Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
The Labor Code reads, in no vague terms, that the State shall afford 
protection to labor, promote full employment, ensure equal work opportunities 
regardless of sex, race or creed and regulate the relations between workers and 
employers. Likewise, it shall assure the rights of workers to self-organization, 
collective bargaining, security of tenure, and just and humane conditions of work1. 
Pursuant to the foregoing, the State relentlessly endeavors to recognize every face 
of labor and extend to it adequate protection as provided under existing laws. 
A good look at our immediate surroundings immediately reveals that while the 
State has extensively sought to regulate labor, there exists a widespread, 
unregulated and vulnerable sector of labor in the informal economy. The informal 
economy consists of independent, self-employed small-scale producers and 
distributors of goods and services2. It covers a diversified set of economic activities, 
enterprises and jobs.  Simply, workers in the informal economy do not fall within the 
strict ambit of regulated employment and are not covered by current labor laws. This 
makes them specifically prone to abuse and unfavorable working conditions. 
The bill herein proposed recognizes the rights of every Filipino engaged in 
informal employment. We recognize their undeniable contribution to our economy 
and to our society. Informal workers already make up some 35% of our labor force3 
or some 16 million workers. The existing figure is big and it continues to grow. In the 
advent of modern technology that empowers connectivity and mobility, as well as 
progressive legislation that encourages work-from-home schemes and increased 
flexibility, development thinkers predict that the informal economy shall be the 
accepted norm in the future. This Representation would like to ensure that when 
1 Article III, Labor Code 
2 International Labor Organization . https://www.ilo.org/manila/areasofwork/informal-economy/lang--en/index.htm 
3 https://www.rappler.com/newsbreak/iq/169006-fast-facts-philippines-informal-sector-workers 
July 14, 2022
1:45 pm
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such time comes, our workers have ample legal protection in place, and our State 
likewise benefitted by their monitored contributions to the gross national product 
(GDP). 
Once passed, this bill shall be referred to as the Magna Carta for Workers in 
the Informal Economy.  
The Magna Carta for Workers in the Informal Economy lists the employees 
who shall be covered, and specifies their rights. In line with this, it encourages the 
formation of organizations among marginalized farmers, fisherfolk, women, and 
workers in the informal economy or employment whether in manufacturing, 
agriculture, transport, retail, services, and home-based workers so that there may be 
a unified body to represent them in all dialogues with government or in seeking 
redress for grievances. All national government agencies, government financial 
institutions and local government units’ plans, programs and policies are directed to 
foster an atmosphere conducive to the exercise of the right to self-organization of the 
workers in the informal economy and access to purchase inputs at lower cost, obtain 
fair prices for their produce, avail of credit assistance and skills training, and share 
from collective gains in the case of the cooperatives. 
The State engages the expertise and services of pertinent government 
agencies in reaching out to our workers in the informal economy and in encouraging 
them to work hand in hand with the government. For instance, the Department of 
Social Work and Development (DSWD) is hereby mandated to consolidate social 
welfare efforts to address the needs of the workers in the informal economy, 
including direct assistance, policy development and community engagement for the 
workers. Likewise, the Department of Labor and Employment (DOLE) must engage 
in labor market interventions to provide adequate protection for the workers in the 
informal economy and ensure timely and immediate action for labor concerns as well 
as security of tenure, job generation and other pertinent concerns. 
Under this law, employers are strongly reminded to abide by the minimum 
standards of labor provided by the laws enforced, and to cooperate with the 
initiatives of government.  
The State strives to provide a system most favorable to all. Ultimately, we 
thank the informal workers who have found means to contribute to our nation and 
sustain themselves and their families in the most dignified and rewarding ways they 
know how. In consideration of the foregoing premises, the passage of this bill is 
humbly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
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: 
TITLE I 
GENERAL PROVISIONS 
Chapter I 
GENERAL PRINCIPLES 
SECTION 1. Short Title. This Act shall be known as the “Magna Carta for Workers 
in the Informal Economy.” 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to: 
a) Promote a just and dynamic social order that shall ensure the prosperity and
independence of the nation and free the people from poverty through policies
that provide adequate social services, promote decent, environmentally sound
and full employment, a rising standard of living, and an improved quality of life
for all;
b) Protect, promote and fulfill the rights of every worker, including gender equity,
non-discrimination, the right to self-organization, just and humane conditions
of work, access to social protection programs and services, access to justice,
security of and in the workplaces, and the right to represent their
organizations in a continuing process of consultation, social dialogue and
tripartite bodies; and
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c) Establish an integrated and coherent policy, at all levels of government, of 
formalization of informal economic units and informal economy workers and 
make them visible in all relevant national and local statistics. 
 
