TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
888
of till* c -..fiori
25 AUG-4 P6:16
RECEIVED B'r
S. No.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY
EXPLANATORY NOTE
The State is committed to promote social justice and human rights for the poor 
as mandated by the 1987 Philippine Constitution. Majority of our poor and needy 
citizens belong to the informal sector which is one of the neglected and marginalized 
sectors in the country.
The definition by the International Labour Organization of the term "informal 
sector" gives a comprehensive view on this sector: it is "very small scale units 
producing and distributing goods and services, and consisting largely of independent 
self-employed producers in urban areas of developing country, some of whom also 
employ family labour and/or a few hired workers or apprentices; which operate with 
very little capital or none at all; which utilize a low level of technology and skills; which 
therefore operate at a low level of productivity; and which generally provide low and 
irregular incomes and highly unstable employment to those who work in it. They are 
informal in the sense that they are for the most part unregistered and unrecorded in 
official statistics; they tend to have little or no access to organized markets, to credit 
institutions, or to many public services and amenities; they are not recognized.


supported or regulated by the government; they are often compelled by circumstances 
to operate outside the framework of the law and even where they are registered and 
respect certain aspects of the law they are almost invariably beyond the pale of social 
protection, labour legislation and protective measures of the workplace."1
Contrary to the usual notion, the informal sector is productive because they 
provide array of services to the public and are engaged in legitimate undertakings. 
The study entitled, "The Informally Employed in the Philippines: Issues in Job Security 
of Tenure, Social Security Coverage and Measurement" published in 2022 in the 
Philippine Journal of Labor and Industrial Relations, estimated that there are more 
than 7 in 10 workers informally employed in 2021. Informal economy "is estimated 
to account for more than 70% of the total employment and about one-third of the 
country's GDP".2
Sadly, this contribution of the informal sector to the economy is insufficiently 
recognized. This is proven by the inadequate legal and social protection accorded to 
this sector. What is worse is that members of informal sector groups have been a 
source of not only of local revenues such as market taxes, and some are even 
vulnerable to "kotong".
During the deliberations of the Bayanihan Act which sought to provide 
immediate relief and assistance for the distressed sectors of the economy at the height 
of the novel Coronavirus pandemic, it was learned that there are no clear data as to 
the true number and accurate description of the composition of this sector. The 
quarterly Labor Force Surveys of the Philippine Statistics Authority does not collect 
information that would capture the dimension of informality in employment, thus, 
there is no annual statistics for this sector. The country also lacks "an integrated level 
framework to facilitate the transition of workers from the informal to the formal
1 Ofreneo, Rene. Assessment Report Series No. 6, Informal Sector: Labour Laws and Industrial Relations, 
Interdepartmental Project on the Urban Informal Sector - Philippines, 
https://www.ilo.org/media/303436/download
2 View of The Informally Employed in the Philippines: Issues in Job Security of Tenure, Social Security Coverage
and Measurement


economy.3 Such severely affected the government's efforts to reach the most 
vulnerable segment of the population.
The proposed Magna Carta for Workers in the Informal Sector is consistent with 
the provisions of the International Covenant on Economic, Social and Cultural Rights, 
to which the Philippines is a State Party.
This measure provides the rights and benefits of workers, as well as the rights 
of legitimate organization of workers in the informal economy, establishes labor 
standards and enforcement of labor laws for workers in the informal economy, and 
prescribes social protection such as accessibility of safety nets from the Department 
of Labor and Employment (DOLE), Department of Social Welfare and Development 
(DSWD), Department of Agriculture (DA) and other agencies, and provision of social 
insurance programs from SSS, PagTbig and PhilHealth. A separate chapter ensuring 
security in the workplace of workers in informal economy or employment is also 
provided under this bill.
This measure is a product of rigorous consultations with informal sector groups 
and leaders nationwide over the years. I originally filed this bill in the Fifteenth 
Congress and I am hopeful that this will finally be enacted into law in the current 
Congress.
The enactment of this measure will embody the country's commitment to 
Sustainable Development Goals, particularly Goal 8 on Decent Work and Economic 
Growth, Goal 1 on No Poverty, Goal 10 on Reduced Inequalities, and Goal 16 on Peace, 
Justice and Strong Institutions.
3 View of The Informally Employed in the Philippines: Issues in Job Security of Tenure. Social Security Coverage
and Measurement


