EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE of REPRESENTATIVES
2025
House Bill No.

Introduced by: HON. DANILO RAMON S. FERNANDEZ
First District, Laguna

EXPLANATORY NOTE

This Magna Carta for Workers in the Informal Economy (MACWIE) is long overdue.
Bills on this have been filed in both the Senate and the House of Representatives since
the 13th Congress and have undergone various revisions and updating with the
patient and vigilant participation of leaders representing organizations of informal

workers.

Passage of the bill is an urgent matter if social justice is to be achieved for a huge
number of Filipino workers laboring under harsh and unprotected conditions, among
them homebased workers, vendors, small farmers and fisherfolk, small transport
operators, non-regular construction workers, volunteer workers in government
instrumentalities, waste recyclers, micro-entrepreneurs, etc. Many of them are women
saddled with unpaid care work and have no recourse but to work in informal,
unprotected, and low-quality jobs that are compatible with their domestic burdens.
Informal workers contribute a lot to the national economy, especially during times of
crises when the informal economy serves as the catch basin of those displaced in the
formal sector. However, their rights and welfare barely recognized, represented, and

prioritized in government bodies, policies and programs.

For far too long, labor rights in the Philippines have always been the purview of
workers in the formal sector. It is about time that the same rights are accorded to
those laboring in the informal economy, who, by some estimates comprise about
twenty five million (25,000,000) forming the overwhelming majority of the working
people of this country. This bill will be a huge, if not a revolutionary step forward,

which the 18% Congress can proudly claim as a historic achievement.

‘This bill draws its principles from the Philippine Constitution, and derives many of its
definitions and provisions from the landmark 2014 Resolution of the ILO on
transitioning workers in the informal economy (WIE), as well as informal
organizations, livelihood activities and enterprises comprising the bulk of micro and
small businesses, from informality to formality. Said ILO resolution acknowledges
informal work as a persistent global phenomenon that needs to be addressed

comprehensively.


‘The MACWIE bill is a product of many years of discussions and negotiations between
and among WIE organizations, relevant government instrumentalities, and other
stakeholders. The bill contains chapters on the rights and benefits to be accorded to
the various actors in the informal economy, with emphasis on security of and in the
workplace; social protection especially of vulnerable groups; access to productive
resources; and enforcement of labor laws and standards for informal workers. It
institutes policy making, coordinating, and implementing mechanisms at both

national and local levels which ensure representation of informal workers, and with

facilitative processes for the registration of informal works as well as accreditation of
informal organizations and economic units. All these will address the needs, rights,
and welfare of WIE, their organizations, and enterprises. Most importantly, the bill will

facilitate their transition to formal economy.

Justice delayed is justice denied. Informal workers, their organizations, and their
enterprises have been waiting for decades. They cannot be made to wait any longer.

‘The passage of this bill is earnestly sought.

DANILO RAMON S. FERNANDEZ
1* District, Laguna


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

2025
No.

Introduced by HON. DANILO RAMON S. FERNANDEZ

An Act Providing for A Niagna 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

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

TITLE
GENERAL PROVISIONS

Chapter |
GENERAL PRINCIPLES

SEC. 1. Short Title.This Act shall be known as the“Magna Carta of Workers in the Informal
Economy” or MACWIE

SEC. 2. Declaration of Policy. Itis hereby declared the policy of the State to

(2) 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 and social dialogue, with equitable membership in relevant tripartite bodies;
and

(©) Establish and fully implement 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.

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:
- _ 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;


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(c) Employees holding informal jobs in or for formal enterprises, or for economic units in the
informal economy, including but not limited to those in contract arrangement and/or in
supply chains, or as non-regular paid domestic workers employed by households;

(4) Workers in unrecognized or unreguiated employment relationships provided that the work
performed is not illegal;

(e) Volunteer; contractual; job orders; and other vulnerable workers in govemment
instrumentalities; and

(f) Agricultural workers or fisherfolk in unrecognized or unregulated agricultural or farming
endeavors and fishing activities.

‘SEC. 4. Definition of Terms. As used in this Act, the following terms shall mean:

(2) ‘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 formal arrangements.”

