EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
F irs t R eg ular Session 
)
SEN 
S. No
l^ e t u te
•ffin •( Itjf *fcr«tai7
:N1 ? 2 1
'I f  
DEC-9  
P4 21
RECEIVED IT:
INTRODUCED BY SENATOR RISA HONTVEROS
AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND INSTITUTIONALIZING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO THE 
FORMAL ECONOMY, FOR IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES
In  2 0 1 8 , a v a ila b le  d a ta  fro m  th e  L a b o r F orce S u rv e y  s h o w e d  th a t w o rk e rs  in th e  in fo rm a l s e c to r 
a re  a t 1 5 .6  m illio n  o r 3 8 %  o f th e  c o u n try 's  to ta l w o rk in g  p o p u la tio n .1 T h e  in fo rm a l e c o n o m y  
h u m s  w ith  th e  a c tiv itie s  o f m illio n s  o f F ilip in o s  w h o  w o rk  tire le s s ly  o n  s o m e tim e s  th a n k le s s  jo b s  
w h e re  th e y  a re  n o t re g u la te d  o r p ro te c te d  b y  th e  S ta te . H o w e v e r, p o lic y  m a k e rs  a n d  le g is la to rs  
s h o u ld  
u n d e rs ta n d  
th a t th e  
in fo rm a l 
e c o n o m y  
is 
s till 
a 
re la tiv e ly  
u n d e rd e v e lo p e d  
a n d  
u n e x p lo re d  a v e n u e  fo r re d u c in g  p o v e rty , in e q u a lity , a n d  u n e m p lo y m e n t.
I t  is th e n  in th e  in te re s t o f e v e ry b o d y  th a t w o rk e rs  in th e  in fo rm a l e c o n o m y  a re  p ro te c te d . In  
re la tio n  to  th is , th e  M agna C a rta  o f W o rk e rs  in th e  In fo rm a l E c o n o m y  (M A C W IE ) is w ritte n  w ith  
th e  e n d  in v ie w  o f e s ta b lis h in g  th e  fo rm a l rig h ts  o f in fo rm a l e c o n o m y  w o rk e rs  lik e  th e  rig h t to  
s e c u rity  in  th e  w o rk p la c e  a n d  th e  rig h t to  a liv in g  w a g e  a n d  e q u a l re m u n e ra tio n . T h e ir rig h t to  
o rg a n iz a tio n  is also  se c u re d  a n d  w o rk e rs  in  th e  fo rm a l e c o n o m y  a re  e n c o u ra g e d  to  o rg a n iz e  
th e m s e lv e s  fo r  th e ir m u tu a l b e n e fit a n d  c o o p e ra tio n .
T h e  im p o rta n c e  o f social p ro te c tio n  is a lso  h ig h lig h te d  in th e  b ill. As s u ch , g o v e rn m e n t a g e n c ie s  
and  local g o v e rn m e n t u n its  a re  e n c o u ra g e d  to  p ro v id e  so cia l s a fe ty  n e ts  lik e  c o n d itio n a l cash 
tra n s fe rs , c a s h -fo r-w o rk , e m e rg e n c y  e m p lo y m e n t s ch e m e s, a n d  fe e  w a iv e rs , a m o n g  o th e rs . 
S ocial in s u ra n c e  a lso  ta k e s  p rim e  im p o rta n c e : th e re  is a fo c u s  o n  m a k in g  so cia l in s u ra n c e  
u n iv e rs a lly  a v a ila b le  to  w o rk e rs  in th e  in fo rm a l s e c to r. S ocial S e c u rity , P a g -Ib ig , a n d  P h ilH e a lth  
shall be m a d e  a cce ssib le  a n d  a ffo rd a b le  to  th e m  a n d  th e  S ta te  is e n lis te d  to  s u b s id iz e  th e  
c o rre s p o n d in g  c o n trib u tio n  o f e m p lo y e rs ' h a d  th e  in fo rm a l e c o n o m y  w o rk e rs  h a v e  b e e n  in 
fo rm a l e m p lo y m e n t.
P erha p s m o re  im p o rta n tly , th e  b ill a lso  se e ks to  p ro te c t th e  d ig n ity  o f th e  in fo rm a l e c o n o m y  
s e c to rs  b y  se c u rin g  th e ir w o rk p la c e s  a n d  
p ro h ib itin g  d e m e a n in g  a c ts  a g a in s t th e m . 
F or 
in s ta n c e , th e  b ill s ta te s  th a t th e  w o rk e rs  in th e  in fo rm a l e c o n o m y  s e c to r sh a ll n o t be  e v ic te d  
fro m  th e ir h o m e s  a n d  w o rk p la c e s  w ith o u t th e  p ro p e r le g a l g ro u n d s . C o n fis c a tio n  o f m a te ria ls  
a n d  im p o u n d in g  o f th e ir v e h ic le s  like  tric y c le s  a n d  p e d ic a b s  a re  a lso  n o t a llo w e d  u n le ss th e s e  
h a ve  been used fo r  c rim in a l a c tiv itie s .
