Hust OF #RORESENTATIVES

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DATE:
Republic of the Philippines Fie” LT

HOUSE OF REPRESENTATIVES

Quezon City bY:

SEVENTEENTH CONGRESS. ISTRATION UNIT

First Regular Session

iD)
HOUSE BILL NO. 13°

Introduced by HON. KARLO ALEXEI! B. NOGRALES and HON. JERICHO JONAS B
NOGRALES

EXPLANATORY NOTE

The number of informal workers has been increasing through the years, with
estimates reaching as many as 25 million or 77% of the country’s total employed
(ECOP statistics, 2008). Most of the working poor are in informal employment, living in
substandard conditions and unable to meet their basic needs.

The informal economy covers a wide variety of activities, enterprises and
workers under both self-employment and wage employment. Most economically active
women are in the informal economy. Most child workers are employed in many forms of
informal work

It is a sad fact that most informal workers are not covered by the Labor Code and
are often subject to exploitation by unscrupulous employers, suffer from the usurious
rates of money lenders or become victims of extortion and harassment from corrupt
police authorities. Their work environment is not subject to regulation, thus exposing
them to occupational safety and health hazards. They have limited access to justice,
social protection, and programs preventive of work-related diseases and risks. They are
severely under-represented in policy making bodies which constricts the inclusion of
their issues in the nation's political discourse.

The government has the main responsibility to draw the informal workers into the
economic and social mainstream in order to reduce their vulnerability and exclusion,
ensure that they are covered by the legal and institutional framework, and support their
representational rights through legitimate organizations. It is in the light of this
consideration that the attached bill is being submitted

This bill is a consolidation of measures filed during the Sixteenth Congress on
the protection of workers in the informal economy. It is a product of a review conducted
by the Magna Carta for the Informal Sector Alliance (MAGCAISA) composed of the
National Anti-Poverty Commission-Workers in the Informal Sector Council (NAPC-
WISC), the Democratic Socialist Workers of the Philippines (DSWP), the Homenet


Philippines, and the Alliance of Workers in the Informal Economy/Sector (ALLWIES).
Included in this proposal are the provisions of ILO Recommendation 204 on the
Transition of Informal to Formal Economy, adopted by the International Labor
Conference during its 104” session held in Geneva on June 12, 2015. Also included in
this bill are the inputs of the National Anti-Poverty Commission, and the Department of
Labor and Employment

In order to empower the poor, marginalized, unprotected and unrepresented
workers in informal employment and bring them into the mainstream of the Philippine
economy, the immediate passage of this bill is earnestly sought.

KARLO ALEXEI B. NOGRALES JERICH' JOGRALES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 1352

Introduced by HON. KARLO ALEXEI B. NOGRALES and HON. JERICHO JONAS B.
NOGRALES

AN ACT
PROTECTING THE WELFARE OF INFORMAL WORKERS IN ALL ECONOMIC
UNITS IN PRIVATE AND PUBLIC BY TRANSITIONING THEM TO FORMAL
EMPLOYMENT AND PROVIDING SUPPORT TO MICRO, SMALL AND MEDIUM
SIZED ENTERPRISES TOWARDS DECENT AND PRODUCTIVE EMPLOYMENT

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

TITLE |
GENERAL PROVISIONS,

Chapter |
Framework and Principles

SECTION 1. Short Title. — This Act shall be known as the “Informal Economy
Protection Act.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to:

(a) Promote a just and dynamic social order that will ensure that the prosperity
and independence of the nation and free the people from poverty through
policies that provide adequate social services, promotes decent 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 the right to
self-organization, just and humane conditions of work, access to social
protection, access to justice, security offin the workplaces, and the right to
represent their organizations in a continuing process of consultation, in the
context of tripartism towards maximizing the provision of a comprehensive
package of reforms, interventions, and services in accordance with their
articulated needs and interests;

(c) Support the economic units, particularly micro, small and medium-sized
enterprises, to realize the objective of decent work for all, which is


essential to the achievement of inclusive development and support the
development of social and solidarity economy organizations;

(d) Implement priority measures needed to facilitate the transition of workers
and economic units from the informal to the formal economy while
respecting fundamental rights and ensuring opportunities to income
security, livelihood, and entrepreneurship, promote the creation,
preservation and sustainability of enterprises and decent jobs in the formal
economy and the coherence of labor legislations, macroeconomic,
employment, social protection and other social policies, and, prevent the
informalization of formal economy, as defined herein;

(e) Recognize the role and give proper value to the contributions of workers in
the informal economy and informal economic units, and make them visible
in all relevant national and local statistics;

(f) Promote gender equity and equality by protecting women workers in the
informal economy against gender-based discrimination, exploitation and
abuse, advancing women's social, economic, political, and reproductive
rights, and improving their access to social protection and most
representative in decision-making bodies and processes;

(g) Establish an integrated and coherent policy at all levels of government of
formalization, inclusive development, and greater responsiveness to the
needs of the workers in the informal economy;

(h) Protect vulnerable workers from among the “Basic Sectors,” as defined
under Republic Act (R.A.) No. 8425, and people living with HIV and AIDS,
from discrimination, exploitation, abuse and harassment, as well as from
performing work hazardous to their occupational, physical, mental,
emotional, reproductive and spiritual health;

(i) Take measures that will ensure legal security of tenure of workers and
safety workplaces, taking into account and including the physical
environment, services, processes and systems needed to enable workers.
to productively and safely perform their work; and

(j) Update labor, employment and establishment statistics and align the
segmentation of assets by further segmenting the micro-enterprises to
give preferential treatment to total asset and capital of P150,000.00 pesos
and below as defined under the Social Reform Agenda of 1997 (RA 8485)
and conduct periodic review of them

SEC. 3, Framework and Principles. — Article ||, Section 9 of the Philippine
Constitution declared that “The State shall promote a just and dynamic social order
that will ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.” It
shall give the highest priority to the enactment of measures that protect and enhance


the rights of all people to human dignity; reduce social, economic and political
inequalities; lessen vulnerabilities to risks including those brought about by
environmental degradation and natural disasters, remove cultural inequities by
redistributing wealth and political power for the common good; and to develop an
enabling environment conducive to responsible citizenship. Towards this end, in the
context of social dialogue, the government at all levels shall formulate and implement
coherent and integrated strategies to facilitate the transition to the formal economy
taking into account the following

