Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Constitution Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _____
___________________________________________________________
Introduced by Representative Bernadette Herrera
___________________________________________________________
THE MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY,
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
This bill is the House of Representatives counterpart of Senate Bills filed by the
Honorable Senators Sonny Angara and Risa Hontiveros.
Through
these
measures,
the
Legislature
seeks
to
provide
an
integrated,
comprehensive, rights-based, gender-responsive, culturally-sensitive, and democratic policy
instrument to empower the poor, marginalized, unprotected, and underrepresented workers
in informal employment and bring them into the mainstream of the Philippine economy. It is
the culmination of persistent advocacy efforts involving informal workers' associations,
women's groups, human rights and other civil society organizations stretching for more than
a decade.
The informal economy is composed of a myriad of activities, enterprises, and
workers, including micro-entrepreneurs, home-based workers, vendors, small transport
operators, farmers, fisherfolk, entertainers, beauticians, laundry persons, hairdressers,
on-call domestic helpers, barangay health workers,
and other volunteer workers, among
many others.
Most of the working poor - those who are working but not to the level of uplifting
themselves out of poverty because of very low earnings and very high risks, are in the
informal economy. Many such workers live in substandard conditions and do not have the
means to meet the basic needs of themselves and their families.
It is alarming that conventional law on the matter, specifically the Labor Code as
amended and other legislation, do not provide provisions that protect the rights of those
September 8, 2022
8:49 am
4565


working in the informal economy. As a result, their rights remain unprotected and the
workers are further rendered vulnerable to exploitation by unscrupulous employers who
make them work long hours and at very low wages, without benefits and under very poor
working conditions. They have limited access to productive resources, justice, social
protection, and preventive programs for work-related diseases and risks. These are further
aggravated by their apparent underrepresentation in policy-making bodies relevant to their
issues.
The mandate sought by this representation is to codify and legislate a Magna Carta
for informal workers that will recognize, defend, protect, promote and fulfill their rights
through a continuous process of capacity-building and empowerment. This is in consonance
with the Constitutional provision on social justice and with the country's adherence to the
Universal Declaration of Human Rights (UDHR), the International Covenant on Economic,
Social and Cultural Rights (lCESCR), the United Nations (UN) Convention on the Elimination
of Discrimination of Women (CEDAW), and various International Labour Organization (ILO)
conventions upholding core labor standards and decent work.
This Magna Carta shall provide informal workers access to social protection and
justice; make them visible in statistics; simplify their accreditation; provide appropriate
standards and regulations in their favor; develop and implement meaningful plans, policies
and programs that will harness their full potential to become effective and productive
economic actors. As embodied in the 2002 ILO document on the informal economy,
government has the responsibility to bring informal workers into the economic and social
mainstream, reduce their vulnerability and exclusion, ensure that they are covered by the
legal and institutional framework, and support their representational rights through their
legitimate, accessible, transparent and accountable membership-based organizations.
In view of the foregoing, early passage of this measure is earnestly sought.
BERNADETTE HERRERA
2


Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Constitution Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _____
___________________________________________________________
Introduced by Representative Bernadette Herrera
___________________________________________________________
THE MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY,
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
TITLE I
GENERAL PROVISIONS
Chapter I
Framework and Principles
Section. 1. Short Title. – This Act shall be known as the “Magna Carta of Workers
in the Informal Economy.”
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 fulfil 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 of/in the workplaces, and the right to represent their
organizations in a continuing process of consultation, in the context of quadpartism
towards maximizing the provision of a comprehensive
package of reforms, interventions, and services in accordance with their articulated
needs and interests;
1
4565


(c) 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;
(d) 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 participation/representation in decision-making bodies
and processes;
(e) Establish
an
integrated
and
coherent policy at all levels of government of
formalization, inclusive development, and greater responsiveness to the needs of the
workers and enterprises in the informal economy;
(f) Protect vulnerable workers from among the “Basic Sectors,” as defined under
Republic Act 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;
(g) Take measures that will ensure legal security of tenure of workers and the safety
and security of their 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
(h) 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 8425) and conduct periodic review of them.
Sec. 3. Framework and Principles. – Article II, Section 9 of the 1987 Constitution
declares, “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 that are rights-based, participatory, gender-responsive and sustainable.
2


These strategies shall also be in accordance with the most relevant and empowering
provisions of International Labour Organization (ILO) Recommendation No. 204 concerning
the Transition from the Informal to the Formal:
(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, disaster risk reduction and management mechanisms, and adaptive measures
to respond to climate change;
(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;
3


(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;
(j)
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;
(l)
Support system to expand market for products, access loans for additional capital
requirement and simplify bureaucratic systems and procedures for the Micro, Small
and Medium Enterprises (MSMEs);
(m)
Relaxation of the procurement procedures for the contracting micro-entrepreneurs of
the government;
(n)
Review, amendment and efficient implementation of policies on sub-contracting such
as DOLE Department Order No. 5 on Industrial Homework and other relevant
policies; and
(o)
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.
(p)
After formalization, 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:
−
own-account workers;
−
employers; and
−
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
4


