Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

1516

House Bill No.

Introduced by TUCP Partylist
Rep. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The Philippine Statistical Authority (PSA) conceptual definition of the informal sector
describes what it is. PSA said, “informal sector consists of ‘units’, engaged in producing goods
and services with the primary objective of generating employment and incomes to the persons
concerned to earn a living. These units typically operate at a low level of organization, with little
or no division between labor and capital as factors of production. It consists of household,
unincorporated enterprises that are market and non-market producers of goods and market
producers of services. Labor relations, where they exist, are based on casual employment,
kinship or personal and social relations rather than formal or contractual arrangements."

The vaguely described and invisible informal sector contributed 5 TRILLION PESOS to
the country's GDP in 2016. Based on the 2017 Labor Force Survey, the informal sector workers
38% of the country's total working population, or 15.6 million

We cannot discount the significance of the informal sector's contribution to the Philippine
economy. Yet, the informal sector is unseen in government programs, services, and social
protection, and struggling at the margins of the Philippine society, vulnerable and exposed to
the vagaries of poverty and inequality. They are the faceless and unaccounted informal sector
workers or workers in an informal employment arrangement. They are the ambulant vendors,
small transport operators, small and landless farmers, artisanal fisherfolk, intermittent non-
corporate construction workers, waste pickers and recyclers, petty retailers, barter traders,
small-scale miners, and quarry workers, entertainers, beauticians, laundry persons,
hairdressers, on-call domestic helpers, barkers and unorganized cargo-handlers. At various
government instrumentalities, they are the forever job order workers, the barangay health
workers, barangay tanod, barangay nutrition scholars, barangay daycare workers, and
volunteers during disasters. They are also micro-entrepreneurs.

They are not covered by the Labor or Civil Service Code. They live in substandard
conditions and are vulnerable to exploitation, working long hours at meager wages, without
benefits, and under deplorable working conditions. They have limited access to productive
resources, justice, and preventive programs for work-related diseases and risks and are
underrepresented in policy-making bodies relevant to their issues and welfare. They lack social

1

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protection such as those provided by the Social Security System, Philippine Health Insurance
Corporation, or PhilHealth.

There have been several attempts to enact the Magna Carta for Workers in the Informal
Sectors. In the 18h Congress, a Committee Substitute Bill for House Bill Nos. 29, 273, 2025,
2240, 3465, 3688, and 4203 was arrived at after several hearings and consultations but failed to
pass into law for lack of material time. Therefore, it is high time that under the administration of
President Ferdinand Romualdez Marcos, Jr., that promises economic relief to the marginalized
sector, the 19th Congress will finish the work to provide rights and benefits to workers in the
informal economies, provide them with affordable social protection and security in the
workplace, among others.

RAYMOND DEMOCRITO C. MENDOZA
Representative, TUCP Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. _151€

Introduced by TUCP Partylist
Rep. RAYMOND DEMOCRITO C. MENDOZA

AN ACT
INSTITUTIONALIZING MECHANISMS FOR THE RECOGNITION, INTEGRATION,
AND TRANSITION OF WORKERS, ENTERPRISES AND ORGANIZATIONS IN
THE INFORMAL ECONOMY TO THE FORMAL ECONOMY, AND
APPROPRIATING FUNDS THEREFOR

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

TITLE!
GENERAL PROVISIONS

Chapter |
GENERAL PRINCIPLES

SECTION. 1. Short Title. - This Act shall be known as the ‘Workers in the
Informal Economy (WIE) Act.”

SEC. 2. Declaration of Policy. — It is the policy of the State to promote a just
and dynamic social order that shall ensure the prosperity and independence of the
nation and free the people from poverty through policies that provide adequate social
services, and promote decent, environmentally sound and full employment, a rising
standard of living, and an improved quality of life for all

Towards this end, the State, in order to help uplift the lives of workers in the
informal economy, shall:

(a) Protect, promote, and fulfil the rights of every worker, including gender
equality, non-discrimination, right to self-organization, just and humane conditions of
work, access to social protection programs and services, access to justice, security
in the workplaces, and the right to represent their organizations in a continuing
process of consultation and social dialogue, with equitable membership in relevant
tripartite bodies;


(b) Establish and fully implement an integrated and coherent policy at all
levels of government, formalization of informal economic units and informal economy
workers and make them visible in all relevant national and local statistics;

