
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(DILG), Department of Agriculture (DO A), Bureau of Internal Revenue (BIR), National 
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Anti-Poverty Commission (NAPC), and all local government units (LGUs) shall draw 
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and adopt sustainable programs for the empowerment and encouragement of self-
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employment in support of the express intentions of this Act. 
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SECTION 13. Separability Clause - If any part, section or provision of this Act 
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is held invalid or unconstitutional, other provisions not affected thereby shall remain in 
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full force and effect. 
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SECTION 14. Repealing Clause - All laws, decrees, Orders, issuances, rules and 
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regulations contrary to or inconsistent with the provisions of this Act are hereby 
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repealed, amended or modified accordingly. 
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SECTION 15. Effectivity - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of national circulation. 
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Approved, 
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