In this light, the immediate passage of this bill is highly recommended.
INC^OY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
888
S. No.
of ll)f
25 AUG-4 P6:16
RI'CEIVEDSY
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
GENERAL PRINCIPLES
3 
Section 1. Short Title. - This Act shall be known as the "Magna Carta for
4 
Workers in the Informal Economy".
5 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to:
6 
a) Promote a just and dynamic social order that shall ensure the prosperity
7 
and independence of the nation and free the people from poverty through
8 
policies that provide adequate social services, promote decent,
9 
environmentally sound and full employment, a rising standard of living, and
10 
an improved quality of life for all;
11 
b) Protect, promote and fulfil the rights of every worker, including gender
12 
equity, non-discrimination, the right to self-organization, just and humane
13 
conditions of work, access to social protection programs and services,
14 
access to justice, security of and in the workplaces, and the right to
15 
represent their organizations in a continuing process of consultation, social
16 
dialogue and tripartite bodies; and


1 
c) Establish an integrated and coherent policy, at all levels of government, of
2 
formalization of informal economic units and informal economy workers and
3 
make them visible in all relevant national and local statistics.
4 
Sec. 3. Coverage. - This Act shall apply to all workers and economic units,
5 
including enterprises, entrepreneurs and households in the informal economy, in
6 
particular:
7 
a) Those in the informal economy who own and operate economic units,
8 
including self-employed workers, self-employed own account workers,
9 
employers, members of cooperatives, and members of other social and
10 
solidarity economy units;
11 
b) Home-based workers or contributing family workers, irrespective of whether
12 
they work in economic units in the formal or informal economy;
13 
c) Employers holding informal jobs in or for formal enterprises, or for economic
14 
units in the informal economy, including those in contract arrangement
15 
and/or in supply chains, or as paid domestic workers employed by
16 
households;
17 
d) Workers in unrecognized or unregulated employment relationships;
18 
e) Agricultural workers or fisherfolk in unrecognized or unregulated agricultural
19 
or farming endeavors and fishing activities; and
20 
f) Non-regular domestic workers.
21 
Sec. 4. Definition of Terms. - As used in this Act:
22 
a) Economic Units in the Informal Economy refers to units that are owned by
23 
individuals working on their own account either alone or with the help or
24 
contributing family workers; household enterprises engaged in the
25 
production of goods and services or unincorporated enterprises owned by
26 
households; cooperatives and other social and solidarity economy units;
27 
b) Informal Economy refers to all economic activities by workers and economic
28 
units that are, in law or in practice, not covered or insufficiently covered by
29 
laws or formal arrangements;
30 
c) Informal Economy Workers Organization refers to a group of informal sector
31 
workers that are organized with the primary objective of promoting the
32 
rights and welfare of workers in the informal economy;


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d) Informal Employment to an employment arrangement in the formal 
or informal sectors or in households that exist based mostly on casual 
employment, kinship or personal and social relations with no formal 
guarantees on legal protection and benefits economic units that are 
unregistered, unlicensed and unregulated;
e) Own-account worker to workers who, working on their own account 
or with one or more partners, hold the type of job defined as a self- 
employed job, and have not engaged on a continuous basis any employees 
to work for them during the reference period;
f) Security of and In the workplace refers to the right of every worker and 
informal economic unit to an enabling environment that guarantees and 
protects the spaces to undertake their work, including the right to be safe 
in one's own work space, free from discrimination, risk, danger, doubt, 
anxiety, or fear of being removed, evicted or prevented from working;
g) Social and Solidarity Economic Units refer 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 of the 
community they serve, through the pursuit of specific social and 
environmental objectives and the fostering of solidarity; and
h) Social Protection refers to policies and programs that seek to reduce poverty 
and vulnerability to risks and enhance the social status of the marginalized 
by promoting and protecting livelihood and employment, protecting against 
hazards and sudden loss of income, and improving people's capacity to 
manage risk, as well as other interventions that support communities, 
households, and individuals, both women and men, and realizing their rights 
as citizens through their full participation in decision-making affecting or 
which may affect their access to and control over resources necessary to 
maintain and sustain a decent and secure life.
CHAPTER II 
RIGHTS AND BENEFITS