SECTION 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 in the informal economy who own and operate economic units, 
including self-employed workers, self-employed own account workers, 
employers, members of cooperatives, and members of other social and 
solidarity economy units; 
 
b) Home-based workers or contributing family workers, irrespective of whether 
they work in economic units in the formal or informal economy; 
 
c) Employees holding informal jobs in or for formal enterprises, or for economic 
units in the informal economy, including those in contract arrangement and/or 
in supply chains, or as paid domestic workers employed by households; 
 
d) Workers in unrecognized or unregulated employment relationships; 
 
e) Agricultural workers or fisherfolk in unrecognized or unregulated agricultural 
or farming endeavors and fishing activities; and 
 
f) Non-regular domestic workers. 
 
SECTION 4. Definition of Terms. -  As used in this Act, the following terms shall 
mean: 
 
a) “Informal Economy” refers to all economic activities by workers and economic 
units that are, in law or in practice, not covered or insufficiently covered by 
laws or formal arrangements. 
 
b) “Economic Units in the Informal Economy” refer to units that are owned by 
individuals working on their own account either alone or with the help or 
contributing family workers; household enterprises engaged in the production 
of goods and services or unincorporated enterprises owned by _ households; 
cooperatives and other social and solidarity economy units. 
 
c) “Informal Economy Workers’ Organization” refers to a group of informal sector 
workers that are organized with the primary objective of promoting the rights 
and welfare of workers in the informal economy. 
 
d) “Informal Employment” refers 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” refers 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 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 all 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. 
 
h) “Social and Solidarity Economy Units” 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 of the 
community they serve, through the pursuit of specific social and 
environmental objectives and the fostering of solidarity. 
 
Chapter Il 
RIGHTS AND BENEFITS 
 
SECTION 5. Rights and Benefits of Workers in the Informal Economy. - Workers 
in the informal economy shall be entitled to all the rights accorded to workers by the 
Philippine Constitution, the Labor Code of the Philippines, as amended, and relevant 
international human rights instruments and international labor standards. 
Accordingly, the State shall guarantee all workers in the informal economy the 
following: 
 
a) Right to security of and in the workplace; 
 
b) Right to make a living by work freely chosen or accepted and avail of 
technical and vocational guidance and training programs; 
 
c) Right to just and favorable conditions of work, including provision for work-life 
balance, child care and other facilities: 
 
d) Right to a living wage and equal remuneration for work of equal value without 
distinction of any kind, in particular for women who shall be guaranteed equal 
wages for work similar or equivalent to those done by men; 
 


e) Right to equal opportunity for promotion, subject to no other considerations 
than seniority and competence; 
 
f) Right to safe and healthy working conditions safeguarding general, 
occupational and reproductive health; 
 
g) Right to basic services including affordable medical care, reproductive and 
other health services, low-cost housing, water, sanitation, electricity and 
transport; 
 
h) Right to rest, leisure and reasonable limitation of working hours and periodic 
holidays with pay, as well as remuneration for public holidays whenever 
applicable; 
 
i) Right to maternity and paternity benefits, as provided for by law; 
 
j) Right to equal access to education, skills training, and economic resources to 
develop self-reliance, especially of children and young persons, without any 
discrimination; 
 