(a) Coherence of policies and programs established for the purpose of
bringing vulnerable workers and economic units into the economic and
social mainstream, and spur entrepreneurial or growth-oriented informal
businesses to graduate to formal status;

(b) Coordination across a broad range of policy areas in facilitating the
transition to the formal economy including pre-employment macro-
economic policies and labor market policies to help low-income
households, unemployed persons and other disadvantaged persons
escape poverty and access employment;

(c) Structural reforms in all relevant levels of government by creating
committees and special offices for the development and protection of
workers in the informal economy and supporting their representational,
entrepreneurial, and other rights, through their organizations, without being
limited to tripartite structures and particular strategies;

(d) Accessible, affordable and effective promotion of social security, including
labor market interventions, occupational safety and health, and the
extension of maternity protection to women in the informal economy, social
welfare programs and safety nets;

(e) Regulated access for use of public spaces and regulated access to public
natural resources for subsistence livelihoods through policies programs
and interventions that will ensure the security of workplaces of workers in
the informal economic units, including, among others, the “relocation
before demolition’ of vendors and small transport terminals, towards a
work environment that protects their rights and enables them to achieve
greater productivity;

(f) Minimum and simplified regulations to encourage the development of
ingenuity and entrepreneurial spirit among workers in the informal
economy including property rights;

(g) Preservation and expansion, during the transition to the formal economy,
of the entrepreneurial potential, dynamism, skills and innovative capacities
of workers and economic units in the informal economy;

(h) A balanced approach combining incentives with compliance;


(i) The need to prevent deliberate avoidance of, or exit from, the formal
economy for the purpose of evading taxation or the application of social
and labor laws and regulations;

() Tax reforms based on net income for informal economic units and
application of tax laws or incentives for the informal economy workers
currently enjoyed by the formal labor;

(k) Social Dialogue mechanisms whereby informal workers’ organizations will
participate and be in tripartite consultation in designing, evaluating, and
implementing policies and programs of relevance to the informal economy;

(I) Support system to expand market for products, access loans for additional
capital requirement and simply bureaucratic systems and procedures for
the MSME's;

(m)Relax the procurement procedures for the contracting micro-entrepreneurs
of the government;

(n) Review, amend and implement efficiently policies on sub-contracting such
as DOLE Department Order No. 5 on Industrial Homework and other
relevant policies; and

(0) A road map of development for both informal economy workers and
economic units shall guide the government in all levels in the context of
social dialogue

After formalized, all laws applicable to formal labor and economic units shall apply.

SEC. 4. Scope. - 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:

i. own-account workers;

ii, employers; and

iii, | members of cooperatives and of social and solidarity economy
units;

(b) 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 in or for
economic units in the informal economy, including but not limited to those
in subcontracting and in supply chains, or as paid domestic workers
employed by households; and


(d) workers in unrecognized or unregulated employment relationships.
SEC. 5. Definition of Terms. — As used in this Act, the following terms shall mean.

(a) “Basic Sectors” - Refer to the disadvantaged sectors of Philippine society,
namely: farmer-peasant, artisanal fisherfolk, workers in the formal sector
and migrant workers, workers in the informal sector, indigenous peoples
and cultural communities, women, differently-abled persons, senior
citizens, victims of calamities and disasters, youth and students, children,
and urban poor;

(b) “Community Contracting” — Refers to the process of concluding an
agreement between a community and a contracting authority, whereby the
community (or a section thereof) is responsible for the implementation of
the work, and therefore, functions as a contractor,

(c) “Daily Basis” — Refers to the per day mode of paying a worker, as
bilaterally agreed upon by the employer and worker,

(d) “Hazardous Work Conditions’ — Refers to any activity or circumstance
where a worker is exposed to any risk which constitutes imminent danger
to his or her health or safety. This includes potential risks of disability,
injury, illness or death due to the presence of biologic agents, radiations,
chemicals, substances, hazardous materials; physical hazards in the work
environment; or the nature of work, processes performed, or equipment
used therein;

(e) “Informal Economy” — Based on the ILO Recommendation No. 204
Concerning The Transition From The Informal To The Formal, adopted
during the 104" International Labour Conference (ILC) in June, 2015 this
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”

“Economic Units” in the informal e

i. units that employ hired labour:

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

iii cooperatives and social and solidarity economy units;

iv, informal work may be found across all sectors of the economy,
in both public and private spaces

nomy include:

(f) “Informal Economy Workers’ Organization” — Refers to a group or groups
of informal sector workers, whether formally constituted or otherwise, that
are organized with the primary objective of promoting the welfare of
workers in informal economy;

(g) “Monthly Basis’ — Refers to the per month mode of paying a worker as
bilaterally agreed upon by the employer and worker;


(h) “Pakyaw Basis” — Refers to the pre-contracted wholesale mode of paying
a worker as bilaterally agreed upon by the employer and worker.

(i) “Piece Rate” — Refers to payment of products or services by piece of work
or by service rendered;

() “Security offin the Workplace” — Refers to the right of every worker and
informal economic units to an enabling environment that guarantees and
protects the spaces 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;

(k) “Social Protection” — Refers to policies, program, and all other
interventions that support communities, households and individuals, both
women and men, and aimed at: reducing poverty through the promotion
and sustenance of livelihood and employment; preventing, managing and
overcoming risks and vulnerabilities throughout their life cycle, like
protection against hazards and sudden loss of income; and realizing their
fights 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, and safety nets;

(l) “Working Hours” — Refers to the period of time within which a worker is
required to be on call to perform any and all tasks that may be designated,
regardless of whether there are actual tasks being undertaken;

(m)"Volunteer Workers of Government Instrumentalities* — Refers to workers
in government instrumentalities receive allowances or honoraria. These
include but are not limited to: barangay health workers (BHW), barangay
tanod, barangay nutrition scholars (BNS), barangay daycare workers,
enumarators, and among others

Chapter Il
Coverage, Registration and Annual Dues

SEC. 6. Coverage. — This shall include all those defined in Section 4 of this Act, IE
businesses and enterprises, and organizations of workers in informal economy.

SEC. 7. Registration

(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 they reside


Any 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. These signify eligibility 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 from
the date of last registration. 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. Further, the database shall include
information on payments collected from IE workers, WIE organizations and
economic units. The BMBE Registry, in general, shall include these
informal economic units.