In  v ie w  o f th e  fo re g o in g , th e  im m e d ia te  p a ssa g e  o f th is  b ill is e a rn e s tly  s o u g h t.
rSA HONTIVEROS 
Senator
1 https://www.rappler.com/newsbreak/iq/201448-facts-labor-sector-philippines


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
F irs t R egular Session 
)
• If 
DEC "9  
F4 21
S. No.
SENA\ ^ 2 1
R E C E IV fc O B Y ;^
INTRODUCED BY SENATOR RISA HONTVEROS
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AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES 
AND ORGANIZATIONS IN  THE INFORMAL ECONOMY AND 
INSTITUTIO NALIZIN G  MECHANISMS FOR RECOGNITION, INTEGRATION, 
AND TRANSITION TO THE FORMAL ECONOMY, FOR IMPLEMENTATION 
THEREOF AND FOR OTHER PURPOSES
Be i t  enacted b y  the Senate a n d  House o f  Representatives o f  the Philippines in
Congress assembled:
TITLE I
GENERAL PROVISIONS 
Chapter I
GENERAL PRINCIPLES
SEC. 1. S h o rt Title.- This Act shall be known as the "Magna Carta o f  W orkers in the
In fo rm a l 
E conom y" o r MA CWIE
SEC. 2. D eclaration o f  P olicy.- It is hereby declared the policy o f the State to:
(a) Promote a ju s t and dynamic social order tha t shall ensure the prosperity and 
independence o f the nation and free the people from  poverty through policies that 
provide adequate social services; promote decent, environm entally sound and full 
em ploym ent; a rising standard o f living; and an improved quality of life for all;
(b) Protect, promote, and fulfill the rights of every w orker including gender equity, non­
discrim ination, the right to self-organization, ju s t and humane conditions o f work, 
access to social protection programs and services, access to justice, security o f and 
in the workplaces, and the right to represent their organizations in a continuing 
process o f consultation and social dialogue, w ith equitable membership in relevant 
tripartite bodies; and
(c) Establish and fully im plem ent an integrated and coherent policy, at all levels of 
governm ent, o f form alization o f informal economic units and inform al economy 
workers and make them  visible in all relevant national and local statistics.


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SEC. 3. Coverage. - This Act shall apply to all workers and economic units -  including 
enterprises, entrepreneurs and households -  in the informal economy, in particular:
(a) Those who own and operate economic units including:
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self-employed workers;
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self-employed own-account workers;
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employers;
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members of cooperatives; and
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members of other social and solidarity economy units;
(b) Home-based workers or contributing fam ily workers, irrespective of w hether they 
w ork in economic units in the form al or informal economy;
(c) Employees holding informal jobs in or for form al enterprises, or fo r economic units 
in the informal economy, 
including but not lim ited to those in 
contract 
arrangem ent and/or in supply chains, or as non-regular paid domestic workers 
employed by households;
(d) W orkers in unrecognized or unregulated em ploym ent relationships provided that 
the work performed is not illegal;
(e) Volunteer, contractual, job orders, and other vulnerable workers in governm ent 
instrum entalities; and
(f) Agricultural workers or fisherfolk in unrecognized or unregulated agricultural or 
farm ing endeavors and fishing activities.
SEC. 4. D e fin itio n  o f  T e r m s . - used in this Act, the following term s shall mean:
(a ) "Inform al Econom y" refers to "all economic activities by workers and economic 
units that are, in law or in practice, not covered or insufficiently covered by formal 
arrangem ents."
(b) "Economic Units"\x\ the informal economy include but are not lim ited to: 
units that em ploy hired labor;
units that are owned by individuals working on their own account, either alone or
w ith the help or contributing fam ily workers;
cooperatives and other social and solidarity economy units; and
informal w ork tha t may be found across all sectors o f the economy, in households,
as well as public and private spaces including governm ent instrum entalities and
Governm ent Owned and Controlled Corporations (GOCCs).
(c) "Inform al Economy W orkers' O rganization" -  Refers to a group or groups of 
informal workers, w hether form ally constituted or otherwise, tha t are organized 
w ith the prim ary objective of prom oting the rights and welfare o f workers in 
informal economy.


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(d) "In fo rm a l em ploym ent' -  Refers to an em ploym ent arrangem ent in the form al or 
informal sectors or in 
households that exist based mostly on casual em ploym ent, 
kinship or personal and social relations w ith no form al guarantees on legal and 
social protection and em ploym ent benefits, and prevalent in economic units that 
are unregistered, unlicensed and unregulated.
(e) "Security o f  a n d  in the W orkplace"- refers to the right o f every w orker and informal 
economic unit to an enabling environm ent that guarantees and protects the spaces, 
facilities, and structures to undertake their work, including the right to feel safe in 
one's own w ork space, legal security of tenure and freedom from  discrim ination, 
risk, danger, doubt, anxiety, or fear o f being removed, evicted or prevented from 
working.
(f) 
"Social P ro te c tio n "- Refers to policies and programs that seek to reduce poverty 
and vulnerability to risks and enhance the social status of the marginalized by 
prom oting and protecting livelihood and em ploym ent, protecting against hazards 
and sudden loss of income, and improving people's capacity to manage risk, as well 
as all other interventions that support com m unities, households, and individuals, 
both women and men, and realizing their rights as citizens through their full 
participation in decision-making affecting or may affect their access to and control 
over resources necessary to maintain and sustain a decent and secure life.
Social protection schemes shall include labor market interventions, social insurance, 
social welfare, safety nets, disaster risk reduction and management mechanisms, 
adaptive measures in the context o f climate change, affordable housing, and other 
provisions necessary for vulnerable groups to adequately address and manage 
risks, vulnerabilities, and threats to workers' livelihood activities and overall quality 
of life.