(c) Develop and enhance their technical, special, entrepreneurial, and other
skills and capabilities necessary towards their empowerment and enjoyment of
benefits and entitlements associated with the formal economy, and become more
productive and self-reliant citizens, thereby ensuring participation in mainstream
economic activities based on their own pace and self-determination;

(d) Progressively eliminate child labor through the creation of more quality
jobs for adults, effective enforcement of laws against child labor, elimination of
gender-based discrimination against child workers, improved access to universal
education and social protection, and elimination of cultural factors that directly or
indirectly tolerate, and even accept child labor;

(€) Develop the local economy through maximization of the potential and
contribution of informal economy business activities and enterprises;

(f) Encourage and support workers in the informal economy to form self-help
groups, mutual benefit associations, unions, cooperatives and other forms of self-
organization for their mutual aid, benefit, protection, and for other legitimate
purposes;

(g) Advance the women workers’ social, political, and reproductive rights and
provide access to social protection and participation in decision-making bodies;

(h) Include the concerns of workers in the informal economy in the policies,
plans, programs, projects, and activities of relevant national government agencies,
government financial institutions, and local government units;

(i) Advance the autonomy and empowerment of local government units and
their capability to be more responsive to the needs of the workers in the informal
economy among their constituents;

(j) Integrate ethnicity as a factor in the formulation of programs and
mechanisms to promote and protect the rights of workers in the informal economy;
and

(k) Ensure the participation of the informal sector in the planning, decision-
making, implementation, monitoring and evaluation of the reforms agenda toward the
recognition, integration, and transition of the informal economy to the formal
economy.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Economic units refer to informal economies such as:

(1) Units that employ hired labor;


(2) Units that are owned by individuals working on their account, either
alone or with the help of contributing family workers;

(3) Cooperatives and other social and solidarity economy units; and

(4) Informal work that may be found across all sectors of the economy, in
households, as well as public and private spaces including government
instrumentalities and government-owned and controlled corporations
(GOCCs);

(b) Employer refers to a natural person or group or partnership of people or a
corporation for whom a paid worker renders productive employment or service;

(c) Informal economy refers to the economic activities by workers and
economic units that are, in law or practice, not covered or insufficiently covered;

(d) Informal economy workers’ organization refers to a group or groups of
informal workers, whether formally constituted or otherwise, organized with the
primary objective of promoting the rights and welfare of workers in the informal
economy;

(e) Informal employment refers to an employment arrangement in the formal
or informal sectors or in households that exist based mostly on casual employment,
kinship or personal and social relations with no.formal guarantees on legal and social
protection and employment benefits, and prevalent in economic units that are
unregistered, unlicensed and unregulated;

(f) Informal sector refers to units engaged in the production of goods and
services with the primary objective of generating employment and incomes for the
persons concerned consisting of households and unincorporated enterprises that are
market and non-market producers of goods, as well as market producers of services
and are operated by own-account workers, which may employ unpaid family workers
and occasional or seasonally-hired workers;

(g) Own-account workers refer to persons who, working on their own account
cor with one or more partners, hold the type of job defined as a self-employed job,
and have not engaged continuously any employees to work for them during the
reference period;

(h) Security in the workplace refers to the right of every worker and informal
economic unit to an enabling environment that guarantees and protects the spaces,
facilities, and structures to undertake their work, including the right to feel safe in
one's workspace, legal security of tenure and freedom from discrimination, risk,
danger, doubt, anxiety, or fear of being removed, evicted or prevented from working;

(i) Self-employed worker refers to any person who has no employer and who
works for oneself by producing goods or services for the market;

(j) Social protection refers to policies and programs that seek to reduce
poverty and vulnerability to risks and enhance the social status of the marginalized

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by promoting and protecting livelihood and employment, protecting against hazards
and sudden loss of income, and improving people's capacity to manage risk, as well
as all other interventions that support communities, households, and individuals,
both women and men, and realizing their rights as citizens through their full
participation in decision-making affecting their access to and control over resources
necessary to maintain and sustain a decent and secured life;

(k) Social protection floor refers to a set of guarantees ensuring access to
essential health services, income support for the education of children, health and
nutrition, income assistance for economically active groups who do not have
sufficient earnings in case of emergencies, and financial support for the elderly
population and women informal workers in difficult and vulnerable circumstances like
single mothers, and women survivors of abuse and violence;