The aforesaid comprehensive database shall form part of the bases of
assessment and monitoring of the growth of 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 workers’ registration,
The Center shall ensure that processing of the business permit of the
informal economic units shall be expedited within one day. The
150,000.00 asset size shall be given an affordable business registration
(Mayor's Permit) of P500.00 renewable annually until two (2) years of
operation after which, shall be subject to the regular business permit
requirements of the local government. The BIR shall also exempt from
sales tax for the same period of three (3) years the said asset size of
economic unit renewable annually.

(c) Informal Economy Organizations/Associations. IEO/A shall register or
accredit with the Department of Labor and Employment (DOLE).

SEC. 8. Annual Dues. - \E workers and organizations shall pay annual dues to be
determined by the Local Government Unit (LGU) concerned, in consultation with
their respective Workers in Informal Economy Local Development Office (WIELDO)
referred to in Title |, Chapter IX of this Act. In no case shall the annual dues to be


paid by 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 WIELDO. Such programs and disbursement
of funds shall be approved by the concerned LGU Council in consultation with the
local informal economy constituents

Chapter III
Rights and Benefits

SEC. 9. 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 labor
Conventions. These include, but are not limited to the rights to:

(a) Work, which includes the rights to: security offin the workplace; make a
living by work freely chosen or accepted; and avail of technical and
vocational guidance and training programs;

(b) Enjoyment of just and favorable conditions of work;

(c) 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;

(d) Equal opportunity for promotion, subject to other considerations than
seniority and competence;

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

(f) Access to basic services including but not limited to affordable medical
care, reproductive and other health services, low-cost housing, water,
sanitation, electricity and transport;

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

(h) Maternity and paternity 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;


()

(k)

10)

(m)

(n)

(p)

(a)

SEC. 10.

Self-organization to collectively negotiate with government and 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;

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;

accessible social protection, comprising mainly of, but not limited to labor
market programs, social security, health care and insurance, and social
welfare interventions;

Equal treatment before the law;

Substantial participation in policy and decision-making processes,
including access to information and other resources relevant to the
promotion and protection of their rights and welfare through organizations
that truly represent the poor,

Equal access to justice through 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

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:

(a)

(b)

(c)

(d)

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;

Policy support to promote and protect local and domestically-produced
products and services;

Access to markets, including capacity-building to access E-marketing
facilities

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 view of increasing productivity and growth;

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

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

(h) Fiscal relief, including among others exemption from taxes, fees and other
assessments, to be put into place by concerned national agencies and
local government units sixty (60) days after effectivity of this Act;

() Common workplaces, common technology facilities, adequate and
affordable marketing facilities such as economic freedom parks,
merchandising centers, and inventory bulk-buying centers;

() Freedom from deprivation of property without valid cause and due process
of law; and

(k) Affordable and customized social security and insurance programs.

SEC. 11. 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 national federations or confederations and to protect the right of
the latter to form or join local unions and international trade-union
organizations;

(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;

(f) Undertake alll other activities, not contrary to law, designed to benefit their
organizations and members; and

(g) Be accorded preferential option in the awarding of contracts for the
undertaking of national and local projects funded by either the National or
local government units including foreign-assisted projects. Guidelines for


this shall be included in the Implementing Rules and Regulations of this
Act

Notwithstanding any provision of a general or special law to the contrary, the income
and properties of legitimate workers’ organizations, including grants, endowments,
gifts, donations and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and exclusively used or
their lawful purposes, shall be free from taxes, duties other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly
repealing this provision

SEC. 12. Organizing Workers in Informal Economy. WIE shall be encourage to
organize themselves for their mutual benefit and protection, and for other legitimate
purposes. Toward this end, the State shall encourage and assist these workers in
the

formation of their self-help organizations, associations, federations, and
confederations.

The State shall encourage the formation of cooperatives among marginalized
farmers, fisher-folk, as well as manufacturing, transport, retail, services, and home-
based workers to enable members to: purchase inputs at lower cost, obtain fair
prices for their produce, avail of credit assistance and skills training, and share from
collective gains of the cooperatives.

Attention will be given to organizing women and other vulnerable WIE.

SEC. 13. Assistance to Organizations of Workers in the Informal Economy.
All concerned national government agencies, government financial institutions and
local government units shall include in their plans, programs, projects and activities
efforts that will support and address concerns of organizations of WIE.

SEC. 14. Monitoring of Growth. The local government units (LGUs) shall
supervise the Workers in the Informal Economy Local Development Office
(WIELDO) as created by Chapter IX of this Act, and monitor the growth of informal
empioyment business activities or enterprises, three (3) years after the enactment of
this Act, and every three (3) years thereafter. The centralized database referred to in
Section 6 shall be the basis of this monitoring

Chapter IV
Prohibited Acts Concerning Engagement of Workers in the Informal Economy

SEC. 15. Prohibition Against Recruitment or finders’ Fees. Regardless of
whether the workers was sourced either through an employment agency or a third
party, WIE shall neither be charged nor levied a recruitment fee or finders’ fee by the
aforementioned employment agency or third party.

SEC. 16. Prohibition Against Hazardous Work and Conditions. Workers shall
not be engaged to do hazardous work, activity or undertaking, or be exposed to
hazardous working conditions.


For purposes of this Section, hazardous work or conditions shall include, but not
limited to the following:

(a) Any work which requires workers to render services beyond eight (8)
hours without commensurate compensation;

(b) Any work or activity which exposes the worker to physical, emotional or
sexual abuse or threat of such abuse;

(c) Any work which involves manual handling or transport of heavy loads;

(d) Any work in’ an unhealthy environment which exposes workers to
hazardous substances, agents or processes, or to temperature, noise
levels, or vibrations damaging or potentially damaging to their health;

(e) Any work which requires workers to continuously render service during
late nights;

(f) Any and all forms of slavery or practices similar to slavery, such as the
sale and trafficking of persons, forced or compulsory labor, debt bondage
and serfdom

(g) Any use, procuring or offering of the worker for prostitution or
pornography;

(h) Any use, procuring or offering of the worker for the commission of any
offense or crime, particularly for the production, trafficking, or sale of
narcotic drugs and substances as defined in the Dangerous Drugs Act;

(i) Any other type of work or activity which, by its nature or the circumstances
in which it is carried out, is likely to jeopardize the health, safety, or morals
of the workers; and

() Any other type of work, activity, condition or undertaking that maybe

hereinafter be defined as hazardous by the Department of Labor and
Employment

SEC. 17. Prohibition Against 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 organizations 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 workers’
organization to direct its own affairs.

