--------
---------
SIXTEENTH CONGRESS bF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUl -1 
P 1 :59 
SENATE 
Senate Bill No. 
137 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The 1987 Philippine Constitution expressly provides that: 
"The State shall promote a just and dynamic social order that will ensure 
the prosperity and independence of the nation and free the people from 
poverty through policies that provide adequate social services, promote 
full employment, a rising standard of living and an improved quality of life 
for all." 
Pursuant of this constitutional directive, the State is promoting self-employment 
and entrepreneurship as a means to address the problem of poverty.· Economic growth 
and development can be 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. 
Accordingly, the State has the duty to protect the rights and enhance the welfare 
of these specialized workers, thus urgent passage of this bill is sought 
OY EJERCITO ESTRADA 
Senator 


, , . 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
137 
Sgnnft 
{Oll.;. "f t~. ""ntn'Q 
'13 
JUL -1 
Pl :59 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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'. 
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 oonditions of work, inoluding the 
basic right to a decent living wage. The State shall respect and promote the principle o~ 
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: 
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; 


c. Group Entreprenewship - refers to the association of different entrepreneurial 
organizations of common interests; 
d. Guild - refers to an association of people with similar interests or pursuits; 
e. Self-employed - refers to a person who has his own oooupational 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; and, 
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, th~ t~rm ownership shall m~an actllal 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 
seotors, 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 Sooial Security System (SSS) under Artiole 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. 
"(s) Self-employed - [Any person whose income is not derived from 
employment, as defined under this Act, as well as those workers 
enumerated in Sec. Nine-A hereof] A SELD-EMPLOYED IS A PERSON 
WHO 
HAS 
HIS 
OWN 
OCCUPATIONAL 
CAPACITY 
PUT 
TO 
PRODUCTIVE USE 6Y APPLYING HIS OWN CAPITAL RAISED 6Y 


, " 
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 government 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 Assistanc.e . • 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 (CD A), Department of 
Trade and Industry (DTI), Departmeflt ef Ifllerier afld Lecal Gevemment (DILG), 
Department of Agriculture (DO A), 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. 
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 inconsistent 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 natienal circulation. 
Approved,