1 
Sec. 5. Rights and Benefits of Workers in the Informal Economy. - Workers in
2 
the informal economy shall be entitled to all the rights accorded to workers by the
3 
Philippine Constitution, the Labor Code of the Philippines, as amended, and relevant
4 
international human rights instruments and international labor standards. Accordingly,
5 
the State shall guarantee all workers in the informal economy the following:
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a) Right to security of and in the workplace;
7 
b) Right to make a living by work freely chosen or accepted and avail of
8 
technical and vocational guidance and training programs;
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c) Right to just and favorable conditions of work, including provision for work-
10 
life balance, child care and other facilities;
11 
d) Right to a living wage and equal remuneration for work of equal value
12 
without distinction of any kind, in particular for women who shall be
13 
guaranteed equal wages for work similar or equivalent to those done by
14 
men;
15 
e) Right to equal opportunity for promotion, subject to no other considerations
16 
than seniority and competence;
17 
f) Right to safe and healthy working conditions safeguarding general,
18 
occupational and reproductive health;
19 
g) Right to basic services including affordable medical care, reproductive and
20 
other health services, low-cost housing, water, sanitation, electricity and
21 
transport;
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h) Right to rest, leisure and reasonable limitation of working hours and periodic
23 
holidays with pay, as well 
as remuneration for public holidays whenever
24 
applicable;
25 
i) Right to maternity and paternity benefits, as provided for by law;
26 
j) Right to equal access to education, skills training, and economic resources
27 
to develop self-reliance, especially of children and young persons, without
28 
any discrimination;
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k) Right to self-organization and to collectively negotiate with government and
30 
other entities in the promotion of their welfare and advancement of their
31 
interests, free from any political interference;


1 
I) Right to adequate standard of living for workers and their families, adequate
2 
food, clothing, shelter, and the continuous improvement of such standard;
3 
m) Freedom from any form of discrimination, violence, exploitation including
4 
sexual exploitation, harassment, abuse and any form of inhumane
5 
treatment which debases, degrades or demeans the intrinsic worth and
6 
dignity of the worker as a human being;
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n) Accessible social protection and safety nets, labor market programs, and
8 
social welfare interventions such as social security, health care and
9 
insurance;
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o) Equal treatment before the law;
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p) Right to participate in policy and decision-making processes and social
12 
dialogue, including access to information and resources relevant to the
13 
promotion and protection of their rights and welfare;
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q) Equal access to justice for redress of grievances, including alternative
15 
dispute resolution processes; 
and
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r) Access to public procurement including advice and reserving quota for
17 
informal economic units.
18 
Sec. 6. Rights and Benefits of Own-Account Workers. - Own-account workers
19 
as well as informal economic units, being the working poor's primary instruments to
20 
address and overcome poverty, shall be accorded preferential rights by the State over
21 
the following:
22 
a) Infrastructure support such as farm to market roads, common, affordable
23 
and secure workplaces and facilities, merchandising centers, farmers' or a
24 
"bagsakan" with proper storage facilities, 
and inventory 
bulk-buyisng
25 
centers;
26 
b) Policy support to promote and protect locally-produced products and
27 
services including enhancement of the local value chain;
28 
c) Ease and facilitation of access to markets, including capacity-building to
29 
access e-marketing facilities;
30 
d) Access to affordable, appropriate and adequate financial services, including,
31 
among others, collateral-free and gender-balanced credit at low interest;