Chapter V
SOCIAL PROTECTION

Social protection as defined in SEC. 5 of this Act shall have the components
enumerated and discussed in this chapter.

SEC. 18. Labor Market Programs. The State shall provide adequate resources to
sustain labor market programs following decent work standards, including
emergency and guaranteed employment schemes, to ensure livelihood security and
prevent or mitigate the effects of sudden loss of income in the context of sustainable
development and developing local economies in both rural and urban areas.

The State shall ensure that these schemes are labor-intensive, developmental,
sustainable, and engage women, men, the youth, and older people in building
infrastructure, socialized housing, social forestry focusing on the planting of
traditional tress, organic farming, and food production programs.

LGUs shall encourage and provide incentives to constituents who want to engage or
are engaged in sustainable and/or organic farming. All idle private or public lands
within their jurisdiction shall be cultivated or planted with organic food crops like corn,
root crops or vegetables. If applicable, LGUs must allocate a portion of their local
funds for mangrove reforestation and prohibit conversion of any mangrove forest to
residential, commercial or industrial use.

In pursuit of decent work, the State in all its labor market programs, shall adopt a
comprehensive framework and plan on occupational safety and health that covers all
workers, formal and informal, and implemented at both national and local levels.

The State shall encourage entrepreneurship among the disadvantaged, especially
women and young people in informal employment, through simple and efficient
procedures and the provision of adequate and affordable marketing facilities such as
those provided for by Section 9 (i) of this Act.

The State through LGUs shall promote community contracting to give preference to
WIE and their organizations in accessing employment opportunities and related
benefits


SEC. 19. Social Security. — In the interest of equity, the State shall endeavor to
extend social security protection to all workers and their beneficiaries against the
hazards of disability, sickness, maternity, old age, death, unemployment, and other
contingencies resulting in loss of income or financial burdens. The State also
recognizing the intermittent nature of job and income in the informal economy, shall
subsidize the contributions of the workers in the informal economy.

The Social Security System (SSS) shall ensure coverage for all workers, particularly
the working poor belonging to the informal economy. The SSS, in consultation with
informal workers’ organizations, shall customize products and services for them that
are accessible and affordable. In the interest of equity, the State shall cover what
should have been the employers’ share for contributions of informal workers, had
they been formally employed.

The SSS shall develop schemes involving government subsidies and sponsorship
programs to assist those who cannot afford to enroll and sustain their membership.

To achieve universal coverage, the SSS shall facilitate the accreditation of
cooperatives, women's and people's organizations, trade unions and WIE
associations, microfinance and micro-insurance institutions and similar groups as
collecting agents of premiums and facilitators of claims with the least burdensome
conditions and with appropriate incentives. It shall develop effective partnerships
with these organizations.

The SSS Commission, in the spirit of democracy, transparency, accountability, and
equity, shall be required to conduct regular consultations with and provide
information and reports to its membership. Both formal and informal workers shall be
represented in the SSS Commission, where gender balance shall also be observed

The SSS in cooperation with other relevant national agencies and LGUs, shall
support indigenous and community-based social protection schemes which
complements other needs in times of risks such as damayan, tulungan, saranay,
small mutual benefit associations, and micro-finance organizations initiated or
participated in by WIE so that these can be sustained, systematized and upscaled

‘An enabling environment for such organizations and schemes shall also be
developed. Toward this end, the Insurance Commission (IC) and other relevant
regulatory agencies are hereby mandated to review their policies and framework to
make them more developmental and supportive of the alternative schemes outlined
above

SEC. 20. Social Security for Volunteers of Government Instrumentalities.
Volunteer workers of government instrumentalities as defined in SEC. 5 of this Act,
shall be covered by the Government Service Insurance System (GSIS) and be
entitled to at least a minimum package of customized products, services and benefits
to be designed with their participation and with adequate government subsidy.

SEC. 21. Health Care System and Financing. The State shall establish
comprehensive and integrated health care system that guarantees provision of
service by duly-accredited and adequately-furnished health facilities, with


appropriately-educated and rationally-compensated health personnel, to
underserved areas all the way down to the barangay level. Provide that, such
healthcare system shall include reproductive health services, and provided finally,
that priority in the delivery of such services shall be the poor and marginalized.

The State shall ensure adequate resources to finance health care for all, by, among
others, progressively increasing the budget for health care until it meets the World
Health Organization recommendation of least four percent (4%) of the Gross
Domestic Product.

SEC 22. Universal Health Insurance. The Philippine Health Insurance
Corporation (PhilHealth) shall ensure and substantiate universal, actual, active, and
up to date coverage of all Filipinos by 2015. To achieve this, PhilHealth with the
participation of all stakeholders shall critically review its current operations. It shall
also ensure the provision of a minimum benefit package which shall be periodically
upgraded to meet the goal of universal coverage which is affordable, accessible and
appropriate to the needs of all

Government subsidies for PhilHealth sponsorship programs shall be expanded to
cover not only the extremely poor, but also the working poor who mostly belong to
the informal economy and as defined in A 8425 Basic Sectors. For the working poor,
the supposed employer counterpart, if they were enrolled as formally employed, shall
be covered by government subsidies in the interest of equity.

PhilHealth shall develop effective partnerships with organized groups, especially
those composed and led by informal workers, women, senior citizens, persons with
disabilities, persons with HIV and AIDS and other marginalized sectors, to better
serve increasing numbers of those in need. Organized groups with at least 500
members shall be allowed to be collecting agents of premiums with incentives.