(g) "S ocial and S olidarity Economy Unitd' - Refers to enterprises and organizations 
including cooperatives as defined under Republic Act No. 9520, mutual benefit 
societies, associations, foundations and social enterprises which produce goods, 
services and knowledge that meet the needs o f the com m unity they serve, through 
the pursuit o f specific social and environmental objectives and the fostering of 
solidarity.
(h) "Volunteer, contractual, job orders, a n d  o th e r vulnerable workers in  governm ent 
in s tru m e n ta litie s "- Refers to workers in governm ent instrum entalities who do not 
occupy plantilla positions; and/or 
who receive allowances or honoraria. These 
include but are not limited to; project staff, 
barangay health workers, barangay 
tanod, barangay nutrition scholars, barangay daycare workers, barangay volunteers 
and other vulnerable workers in governm ent instrum entalities for disasters, 
enum erators, among others.
(i) Social Protection F lo o r- Refers to a set o f guarantees ensuring access to essential 
health services, income support for children for education, health, and nutrition,


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income assistance for economically active groups who do not have sufficient 
earnings in case o f emergencies , and financial support for elderly population.
Chapter I I
RIGHTS AND BENEFITS
SEC. 5. W orkers in the informal economy shall have the same basic rights accorded to
all workers, as enshrined in the Philippine Constitution, the Labor Code as amended,
and relevant international human rights instrum ents and international labor standards.
Accordingly, the state shall guarantee all workers in the informal economy the following
rights:
(a) Security o f and in the workplace;
( b )  Make a living through w ork freely chosen or accepted; and avail o f technical and 
vocational guidance and training programs;
(c) Just and favorable conditions o f work, including provision for w ork-life balance such 
as child care and other facilities to reduce and redistribute fam ily and domestic 
responsibilities;
(d) A living wage and equal rem uneration fo r w ork o f equal value w ithout distinction of 
any kind, in particular for women who shall be guaranteed equal wages for w ork 
sim ilar or equivalent to those done by men;
(e) Equal opportunity for prom otion, subject to no other considerations than seniority 
and competence;
(f) Safe and healthy working conditions safeguarding general, occupational and 
reproductive health;
(g) Basic services including but not lim ited to affordable medical care, reproductive and 
other health services including modern fam ily planning, low-cost housing, water, 
sanitation, electricity 
and transport;
(h) Rest, leisure and reasonable lim itation o f working hours and periodic holidays w ith 
pay, as well as rem uneration for public holidays whenever applicable;
(i) M aternity and paternity benefits, as provided for by law;
(j) Equal access to education, skills training, and economic resources to develop self- 
reliance, especially of children and young persons, w ithout any discrim ination;


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(k) Self-organization to collectively negotiate w ith governm ent and other entities in the 
prom otion o f their welfare and advancement o f their interests, free from  any 
political interference;
( l) An adequate standard o f living for workers and their fam ilies, adequate food, 
clothing, and shelter, and the continuous im provem ent of such standard;
(m ) 
Freedom from  any form  o f discrim ination, violence, exploitation including sexual 
exploitation, harassment, abuse and any form  o f inhumane treatm ent which 
debases, degrades or demeans the intrinsic w orth and dignity o f the w orker as a 
human being;
(n) 
Accessible, affordable, and appropriate social protection as defined in Section 4, (f) 
o f this Act;
(o) Equal treatm ent before the law;
(p) Substantial participation in policy and decision-making processes through their 
organizations and the use o f social dialogue, including access to inform ation and 
other resources relevant to the prom otion and protection o f their 
rights and 
welfare;
(q) Equal access to justice though appropriate mechanisms, including, but not lim ited 
to, alternative dispute resolution processes; and
(r) Access to public procurem ent including advice and reserving quotas for informal 
economic units.
SEC. 6. Own-account workers as well as informal economic units, being the working
poor's prim ary instrum ents to address and overcome poverty, shall be accorded the
following preferential rights by the State:
(a) Infrastructure support such as farm  to m arket roads, common, affordable and 
secure workplaces and facilities, merchandising centers, farm ers' markets or 
Bagsakan with proper storage facilities, and inventory bulk-buying centers;
(b) Policy support to prom ote and protect local and dom estically-produced products 
and services, and support in enhancing their participation in the value chain 
process;
(c) Ease and facilitation of access to markets, including capacity-building to access and 
maximize e-m arketing facilities;
(d) Access to affordable, appropriate and adequate financial services, including, among 
others, collateral-free and gender-responsive credit at low interest;


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(e) Access to appropriate and adequate machinery, equipm ent, and other technologies, 
w ith the end in view o f increasing productivity, enhancing quality o f products and 
services, and grow th;
(f) Protection from  unjust dislocation from  places where economic activities are 
conducted w ith the "provision o f relocation before dem olition";
(g) Measures against racketeering, extortion, and harassment, by both State and non- 
State elements;
(h) Freedom from  deprivation of property w ithout valid cause and due process of law; 
and,
(i) 
Affordable and customized social security and insurance programs.