1 
e) Access to appropriate and adequate machinery, equipment, and other
2 
technologies, with the end in view of increasing productivity and growth;
3 
f) Protection from unjust dislocation from places where economic activities are
4 
conducted observing the policy of "relocation before demolition";
5 
g) Measures against racketeering, extortion, and harassment, by both State
6 
and non-state elements;
7 
h) Common workplaces, common technology facilities, adequate and
8 
affordable marketing facilities such as economic freedom parks,
9 
merchandising centers, and inventory bulk-buying centers;
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i) Freedom from deprivation of property without valid cause and due process
11 
of law; and
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j) Affordable and customized social security and insurance programs.
13 
Sec. 7. Rights of Legitimate Organization of Workers in the Informal Economy
14 
or Employment - Workers in the informal economy or employment may organize into
15 
unions, cooperatives, social and solidarity economic units' organizations and mutual
16 
benefit associations. Legitimate organization of workers in the informal economy or
17 
employment shall have the right:
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a) To freely function and act as the representatives of their members in policy
19 
and decision-making processes, collective negotiations, tripartite bodies and
20 
consultations, multi-sectoral and other similar bodies;
21 
b) To establish, join or affiliate with national federations or confederations and
22 
international trade union organizations;
23 
c) To access information from concerned government institutions and other
24 
parties that are pertinent to the protection and promotion of the rights and
25 
welfare of their members;
26 
d) To own property, real or personal, for the use and benefit of their
27 
organizations and members;
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e) To sue and be sued under their registered name; and
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f) To undertake all other activities, not contrary to law, designed to benefit
30 
their organizations and members.
31 
Sec. 8. Assistance to Organizations of Workers In the Informal Economy. - The
32 
State shall encourage and support the formation of organizations among marginalized


1 
farmers, fisherfolk, women, and workers in the informal economy or employment
2 
whether in manufacturing, agriculture, transport, retail, services, and home-based
3 
workers.
4 
Towards this end, all national government agencies, government financial
5 
institutions and local government units' plans, programs and policies shall foster an
6 
atmosphere conducive to the exercise of the right to self-organization of the workers
7 
in the informal economy and access to purchase inputs at lower cost, obtain fair prices
8 
for their produce, avail of credit assistance and skills training, and share from collective
9 
gains in the case of the cooperatives.
10 
CHAPTER III
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SECURITY IN THE WORKPLACE OF WORKERS IN
12 
INFORMAL ECONOMY OR EMPLOYMENT
13 
Sec. 9. Designation of Workpiaces. - Local Government Units (LGUs), in
14 
coordination with their respective organization of workers in the informal economy
15 
and their members, affected communities and other relevant groups, shall endeavor
16 
to identify, designate and design a system of assignment on the following:
17 
a) Productivity and merchandising centers as viable workplaces for informal
18 
workers, which may include markets and vacant areas near markets, vacant
19 
public spaces and other spaces which may be a private property that the
20 
LGU may acquire, lease or negotiate with legitimate organization of workers
21 
in the informal economy for lease under a memorandum of agreement; and
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b) Routes, terminals and specific lanes for small transport workers.
23 
Sec. 10. Poiic/ on Eviction and Demoiition. - Workers in the informal economy
24 
or employment shall not be evicted from their homes and workplaces without legal
25 
ground as provided under Republic Act No. 7279, otherwise known as the "Urban
26 
Development and Housing Act of 1992," and provision of livelihood opportunities,
27 
adequate water and electricity availability as well as decent conditions of living in
28 
accordance with law. Logistical viability for the displaced shall be given priority in the
29 
course of determining the relocation sites or areas.
30 
Sec. 11. Policy on Confiscation of Materials and Impounding of Vehicles. - In
31 
cases where demolition or eviction is warranted, the person, government agencies or
32 
their respective agents who conduct the same shall issue an itemized receipt of all