(b) “Economic Units” in the informal economy include but are not limited to:

- units that employ hired labor;

- units that are owned by individuals working on their own account, either alone or with the
help or contributing family workers;

- cooperatives and other social and solidarity economy units; and

- _ informal work that may be found across all sectors of the economy, in households, as well
as public and private spaces including govemment instrumentalities and Government
Owned and Controlled Corporations (GOCCs).

(©) “Informal Economy Workers’ Organization" — Refers to a group or groups of informal
workers, whether formally constituted or otherwise, that are organized with the primary
objective of promoting the rights and welfare of workers in 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 and social protection and
employment benefits, and prevalent in economic units that are unregistered, unlicensed
and unregulated.

(e) “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,
facilities, and structures to undertake their work, including the right to feel safe in one’s
‘own work space, legal security of tenure and freedom from discrimination, risk, danger,
doubt, anxiety, or fear of being removed, evicted or prevented from working.

() “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 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 of 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.


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() “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.

(h) ‘Volunteer, contractual, job orders, and other vulnerable workers in govemment
instrumentalities” — Refers to workers in government instrumentalities who do not occupy
plantila positions; receive salaries but not benefits; are contracted out for specific periods
of time; and/or who receive allowances or honoraria. These include but are not limited to:
{job order and other contractual workers,] project staff, barangay health workers, barangay
tanod, barangay nutrition scholars, barangay daycare workers, barangay volunteers and
other vulnerable workers in government instrumentalities for disasters, enumerators,
among others.

(i) Social Protection Floor — Refers to a set of guarantees ensuring access to essential health
services, income support for children for education, health, and nutrition, income
assistance for economically active groups who do not have sufficient eamings in case of
‘emergencies , and financial support for elderly population, and women informal workers in
difficult and vulnerable circumstances like single mothers, and women survivors of abuse
and violence.

Chapter It
RIGHTS AND BENEFITS

SEC. 5. Workers 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 instruments and international labor standards. Accordingly, the state
shall guarantee all workers in the informal economy the following rights:

(a) Security of and in the workplace;

(b) Make a living through work freely chosen or accepted; and avail of technical and vocational
guidance and training programs;

(©) Just and favorable conditions of work, including provision for work-life balance such as child
care and other facilities to reduce and redistribute family and domestic responsibilities;

(d) 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) Equal opportunity for promotion, subject to no other considerations than seniority and
competence;

() Safe and healthy working conditions safeguarding general, occupational and reproductive
health;

(@) Basic services including but not limited to affordable medical care, reproductive and other
health services including modem family planning, low-cost housing, water, sanitation,
electricity _and transport;

(h) Rest, leisure and reasonable limitation of working hours and periodic holidays with pay,
as well as remuneration for public holidays whenever applicable;

(i) Maternity and patemity benefits, as provided for by law;

(i) Equal access to education, skills training, and economic resources to develop self-reliance,
especially of children and young persons, without any discrimination;


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(k) Setf-organization to collectively negotiate with govemment and other entities in the
promotion of their welfare and advancement of their interests, free from any political
interference;

() An adequate standard of living for workers and their families, adequate food, clothing, and
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, affordable, and appropriate social protection as defined in Section 4, (f) of this
Act;

(0) Equal treatment before the law;

(p) Substantial participation in policy and decision-making processes through their
organizations and the use of social dialogue, including access to information and other
resources relevant to the promotion and protection of their rights and welfare;

(@) Equal access to justice though appropriate mechanisms, including, but not limited to,
alternative dispute resolution processes; and

() Access to public procurement 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
primary instruments to address and overcome poverty, shall be accorded the following
preferential rights by the State:

(@) Infrastructure support such as farm to market roads, common, affordable and secure
workplaces and facilities, merchandising centers, farmers’ markets or Bagsakan with
Proper storage facilities, and inventory bulk-buying centers;

() Policy support to promote and protect local and domestically-produced products and
services, and support in enhancing their participation in the value chain process;

(©) Ease and facilitation of access to markets, including capacity-building to access and
maximize e-marketing facilities;

(d) Access to affordable, appropriate and adequate financial services, including, among others,
collateral-free and gender-responsive credit at low interest;