SEC. 7. Rights of Legitimate Organizations o f W orkers in the Inform al Economy (W IE), 
Organizations of workers in inform al em ploym ent, including unions, cooperatives, social 
and solidarity economic units/organizations and mutual benefit associations, shall have 
the right to:
(a) Freely function and act as the representatives o f their members in policy and 
decision-making processes, collective negotiations, and other sim ilar bodies and 
processes in the context o f tripartism  and m ulti-sector;
(b) Establish, join or affiliate w ith local unions, national federations or confederations , 
and international trade union organizations, a right which shall be duly recognized, 
protected and supported by the national governm ent;
(c) Access inform ation from  concerned governm ent institutions and other parties that 
are pertinent to the protection and prom otion of the rights and welfare o f their 
members;
(d) Own property, real or personal, for the use and benefit o f their organizations and 
members;
(e) Sue and be sued under their registered names; and
(f) 
Undertake all other activities, not contrary to law, designed to benefit their 
organizations and members.
SEC. 8. O rganizing W orkers in  In fo rm a l Economy. W orkers in informal economy 
[W IE] shall be encouraged to organize themselves into self-help organizations, 
associations, federations, and confederations for their mutual benefit and protection, 
and for other legitim ate purposes. Special attention shall be given to organizing women 
and other vulnerable workers in informal economy.


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SEC. 9. A ssists nee to  O rganizations o f  W orkers in  th e  In fo rm a l Economy. All
concerned 
national governm ent agencies, governm ent financial institutions and local 
governm ent units shall include in their annual plans and budgets, programs and 
projects that support and address concerns of organizations of WIE and their members.
Chapter I I I
SECURITY IN  THE WORKPLACE OF WORKERS IN  INFORMAL ECONOMY
SEC. 
10. 
D esignation o f  W orkplaces. 
Local 
Government 
Units 
(LGU), 
in 
coordination w ith organizations of WIE w ithin their jurisdiction, affected com munities, 
and other relevant groups, shall endeavor to identify, designate, and design a system of 
assignment on the following:
(a) Productivity and merchandizing centers as viable workplaces for informal workers; 
which 
may include markets and vacant areas near markets, vacant public spaces 
and spaces which may be a private property that the LGU may acquire, lease or 
negotiate w ith legitim ate organizations o f workers in the informal economy for 
lease under a memorandum o f agreement, and
(b) 
routes, term inals, and specific lanes for small transport workers;
The process o f identifying and designation o f such workplaces shall be determ ined in 
the Im plem enting Rules and Regulations (IRR) o f this Act, provided, that such process 
shall have the substantial participation of relevant WIE organizations and stakeholders.
SEC. 11. P olicy on E viction a n d  D em olition. W orkers in the informal economy or 
em ploym ent 
shall not be evicted from  their homes and workplaces w ithout legal 
ground as provided for by R.A. 7279, otherwise known as the "Urban Development and 
Housing Act of 1992", and 
provision of livelihood opportunities, adequate w ater and 
electricity availability, as well as decent conditions of living in accordance w ith law. 
Logistical viability for the displaced shall be given priority in determ ining resettlem ent 
areas, provided that, there shall be no dem olition w ithout ensuring appropriate 
resettlem ent.
SEC. 12. P olicy on C onfiscation o f  M aterials a n d  Im p o u n d in g  o f  Vehicles. In
cases where dem olition or eviction is warranted, the person, governm ent agencies or 
their agents who conduct the same shall issue a duly signed itemized receipt o f all 
products, goods, and other materials seized from  vendors and other affected WIE.
Tricycles, pedicabs, and other modes of transportation shall not be impounded for 
violations o f license, registration, or traffic regulations unless the said vehicles were 
utilized in the conduct o f criminal activities. In cases o f violation o f traffic regulations, 
the issuance o f a traffic violation ticket shall suffice.
SEC. 13. P olicy on R elocation o f  Vending Sites. Before any public market is 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to a 
tem porary or new public market. Notice of the intention to close, sell, or demolish any


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public market shall be made to all concerned vendors at least sixty (60) days before the 
actual transfer or relocation to another m arket site. W ithin the sixty (60)-day period 
after issuance o f notice, the LGU shall conduct consultations w ith affected vendors on 
the selection o f the relocation site and im plem entation of the relocation.
Vendors, am bulant or otherwise, occupying public places not previously designated as 
vending sites shall be provided w ith viable tem porary sites by the LGU. Notice of 
tem porary transfer shall be given to the vendors at least fifteen (15) days before the 
actual transfer. This shall likewise apply to vendors granted w ith permits but whose 
workplaces are withdrawn from  the list of allowable vending sites. Any change in the list 
of allowable vending sites shall only be done after consultations w ith affected vendors.
In the event tha t a new public m arket is constructed in place o f an old one, market 
vendors w ith stalls displaced from  their workplaces shall be assured o f stall assignment 
in the new market. Displaced am bulant vendors, shall, as much as practicable also be 
given appropriate selling sites.
SEC. 14. P olicy on R elocation o f  Terminals. Designated term inals for tricycles, 
pedicabs and other similar modes of transportation shall not be arbitrarily relocated 
w ithout 
prior 
notice 
and 
consultation 
with 
small 
transport 
groups, 
legitim ate 
organizations of workers in the informal economy, affected com m unity and other 
relevant sectors. Relocation of term inals can only be effected through an Ordinance. 
Provided further, that after the enactm ent o f such ordinance, notice o f intention to 
relocate term inals shall be made to affected transport groups and com m unity at least 
sixty (60) days before the actual relocation.