1 
products, goods, and other materials seized or confiscated from vendors and other
2 
affected workers in the informal economy or employment.
3 
Tricycles, pedicabs, and other modes of transportation shall not be impounded
4 
for violations of license, registration, or traffic regulations unless the said vehicles were
5 
utilized in the conduct of criminal activities. In cases of violation of traffic regulations,
6 
a traffic violation ticket shall be issued to the erring driver without impounding his/her
7 
vehicle.
8 
Sec. 12. Policy on Relocation of Vending Sites. - Before any public market is
9 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to a
10 
temporary or new public market. Notice of the intention to close, sell or demolish any
11 
public market shall be made to all concerned vendors at least sixty (60) days before
12 
the actual transfer or relocation to another market site. Within the sixty-day period
13 
after issuance of notice, the LGU shall conduct consultations with affected vendors on
14 
the selection of the relocation site and implementation of the relocation.
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Vendors, ambulant or otherwise, occupying or selling in public places not
16 
previously designated as vending site shall be provided with viable temporary sites by
17 
the LGU and notice of temporary transfer shall be given to the vendors at least fifteen
18 
(15) days before the actual transfer to temporary vending site. The fifteen (15) days
19 
notice shall likewise apply to vendors granted with permits but whose workplaces are
20 
withdrawn from the list of allowable vending sites. Any change in the list of allowable
21 
vending sites shall be done after consultations with affected vendors.
22 
In the event that a new public market is constructed in place of an old one,
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market vendors with stalls displaced from their workplaces shall be given priority in
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the assignment of stalls in the new market.
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Sec. 13. Policy on Relocation of Terminals. - Designated terminals for tricycles,
26 
pedicabs, and other similar modes of transportation shall not be arbitrarily relocated
27 
without prior notice and consultation with small transport groups, legitimate
28 
organizations of workers in the informal economy or employment, affected community
29 
and other relevant sectors. Relocation of terminals can only be implemented through
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an Ordinance, the enactment of such shall be subject to the required consultation and
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notice of intention to relocate terminals to affected small transport groups and
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community at least sixty (60) days before its issuance.


1 
CHAPTER IV
2 
SOCIAL PROTECTION FOR THE INFORMAL SECTOR
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Sec. 14. Formalization of the Social Protection Floor. - The State shall support,
4 
sustain, enhance or institutionalize the social protection floor initiative through
5 
convergence of the resources of various agencies of the government for continuous
6 
social security and health insurance subsidies to vulnerable and other informal workers
7 
as well as initiate programs for the unemployed, children and older persons based on
8 
applicable and ever improving standards.
9 
Sec. 15. Social Welfare Efforts. - The Department of Social Welfare and
10 
Development (DSWD) shall consolidate social welfare efforts to address the needs of
11 
the workers in the informal economy, including direct assistance, policy development
12 
and community engagement for the workers.
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Sec. 16. Pole of the Department of Labor and Employment. - The Department
14 
of Labor and Employment (DOLE) shall engage in labor market interventions that shall
15 
provide adequate protection for the workers in the informal economy and ensure
16 
timely and immediate action for labor concerns as well as security of tenure, job
17 
generation and other pertinent concerns.
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Sec. 17. Social Safety Nets. - Social safety nets provided or implemented by
19 
the DOLE, DSWD, Department of Agriculture (DA) and other government agencies
20 
shall be made accessible to all workers in the informal economy and to their legitimate
21 
organizations.
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Sec. 18. Social Insurance. - Social insurance programs including Social Security,
23 
Pag-IBIG (Home Development Mutual Fund), and PhilHealth shall be fully available to
24 
workers of the informal economy, and for this purpose, policies and mechanisms for
25 
their full utilization and benefit shall be formulated by the SSS, HDMF, and PhilHealth.
26 
CHAPTER V
27 
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS
28 
FOR WORKERS IN THE INFORMAL ECONOMY
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Sec. 19. Applicability of the Provisions of the Labor Code. - The provisions of
30 
the Labor Code governing the employer-employee relationship particularly on general
31 
labor standards and occupational safety and health standards shall apply to all forms
32 
of work arrangements in the informal economy.


1 
Sec. 20. Prohibited Acts Specific to Workers in the Informai Economy. - The
2 
following are deemed prohibited:
3 
1) Non-compliance with minimum labor standards and occupational health and
4 
safety standards. - The employment contract shall be in writing specifying
5 
the terms and conditions of engagement which must not be lower than the
6 
minimum standards provided by law. However, the absence of a written
7 
agreement does not mean the absence of an employment relationship.
8 
The contract shall be explained to the worker and attested to by a
9 
representative from the LGU or an elected Barangay official in the city or
10 
municipality where the worker is designated to work.
11 
2) Recruitment or Finders' Fees. - Regardless of whether the worker was
12 
sourced either through an employment agency or a third party, workers in
13 
the informal economy shall neither be charged nor levied a recruitment fee
14 
or finders' fee by the aforementioned employment agency or third party.
15 
3) Hazardous Work and Conditions. - Workers shall not be engaged to do
16 
hazardous work, activity or undertaking, or be exposed to hazardous
17 
working conditions in accordance with law.
18 
4) Interference and Coercion. - Any person is prohibited from committing any
19 
of the following acts of interference and coercion:
20 
a) Preventing any worker from upholding or exercising his/her rights;
21 
b) Preventing any worker from joining or assisting organization for
22 
purposes not contrary to law;
23 
c) Preventing any worker from carrying out his/her duties or functions in
24 
an organization, or to penalize the same for any lawful action performed
25 
in that capacity;
26 
d) Harassing, threatening, coercing or intimidating any worker that result
27 
in preventing him or her from performing his or her duties and functions;
28 
e) Transferring, penalizing or terminating the services of a worker without
29 
valid or legal ground; and
30 
f) Other acts calculated to diminish the independence and freedom of
31 
workers' organization to direct its own affairs.
10