(I) Social and solidarity economy units refer to enterprises and organizations
including cooperatives as defined under Republic Act (RA) No. 9520, otherwise
known as the “Philippine Cooperative Code of 2008", mutual benefit societies,
associations, foundations, and social enterprises which produce goods, services,
and knowledge that meet the needs of the community they serve, through the pursuit
of specific social and environmental objectives and the fostering of solidarity,
including labor market interventions, social insurance, social welfare, safety nets,
disaster risk reduction and management mechanisms, adaptive measures in the
context of climate change, affordable housing, and other provisions necessary for
vulnerable groups to adequately address and manage risks, vulnerabilities, and
threats to workers’ livelihood activities and overall quality of life;

(m) Volunteer refers to workers in government instrumentalities who do not
occupy plantilla positions, who receive salaries but not benefits, who are contracted
out for specific periods of time, and who receive allowances or honoraria, including
project staff, barangay health workers, barangay tanod, barangay nutrition scholars,
barangay daycare workers, barangay volunteers, and other vulnerable workers for
disasters, among others;

(n) Worker refers to both self-employed and paid employees covered under
the provisions of this Act; and

(0) Workers in the informal economy refer to a group of persons who have no
employer-employee relationship in order to earn a living such as small farmers,
tenants, sharecroppers, or laborers of rural and agricultural lands, small fisherfolk,
fisherfolk without fishing equipment, on-call fish workers, porters and batillos, home-
based workers who are independent producers of goods or services, industrial
homeworkers, self-employed who are engaged in subcontracting arrangements,
ambulant vendors or peddlers, street vendors, vendors with stalls in public and
private markets, sari-sari stores owners and workers, land and sea transportation
drivers, operators of public and private transportation, maids, cooks, family drivers,
gardeners, baby sitters, non-corporate construction workers, small scale miners,
workers of barangay micro business enterprises, non-corporate cargo handlers and
allied workers, waste pickers and recyclers, workers engaged in producing seasonal
products, own-account workers including those engaged in the maintenance and
repair of equipment and appliances, clothing and footwear workers, beauticians,

4


barbers, masseuses, “on-call” workers in the entertainment, movie, and media
industries, barangay health workers, barangay tanod, barangay nutrition scholars,
barangay daycare workers, volunteers in non-government or people's organizations,
unpaid family members, or workers receiving allowances and seasonally hired
workers in micro-enterprises or assist unincorporated household enterprises, and
other similar economic activities that are not illegal, criminal or life-threatening in
nature.

SEC. 4, Coverage. - This Act applies to all workers and economic units,
including enterprises, entrepreneurs, and households in the informal economy,
particularly:

(a) Those who own and operate economic units including:

(1) Self-employed workers such as micro entrepreneurs, vendors, street
vendors, sari-sari store workers, non-corporate operators of small marine boat
or vessel for transport, tricycle, pedicab, habal-habal, calesa, kuliglig, balsa or
“trolley,” food and grocery delivery services, and home-based workers who
are independent producers of goods or services;

(2) Self-employed own-account workers such as live-out cleaners, laundry
attendant, plantsadora, barbers, manicurists, pedicurists, drivers of tricycle,
pedicab, habal-habal, kalesa, kuliglig, “trolley” or small marine vessel or boat,
“parkers,” fare collectors, dispatchers and other workers who share in the
income of the non-corporate operators, welders, mechanics, carpenters,
plumbers, electrician, mason, house painters, appliance technicians, and
scavengers;

(3) Employers;
(4) Members of cooperatives; and
(6) Members of other social and solidarity economy units

(b) Home-based workers or contributing family workers, irrespective of
whether they work in economic units in the formal or informal economy;

(c) Employees holding informal jobs in or for formal enterprises, or economic
units in the informal economy, including those in contract arrangement or in supply
chains, or as non-regular paid domestic workers employed by households, not
covered by RA 10361 or the “Batas Kasambahay”

(d) Workers in unrecognized or unregulated employment relationships
performing lawful work;

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

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

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Chapter II
RIGHTS AND BENEFITS

SEC. 5. Workers in the Informal Economy. — Workers in the informal
economy (WIE) shall have the same basic rights accorded to all other workers, as
enshrined in the Constitution, Presidential Decree No. 442, as amended, otherwise
known as the “Labor Code of the Philippines’, and relevant international human
rights instruments and international labor standards. Accordingly, the State shall
guarantee all WIE the following rights:

