Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 3263

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and 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 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. Self-employment and
entrepreneurship truly spurs economic activity and development.

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

DIOSDADO AL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga
1


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 3263

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and 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 2013.”

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 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
Tight 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

c. Group Entrepreneurship - 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/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 earns 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 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.

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 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.


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 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.

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 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, 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 - 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 himselfherself 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 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.

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 (Php 100,000.00)

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 self-employment 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 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.

SECTION 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.

SECTION 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.

SECTION 15. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in at least two (2) newspapers of national circulation

Approved,