Chapter IV
SOCIAL PROTECTION FOR WORKERS IN  THE INFORMAL ECONOMY
Social protection as defined in Section 4(f) of this Act shall have the following 
components:
SEC. 15. In s titu tio n a liz a tio n  o f  S ocial P rotection F loor fo r the W orkers in  th e  
In fo rm a l Economy. The State shall support, sustain, enhance, and institutionalize 
social protection initiatives for WIE through the convergence o f resources of various 
agencies to provide continuous social security and health insurance subsidies to WIE. 
Such resources shall also be used for programs for the unemployed, children, women in 
difficult and vulnerable circumstances, and older persons based on applicable and ever 
improving standards.
SEC. IS .S ocia! W elfare E fforts. The Departm ent of Social W elfare and Development 
(DSWD) shall consolidate its strategic social welfare efforts to address the needs o f the 
workers in the informal economy, including but not limited to direct assistance, policy 
developm ent and com m unity engagement for the workers.


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SEC. 17. Rote o f  th e  D e p a rtm e n t o f  Labor a n d  E m p lo ym e n t The DOLE shall 
engage in labor market interventions that shall provide adequate protection for the 
WIE. The DOLE shall likewise ensure tim ely and immediate action for labor concerns, 
security of tenure, job generation and other pertinent concerns. It shall, in collaboration 
w ith other livelihood and enterprise developm ent im plem enting agencies. Departm ent 
o f Local Governm ent (DILG) and Departm ent of Finance (DOF), develop a typology of 
form alization of informal economic units in term s of, among others, registration and 
standardized, affordable business perm it c o s t, increased compliance, and extension of 
labor and social security program.
SEC. 18. S ocial S a fe ty N ets.l\\Q  State shall ensure that the social safety nets 
provided by the DOLE, DSWD, Departm ent of Agriculture (DA) and other governm ent 
agencies shall be easily accessible to the W IE and their organizations. These shall 
include but not be lim ited to conditional cash transfers, unconditional cash transfers, 
school feeding programs, unconditional in-kind transfers, public works, cash-for-work, 
emergency em ploym ent schemes, and fee waivers.
SEC. 19. Women, F am ily a n d  C hild Care P rogram  - The DOLE, Departm ent of 
Health (DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall 
ensure that m aternity protection is extended to informal economy workers in 
accordance w ith Sections 9 and 10 of R.A. 11210, the Expanded M aternity Leave Law. 
Programs on maternal and child health and nutrition; child feeding; modern fam ily 
planning; and other health-related sen/ices shall be strengthened and target women 
WIE.
The State shall encourage the provision o f and access to affordable quality childcare 
and other care services to prom ote gender equality in entrepreneurship, em ploym ent 
opportunities, and to enable the transition to formal economy.
SEC. 20. S ocial Insurance. As specified in the IRR o f this Act, the governm ent shall 
ensure that all social insurance programs including but not lim ited to Social Security, 
Pag-ibig (Home Development Mutual Fund) and PhilHealth shall be fully available, 
accessible and affordable to WIE, and that the governm ent agencies governing them 
shall form ulate policies and mechanisms for their full utilization and benefit, in 
consultation w ith the representatives of WIE. In the interest o f equity, the State shall 
subsidize the corresponding 
em ployers' contribution, 
had 
they 
been 
in 
formal 
em ployment.
SEC. 21. D isaster R isk R eduction a n d  M anagem ent (DRRM ) a n d  C lim ate 
Change. 
The state, particularly at the com m unity level, shall engage W IE and their 
organizations in DRRM efforts from  preparedness, to response, rehabilitation and 
recovery. Responding to clim ate change in term s o f minimizing contributions to 
greenhouse gas emissions and adapting to its long-term  im pact through resiliency­
building programs shall also involve WIE and their organizations.
Chapter V
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS 
FOR WORKERS IN  THE INFORMAL ECONOMY


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SEC. 22. A p p lic a b ility  o f  the P rovisions o f  th e  Labor Code. The provisions o f the 
Labor Code governing the em ployer-em ployee relationship particularly on general labor 
standards and occupational safety and health standards shall apply to all form s o f w ork 
arrangem ents in the informal economy.
The state shall adopt a developmental perspective in dealing w ith informal economic 
units. The DOLE, in coordination w ith the lEDC, shall assess the capacity o f these 
enterprises to comply w ith general labor standards. 
Those incapable o f m eeting the 
standards shall be assisted to upgrade their capacity to improve their businesses, as 
well as the capacity to comply w ith relevant labor and social standards.
SEC. 23. P rio ritiza tio n  fo r Education a n d  Training. The State shall im plem ent 
adequate training and inform ation campaigns to provide WIE and their employers the 
full knowledge on applicable labor and occupational safety and health standards 
for 
their subsequent compliance.
SEC. 24. P ro h ib ite d  A cts S pecific to  W orkers in  the In fo rm a l Economy. The
following are deemed prohibited:
(1) Non-compliance w ith m inim um  labor standards and occupational health and safety 
standards. - The em ploym ent contract shall be in w riting specifying the term s and 
condition o f engagem ent which m ust not be lower than the m inim um  standards 
provided by law. However, the absence of a w ritten agreem ent does not mean the 
absence o f an em ploym ent relationship.