(a) — Security in the workplace;

(b) Freely chosen or accepted work, and availment of technical and
vocational guidance and training programs;

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

(d) A living wage and equal remuneration for work of equal value
without distinction of any kind, in particular for women who shall be
guaranteed equal wages for work similar or equivalent to those done by men;

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

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

(9) Basic services such as affordable medical care, reproductive
and other health services including modern family planning, low-cost housing,
water, sanitation, electricity, and transport;

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

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

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

(k) _ 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;

() An adequate standard of living for workers and their families,
adequate food, clothing, and shelter, and the continuous improvement of such
standard;


(m) Freedom from any form of discrimination, violence, exploitation
including sexual exploitation, harassment, abuse, and any form of inhumane
treatment which debases, degrades, or demeans the intrinsic worth and
dignity of the worker as a human being;

(n) Accessible, affordable, and appropriate social protection as
defined in Section 3(k) of this Act;

(0) Equal treatment before the law;

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

(q) Access to public procurement, including advice and reserving
quotas for informal economic units.

SEC. 6. Own-Account Workers and 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) Infrastructure support such as farm to market roads, common,
affordable, and secure workplaces and facilities, merchandising centers,
farmers’ markets or bagsakan with proper storage facilities, and inventory
bulk-buying centers;

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

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

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

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

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

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


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

(i) Fiscal relief, including among others exemption from taxes, fees
and other assessments, to be put into place by concerned National
Government agencies and local government units; and

@) Affordable and customized social security and insurance
programs.

SEC. 7. Legitimate Organizations of Workers in the Informal Economy. —
Organizations of workers in informal employment, including unions, cooperatives,
social and solidarity economic units or organizations, and mutual benefit
associations, shall have the right to the following:

(a) Freely function and act as the representatives of their members
in policy and decision-making processes, collective negotiations, and other
similar bodies and processes in the context of tripartism and multi-sector;

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

(c) Access information from concerned government institutions and
other parties that are pertinent to the protection and promotion of the rights
and welfare of their members;

(d) Own property, real or personal, for the use and benefit of their
organizations and members;

(e) | Sue and be sued under their registered names; and

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

SEC. 8 Informal Economy Workers’ Organization. — WIE shall be
encouraged to organize themselves into self-help organizations, cooperatives,
associations, federations, and confederations for their mutual benefit and protection
and other legitimate purposes. Special attention shall be given to organizing women
and other vulnerable WIE.

Chapter Ill
SECURITY IN THE WORKPLACE

SEC. 9. Designation of Workplaces. — Local government units (LGUs) shall,
in coordination with organizations of WIE within their jurisdiction, affected
communities, and other relevant groups, endeavor to identify, designate, and design
a system of assignment on the following:


Productivity and merchandizing centers as viable workplaces for informal
workers which may include markets and vacant areas near markets, vacant public
spaces and spaces which may be a private property that the LGU may acquire,
lease or negotiate with legitimate organizations of WIE for lease under a
memorandum of agreement; and

routes, terminals, and specific lanes for small transport workers. The process of
identifying and designating such workplaces shall be determined in the implementing
ules and regulations (IRR) of this Act, and the process shall have the substantial
participation of relevant WIE organizations and stakeholders. Within ninety (90) days
from the effectivity of this Act, the LGUs shall pass an ordinance designating such
workplaces, routes, terminals and specific lanes.

SEC. 10. Eviction and Demolition. — Workers in the informal economy or
employment shall not be evicted from their homes and workplaces without legal
ground as provided by RA 7279, otherwise known as the “Urban Development and
Housing Act of 1992,” and provision of livelihood opportunities, adequate availability
of water and electricity, as well as decent conditions of living in accordance with the
law. The logistical viability for the displaced workers shall be given priority in
determining resettlement areas. There shall be no demolition without ensuring
appropriate resettlement.

SEC. 11. Confiscation of Materials and Impounding of Vehicles. — In
cases where demolition or eviction is warranted, any person, government agency, or
their agents who conduct the same shalll issue a duly signed itemized receipt of all
products, goods, and other materials seized from vendors and other 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 violation of
traffic regulations, the issuance of a traffic violation ticket shall suffice.

SEC. 12, 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 the notice, the LGU shall conduct consultations with
affected vendors on selecting the relocation site and implementing the relocation.