PhilHealth shall immediately extend its services to underserved areas by facilitating
and accelerating accreditation of hospitals and clinics, and by ensuring that these
service providers remain viable through immediate reimbursement

PhilHealth, in accordance with its guiding principles, shall promote maximum
community participation and shall recognize the roles and strengths of the public and
private sectors in healthcare, including people's organizations and community-based
health organizations. PhilHealth shall extend appropriate recognition, technical
assistance, and other forms of material and non-material support to mutual benefit
associations, micro-finance organizations, community-based health insurance and
other indigenous schemes initiated and participated in by WIE

PhilHealth, with maximum participation of all stakeholders, shall review its benefit
package in order to cover WIE, senior citizens, indigenous peoples, persons with
disabilities, persons with HIV and AIDS and other marginalized groups sustainably;
emphasize preventive measures such as annual physical and medical check-ups
and other outpatient services; coverage of workplace-related injuries and illnesses
affecting both formal and informal workers, treatment of chronic ailments such as
hypertension and diabetes; and inclusion of hospital-based reproductive health
services, commodities and supplies.


Encourage provision of and access to affordable quality childcare and other care
services in order to promote gender equality in entrepreneurship and employment
opportunities and to enable the transition to formal economy.

CHAPTER VI
Security in the Workplace of Workers in Informal Employment

Security in the workplace as defined in SEC. 5 of this Act shall involve the following

SEC. 23. Designation of Workplaces. The concerned Local Government Unit
(LGU), in coordination with their respective WIELDO, and after consultation with
WIE, affected communities, and other relevant groups, shall identify and designate
viable workplaces for informal workers; routes, terminals, and specific lanes for small
transport workers; and design a system of assigning these to accredited informal
workers. These may include markets and vacant areas near markets, vacant public
spaces and other spaces which may be designated as allowable workplaces for
informal workers.

Should concerned WIE prefer to conduct their economic activities within an identified
private property, the LGU shall negotiate with the owner of the property for the
possible use of such properly as WIE’s workplace. The LGU shall likewise
encourage and assist the parties in forging a possible memorandum of agreement

The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to
identify viable vacant areas suitable for routes, terminals, lanes, productivity and
merchandizing centers and workplaces for use of WIE in their respective localities.

The LGUs shall, within ninety (90) days after the survey and based on
recommendations of WIELDO and consultations with concerned WIE, affected
inhabitants and relevant sectors, pass an ordinance designating such workplaces.

SEC. 24. Protection of Agricultural Lands and their Occupants. The LGUs, in
coordination with the Department of Agrarian Reform (DAR) shall protect all
agricultural lands from conversion or reclassification to non-agricultural uses
Special Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not be
allowed in irrigated and irrigable lands.

The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the
agricultural lands as protected zones

The LGUs shall make an inventory of all agricultural lands under leasehold and shall
enforce the security of tenure of tenants, right of redemption and right of first refusal
on the subject land. The LGUs shall provide assistance and protection to tenants in
agricultural lands whose landowners violate the provisions of R.A. No. 3844 or the
Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral
termination of the tenancy relationship by landowners


SEC. 25. Use of Municipal Waters, Beach Fronts, and Foreshore Areas.
Municipal waters shall be used exclusively by marginalized fisher-folk and allied
workers. They shall be given priority in the granting of permits and licenses for the
establishment of fish pens, fish corrals, fish traps, shellfish culture or similar
structures for culture of marine products within the municipal waters

Beach fronts and foreshores are public domain and may be used by any person
especially marginalized fisher-folk. LGUs shall ensure that no beach within their
jurisdiction is exclusive for the use of resort guests or private persons.

LGUs in coordination with the National Housing Authority (NHA), shall establish and
create fisher-folk settlement areas on private or public lands, specifically those near
the fishing grounds, for municipal fisher-folk with security of tenure

The consent of the affected fisher-folk shall be required before an area is declared a
marine protected area or a fish sanctuary by the national or local government unit

SEC. 26. Policy on Eviction and Demolition. WIE shall not be evicted from their
homes and workplaces without legal ground as provided for in R.A. No. 7279,
otherwise known as the Urban Development and Housing Act of 1992. In cases
where eviction or demolition is warranted under Section 28 of RA 7279, the same
shall be conducted upon compliance of the following

(a) Notice upon the affected persons or entities at least thirty (30) days prior to
the date of eviction or demolition;

(b) Adequate consultations on the matter of resettlement with the duly designated
representatives of the families to be resettled and the affected communities in
the areas where they are to be relocated:

(c) Presence of local government officials or their representatives during eviction
or demolition;

(d) Proper identification of all persons taking part in the demolition;

(e) Execution of eviction or demolition only during regular office hours from
Mondays to Fridays and during good weather, unless the affected families
consent otherwise;

(f) No violence or unreasonable force shall be committed against women,
children, senior citizens, persons with disabilities and other identities similarly
situated in the course of eviction or demolition;

(g) Non-use of heavy equipment for demolition except for structures that are
permanent and of concrete materials:

(h) Proper uniforms for members of the Philippine National Police (PNP) who
shall occupy the first line of law enforcement and observe proper disturbance
control procedures; and



(i) Adequate relocation, whether temporary or permanent; provided, however,
that in cases of eviction and demolition pursuant to a court order involving
under privileged and homeless citizens, relocation shall be undertaken by the
local government unit concerned and the National Housing Authority (NHA)
with the assistance of other government agencies within forty-five (45) days
from service of notice of final judgment by the court, after which period the
said order shall be executed; provided, further, that should relocation not be
possible within the said period, financial assistance in the amount equivalent
to the prevailing minimum daily wage multiplied by sixty (60) days shall be
extended to the affected families by the local government unit concerned

SEC. 27. Policy on Confiscation of Materials and Impounding of Vehicles. \n
cases where demolition or eviction is warranted, the person who conducts the same
shall issue an itemized receipt of all products, goods, and other materials seized
from the affected WIE.

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 mere violation of traffic
violation ticket shall be issued to the erring driver without impounding his/her vehicle.