k) Right to self-organization and to collectively negotiate with government and 
other entities in the promotion of their welfare and advancement of their 
interests, free from any political interference; 
 
l) Right to adequate standard of living for workers and their families, adequate 
food, clothing, shelter, and the continuous improvement of such standard; 
 
m) Freedom from any form of discrimination, violence, exploitation including 
sexual exploitation, harassment, abuse and any form of inhumane treatment 
which debases, degrades or demeans the intrinsic worth and dignity of the 
worker as a human being; 
 
n) Accessible social protection and safety nets, labor market programs, and 
social welfare interventions such as social security, health care and 
insurance; 
 
o) Equal treatment before the law; 
 
p) Right to participate in policy and decision-making processes and social 
dialogue, including access to information and resources relevant to the 
promotion and protection of their rights and welfare; 
 
q) Equal access to justice for redress of grievances, including alternative dispute 
resolution processes; and 
 
r) Access to public procurement including advice and reserving quota for 
informal economic units. 
 
SECTION 6. Rights and Benefits of Own-Account Workers. – Own-account 
workers as well as informal economic units, being the working poor’s primary 


instruments to address and overcome poverty, shall be accorded preferential rights 
by the State over the following: 
 
a) Infrastructure support such as farm to market roads, common, affordable and 
secure workplaces and facilities, merchandising centers, farmers’ markets or 
a “bagsakan’ with proper storage facilities, and inventory bulk-buying centers; 
 
b) Policy support to promote and protect locally-produced products and services 
including enhancement of the local value chain; 
 
c) Ease and facilitation of access to markets, including capacity-building to 
access e-marketing facilities; 
 
d) Access to affordable, appropriate and adequate financial services, including, 
among others, collateral-free and gender-balanced credit at low interest; 
 
e) Access to appropriate and adequate machinery, equipment, and other 
technologies, with the end in view of increasing productivity and growth; 
 
f) Protection from unjust dislocation from places where economic activities are 
conducted observing the policy of “relocation before demolition”; 
 
g) Measures against racketeering, extortion, and harassment, by both State and 
non-State elements; 
 
h) Common workplaces, common technology facilities, adequate and affordable 
marketing facilities such as economic freedom parks, merchandising centers, 
and inventory bulk-buying centers; 
 
i) Freedom from deprivation of property without valid cause and due process of 
law; and 
 
j) Affordable and customized social security and insurance programs. 
 
SECTION 7. Rights of Legitimate Organization of Workers in the Informal 
Economy or Employment. -  Workers in the informal economy or employment may 
organize into unions, cooperatives, social and solidarity economic units’ 
organizations and mutual benefit associations. Legitimate organization of workers in 
the informal economy or employment shall have the right: 
 
a) To freely function and act as the representatives of their members in policy 
and decision-making processes, collective negotiations, tripartite bodies and 
consultations, multi-sectoral and other similar bodies; 
 
b) To establish, join or affiliate with national federations or confederations and 
international trade union organizations; 
 
c) To access information from concerned government institutions and other 
parties that are pertinent to the protection and promotion of the rights and 
welfare of their members; 


 
d) To own property, real or personal, for the use and benefit of their 
organizations and members; 
 
e) To sue and be sued under their registered name; and 
 
f) To undertake all other activities, not contrary to law, designed to benefit their 
organizations and members. 
 
SECTION 8. Assistance to Organizations of Workers in the Informal Economy. 
- The State shall encourage and support the formation of organizations among 
marginalized farmers, fisherfolk, women, and workers in the informal economy or 
employment whether in manufacturing, agriculture, transport, retail, services, and 
home-based workers. 
 
Toward this end, all national government agencies, government financial 
institutions and local government units’ plans, programs and policies shall foster an 
atmosphere conducive to the exercise of the right to self-organization of the workers 
in the informal economy and access to purchase inputs at lower cost, obtain fair 
prices for their produce, avail of credit assistance and skills training, and share from 
collective gains in the case of the cooperatives. 
 