Vendors, ambulant or otherwise, occupying public places not previously
designated as vending sites shall be provided with viable temporary sites by the
LGU. Notice of temporary transfer shall be given to the vendors at least fifteen (15)
days before the actual transfer. This shall likewise apply to vendors granted with
permits but whose workplaces are withdrawn from the list of allowable vending sites.
Any change in the list of allowable vending sites shall only be done after
consultations with affected vendors.

If a new public market is constructed in place of an old one, market vendors
with stalls displaced from their workplaces shall be assured of a stall assignment in

9


the new market. Displaced ambulant vendors shall, as much as practicable, also be
given appropriate selling sites.

SEC. 13. Relocation of Terminals. — Designated terminals for tricycles,
pedicabs and other similar modes of transportation shall not be arbitrarily relocated
without prior notice and consultation with small transport groups, legitimate
organizations of workers in the informal economy, affected community and other
relevant sectors. Relocation of terminals can only be effected through an ordinance:
Provided, That after enacting such ordinance, a notice of intention to relocate
terminals shall be made to affected transport groups and community at least sixty
(60) days before the actual relocation.

SEC. 14. Right to Self-organization and Collective Bargaining. — Informal
workers that are registered and are part of the formal economy shall have the right to
form, join or assist in the formation of a labor organization of their own choosing for
purposes of collective bargaining, for mutual aid benefit, and to engage in concerted
activities which are not contrary to law.

Chapter IV
SOCIAL PROTECTION

SEC. 15. Institutionalization of Social Protection Floor. — The State shall
support, sustain, enhance, and institutionalize social protection initiatives for WIE
through the convergence of resources of various agencies to provide continuous
social security and health insurance subsidies to WIE. Such resources shall also be
used for programs for the unemployed, children, women in difficult and vulnerable
circumstances, and older persons based on applicable and ever-improving
standards.

SEC. 16. Social Welfare Efforts. - The Department of Social Welfare and
Development (DSWD) shall consolidate its strategic social welfare efforts to address
the needs of the WIE, including direct assistance, policy development and
community engagement for the workers.

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

SEC. 18. Social Safety Nets. — The State shall ensure that the social safety
nets provided by the DOLE, DSWD, Department of Agriculture (DA) and other
government agencies shall be easily accessible to the WIE and their organizations.
These include conditional cash transfers, unconditional cash transfers, school

10


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

SEC. 19. Women, Family and Child Care Program. - The DOLE,
Department of Health (DOH), Philippine Health Insurance Corporation (PhilHealth),
and DSWD shall ensure that maternity protection is extended to WIE in accordance
with Sections 9 and 10 of RA 11210, otherwise known as the “105-Day Expanded
Maternity Leave Law.” Programs on maternal and child health and nutrition, child
feeding, modern family planning, and other health-related services shall be
strengthened for women WIE.

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

SEC. 20. Social Welfare Benefits. - The government shall ensure that social
welfare programs such as Social Security System (SSS), Home Development Mutual
Fund (Pag-Ibig Fund), PhilHealth, and Government Service Insurance System
(GSIS) shall be fully available, accessible and affordable to WIE, and that the
government agencies governing them shall formulate policies and mechanisms for
their full utilization and benefit, in consultation with the representatives of WIE.

SEC. 21. Disaster Risk Reduction and Management and Climate Change.
— The State, particularly at the community level, shall engage WIE and their
organizations in disaster risk reduction and management efforts from preparedness,
response, rehabilitation and recovery. Responding to climate change in terms of
minimizing contributions to greenhouse gas emissions and adapting to its long-term
impact through resiliency-building programs shall also involve WIE and their
organizations.

Chapter V
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS

SEC. 22. Applicability of the Labor Code. — The provisions of Presidential
Decree No. 442, as amended, otherwise known as the “Labor Code of the
Philippines” governing the employer-employee relationship, particularly on general
labor standards and occupational safety and health standards, shall apply to all
forms of work arrangements in the informal economy.

The State shall adopt a developmental perspective in dealing with informal
economic units. The DOLE shall, in coordination with the Informal Economy
Development Council (IEDC), assess the capacity of these enterprises to comply
with general labor standards. Informal economic units incapable of meeting the
standards shall be assisted in upgrading their capacity to improve their businesses,
as well as the ability to comply with relevant labor and social standards.