The contract shall be explained to the w orker and attested to by an elected 
Barangay official in the barangay where the w orker is designated to work.
(2 ) Recruitment or Finders' Fees. - Regardless of w hether the w orker was sourced 
either through an em ploym ent agency or a third party, W IE shall neither be 
charged nor levied a recruitm ent fee or finders' fee.
(3) Hazardous W ork and Conditions in Formal Workplaces. - W orkers shall not be 
engaged to do hazardous work, activity or undertaking, or be exposed to hazardous 
working conditions in accordance with existing laws and the IRR o f this Act.
(4 ) Interference and Coercion. - Any person is prohibited from  com m itting any o f the 
following acts o f interference or coercion:
(a) Preventing any w orker from  upholding or exercising his/her rights;
(b) Preventing any w orker from  joining or assisting organization for purposes not 
contrary 
to law;
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(c) Preventing any worker from  carrying out his/her duties or functions in an 
organization, or to penalize the same for any lawful action perform ed in that 
capacity;
(d) Harassing, threatening, coercing or intim idating any w orker that result in 
preventing him or her from  perform ing his or her duties and functions;
(e) Transferring, penalizing or term inating the services of a w orker w ithout valid or 
legal ground; and
(f) Other acts that or threaten to diminish the independence and freedom  o f a 
workers' organization to direct its own affairs.
(5) Non-compliance w ith Republic Act No. 7610, as amended by Republic Act No. 9231 
in the em ploym ent o f minors. - 
In cases where minors are contracted or hired to 
render w ork or services, the age should be at least fifteen (15) years old and there 
is parental or legal guardian consent in the em ploym ent contract, which is 
presented and attested to by any representative of the LGU or duly elected 
Barangay official where the work is to be done, and that the employers of these 
children should provide them  w ith access to at least elem entary or secondary 
education, either through traditional schooling or alternative learning systems.
SEC. 25. V isitoria l and Enforcem ent Pow er o f th e  Secretary o f Labor and 
Em ploym ent. Employment contracts and/or engagements in the Inform al Economy 
shall be subject to the visitorial and enforcem ent power of the Secretary o f Labor and 
Employment pursuant to Article 128 of the Labor Code of the Philippines.
TITLE I I  
Chapter I
INFORMAL ECONOMY DEVELOPMENT COUNCIL (lED C )
SEC. 26. C reation o f  th e  In fo rm a l Econom y D evelopm ent C ouncil (lED C ). -
There is hereby created an Inform al Economy Development Council, hereinafter 
referred to as the lEDC, which shall be an attached agency of the National Economic 
and Development Authority (NEDA). The lEDC shall institute appropriate reform s w ithin 
its structure, program m ing and other processes, including adjusting its human resource 
capabilities to ensure tha t W IE-focused programs are efficiently and adequately 
implemented to address the needs o f these workers. An inter-agency com m ittee shall 
be form ed to coordinate policies and programs of various governm ent agencies towards 
the transition o f informal economic units to formal.
The lEDC shall be constituted w ithin thirty (30) days after the approval o f the IRR of 
this Act.
SEC. 27. M andate a n d  Functions o f  lEDC. -T h e  mandate and functions of lEDC 
shall include the following:
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(a) Develop and ensure im plem entation of annual, long-term  and m edium -term  plans 
for the informal economy. The last of which should form  part o f the Medium Term 
Philippine Development Plans (MTPDP) towards institutionalizing comprehensive, 
needs and rights-based, gender-responsive and child-friendly programs and policies 
for the IE;
(b) Develop policies to transition WIE and informal economic units to form al economy 
and according to standards provided for in this Act and related laws, treaties or 
statutes;
(c) Develop and im plem ent training programs, and certify workers for jobs in industries 
that produce goods and render services for the benefit of the WIE;
(d) Develop and ensure im plem entation of gender-based monitoring and evaluation 
mechanisms, efficient and effective programs and policies, and gender-responsive 
interventions toward harnessing the full potentials of women WIE;
(e) Ensure that concerned governm ent agencies shall allocate in their respective 
Special Allocation for Development Initiatives adequate resources for programs that 
will benefit WIE;
(f) Develop and ensure im plem entation o f a simple system o f registration o f WIE, and 
accreditation o f inform al livelihood activities enterprises, and organizations in 
accordance w ith the standards and provisions o f this Act;
(g) Provide guidelines for the im plem entation by LGUs of a fair and credible system of 
evaluation, accreditation, review and assessment, m erit prom otion, rendering of 
grant and incentive awards and other policies relative to the effective and efficient 
im plem entation o f this Act;
(h) Ensure the effective implem entation o f labor standards covering WIE as provided 
for by this Act and corresponding IRR;
(i) 
Coordinate w ith LGUs for the developm ent and 
im plem entation o f periodic 
evaluation 
of all accredited IE members, enterprises and organizations for use as 
bases for accreditation, the grant of awards and incentives, training and retraining;
C) 
Ensure 
effective 
participation 
of WIE 
and 
their organizations 
through 
the 
establishm ent o f regular consultative mechanisms and processes.
(k) Establish and develop a centralized and sex-disaggregated database system to 
effectively guide policy form ulation and im plem entation relative to the WIE. The 
databank shall be available for public use w hile strictly complying w ith laws on 
privacy and confidentiality. The database [and] shall include pertinent inform ation 
as specified in the IRR o f this Act.