(e) Access to appropriate and adequate machinery, equipment, and other technologies, with
the end in view of increasing productivity, enhancing quality of products and services, and
growth;

() Protection from unjust dislocation from places where economic activities are
conducted with the “provision of relocation before demolition’;

(g) Measures against racketeering, extortion, and harassment, by both State and non- State
elements;

(h) Freedom from deprivation of property without valid cause and due process of law; and,
(i) Affordable and customized social security and insurance programs.
SEC. 7. Rights of Legitimate Organizations of Workers in the Informal Economy (WIE),

Organizations of workers in informal employment, 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 of their members in policy and decision-
making processes, collective negotiations, and other similar bodies and processes in the
context of tripartism and multi-sector;

(b) Establish, join or affiliate with local unions, national federations or confederations , and
international trade union organizations, a right which shall be duly recognized, protected
and supported by the national government;

(c) 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) Own property, real or personal, for the use and benefit of 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. Organizing Workers in informal Economy. Workers in informal economy [WIE] shail
be encouraged to organize themselves into self-help organizations, associations, federations,
and confederations for their mutual benefit and protection, and for other legitimate purposes,
Special attention shall be given to organizing women and other vulnerable workers in informal
economy,

SEC. 9.Assistance to Organizations of Workers in the Informal Economy. All concerned
national government agencies, goverment financial institutions and local government 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 Ill
SECURITY IN THE WORKPLACE OF WORKERS IN INFORMAL ECONOMY

SEC. 10. Designation of Workplaces. Local Government Units (LGU), in coordination with
organizations of WIE within their jurisdiction, affected communities, and other relevant groups,
shall endeavor to identify, designate, and design a system of assignment on the following:

(@) 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 with
legitimate organizations of workers in the informal economy for lease under a
memorandum of agreement, and

(b) routes, terminals, and specific lanes for smalll transport workeers;

The process of identifying and designation of such workplaces shall be determined in the
Implementing Rules and Regulations (IRR) of this Act, provided, that such process shall have
the substantial participation of relevant WIE organizations and stakeholders.

SEC. 11. 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 for by
R.A. 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 determining resettlement areas, provided that, there shall be no demolition without
ensuring appropriate resettlement.

SEC. 12. Policy on Confiscation of Materials and Impounding of Vehicles. In cases where
demolition or eviction is warranted, the person, government agencies or their agents who
conduct the same shall issue a duly signed itemized receipt of all products, goods, and other
materials seized from vendors and other affected WIE.


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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, the issuance of a traffic violation
ticket shall suffice.

SEC. 13. 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 (60)-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 public places not previously designated as vending
sites shall be provided with viable temporary sites by the LGU. Notice of temporary transfer
shall be given to the vendors at least fifteen (15) days before the actual transfer. This 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 assured of stall assignment in the new market,
Displaced ambulant vendors, shall, as much as practicable also be given appropriate selling
sites

SEC. 14. 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, affected community and other relevant sectors. Relocation of terminals can only be
effected through an Ordinance. Provided further, that after the enactment of such ordinance,
notice of intention to relocate terminals shall be made to affected transport groups and
community 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. Institutionalization of Social Protection Floor for the Workers in the Informal
Economy. The State shall support, sustain, enhance, and institutionalize social protection
initiatives for WIE through the convergence of 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. 16.Social Welfare Efforts. The Department of Social Welfare and Development (DSWD)
shall consolidate its strategic social welfare efforts to address the needs of the workers in the
informal economy, including but not limited to direct assistance, policy development and
‘community engagement for the workers.

SEC. 17. Role of the Department of Labor and Employment. The DOLE shall engage in
labor market interventions that shall provide adequate protection for the WIE. The DOLE shall
likewise ensure timely and immediate action for labor concems, security of tenure, job
generation and other pertinent concerns. It shall, in collaboration with other livelihood and
enterprise development implementing agencies, Department of Local Govemment (DILG) and
Department of Finance (DOF), develop a typology of formalization of informal economic units in
terms of, among others, registration and standardized, affordable business permit cost ,
increased compliance, and extension of labor and social security program.