Chapter III 
SECURITY IN THE WORKPLACE OF WORKERS IN 
INFORMAL ECONOMY OR EMPLOYMENT 
 
SECTION 9. Designation of Workplaces. - Local Government Units (LGUs), in 
coordination with their respective organization of workers in the informal economy 
and their members, affected communities 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 other spaces which may be a private property that the LGU 
may acquire, lease, or negotiate with legitimate organization of workers in the 
informal economy for lease under a memorandum of agreement; and 
 
b) Routes, terminals, and specific lanes for small transport workers. 
 
SECTION 10. Policy on Eviction and Demolition. - Workers in the informal 
economy or employment shall not be evicted from their homes and workplaces 
without legal ground as provided under Republic Act No. 7279, otherwise known as 
the “Urban Development and Housing Act of 1992” and provision of livelihood 
opportunities, adequate water and electricity availability as well as decent conditions 
of living in accordance with law. Logistical viability for the displaced shall be given 
priority in the course of determining the relocation sites or areas. 
 
SECTION 11. Policy on Confiscation of Materials and Impounding of Vehicles.- 
In cases where demolition or eviction is warranted, the person, government agencies 
or their respective agents who conducts the same shall issue an itemized receipt of 


all products, goods, and other materials seized or confiscated from vendors and 
other affected workers in the informal economy or employment. 
 
Tricycles, pedicabs, and other modes of transportation shall not be 
impounded for violations of license, registration, or traffic regulations unless the said 
vehicles were utilized in the conduct of criminal activities. In cases of violation of 
traffic regulations, a traffic violation ticket shall be issued to the erring driver without 
impounding his/her vehicle. 
 
SECTION12. Policy on Relocation of Vending Sites. - Before any public market is 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to 
a temporary or new public market. Notice of the intention to close, sell, or demolish 
any public market shall be made to all concerned vendors at least sixty (60) days 
before the actual transfer or relocation to another market site. Within the sixty-day 
period after issuance of notice, the LGU shall conduct consultations with affected 
vendors on the selection of the relocation site and implementation of the relocation. 
 
Vendors, ambulant or otherwise, occupying or selling in public places not 
previously designated as vending site shall be provided with viable temporary sites 
by the LGU and notice of temporary transfer shall be given to the vendors at least 
fifteen (15) days before the actual transfer to temporary vending site. The fifteen (15) 
days notice shall likewise apply to vendors granted with 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 with affected 
vendors. 
 
In the event that a new public market is constructed in place of an old one, 
market vendors with stalls displaced from their workplaces shall be given priority in 
the assignment of stalls in the new market. 
 
SECTION 13. Policy on Relocation of Terminals. – Designated terminals for 
tricycles, pedicabs and other similar modes of transportation shall not be arbitrarily 
relocated without prior notice and consultation with small transport groups, legitimate 
organizations of workers in the informal economy or employment, affected 
community and other relevant sectors. Relocation of terminals can only be 
implemented through an Ordinance, the enactment of such shall be subject to the 
required consultation and notice of intention to relocate terminals to affected small 
transport groups and community at least sixty (60) days before its issuance. 
 
Chapter IV 
SOCIAL PROTECTION FOR THE INFORMAL SECTOR 
 
SECTION 14. Formalization of the Social Protection Floor. -  The State shall 
support, sustain, enhance, or institutionalize the social protection floor initiative 
through convergence of the resources of various agencies of the government for 
continuous social security and health insurance subsidies to vulnerable and other 
informal workers as well as initiate programs for the unemployed, children, and older 
persons based on applicable and ever improving standards. 
 


SECTION 15. Social Welfare Efforts. - The Department of Social Welfare and 
Development (DSWD) shall consolidate social welfare efforts to address the needs 
of the workers in the informal economy, including direct assistance, policy 
development and community engagement for the workers. 
 