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( l) 
Develop and im plem ent a com munication plan and campaign targeting WIE, their 
enterprises and organizations, towards a better understanding and appreciation of 
the benefits of this Act;
(m ) Consistent with Section 2 (h) o f this Act, to develop and ensure implem entation of 
a comprehensive plan to elim inate child labor;
(n) Assess all means to ensure the transition of informal economic units and the WIE 
from  their position in the informal economy to form al economy as contained in the 
IRR of this Act;
(o) 
Coordinate 
and 
harmonize all 
informal 
econom y-related 
policies, 
programs, 
projects and activities o f various governm ent agencies including the Regional lEDC 
Officers towards greater efficiency and effectiveness;
(p) M onitor the LGU-generated incomes from  informal em ploym ent;
(q) conduct annual reviews o f governm ent programs for the WIE and subm it to 
Congress and the President of the Philippines corresponding reports thereon 
together w ith policy and other recommendations;
(r) Develop and ensure im plem entation of accessible ju s t conflict resolution and 
adjudication systems and mechanisms to promote dialogue, conciliation, mediation 
and redress o f grievances to protect the rights of WIE; and
(s) From tim e to tim e, call on the participation o f relevant governm ent agencies in its 
deliberations as necessary.
SEC. 28. Com position. - The lEDC shall be co-chaired by the Director General of 
NEDA and the Secretary o f Departm ent o f Labor and Employment. lEDC members may 
elect from  among themselves a Vice-Chair to preside over meetings in the absence of 
the Chair. The members shall be the relevant governm ent instrum entalities as 
determ ined by the IRR of this Act provided that, at least 30%  of total membership of 
lEDC shall come from  organizations o f WIE accredited w ith the SEC, DOLE or DA. 
Provided, further, th a t at least 40 percent of the 30 percent are women.
Representatives from  the Social Partners, private sector, NGOs and WIE organizations 
shall serve as lEDC members for a term  o f three (3) years w ithout re-election and shall 
be subject to term s and conditions provided for by the IRR.
SEC. 29. In itia l lE D C  Funds. - PlOO million pesos (P100,000,000.00) shall be 
allocated from  the Presidential discretionary fund fo r the initial operating expenses of 
the lEDC, which shall include the initial allocation of funds for the operations of the 
WIELDU at the LGU level.
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SEC. 30. lE D C  S e cre ta ria t - The lEDC Secretariat shall be join tly organized by the 
NEDA and the DOLE w ith functions that shall be determ ined by the IRR o f this Act and 
integrated in the DOLE secretariat functions.
SEC. 31. R egional a n d  P rovincial lE D C  O fficers. - There shall be Regional and 
Provincial lEDC Officers who shall be appointed by the lEDC and shall have functions 
that include: m onitoring and coordinating of lEDC initiatives in the regions and 
Provinces; evaluation of policies programs for W IE; providing technical assistance in the 
developm ent of local plans and programs; as well as other adm inistrative functions 
necessary for the success of lEDC initiatives in their jurisdiction.
lEDC Regional Officers shall have autom atic seats in all Regional Development Councils 
(RDCs).
Chapter I I
WORKERS IN  INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT (W IELDU)
SEC. 32. W orkers in  In fo rm a l Econom y Local D evelopm ent U n it (W IELDU). -
The W orkers in Inform al 
Economy Local 
Development Unit (WIELDU) shall be 
established in every city and municipality to perform the following functions among 
others in consultation w ith the WIE and their organizations:
(a) 
prepare an overall developm ent plan and w ork program that will address the 
needs of the WIE. The barangay developm ent plans shall be incorporated in this 
overall developm ent plan;
(b) 
encourage the organizing o f informal economic units and WIE;
(c) 
develop and m aintain a comprehensive, age, and sex-disaggregated database of 
all WIE and economic units w ithin the jurisdiction of the LGU that shall include all 
relevant inform ation as contained in the IRR o f this Act. Provided that, laws on 
privacy and confidentiality shall be fully complied w ith. Provided further, that the 
database shall include inform ation on payments collected from  WIE, organizations 
and economic units;
(d) 
establish an IE One-Stop Shop Center which shall handle all transactions and 
processing o f business perm it applications w ithin their respective jurisdiction and 
worker's registration; and,
(e) 
support MSME informal enterprise developm ent towards transitioning to form ality.
In addition, the WIELDU may also perform other similar functions and undertakings 
pursuant to the provisions o f this Act. In the performance o f WIELDU's functions, the 
principle o f preferential treatm ent to the poorest and most vulnerable shall be 
observed.
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SEC. 3 3 . Com position. - The Local Chief Executives (LCEs) shall be the prim ary 
overseers o f WIELDU's operations. The IRR o f this Act shall provide for WIELDU's 
composition provided 
that, informal workers' representatives shall form  at least fifty 
percent (50% ) of WIELDU's membership. Provided further, tha t IE representatives shall 
not be less than five (5), and provided finally, that at least forty percent (40% ) o f all 
WIELDO's members are women. Other relevant guidelines on WIELDU's operations shall 
be included in the IRR of this Act.
SEC. 34 . Local G overnm ent U n it In fo rm a l Econom y D evelopm ent F und (LGU- 
JEDF). - An Inform al Economy Development Fund shall be established by every 
m unicipality and city. Such fund will be supervised and managed by the concerned LGU 
through the WIELDU and subject to audit by the Commission on Audit (COA).