(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 fisher folk, 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 refer 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, radiation, 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 104th 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”;
(e-1) Economic Units in the informal economy include:
−
units that employ hired labour;
−
units that are owned by individuals working on their own account, either
alone or with the help of contributing family workers; and,
−
cooperatives and social and solidarity economy units;
−
informal work that may be found across all sectors of the economy, in
both public and private spaces.
5


(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;
(j)
Security of/in 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, programs, 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 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.
(l)
Working Hours refer 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; and
(m)
Volunteer workers of government instrumentalities refer 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 II
6


Coverage, Registration and Annual Dues
Sec. 6. Coverage. – This shall include all those defined in Section 4 of this Act,
Informal Economy (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, Workers in the Informal Economy (WIE) organizations and economic units. The
Barangay Micro Business Enterprise (BMBE) Registry, in general, shall include these informal
economic units.
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
7


jurisdiction and worker’s registration. The Center shall ensure that processing of the
business permit of the informal economic units shall be expedited within one day. The
P150,000.00 asset size shall be given an affordable business registration (Mayor’s Permit) of
P500.00 renewable annually until two (3) 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. – IE 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 I, 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 of/in 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 no other considerations than seniority
and competence;
8


(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;
(g)
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;
(j)
Self-organization to collectively negotiate with government and other entities in the
promotion of their welfare and advancement of their interests, free from any political
interference;
(k)
An adequate standard of living for workers and their families, adequate food,
clothing, and shelter, and the continuous improvement of such standard;
(l)
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;
(m)
Accessible social protection, comprising mainly of, but not limited to labor market
programs, social security, health care and insurance, and social welfare interventions;
(n)
Equal treatment before the law;
(o)
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 sector;
(p)
Equal access to justice though appropriate mechanisms, including, but not limited to,
alternative dispute resolution processes; and
(q)
Access to public procurement including advice and reserving quotas for informal
economic units.
Sec. 10. 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)
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;
9


(b)
Policy support to promote and protect local and domestically-produced products and
services;
(c)
Access to markets, including capacity-building to access E-marketing facilities;
(d)
Access to affordable, appropriate and adequate financial services, including, among
others, collateral-free and gender-balanced credit at low interest;
(e)
Access to appropriate and adequate machinery, equipment, and other technologies,
with the end in view of increasing productivity and growth;
(f)
Protection from unjust dislocation from places where economic activities are
conducted 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 the effectivity of this Act;
(i)
Common
workplaces,
common
technology
facilities,
adequate
and
affordable
marketing facilities such as economic freedom parks, merchandising centers, and
inventory bulk-buying centers;
(j)
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 all other activities, not contrary to law, designed to benefit their
10


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 for their lawful purposes, shall be
free from taxes, duties and 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 encouraged
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 Informal Economy Local Development Office (WIELDO) as created
by Chapter IX of this Act, and monitor the growth of informal employment 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 7 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 worker was sourced either through an employment agency or a third party, WIE
11


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 be
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
(j)
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;
12


(c)
Preventing any worker from carrying out his/her duties or functions in an
organization, or to penalize the same for any lawful action performed in that
capacity;
(d)
Harassing, threatening, coercing or intimidating any worker that result in preventing
him or her from performing his or her duties and functions;
(e)
Transferring, penalizing or terminating the services of a worker without valid or legal
ground; and
(f)
Other acts calculated to diminish the independence and freedom of workers’
organization to direct its own affairs.
Chapter V
SOCIAL PROTECTION
Social protection as defined in Section 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 trees, 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
13


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 up-scaled.
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.
14


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. Universal Health Care. –The Philippine Health Insurance Corporation
(PhilHealth) shall ensure and substantiate universal, actual, active, and up to date coverage
of workers in the informal economy, through the effective implementation of Republic Act
No. 11223, or the Universal Healthcare Law, which mandates the coverage of every Filipino
citizen to the National Health Insurance Program (NHIP).
In compliance with Republic Act No. 11223, PhilHealth shall 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.
Further, 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.
These
shall
include
the
provision
of
service
by
duly-accredited
and
adequately-furnished
health
facilities,
with
appropriately-educated
and
rationally-compensated health personnel, to underserved areas up to the barangay level.
Sec. 22. The State shall 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.
Sec. 23. The State shall sustain, enhance, and institutionalize the Social Protection
Floor initiative through convergence of the resources of various agencies so that it can
provide continuous social security and health insurance subsidies to vulnerable and other
informal workers as well as initiate programs for the unemployed, children, and older
persons based on applicable and ever improving standards.
CHAPTER VI
Security in the Workplace of Workers in Informal Employment
Security in the workplace as defined in Section 5 of this Act shall involve the following:
Sec. 24. 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
15