SEC. 28. 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

Pending the designation of viable vending areas, vendors 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 given priority in the
assignment of stalls in the new market

SEC. 29. Policy on Relocation of Terminals. Designated terminals for tricycles
and pedicabs shall not be arbitrarily relocated without prior notice and consultation
with small transport groups, affected community and other relevant sectors.
Provided, that 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 all small transport groups and affected
community at least sixty (60) days before the actual relocation

Chapter Vil
Special Allocation of Development Initiatives

SEC. 30. Special Allocations for Development Initiatives The development
initiatives for WIE shall form part of an integrated and convergent plan to address
poverty and vulnerability. The national and local government units shall work
together in support of such plan to maximize impact of meager resources

(a) At least ten percent (10%) of the annual national budget shall be appropriated
for programs and services for WIE. These programs shall be implemented
based on the principles of merit and equity by the Department of Labor and
Employment (DOLE) at the national level and the WIELDO at the local level

(b) For purposes of program implementation, the DOLE shall manage 30%, and
WIELDO, 70% of the funds from the annual General Appropriations Act (GAA)
as provided for in the previous paragraph of this section

(c) The Implementing Rules and Regulations (IRR) of this Act shall determine
additional guidelines on, among others, the use of such finances to ensure
that programs and services truly benefit WIE

SEC. 31. Sourcing and Adopting Development Initiatives. - Other sources of
funds to be used exclusively for initiatives addressing the needs and empowerment
of WIE shall be identified in the IRR of this Act and may include the following

(a) Government financial institutions and mechanisms such as the Land Bank of
the Philippines (LBP), Development Bank of the Philippines (DBP), National
Livelihood Support Fund (NLSF), and Quedan Rural Credit and Guarantee
Corporation shall set aside a specific percentage of their loan portfolio to
informal economy enterprises and shall give priority to women-led informal
economy enterprises by providing loans at an interest of not more than twelve
percent (12%) per annum consistent with the spirit of R.A. No. 7882

(b) The Department of Social Welfare and Development (DSWD) shall strengthen
its Self-Employment Assistance Program (SEAK) to uplift and empower
women in poverty, particularly those in the informal economy, by adopting an
integrated, credit-plus approach to micro-finance.

(c) The Small Business Guarantee and Finance Corporation (SBGFC) created
under Republic Act No. 8289 shall assist in the sourcing and adopting of
development initiatives for competitive enterprises in terms of finance,
technology, production, management and business linkages. It shall also


provide and widen in both scope and service reach various alternative modes
of financing for informal economy business activities or enterprises, including
but not limited to: direct and indirect project lending, venture capital, financial
leasing, secondary mortgage and/or rediscounting of loan papers to such
business activities or enterprises, and crop production financing. Further, the
Corporation shall guarantee loans obtained by qualified worker or business
activity or enterprise, under such terms and conditions adopted by its Board

(d) The Department of Trade and Industry (DTI) shall contribute to enable the
development of a business environment that shall include initiatives such as
supply chain and market outlets, and schemes to develop Special Credit
Windows to upscale informal enterprises.

(e) The Department of Science and Technology (DOST) shall support
technology-related initiatives of workers and enterprises in the informal
economy.

SEC. 32. Exclusivity of Government Programs. - The government shall ensure
that programs of financing, grants and other similar incentives meant to benefit WIE
shall be exclusively extended to accredited workers, business activities, enterprises
of organizations in the informal economy.

SEC. 33. Inclusivity of Benefits. - The exemptions and other benefits provided in
this Act shall apply for a period of not exceeding ten (10) years from the date of
accreditation of such IE worker, business activity, enterprise, or organization.

Chapter Vill
Informal Economy Development Council (IEDC)

SEC. 34. 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 agency within the Department of Labor
and Employment (DOLE). The DOLE 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. Likewise, 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

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

SEC. 35. Mandate and Functions of IEDC. — The mandate and functions of IEDC
shall include the following:

(a) Develop and ensure implementation of a simple system of accreditation for
the IE workers, enterprises, and organizations in accordance with the
standards and provisions of this Act;


(b) 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;

(c) 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, rights-based, gender-responsive and child-
friendly programs and policies for the IE;

(d) Develop and ensure effective implementation of labor standards covering WIE
as provided for by this Act;

(e) Develop and ensure implementation of gender-based monitoring and
evaluation mechanisms, efficient and effective programs and policies, and
gender-responsiveness of interventions toward harnessing the full potentials
of women WIE;

(f) Coordinate with LGUs for the development and implementation of periodic
evaluation of all accredited IE members, enterprises and organizations —
taking into account their accomplishments, capabilities and potentials. The
results of such evaluation shall be used as basis for accreditation, the grant of
awards and incentives, training and retraining;

(g) Establish a performance appraisal system for all accredited workers,
enterprises and organizations in the informal economy which shall be the
basis for granting or renewal of incentives, rewards and recognition, training
and development, including adequate mechanisms to ensure their active
participation and involvement;

(h) Ensure effective participation of WIE and their organization through the
establishment of regular consultative mechanisms and processes. Annual
national, regional and provincial consultations among the organizations of
WIE shall be conducted to determine specific issues and problems affecting
specific WIE sub-sectors, and monitor and evaluate implementation of
programs and policies.

(i) 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 and shall include but not limited
to the following: statistical profile of WIE based on age, location, type of work,
average monthly incomes, work hours, and other relevant statistical
information; data on informal enterprises, including capitalization and sources
of capital, number and status of workers, average incomes; list and contact


information of government and non-government organizations (NGOs) that
provide educational, socio-economic, legal, and other services to WIE:
inventory of resolved and pending cases involving activities of WIE; database
on the needs and problems of women and children in the informal economy
nationwide aimed at strengthening of policies and programs against child
labor; and compilation of international instruments, existing laws and
programs affecting laws and programs affecting the interest and welfare of
WIE and information on how these workers may use or avail of such
instruments, laws and programs

(j) Develop and ensure implementation of a communication plan including
massive information dissemination activities targeting WIE, their enterprises
and organizations, in the various regions towards a better understanding and
appreciation of the benefits this Act may bring them;

(k) Consistent with Section 2 (h) of this Act, to develop and ensure
implementation of a comprehensive plan to eliminate child labor;

() Monitor and coordinate implementation of policies and programs through the
Regional IEDC officers;

(m) Coordinate and harmonize all informal economy-related policies, programs,
projects and activities of various government agencies towards greater
efficiency and effectiveness;

(n) Monitor the LGU-generated incomes from informal employment through the
LGUs periodic report submitted to the Council;

(0) After consultations with WIE organizations, develop and ensure
implementation of policies and programs that will address specific needs and
ensure rights of WIE subsectors;

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

(q) From time to time, call on the participation of any government agency or
bureaucracy in its deliberations especially when such agency is directly or
indirectly concerned with or affecting the growth and development of the IE.