SEC. 23. Prioritization for Education and Training. - The State shall
implement adequate training and information campaigns to provide WIE and their
employers the full knowledge of applicable labor and occupational safety and health
standards for their subsequent compliance.

lu


SEC. 24, Visitorial and Enforcement Power of the Secretary of Labor and
Employment. - Employment contracts or engagements in the informal economy
shall be subject to the visitorial and enforcement power of the Secretary of Labor and
Employment pursuant to Article 128 of the “Labor Code of the Philippines.”

TITLE Il
INFORMAL ECONOMY DEVELOPMENT COUNCIL
COMPOSITION AND ORGANIZATION
Chapter |
INFORMAL ECONOMY DEVELOPMENT COUNCIL

SEC. 25. Informal Economy Development Council. — There is hereby
created an Informal Economy Development Council (IEDC) which shall be an
attached agency of the National Economic and Development Authority (NEDA). The
IEDC shall institute appropriate reforms within its structure, programming and other
processes, adjusting its human resource capabilities to ensure that WIE-focused
programs are efficiently and adequately implemented to address the needs of these
workers. An inter-agency committee shall be formed to coordinate policies and
programs of various government agencies towards the transition of informal
economic units to a formal economy.

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

SEC. 26. Powers and Functions. — The IEDC shall exercise the following
powers and functions:

(a) Develop and ensure implementation of annual, long-term and medium-
term plans for the informal economy which should form part of the Medium-Term
Philippine Development Plans (MTPDP) towards institutionalizing comprehensive,
needs and rights-based, gender-responsive and child-friendly programs and policies
for the WIE;

(b) Develop policies to transition WIE and informal economic units to the
formal economy and according to standards provided for in this Act and related laws,
treaties or statutes;

(c) Develop and implement training programs, and certify workers for jobs in
industries that produce goods and render services for the benefit of the WIE:

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

(e) Ensure that concerned government agencies shall allocate in their

respective Special Allocation for Development Initiatives adequate resources for
programs that benefit WIE;

12


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

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

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

(i) Coordinate with LGUs for the development and implementation of periodic
evaluation of all accredited WIE members, enterprises, and organizations for use as
bases for accreditation, grant of awards and incentives, and training and retraining;

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

(k) Establish and develop a centralized and sex-disaggregated database
system to effectively guide policy formulation and implementation relative to the WIE
which must be available for public use while strictly complying with laws on privacy
and confidentiality including other pertinent information specified in the IRR of this
Act;

(!) Develop and implement a communication plan and campaign targeting
WIE, their enterprises, and organizations towards a better understanding and
appreciation of the benefits of this Act;

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

(n) Assess all means to ensure the transition of informal economic units and
the WIE from their position in the informal economy to the formal economy;

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

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

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

(1) Develop and ensure implementation of accessible just conflict resolution

and adjudication systems and mechanisms to promote dialogue, conciliation,
mediation, and redress of grievances to protect the rights of WIE; and

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(s) Call on the participation of relevant government agencies in its
deliberations as necessary from time to time.

SEC. 27. Composition. — The IEDC is co-chaired by the Director General of
NEDA and the Secretary of Labor and Employment. IEDC members may elect from
among themselves a vice-chairperson to preside over meetings in the absence of
the chairperson. The members are the relevant government instrumentalities to be
determined by the IRR of this Act: Provided, That at least thirty percent (30%) of the
total membership of IEDC shall come from organizations of WIE accredited with the
SEC, DOLE or DA: Provided, further, That at least thirty percent (30%) are women.

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

SEC. 28. IEDC Secretariat. — The IEDC secretariat shall be jointly organized
by the NEDA and the DOLE whose functions shall be determined by the IRR of this
Act and integrated with the DOLE secretariat functions.

SEC. 29. Regional and Provincial IEDC Officers. — There shall be regional
and provincial IEDC officers who shall be appointed by the IEDC and shall have
functions that include: (a) monitoring and coordinating of IEDC initiatives in the
regions and provinces, evaluation of policies programs for WIE; (b) providing
technical assistance in the development of local plans and programs; and (c)
providing other administrative functions necessary for the success of IEDC initiatives
in their jurisdiction.