SEC. 18. Social Safety Nets. The State shall ensure that the social safety nets provided by the
DOLE, DSWD, Department of Agriculture (DA) and other government agencies shall be easily
accessible to the WIE and their organizations. These shall include but not be limited

to conditional cash transfers, unconditional cash transfers, schoo! feeding programs,
unconditional in-kind transfers, public works, cash-for-work, emergency employment schemes,
and fee waivers.

SEC. 19. Women, Family and Child Care Program - The DOLE, Department of Health
(DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall ensure that
matemnity protection is extended to informal economy workers in accordance with Sections 9
and 10 of R.A. 11210, the Expanded Matemity Leave Law. Programs on maternal and child
health and nutrition; child feeding; modem family planning; and other health-related services
shall be strengthened and target women WIE.

The State shail encourage the provision of and access to affordable quality childcare and other
care services to promote gender equality in entrepreneurship, employment opportunities, and to
enable the transition to formal economy.

SEC. 20. Social insurance. As specified in the IRR of this Act, the government shall ensure
that all social insurance programs including but not limited to Social Security, Pag-ibig (Home
Development Mutual Fund) and PhilHealth shall be fully available, accessible and affordable to
WIE, and that the govemment agencies governing them shall formulate policies and
mechanisms for their full utilization and benefit, in consultation with the representatives of WIE.
In the interest of equity, the State shall subsidize the corresponding employers’ contribution, had
they been in formal employment.

SEC. 21. Disaster Risk Reduction and Management (DRRM) and Climate Change. The
state, particularly at the community level, shall engage WIE and their organizations in DRRM
efforts from preparedness, to response, rehabilitation and recovery. Responding to climate
change in terms of minimizing contributions to greenhouse gas emissions and adapting to its
long-term impact 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

SEC. 22. Applicability of the Provisions of the Labor Code. The provisions of the Labor
Code governing the empioyer-empioyee relationship particularly on generai labor standards and
‘occupational safety and health standards shall apply to alll forms of work arrangements in the
informal economy.

The state shall adopt a developmental perspective in dealing with informal economic units. The
DOLE, in coordination with the IEDC, shall assess the capacity of these enterprises to comply
with general labor standards. Those incapable of meeting the standards shall be assisted to
upgrade their capacity to improve their businesses, as well as the capacity to comply with
relevant labor and social standards.

SEC. 23. Prioritization for Education and Training. The State shall implement adequate
training and information 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. 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 condition
of engagement which must not be lower than the minimum standards provided by law.


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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 an elected Barangay official in
the barangay 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, WIE shall neither be charged nor levied a
recruitment fee or finders’ fee.

(3) Hazardous Work and Conditions in Formal Workplaces. Workers 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 of this Act.

(4) Interference and Coercion. Any person is prohibited from committing any of the following
acts of interference or coercion:

(a) Preventing any worker from upholding or exercising his/her rights;

(0) Preventing any worker from joining or assisting organization for purposes not contrary
to law;

(©) 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;

() 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 that or threaten to diminish the independence and freedom of a workers’
organization to direct its own affairs.

(6) 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, 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 with access to at least
elementary or secondary education, either through traditional schooling or alternative
learning systems.

SEC. 25. 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.

TITLE I
Chapter i
INFORMAL ECONOMY DEVELOPMENT COUNCIL (IEDC)

SEC. 26. Creation of the Informal Economy Development Council (IEDC). There is hereby
created an Informal Economy Development Council, hereinafter referred to as the IEDC, which
shall be an attached agency of the National Economic and Development Authority (NEDA). The
IEDC shall institute appropriate reforms within its structure, programming and other processes,
including adjusting its human resource capabilities to ensure that WIE-focused programs are
efficiently and adequately implemented to address the needs of these workers. An inter-agency
committee shall be formed to coordinate policies and programs of various government agencies
towards the transition of informal economic units to formal,


we evausunr

The IEDC shall be constituted within thirty (30) days after the approval of the IRR of this Act.