SECTION 16. Role of the Department of Labor and Employment. -  The 
Department of Labor and Employment (DOLE) shall engage in labor market 
interventions that shall provide adequate protection for the workers in the informal 
economy and ensure timely and immediate action for labor concerns as well as 
security of tenure, job generation and other pertinent concerns. 
 
SECTION 17. Social Safety Nets. -  Social safety nets provided or implemented by 
the DOLE, DSWD, Department of Agriculture (DA) and other government agencies 
shall be made accessible to all workers in the informal economy and to their 
legitimate organizations. 
 
SECTION 18. Social Insurance. - Social insurance programs including Social 
Security, Pag-ibig (Home Development Mutual Fund) and PhilHealth shall be fully 
available to workers of the informal economy, and for this purpose, policies and 
mechanisms for their full utilization and benefit shall be formulated by the SSS, 
HDMF and PhilHealth. 
 
Chapter V 
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS 
FOR WORKERS IN THE INFORMAL ECONOMY 
 
SECTION 19. Applicability of the Provisions of the Labor Code. -  The provisions 
of the Labor Code governing the employer-employee relationship particularly on 
general labor standards and occupational safety and health standards shall apply to 
all forms of work arrangements in the informal economy. 
 
SECTION 20. Prohibited Acts Specific to Workers in the Informal Economy. - 
The following are deemed prohibited: 
 
1. Non-compliance with minimum labor standards and occupational health 
and safety standards. The employment contract shall be in writing specifying 
the terms and conditions of engagement which must not be lower than the 
minimum standards provided by law. However, the absence of a written 
agreement does not mean the absence of an employment relationship. 
 
The contract shall be explained to the worker and attested to by a 
representative from the LGU or an elected Barangay official in the city or 
municipality where the worker is designated to work. 
 
2. Recruitment or Finders’ Fees. Regardless of whether the worker was 
sourced either through an employment agency or a third party, workers in the 
informal economy shall neither be charged nor levied a recruitment fee or 
finders’ fee by the aforementioned employment agency or third party. 
 


3. Hazardous Work and Conditions. Workers shall not be engaged to do 
hazardous work, activity or undertaking, or be exposed to hazardous working 
conditions in accordance with law. 
 
4. Interference and Coercion. Any person is prohibited from committing any of 
the following acts of interference and coercion: 
 
a) Preventing any worker from upholding or exercising his/her rights; 
 
b) Preventing any worker from joining or assisting organization for purposes 
not contrary to law; 
 
c) Preventing any worker from carrying out his/her duties or functions in an 
organization, or to penalize the same for any lawful action performed in 
that capacity; 
 
d) Harassing, threatening, coercing or intimidating any worker that result in 
preventing him or her from performing his or her duties and functions; 
 
e) Transferring, penalizing or terminating the services of a worker without 
valid or legal ground; and 
 
f) Other acts calculated to diminish the independence and freedom of 
workers’ organization to direct its own affairs. 
 
5. Non-compliance with Republic Act No. 7610, as amended by Republic 
Act No. 9231 in the employment of minors. In cases where minors are 
contracted or hired to render work or services, the age should be at least 
fifteen (15) years old and there is parental or legal guardian consent in the 
employment contract. In addition, the employment contract should also be 
attested to by any representative of the LGU or duly elected Barangay official 
where the work is to be done. The employers of the minors shall also provide 
them with access to at least elementary or secondary education, either 
through traditional schooling or alternative learning systems. 
 
SECTION 21. Visitorial and Enforcement Power of the Secretary of Labor and 
Employment. - Employment contracts and/or engagements in the Informal Economy 
shall be subject to the visitorial and enforcement power of the Secretary of Labor and 
Employment pursuant to Article 128 of the Labor Code of the Philippines. 
 
Chapter VI 
POLICY COORDINATION AND DEVELOPMENT 
 
SECTION 22. Function of National Economic Development Authority. - The 
Committee on Social Development of the National Economic Development Authority 
(NEDA) shall develop policies and programs that shall institutionalize and strengthen 
informal economy workers and the informal economy units. 
 