For the initial operations o f WIELDU, each LGU shall allocate a portion from  their 
Internal Revenue Allotm ent or IRA.
Thereafter, the LGU-IEDF shall be funded using;
(a) Registration fees and annual dues paid by individual workers in the informal 
economy; and accreditation fees o f their livelihood activities, organizations, and 
enterprises; and
(b) Annual allocations from  LGUs' Development Fund the percentage of which shall be 
determ ined by LGUs.
Following the principle of m erit and equity, LGUs that fulfill such allocations may receive 
additional assistance from  the national governm ent as recommended by lEDC; 
provided, that the LGUs have sufficiently complied w ith all requirem ents by the lEDC.
SEC. 3 5 . R egistration o f  In fo rm a l Econom y W orkers, a n d  A ccred itatio n o f  
Econom ic U nits a n d  O rganizations - Pursuant to its functions under the Local 
Government Code, the Local Development Council in coordination w ith the WIELDU, 
shall establish a standard system of registration o f WIE, and accreditation o f informal 
livelihood activities, organizations, and economic units provided that the system shall be 
simple, efficient, affordable, uniform , and accessible to all.
Such registration or accreditation shall signify eligibility of the WIE, their livelihood 
activities, organizations, or enterprises to avail o f developm ent programs, provided that, 
the poorest and most vulnerable shall be given priority. The registration or accreditation 
may be renewed subject to requirements set forth by the LDC in coordination w ith the 
WIELDU.
SEC. 3 6 . A n n u a l Dues. - WIE and their organizations shall pay annual dues to be 
determ ined by the concerned LGU) in consultation w ith their WIELDU). Said annual 
dues shall be no more than 30%  of the legally prescribed daily minim um wage in their 
respective regions or provinces.
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These annual dues shall accrue to the concerned LGU and shall be used for programs to 
benefit W IE, their organizations, 
business activities, and enterprises based 
on 
recommendations by the WIELDU and the local informal economy constituents.
SEC. 37. R egistration and N on-R egistration. - In no case shall registration be 
construed as a basis for rights and entitlem ents under this Act. Non-registration should 
not deprive W IE o f their rights stated in the Act. Registration as a WIE in the LGU is 
voluntary and shall not be made as a prerequisite to w ork by any private enterprise or 
governm ent unit. However, registration shall guarantee prioritization and imm ediate 
recognition o f the rights and benefits due to the workers in the informal economy.
TITLE I I I
FINAL PROVISIONS
SEC. 38. Pena! Provisions. - T h e  following are the penal provisions o f this Act.
(a) Any person who shall w illfully interfere w ith, restrain or coerce a w orker in the 
exercise of his or her rights or shall in any m anner com m it any act in violation of 
any 
of the provisions o f this Act shall, upon conviction, be punished by a fine of 
not less than Tw enty Thousand Pesos (P20,000.00) or im prisonm ent o f one (1) to 
six (6) years or both fine and im prisonm ent at the discretion of the Court.
(b) I f  the offender is a public official or an official o f a GOCC, the Court, in addition to 
the penalties provided in the preceding paragraph, may impose the additional 
penalty or disqualification from  public office.
(c) Any person who violates the provision o f this Act on Policy on Confiscation of 
Materials 
and Im pounding o f Vehicles shall be liable. Nothing herein shall prohibit 
the aggrieved W IE from  initiating a criminal or civil action against the responsible 
person or officer.
(d) Failure to im plem ent the provisions of this Act on Relocation of Vending Sites and 
Policy 
on 
Relocation 
o f Terminals 
shall 
render 
the 
responsible 
official/s 
adm inistratively liable pursuant to Republic Act 7160 and other applicable laws 
w ithout prejudice to any civil or criminal case that may be filed against erring 
officials. If a private institution or company is found to have violated any provision 
of this Act, its business license shall be suspended or revoked at the discretion of 
the Court.
SEC. 39. Im p ie m e n tin g  Ruies a n d  R eguiations (IR R ). - The Im plem enting Rules 
and Regulations (IRR) o f this Act shall be form ulated by a com m ittee to be co-led by 
DOLE and NEDA. The members o f the com m ittee shall be the representatives of 
governm ent offices mentioned in this Act, and WIE organizations. Provided that, at 
least 30%  of the com m ittee members shall come from the latter, and provided further, 
tha t at least 30%  o f com m ittee members are women. Said com m ittee will start w ork on 
the IRR w ithin three (3) months after the effectivity o f this Act and finish w ithin six (6) 
months thereafter.
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SEC. 40. A ppropriations. - The am ount of one hundred (100) million pesos 
(PlOO,000,000.00) shall be appropriated for the initial im plem entation o f this Act.
SEC. 41. 
S e p a ra b ility Clause. 
- If any 
provision 
of this Act 
is declared 
unconstitutional or 
invalid, the provisions not affected shall continue to be in full force 
and effect.
SEC. 42. R epealing Clause. - All laws, decrees, orders, rules and regulations or other 
issuances inconsistent w ith the provisions of this Act are hereby repealed, amended or 
modified accordingly,
SEC. 43. E ffe ctivity. - This Act shall take effect fifteen (15) days after its publication 
in at least tw o (2) newspapers o f general circulation o f the Official Gazette, whichever 
comes first.
Approved,
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