1 
5) Non-compliance with Republic Act No. 7610, as amended by Republic Act
2 
No. 9231 in the employment of minors. - In cases where minors are
3 
contracted or hired to render work or services, the age should be at least
4 
fifteen (15) years old and there Is parental or legal guardian consent in the
5 
employment contract. In addition, the employment contract should also be
6 
attested to by any representative of the LGU or duly elected barangay
7 
official where the work is to be done. The employers of the minors shall also
8 
provide them with access to at least elementary or secondary education,
9 
either through traditional schooling or alternative learning systems.
10 
Sec. 21. Visitoria! and Enforcement Power of the Secretary of Labor and
11 
Employment - Employment contracts and/or engagements in the Informal Economy
12 
shall be subject to the visitorial and enforcement power of the Secretary of Labor and
13 
Employment pursuant to Article 128 of the Labor Code of the Philippines.
14 
CHAPTER VI
15 
POLICY COORDINATION AND DEVELOPMENT
16 
Sec. 22. Function of National Economic and Development Authority. - The
17 
Committee on Social Development of the National Economic and Development
18 
Authority (NEDA) shall develop policies and programs that shall institutionalize and
19 
strengthen informal economy workers and the informal economy units.
20 
Sec. 23. Informal Economy Initiatives of Local Development Council. - The
21 
Local Development Councils of all provinces, cities and municipalities shall establish a
22 
body of coordination, registration and assistance for workers in the informal economy
23 
within their respective jurisdictions.
24 
The Local Development Councils shall also form a sectoral or functional
25 
committee that shall facilitate the registration of informal economy workers.
26 
CHAPTER VII
27 
REGISTRATION OF INFORMAL ECONOMY WORKERS
28 
Sec. 24. Registration. - Pursuant to its functions under the Local Government
29 
Code, the Local Development Council, through its Secretariat or through the creation
30 
of a sectoral or functional committee, shall establish a system of registration of
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workers of the informal economy. The system shall be as follows:
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a) Workers. - There shall be a simple and standard system of registration in 
accordance with the framework and principles of this Act. A one-time 
registration fee of not more than Fifty pesos (P50.00) per individual worker 
shall be paid to the municipality or city where the worker resides.
Any Informal Economy (IE) worker registered in the local government 
provided for in this Act shall be listed in the centralized database system 
and shall be issued an identity card and a record book that shall list all 
services and benefits availed of. Such identification card shall serve as proof 
of the IE worker's right to avail of development programs: Provided, That, 
the poorest and the most vulnerable workers shall be given priority.
The concerned LGU shall review, revalidate and reassess such database 
as a tool for local planning and for other purpose every two (2) years. 
Renewal of eligibility shall be in accordance with the merit and fitness 
principle, and with the conditions that no child labor shall be used and no 
activities harmful to the environment shall be implemented.
b) Informal Economic Unit - A comprehensive database of all economic units 
shall be developed and maintained. Such database shall take into account 
the different sub-classifications in terms of asset size, number of workers, 
social insurance provided, statutory benefits and wages, industry, 
geography, premises, sex, ethnicity, vulnerability and roles and functions. 
The database shall also indicate informal economic units which may be 
categorized as livelihood enterprises and entrepreneurial or growth oriented 
informal businesses.
The database shall also include information on payments collected from 
IE workers. Workers in the Informal Economy (WIE) organizations and 
economic units. The Barangay Micro Business Enterprise (BMBE) Registry, 
in general, shall include these informal economic units, pursuant to the 
qualification of micro-enterprises under Republic Act No. 8425.
The aforesaid comprehensive database shall form part of the bases of 
assessment and monitoring of the growth of the informal economy.
All local government units shall formulate a uniform and simple checklist 
of requirements for registration and establish an IE One-Stop Shop Center
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1 
which shall handle all transactions and processing of business permit
2 
applications within their respective jurisdiction and worker's registration.
3 
The Center shall ensure that processing of the business permit of the
4 
informal economy units shall be expedited and shall be completed within
5 
one day.
6 
The DOLE shall create a checklist of requirements for registration.
7 
c) Informal Economy Organizations/Associations (lEO/A). - lEO/A shall
8 
register or accredit with the Department of Labor and Employment (DOLE).
9 
Sec. 36. Annual Dues. - IE workers and organizations shall pay annual dues to
10 
be determined by the Local Government Unit (LGU) concerned, in consultation with
11 
their respective Local Development Councils referred herein. In no case shall the
12 
annual dues to be paid by the IE workers be more than 30% of the prescribed daily
13 
minimum wage as determined by the Regional Tripartite Wages and Productivity Board
14 
(RTWPB) in their respective regions or provinces.
15 
These annual dues shall accrue to the respective LGU where they are
16 
accredited. The accumulated funds from these dues shall be used for programs to
17 
benefit IE workers and organizations/associations, business activities, enterprises and
18 
organizations, as recommended by the Local Development Council. Such programs
19 
and disbursement of funds shall be approved by the concerned LGU Council in
20 
consultation with the local informal economy constituents.
21 
Sec. 37. Registration and Non-Registratlon. - In no case shall registration be
22 
construed as a basis for rights and entitlements and rights under this Act, and it shall
23 
not be made as a prerequisite to work by any private enterprise or government unit.
24 
CHAPTER VIII
25 
FINAL PROVISIONS
26 
Sec. 38. Pena! Provisions. -
27 
a) Any person who shall willfully interfere with, restrain or coerce a worker in
28 
the exercise of his or her rights or shall in any manner commit any act in
29 
violation of any of the provisions of this Act shall, upon conviction, be
30 
punished by a fine of not less than Twenty thousand pesos (P20,000.00) or
31 
imprisonment of one (1) to six (6) years or both fine and imprisonment at
32 
the discretion of the Court.
13