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 property 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. 25. 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. 26. 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.
16


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. 27. Policy on Eviction and Demolition. – WIE shall not be evicted from
their homes and workplaces without legal ground as provided for 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 R.A. No. 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 underprivileged
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
17


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. 28. Policy on Confiscation of Materials and Impounding of Vehicles. –
In 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 regulations, a traffic
violation ticket shall be issued to the erring driver without impounding his/her vehicle.
Sec. 29. 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. 30. 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.
18


Chapter VII
Special Allocations of Development Initiatives
Sec. 31. 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. 32. 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 (R.A.) 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 promote, develop and
widen in both scope and service reach various alternative modes of financing for
19


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; and
(e) The Department of Science and Technology (DOST) shall support technology-related
initiatives of workers and enterprises in the informal economy.
Sec. 33. 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 or organizations
in the informal economy.
Sec. 34. 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 VIII
Informal Economy Development Council (IEDC)
Sec. 35. 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. 36. Mandate and Functions of IEDC. – The mandate and functions of IEDC
shall include the following:
20


(a)
Develop and ensure implementation of a simple system of registration 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 bases 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
organizations
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
21


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 policies and programs against
child labor; and Compilation of international instruments, existing 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;
(l)
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;
(o)
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. 37. Composition. – The Chair of the IEDC shall be the Secretary of
Department of Labor and Employment. IEDC members may elect from among themselves a
22


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 the Department of Agriculture (DA);
(d)
Secretary of the 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 the Department of Transportation (DOTR);
(i)
Chairperson of the Social Security System (SSS);
(j)
Chairperson of Philippine Health Insurance Corporation (PhilHealth);
(k)
Chairperson of the Philippine Commission on Women (PCW);
(l)
Secretary of the Department of Public Works and Highways (DPWH);
(m)
One (1) representative from the private sector;
(n)
One (1) representative each from the League of Cities, League of Municipalities,
League of Provinces and League of Councilors;
(o)
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. 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.
The private sector, workers in informal economy and women’s organizations’
representatives to the IEDA shall be entitled to receive Per Diem of at least Two Thousand
Five Hundred Pesos (P2, 500.00) per meeting.
Sec. 38. 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. 39. 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.
23


Sec. 40. Executive Committee of the IEDC. – An Executive Committee of nine
(9) 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. 41. IEDC Secretariat. – The following secretariat functions shall be integrated
in the DOLE secretariat functions:
(a)
Prepare and recommend, in coordination with 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 the 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. 42. 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).
24


Sec. 43. Rationalization of Programs. – IEDC 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. 44. Workers in Informal Employment Local Development Office. – 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, municipal, 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 and registration 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;
(f)
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 counseling and awareness-raising on
occupational safety and health hazards, risks and social protection;
(j)
Support organizing activities among WIE;
(k)
Establish sex-disaggregated databank on human resources and skills registry to be
used as tools for LGU planning and budgeting;
25


(l)
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 be limited to counseling, conciliation,
mediation, and legal assistance for the furtherance of this Act, prioritizing those with
the least access to justice; and
(o)
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 informal
enterprise   development towards transitioning to formality.
In the performance of WIELDO’s functions, the principle of preferential treatment to
the poorest and most vulnerable shall be observed.
Sec. 45. 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.
Sec. 46.
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 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.
Thereafter, the LGU-IEDF shall be funded using:
(a)
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 Act;
(b)
Shares from the 70% of the at least 10% funds from the Annual General
Appropriations Act as provided for by Chapter VII, Section 32 (a) and (b) of this Act;
and
26


(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. 47. Additional Sources of Funds. – The following may tapped by LGUs as
additional sources of funds for WIELDO initiatives:
(a)
at least fifty percent (50%) of fees and annual dues collected from 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
fisherfolks – for programs focusing on fisherfolk; and
(e)
at least ten percent (10%) of funds from the Philippine Amusement and Gaming
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO)
TITLE II
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY
Chapter I
Requisites for Employment Agreement
Sec. 48. 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 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
27


capacity to improve their businesses, as well as the capacity comply with relevant labor and
social standards.
Sec. 49. 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.
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 a 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 standard, and mode of
payment;
(d)
computation of contributions for social security and medical insurance including for
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 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.
28


Sec. 50. 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 express 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 II
IE Workers of Minor Age
Sec. 51. 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 III
FINAL PROVISIONS
Sec. 52. 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.
29


(c)
Any person who violates Section 28 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 applicability.
(d)
Failure to implement Sections 30 and 31 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 No. 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, it shall be subject to additional penalty ranging from suspension or revocation of
business license at the discretion of the Court.
Sec. 53. Implementing Rules and Regulations. – 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 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.
54. 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. 55.
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 the Official Gazette or in any two (2) newspapers of general circulation in the
Philippines.
Approved,
30