Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

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16" CONGRESS.
First Regular Session
nousepuLNo, 1732

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

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 basic social benefits. Th
strengthened through legitimate organizations duly organized under existing laws
which are dedicated to protecting their rights and interests.

se basic rights can be enhanced and

Thus, urgent passage of this bill is sought.

Liaadied

— EVELINA G. ESCUDERO


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HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILL NO. 1732

Introduced by REP. EVELINA G. FSCUDERO.

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”.

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 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

c. Group Entrepreneurship - refers to the association of different entrepreneurial
organizations of common interests.


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

©. 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
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 selfemployed 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 S
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.


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“(s) 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.”

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 (Php 50,000.00) 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,