SEC. 36. Composition. The Chair of the IEDC shall be 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 following


(a) Secretary of the Department of Trade and Industry (DTI);

(b) Director-General of the National Economic and Development Authority
(NEDA);

(c) Secretary of Department of Agriculture (DA)

(d) Secretary of Department of Social Welfare and Development (DSWD);

(e) Secretary of the Department of Interior and Local Government (DILG);

(f) Chairperson of the Commission on Human Rights (CHR);

(g) Lead Convener of the National Anti-Poverty Commission (NAPC);

(h) Secretary of Department of Transportation and Communication (DOTC);

(i) Chairperson of the Social Security System (SSS);

() Chairperson of Philippine Health Insurance Corporation (PhilHealth);

(k) Chairperson of the Philippine Commission on Women (PCW);

(I) Secretary of the Department of Public Works and Highways (DPWH);

(m)One (1) representative from each social partner such as ECOP, TUCP, FFW,
SENTRO, ALLWIES and PCI,

(n) One (1) representative each from the League of Cities, League of
Municipalities, League of Provinces, and League of Councilors;

(0) The incumbent NAPC Informal Sector Sectoral Representative;

(p) At least 30% of total membership of IEDC shall come from organizations of
workers in the informal economy accredited with DOLE and DA. Guidelines
for the selection of non-government IEDC members, including processes and
mechanics shall be determined by the IRR of this Act

Representatives from the Social Partners, and WIE organizations shall serve as
1EDC members for a term of three (3) years without re-election and shall be
subject to terms and conditions provided for by the IRR.

The private sector, workers in informal economy and women’s organizations’
representatives to the IEDC shall be entitled to receive per diem of at least Two
Thousand Five Hundred Pesos (P2,500.00) per meeting

SEC. 37. IEDC Meetings. — The IEDC shall meet once every two (2) months and
may call for special meetings as the need arises; provided, that the frequency of
such special meetings shall not exceed four (4) times annually.

SEC. 38. Initial IEDC Funds. — Ten million pesos (P10, 000,000.00) shall be
allocated from the Presidential discretionary fund for the initial operating expenses of
the IEDC

SEC. 39. Executive Committee of the IEDC. — An Executive Committee of NINE
(2) members shall be convened. Besides the Chair and Vice-Chair, the following
shall be elected by the IEDA members from among themselves or their duly
designated alternate representatives: FOUR (4) representatives of WIE
organizations, one (1) from the different leagues of local officials, one (1) from the
private sector, and one (1) from a national government agency, provided, that at
least three (3) members of the Executive Committee are women


The Executive Committee shall have the authority to act for and in behalf of IEDC
during intervals of meetings, and only within the specific authority granted by the
IEDC.

SEC. 40. IEDC Secretariat. — The following secretariat functions shall be integrated
in the DOLE secretariat functions:

(a) Prepare and recommend, in coordination with the LGUs and other government
agencies, annual, medium-term, and long-term Informal Economy Development
Plans for approval of the IEDC;

(b) Coordinate the preparation of position papers and background materials for
discussion or approval during IEDC and its Executive Committee meetings;

(c) Assist in coordinating and monitoring policies, programs and activities of all
government agencies with respect to implementation of this Act;

(d) Prepare, collate and integrate all inputs to the IEDC’s yearly report on the status
of WIE, business activities or enterprises in the country, or other matters as
directed by IEDA;

(e) Submit periodic reports to IEDC on the progress and accomplishments of its
work programs; and

(f) Perform other secretariat and administrative functions as authorized by the IEDC.
or its Executive Committee.

SEC. 41. Regional and Provincial IEDC Officers. - The DOLE Regional and
Provincial offices (NEDA Resolution) shall have 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 workers in informal economy; 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)

SEC. 42. Rationalization of Programs. — \EDC shall conduct continuing review of
government programs for the poorest of the poor and the WIE and submit to
Congress and the President of the Philippines a report thereon together with its
policy recommendations

Chapter IX
Workers in Informal Employment Local Development Office (WIELDO)

SEC. 43. Workers in Informal Employment Local Development Office
(WIELDO). — The Workers in Informal Employment Local Development Office
(WIELDO) shall be established in every city and municipality to perform functions
that shall include but not limited to the following:

(a) Prepare an overall development plan and work program that will address the
needs of the WIE, prioritizing the poorest and most vulnerable, and incorporate
them in their respective city, municipality, and barangay development plans;


(b) In consultation with WIE organizations in the area, identify specific needs of
various IE subsectors and recommend appropriate measures to be taken;

(c) Ensure accreditation of WIE , especially those with assets of P150,000 and
below, to facilitate their immediate access to benefits and services;

(d) Monitor, assess and evaluate implementation of the plans and programs as well
as the performance of informal workers, their economic activities and their
organizations in the areas;

(e) Lead in the local implementation of Chapter VI ( Security in the Workplace of
WIE) of this Act;

() Coordinate with other local offices, private sector and other organizations with
existing programs for WIE towards integration and convergence;

(g) Conduct education and training programs that will: raise their consciousness
especially on but not limited to workers’, women's and children's rights; provide
new ideas especially to those with the least assets and formal education; and
develop or upgrade technical, entrepreneurial and leadership skills WIE;

(h) Provide technical support and facilitate access to credit, market, technology,
social protection schemes, and training for WIE;

(i) Train pools of community trainers in business counselling and awareness-raising
on occupational safety and health hazards, risks and social protection;

(j), Support organizing activities among WIE;

(k) Establish sex-disaggregated data bank on human resources and skills registry to
be used as tools for LGU planning and budgeting;

(I) Provide offices and other necessary resources to support organizing, advocacy,
training and other activities of local organizations of WIE;

(m)Conduct specialized training such as negotiation skills and conduct of time and
motion studies to determine proper wages;

(n) Provide services, which shall include but not limited to counseling, conciliation,
mediation, and legal assistance for the furtherance of this Act, prioritizing those
with the least access to justice; and

(0) Ensure that the LGU is capacitated to undertake and implement rights-based
and gender responsive programs for WIE

The local government shall encourage organization of economic units and set
respective rules and regulations towards smooth interventions to support MSME
development

In the performance of WIELDO's functions, the principle of preferential treatment to
the poorest and most vulnerable shall be observed

SEC. 44, Composition. — The Local Chief Executives (LCEs) shall be the primary
overseers of WIELDO's operations. The IRR of this Act shall provide for WIELDO's
Composition provided that informal workers’ representatives shall form at least fifty
percent (50%) of WIELDO’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 WIELDO’s
operations shall be included in the IRR of this Act. HB 768 Chapter 8 Section 39.