SEC. 27. Mandate and Functions of IEDC. The mandate and functions of IEDC shall include
the following:

(@) Develop and ensure implementation of annual, long-term and medium-term plans for the
informal economy. The last of which should form part of 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 formal economy and
according to standards provided for in this Act and related laws, treaties or statutes;

(©) Develop and implement 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 implementation of gender-based monitoring and evaluation
mechanisms, efficient and effective programs and policies, and gender-responsive
interventions toward hamessing the full potentials of women WIE;

(e) Ensure that concemed govemment agencies shall allocate in their respective Special
Allocation for Development Initiatives adequate resources for programs that will benefit
we;

(f) Develop and ensure implementation of a simple system of registration of WIE, and
accreditation of informal livelihood activities enterprises, and organizations in accordance
with the standards and provisions of this Act;

(9) Provide guidelines for the implementation by LGUs of a fair and credible system of
evaluation, accreditation, review and assessment, merit promotion, rendering of grant and
incentive awards and other policies relative to the effective and efficient implementation of
this Act;

(h) Ensure the effective implementation of labor standards covering WIE as provided for by this
Act and corresponding IRR;

(Coordinate with LGUs for the development and implementation of 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;

() Ensure effective participation of WIE and their organizations through the establishment
of regular consultative mechanisms and processes.

(k) Establish and develop a centralized and sex-disaggregated database system to effectively
guide policy formulation and implementation relative to the WIE. The databank shall be
available for public use while strictly complying with laws on privacy and confidentiality. The
database [and] shall include pertinent information as specified in the IRR of this Act.

() Develop and implement a communication 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) of this Act, to develop and ensure implementation of a
comprehensive plan to eliminate 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 formal economy as contained in the
IRR of this Act;


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(0) Coordinate and harmonize all informal economy-related policies, programs, projects and
activities of various goverment agencies including the Regional IEDC Officers towards
greater efficiency and effectiveness;

(p) Monitor the LGU-generated incomes from informal employment;

(q) conduct annual reviews of government programs for the WIE and submit to Congress and
the President of the Philippines corresponding reports thereon together with policy and
other recommendations;

() Develop and ensure implementation of accessible just conflict resolution and adjudication
systems and mechanisms to promote dialogue, conciliation, mediation and redress of
grievances to protect the rights of WIE; and

(s) From time to time, call on the participation of relevant government agencies in its
deliberations as necessary.

SEC. 28. Composition. The IEDC shall be co-chaired by the Director General of NEDA and the
Secretary of Department of Labor and Employment. IEDC 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 government instrumentalities as determined by the IRR of this Act provided
that, at least 30% of total membership of IEDC shall come from organizations of WIE accredited
with the SEC, DOLE or DA. Provided, further, that at least 40 percent of the 30 percent are
women.

Representatives from the Social Partners, private sector, NGOs and WIE organizations shall
serve as IEDC members for a term of three (3) years without re-election and shall be subject to
terms and conditions provided for by the IRR.

SEC. 29. Initial IEDC Funds. P100 million pesos (P100,000,000.00) shall be allocated from the
Presidential discretionary fund for the initial operating expenses of the IEDC, which shalll include
the initial allocation of funds for the operations of the WIELDU at the LGU level.

SEC. 30. EDC Secretariat. The IEDC Secretariat shall be jointly organized by the NEDA and
the DOLE with functions that shall be determined by the IRR of this Act and integrated in the
DOLE secretariat functions.

SEC. 31. Regional and Provincial IEDC Officers. There shall be Regional and Provincial
IEDC Officers who shall be appointed by the IEDC and shall have functions that include:
monitoring and coordinating of IEDC initiatives in the regions and Provinces; evaluation of
policies programs for WIE; providing technical assistance in the development of local plans and
programs; as well as other administrative functions necessary for the success of IEDC initiatives
in their jurisdiction.

IEDC Regional Officers shall have automatic seats in all Regional Development Councils
(RDCs).