SECTION 23. Informal Economy Initiatives of Local Development Council. - The 
Local Development Councils of all provinces, cities and municipalities shall establish 


a body of coordination, registration and assistance for workers in the informal 
economy within their respective jurisdictions. 
 
The Local Development Councils shall also form a sectoral or functional 
committee that shall facilitate the registration of informal economy workers. 
 
Chapter VII 
REGISTRATION OF INFORMAL ECONOMY WORKERS 
 
SECTION 24. Registration. - Pursuant to its functions under the Local Government 
Code, the Local Development Council, thru its Secretariat or thru the creation of a 
sectoral or functional committee, shall establish a system of registration of workers of 
the informal economy. The system shall be as follows: 
 
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 which 
shall handle all transactions and processing of business permit applications 
within their respective jurisdiction and worker's registration. The Center shall 
ensure that processing of the business permit of the informal economic units 
shall be expedited and shall be completed within one day. 
 
The DOLE shall create a checklist of requirements for registration. 
 
c) Informal Economy Organizations/Associations. IEO/A shall register or accredit 
with the Department of Labor and Employment (DOLE). 
 
SECTION 36. Annual Dues. -  IE workers and organizations shall pay annual dues 
to be determined by the Local Government Unit (LGU) concerned, in consultation 
with their respective Local Development Councils referred herein. In no case shall 
the annual dues to be paid by the IE workers be more than 30% of the prescribed 
daily minimum wage as determined by the Regional Tripartite Wages and 
Productivity Board (RTWPB) in their respective regions or provinces. 
 
These annual dues shall accrue to the respective LGU where they are 
accredited. The accumulated funds from these dues shall be used for programs to 
benefit IE workers and organizations/associations, business activities, enterprises 
and organizations, as recommended by the Local Development Council. Such 
programs and disbursement of funds shall be approved by the concerned LGU 
Council in consultation with the local informal economy constituents. 
 
SECTION 37. Registration and Non-Registration. - In no case shall registration be 
construed as a basis for rights and entitlements and rights under this Act, and it shall 
not be made as a prerequisite to work by any private enterprise or government unit. 
 
TITLE Il 
FINAL PROVISONS 
 
SECTION 39. Penal Provision. 
 
a) Any person who shall willfully interfere with, restrain or coerce a worker in the 
exercise of his or her rights or shall in any manner commit any act in violation 
of any of the provisions of this Act shall, upon conviction, be punished by a 
fine of not less than Twenty Thousand Pesos (P20,000.00) or imprisonment of 
one (1) to six (6) years or both fine and imprisonment at the discretion of the 
Court. 
 
b) If the offender is a public official, 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 Section 11 of this Act (Policy on Confiscation of 
Materials and Impounding of Vehicles) shall be liable. Nothing herein shall 
prohibit the aggrieved workers in the informal economy from initiating a 
criminal or civil action against the responsible person or officer. 


 
d) Failure to implement Sections 12 (Policy on Relocation of Vending Sites) and 
13 (Policy on Relocation of Terminals) shall render the responsible official/s 
administratively liable pursuant to Republic Act No. 7160 and other applicable 
laws, without prejudice to any civil or criminal cases that may be filed against 
such erring Official/s. 
 
e) If a private institution/company is found to have violated any provisions of this 
Act, its business shall be suspended or revoked at the discretion of the Court. 
 
SECTION 40. Implementing Rules and Regulations (IRR). – The DOLE, DILG and 
the National Economic Development Authority (NEDA), in coordination with other 
concerned agencies and stakeholders, shall formulate the implementing rules and 
regulations within 180 days from the effectivity of this Act. 
 
SECTION 41. Separability 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. 
 
SECTION 42. Repealing Clause. -  All laws, decrees, orders, rules and regulations 
or other issuances inconsistent with the provisions of this Act are hereby repealed, 
amended or modified accordingly, 
 
SECTION 43.  Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette. 
 
 
Approved,