SEC. 45. Local Government Unit Informal Economy Development Fund (LGU-
JEDF). — 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 WIELDO but subject to audit by the Commission on Audit (COA)

For the establishment and initial operations of WIELDO, each LGU shall allocate at
least three per cent (3%) of their twenty percent (20%) Development fund from their
IRA. HB 768 Section 38 with modifications.

Thereafter, the LGU- IEDF shall be funded using:

(a) Accreditation and registration fees and annual dues paid by individual
workers in the informal economy, their livelihood activities, and organizations
and associations as provided for by Sections 6 and 7 of this Ac;

(b) Shares from the 70% of the least 10% funds from the Annual General
Appropriations Act as provided for by Chapter VII, Section 29 (a) and (b) of
this Act; and

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

Following the principle of merit and equity, LGUs that fulfill such allocations may
receive additional assistance from the national government as recommended by
IEDC; provided, that they have formulated their local development plan for WIE.

SEC. 46. Additional Sources of Funds. — The following may be tapped by LGUs as
additional sources of funds for WIELDO initiatives:

(a) at least fifty percent (50%) of fees and annual dues collected from the
small transport- for programs for workers in the small transport industry;

(b) at least fifty percent (50%) of collected fees and annual dues from
business establishments and entrepreneurs falling under the category of
informal sector- for programs focusing on micro-entrepreneurs and their
workers;

(c) at least fifty percent (50%) of collected fees and annual dues from small
vendors- for programs focusing on vendors;

(d) at least fifty percent (50%) of fees and annual dues collected from
marginalized fisher-folks- for programs focusing on fisherfolks

(e) at least ten percent (10%) of funds from the Philippine Amusement and
Gaming Corporation (PAGCOR) and Philippine Charity and Sweepstakes

Office (PCSO).
TITLE It
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY
Chapter |

Requisites for Employment Agreement

SEC. 47. Minimum Standards. — All working arrangements entered into by WIE
shall be in accordance with the minimum applicable labor and social standards as
contained in Title II of this Act.


These standards shall be strictly enforced in informal and economic enterprises
supplying or doing outsourcing work for exporters, investors-locators in export
processing zones or industrial parks licensed by the Export Processing Zone, and
domestic formal sector manufacturers and retailers-distributors

For workers engaged by independent informal economic enterprises, DOLE, in
coordination with IEDA shall audit the capacity of these enterprises to comply with
these 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. 48. Provisions of Employment Agreement. — The employment contract shall
be in written form. However, the absence of a written agreement does not mean the
absence of an employment relationship. As a matter of right, WIE can insist on a
written agreement based on minimum standards agreement

In cases wherein minors are contracted with, the said negotiated contract shall be
signed on his/her behalf by either parent or legal guardian, with the expressed
written consent of the said minor.

In cases wherein illiterate workers are contracted with, the said contract shall be
explained to the worker concerned 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

Each of the contracting parties shall be provided with full set of the duly signed
agreement which shall include the following basic provisions:

(a) working arrangement/mode;

(b) period/duration of employment

(c) compensation, which shall not be below the minimum standards, and
mode of payment;

(d) computation of contributions for social security and medical insurance
including those who fall under DOLE Department Order No. 5;

(e) duties and responsibilities;

(f) working hours and day-off schedules;

(g) living quarters or sleeping arrangements (for live-in workers);

(h) the date, term and mode of delivery or date of completion;

(i) minimum of twenty percent (20%) down payment for labor cost and
services and minimum of 50% for inventory of raw materials used in the
production for homeworkers per DOLE Order No. 5

Minimum standard compensation referred to above shall be determined by the
regional wage Boards per subsector of WIE. In the case of piece rates, this shall be
based on the conduct of time and motion studies facilitated by the DOLE’s Bureau of
Working Conditions. While there are no standardized rates for workers in informal
economy jobs, the basis of computation shall not be below the applicable minimum
wage of the region where they are covered.



Enforcement of the standard compensation rates shall be in accordance with the
capability to comply as explained in Section 40 of this Act

SEC. 49. Payment of Wages. — Payment derived from negotiated agreement shall
be made directly to the workers. No deductions from such payments shall be made
by the employer except those provided for by law. The expressed written consent of
the worker shall be first secured before deductions are made

No parent, guardian, relative or any other person shall be allowed to take a loan
against the compensation of his or her relative-worker without the expressed written
consent of the concerned worker. Neither shall a worker of minor age be mandated
to work in payment of loan or liability incurred by a parent, guardian, relative, or any
other person



Chapter Il
IE Workers of Minor Age

SEC. 50. Allowable Employment of Workers of Minor Age. — Children fifteen (15)
years but below eighteen (18) years of age may be employed; provided, that
parental or legal guardian consent is presented and attested to by any representative
of the LGU or duly elected Barangay official where the work is to be done. In no
instance however, shall children below fifteen (15) years old be engaged in whatever
form of productive services.

Further, workers of minor age shall not be allowed to render work for more than four
(4) hours, five (5) days a week, exclusive of one (1) hour break for breakfast or lunch
whichever is applicable

TITLE Il
Final provisions
SEC. 51. 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 or, the Court, in addition to the penalties
provided in the preceding paragraph, may impose the additional penalty of
disqualification from public office.

(c) Any person who violates Section 26 of this Act (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 Section 27 and 28 of this Act (Policy 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 pertinent laws and criminally liable whenever applicable

(e) In the case of a private institution’ company found to be violating any
provision of this Act, shall be subject to additional penalty ranging from
suspension or revocation of business license at the discretion of the Court

SEC. 52. Implementing Rules and Regulations (IRR). — The Implementing Rules
and Regulations (IRR) of this Act shall be formulated by a drafting committee
composed of representatives of offices that will be members of IEDA and WIE
organizations provided that. At least 30% of the drafting committee members shall


come from the latter and provided further that at least 30% of the 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, 53. 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. 54. 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. 56. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation or the Official Gazette,
whichever comes first.

Approved,