Chapter I
WORKERS IN INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT (WIELDU)

SEC. 32. Workers in Informal Economy Local Development Unit (WIELDU). The Workers in
Informal Economy Local Development Unit (WIELDU) shall be established in every city and
municipality to perform the following functions among others in consultation with the WIE and
their organizations:

(2) prepare an overall development plan and work program that will address the needs of the
WIE. The barangay development pians shall be incorporated in this overall development
plan;

(b) encourage the organizing of informal economic units and WIE;


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(c)_ develop and maintain a comprehensive, age, and sex-disaggregated database of all WIE
and economic units within the jurisdiction of the LGU that shall include all relevant
information as contained in the IRR of this Act. Provided that, laws on privacy and
confidentiality shall be fully complied with. Provided further, that the database shalll include
information on payments collected from WIE, organizations and economic units;

(4) 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;
and,

(e) support MSME informal enterprise development towards transitioning to formality.

in addition, the WIELDU may also perform other similar functions and undertakings pursuant to
the provisions of this Act. In the performance of WIELDU’s functions, the principle of preferential
treatment to the poorest and most vuinerable shall be observed.

SEC. 33. Composition. The Local Chief Executives (LCEs) shall be the primary overseers of
WIELDU’s operations. The IRR of 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, that IE representatives shall not be less than five (5), and
provided finally, that at least forty percent (40%) of 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 Government Unit Informal Economy Development Fund (LGU-IEDF). An
Informal Economy Development Fund shall be established by every municipality 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 of WIELDU, each LGU shail allocate a portion from their internal
Revenue Allotment 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 of their livelihood activities, organizations, and enterprises; and

() Annual allocations from LGUs’ Development Fund the percentage of which shall be
determined by LGUs.

Following the principle of merit and equity, LGUs that fulfil such allocations may receive
additional assistance from the national government as recommended by IEDC; provided, that
the LGUs have sufficiently complied with all requirements by the IEDC.

SEC. 35. Registration of Informal Economy Workers, and Accreditation of Economic
Units and Organizations

Pursuant to its functions under the Local Govemment Code, the Local Development Council in
coordination with the WIELDU, shall establish a standard system of registration of WIE, and
accreditation of 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 of development 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 with the WIELDU.

SEC. 36. Annual Dues. WIE and their organizations shall pay annual dues to be determined by
the concemed LGU) in consultation with their WIELDU). Said annual dues shall be no more
than 30% of the legally prescribed daily minimum wage in their respective regions or provinces.


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These annual dues shall accrue to the concemed LGU and shall be used for programs to
benefit WIE, their organizations, business activities, and enterprises based on
recommendations by the WIELDU and the local informal economy constituents.

SEC. 37. Registration and Non-Registration. In no case shall registration be construed as a
basis for rights and entitlements under this Act. Non-registration should not deprive WIE of their
rights stated in the Act. Registration as a WIE in the LGU is voluntary and shall not be made as
a prerequisite to work by any private enterprise or government unit. However, registration shall
guarantee prioritization and immediate recognition of the rights and benefits due to the workers
in the informal economy.

TITLE tl
FINAL PROVISIONS
SEC. 38. Penal Provisions.

(2) 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 (8) years or both fine and
imprisonment at the discretion of the Court.

(b) If the offender is a public official or an official of a GOCC, the Court, in addition to the
penalties provided in the preceding paragraph, may impose the additional penalty or
disqualification from public office.

(©) Any person who violates the provision of this Act on Policy on Confiscation of Materials
and Impounding of Vehicles shall be liable. Nothing herein shall prohibit the aggrieved WIE
from initiating a criminal or civil action against the responsible person or officer.

(d) Failure to implement the provisions of this Act on Relocation of Vending Sites and Policy on
Relocation of Terminals shall render the responsible official/s administratively liable
pursuant to Republic Act 7160 and other applicable laws without 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. Implementing Rules and Regulations (IRR). The Implementing Rules and
Regulations (IRR) of this Act shall be formulated by a committee to be co-led by DOLE and
NEDA. The members of the committee shall be the representatives of government offices
mentioned in this Act, and WIE organizations. Provided that, at least 30% of the committee
members shall come from the latter, and provided further, that at least 30% of committee
members are women. Said committee will start work on the IRR within three (3) months after
the effectivity of this Act and finish within six (6) months thereafter.

SEC. 40. Appropriations. The amount of one hundred (100) million pesos (P100,000,000.00)
shall be appropriated for the initial implementation of this Act.

SEC. 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.

SEC. 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,

SEC. 43. Effectivity. This Act shall take effect fifteen (15) days after its publication in at least
two (2) newspapers of general circulation of the Official Gazette, whichever comes first.

Approved,