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

| HOUSE OF REPRESENTATIVES

House Bill Nob 133

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

Self-employed individuals derive their income from their own capital based on their
occupational and entrepreneurial interests. The Philippine Statistics Authority reported in
January 2019 that about 26.2 percent of the total employed persons in the country were
engaged in self-employment. As part of the labor force, these self-employed individuals
are also entitled to occupational continuity, decent living wage, and basic social benefits.
The State is mandated to recognize and protect their rights and the organizations that they
may form re laws. The State shall ensure their fair treatment and humane

conditions of work, respect the principle of subsidiarity, promote self-reliance and the
spirit of enterpris

This bill is thus created in order to address these ends. It shall include a provision
that all self-employed workers are covered by a social security program and shall be
allowed to enrol as members of the Social Security System. Furthermore, training and
certification by Technical Education and Skills Development Authority shall be
accessible to self-employed workers in order to continuously enhance and upgrade the
entrepreneurial and occupational capacity of self-employed individuals. This measure
ensures that government agencies with special concerns on employment and poverty
alleviation, along with all local government units, shall draw and adopt sustainable
programs for the empowerment and encouragement of self-employment in support of the
expressed intentions of this legislation.

In view of the foregoing, the passage of this bill is earnestly sought.

VICTOR A.YAP
Representative, 2™ District of Tarlac

" https:/psa.gov phi /survey/labor- Wlabor-force-
survey/title/Empl 0Situation%20in%20Sanuary%202019



EIGHTEENTH
REPUBLIC OF
First Regular Se:

‘ONGRESS OF THE)
HE PHILIPPINES —_)
ion )

HOUSE OF REPRESENTATIVES

House Bill No. 6133

Introduced by Representative Victor A. Yap

eee

TO FURTHE!
ENHANCEME!
CRAFTSMEN
AMENDING FC

AN ACT
STRENGTHEN THE STANDARD OF PROTECTION AND
iT OF THE WELFARE OF SELF-EMPLOYED WORKERS AND
AND THE PROMOTION OF ENTREPRENEURSHIP,
IR THIS PURPOSE SECTION 8 OF REPUBLIC ACT NO. 8282,

OTHERWISE KNOWN AS THE SOCIAL SECURITY ACT OF 1997

Be it enacted by
assembled:

SECTIO!
Workers Protecti

SEC. 2.
primary tool for
self-employed we
State shall ensur
right to a dé
promote self-reli
right to self-or
cooperatives,

SEC. 3.
‘occupational con
can be enhanced
existing laws whi

the Senate and House of Representatives of the Philippines in Congress

1. Short Title. - This Act shall be known as the "Self-Employed
yn and Enhancement Act."

Jaration of Policy. - The State shall promote self-employment as a
erty alleviation. The State shall recognize and protect the rights of
irkers and the organizations that they may form under existing law. The
their fair treatment and humane conditions of work, including the basic
living wage. The State shall respect the principle of subsidiarity,
nce and the spirit of enterprise. The State shall further promote their
ization, including but not limited to craft unions, guilds, workers
other forms of group entrepreneurship

Guiding Principles. - Self-employed workers are entitled to
inuity, decent living wage, and basic social benefits. These basic rights
ind strengthened through legitimate organizations duly organized under
h 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:

the sai
b. Ent
busin
¢. Group
organi
Guild

o

ie craft.

reneurship - Refers to the self-organization and management of a
ss or enterprise by an individual

Entrepreneurship - Refers to the association of different entrepreneurial
izations of common interests.

Refers to an association of people with similar interests or pursuits.

a. tes - Refers to a labor union with membership limited to workers of

Self-e
to pr

9

ployed - Refers to a person who has his own occupational capacity put
luctive use by applying his own capital raised by himself or together

with other self-employed persons pursuing related occupational and

entr
well
covers

reneurial interest. A self-employed individual earns form his labor as
s from his own capital. He may be contingent, non-regular, or an
worker.

| 1


£ 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 by-
laws. 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,

SEC. 5. Contractual Relations. - Contracts with self-employed workers are
governed ey 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. 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 (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 through
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
asfollows:

"(S) SELF-EMPLOYED. - A SELF-EMPLOYED IS A PERSON WHO HAS

HIS O' 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 Clause. - Any individual, association, entity or institution
found in violation of this Act shall be punished with a fine of not less than Fifty

2


Thousand Pesos (Php50,000.00) 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.

sustainable programs for the empowerment and encouragement of self-employment in
support of the express intentions of this Act.

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.

SEC. 14, Repealing Cause. - All laws, decrees, orders, issuances, rules and
regulations Ei Bi 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,