1 
b) If the offender is a public official, the Court, in addition to the penalties
2 
provided in the preceding paragraph, may impose the additional penalty or
3 
disqualification from public office.
4 
c) Any person who violates Section 11 of this Act (Policy on Confiscation of
5 
Materials and Impounding of Vehicles) shall be liable. Nothing herein shall
6 
prohibit the aggrieved workers in the informal economy from initiating a
7 
criminal or civil action against the responsible person or officer.
8 
d) Failure to implement Sections 12 (Policy on Relocation of Vending Sites) and
9 
13 (Policy on Relocation of Terminals) shall render the responsible official/s
10 
administratively liable pursuant to Republic 
Act 
No. 7160 and other
11 
applicable laws, without prejudice to any civil or criminal cases that may 
be
12 
filed against such erring official/s.
13 
e) If a private institution/company is found to have violated any provisions of
14 
this Act, its business shall be suspended or revoked at the discretion of the
15 
Court.
16 
Sec. 39. Implementing Rules and Regulations (IRR). - The DOLE, DILG and
17 
NEDA, in coordination with other concerned agencies and stakeholders, shall
18 
formulate the implementing rules and regulations within one hundred eighty (180)
19 
days from the effectivity of this Act.
20 
Sec. 40. Separability Clause. — If any provision or part hereof is held invalid or
21 
unconstitutional, the remainder of the law or the provision or part not otherwise
22 
affected shall remain valid and subsisting.
23 
Sec. 41. Repealing Clause. — Any law, presidential decree or issuance, executive
24 
order, letter of instruction, administrative order, rule, or regulation contrary to or
25 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended
26 
accordingly.
27 
Sec. 42. Effectivity. - This Act shall take effect fifteen (15) days after its
28 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
14