NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No, 994

Introduced by Representative Christian Tell A. Yap

EXPLANATORY NOTE

Self-employed workers derive their income based on their professional occupation and
entrepreneurial interests, In February 2022, there were about 12.3 million Filipinos engaged in self
employment. Continuous efforts by the Social Security System (SSS) in partnering with cooperatives
and associations nationwide have proven to be successful in promoting their programs to self-
employed wages in the informal sector.

However, not all self-employed workers are under any government social protection program.
A self-employed person refers to one 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 eams from his labor as
well as from his own capital. He may be contingent, non-regular, or an overseas worker.
|

The bill seeks to strengthen the standard of protection for self-employed workers by ensuring
the provision of basic social rights and social security programs for the entitlement to occupational
continuity, decent living wages and basic social benefits that shall enhance and promote self-

employment.

In view of the foregoing reasons, the approval of the bill vai sought.



NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESE! IVES
| House Bill’ No. 4

Introduce by Representative Christian Tell A. Yap

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 NO. 8282 OTHERWISE KNOWN AS THE SOCIAL
SECURITY ACT OF 1997

Be it enacted by the Senate and 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 recognize 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.

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

¢. 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 Seitemployed - 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 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.

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
legislation. |

SEC. ; Contractual Relations. - Contracts with self-employed workers are governed primarily

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 Social Security
System (SS$) 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. |
Patagraph(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 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."

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 Cause. - 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.

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 (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. ‘ Mandatory Assistance. - Government agencies with special concern on employment and

SEC. 13. Separability Cause. - 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


Nousune

SEC. 14, Repealing Cause. - 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 national circulation.

Approved,