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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No._6146

Introduced by Representative GLORIA MACAPAGAL ARROYO

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

EXPLANATORY NOTE

Self- employment and entrepreneurship are two essentials that go hand-in-hand
because it empowers individuals to become self-made and successful. The pursuit if
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. Self-employment and
entrepreneurship truly spurs economic activity and development.

In view of the reasons cited above, | therefore enjoin my colleagues to ensure the
immediate passage of this bill into law.

GLORIA MACAPAGAL ARROYO

Va


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS

Second Regular Session

6146

House Bill No.

Introduced by Representative GLORIA MACAPAGAL ARROYO

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
in Congress assembled:

Section 1. Short Title. — This Act shall be known as the “Self-Employed Workers
Protection and Enhancement Act of 2017."

Section 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 self-organization including but not limited to craft unions, guilds, workers
cooperatives, and other forms of group entrepreneurship.

Section 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.

Section 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 self-organization and management of a
business or enterprise by an individual

¢.) Group Entrepreneurship — refers to the association of different entrepreneurial
organizations of common interests.

d.) Guild - refers to association of people with similar interests or pursuits.


e.) Self-employed — refers to a person who has his/her own occupational
capacity put to productive use by applying his/her own capital raised by
himself or together with other self-employed persons pursuing related
occupational and entrepreneurial interest. A self-employed individual ears
from his/her labor as well as from his/her own capital. He/She may be
contingent, non-regular, or an overseas worker.

f.) 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
from 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.

Section 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 II 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, as mandated by all social legislations.

Section 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 occupation capacity
of self-employed individuals. For this purpose, TESDA may enter into agreements with
various associations of self-employed workers to effect this policy.

Section 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 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, 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.

“(8) self-employed — A self-employed is a person who has his/her own
Occupational capacity put to productive use by applying his/her own capital
raised by himselffherself or together with other self-employed persons
pursuing related occupational interest.”

Section 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.

Section 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
Trade and Industry (DTI) and other regulatory government agency

Section 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 (Php50,000.00) nor more than One Hundred Thousand Pesos (Php100,000.00).

Section 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 self0emplyment as a primary
tool for poverty alleviation and enhance the welfare of the self-employed.

Section 12. Mandatory Assistance. — Government agencies with special
concern on employment and poverty alleviation such as but not limited to Department
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 alll 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.

Section 13. Separabi 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.

Section 14. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of national circulation.

Approved,