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

Chapter II
WORKERS IN THE INFORMAL EMPLOYMENT LOCAL DEVELOPMENT OFFICE

SEC. 30. Workers in the Informal Economy Local Development Office. —
The Workers in Informal Economy Local Development Office (WIELDO) shall, in
consultation with the WIE and their organizations, be established in every city and
municipality to perform the following functions:

(a) Prepare an overall development plan and work program that
address the needs of the WIE incorporating the barangay development plans;

(b) Encourage the organization of informal economic units and WIE;

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

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(4) Establish an informal economy one-stop shop center which
handles all transactions and processing of business permit applications within
their respective jurisdiction and worker's registration;

(e) Support micro small and medium enterprises (MSMEs) informal
enterprise development towards transitioning to formality; and

(f) Perform other similar functions and undertakings pursuant to the
provisions of this Act.

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

SEC. 31. Composition. — The local chief executives (LCEs) are the primary
overseers of WIELDO operations. The IRR of this Act shall provide for WIELDO's
composition. The informal workers’ representatives shall form at least fifty percent
(60%) of WIELDO's membership: Provided, That WIE representatives are not less
than five (5) and at least thirty percent (30%) of WIELDO's members are women,
Other relevant guidelines on WIELDO’s operations shall be included in the IRR of
this Act.

SEC. 32. Local Government Unit. - Informal Economy Development Fund. —
A local government unit - informal economy development fund (LGU-IEDF) shall be
established in every municipality and city. Such fund shall be supervised and
managed by the concerned LGU through the WIELDO and subject to audit by the
Commission on Audit (COA).

For the initial operations of WIELDO, each LGU shall allocate a portion from
its internal revenue allotment or IRA.

Thereafter, the LGU-IEDF shall be funded with the following:

(a) _ Registration fees and annual dues paid by individual workers in
the informal economy, and accreditation fees of their livelihood activities,
organizations, and enterprises; and

(b) 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 the LGUs have sufficiently complied with all requirements by
the IEDC

SEC. 33. Registration of WIE and Accreditation of Economic Units and
Organizations. — Pursuant to its functions under the Local Government Code, the
Local Development Council (LDC), in coordination with the WIELDO, shall establish
a standard system of registration of WIE, and accreditation of informal livelihood
activities, organizations, and economic units: Provided, That the system shall be
simple, efficient, affordable, uniform, and accessible to all.

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Such registration or accreditation shall signify eligibility of the WIE, their
livelihood activities, organizations, or enterprises to avail of development programs:
Provided, That the poorest and most vulnerable shall be given priority. The
registration or accreditation may be renewed subject to requirements set forth by the
LDC in coordination with the WIELDO.

SEC. 34. Annual Dues. — WIE and their organizations shall pay annual dues
to be determined by the concerned LGU, in consultation with their WIELDO. Said
annual dues shall not exceed more than 30% of the legally prescribed daily minimum
wage in their respective regions or provinces.

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

SEC. 35. Registration and Non-Registration. — In no case shall registration
be construed as a basis for rights and entitlements under this Act. Non-registration
shall not deprive WIE of their rights stated in this Act. Registration as a WIE in the
LGU is voluntary and shall not be considered a prerequisite to work in any private
enterprise or government unit. However, registration shall guarantee prioritization
and immediate recognition of the rights and benefits due to the workers in the
informal economy.

TITLE tt
FINAL PROVISIONS

SEC. 36. Prohibited Acts. — The following are prohibited acts:

(a) Non-compliance with minimum labor standards and
occupational health and safety standards. - The employment contract must
be in writing, with specified terms and conditions of engagement, and which
must not be lower than the minimum standards provided by law. However, the
absence of a written agreement does not mean the absence of an
employment relationship. The contract shall be explained to the worker and to
be attested by an elected barangay official in the barangay where the worker
is designated to work.

(b) Charging of recruitment or finders’ fees. - Regardless of
whether the worker was sourced either through an employment agency or a
third party, WIE shall neither be charged nor levied a recruitment fee or
finders’ fee.

(c) Hazardous working conditions. — Workers shall not be engaged
to do hazardous work, activity or undertaking, or be exposed to hazardous
working conditions in accordance with existing laws.

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

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(1) Preventing any worker from upholding or exercising one’s rights;

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

(3) Preventing any worker from carrying out one’s duties or functions in an
organization, or penalizing the same for any lawful action performed in that
capacity;

(4) Harassing, threatening, coercing, or intimidating any worker that result
in preventing the worker from performing one’s duties and functions;

(5) Transferring, penalizing, or terminating the services of a worker without
valid or legal ground; and

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

(e) Non-compliance with RA 7610, as amended, otherwise known
as the “Special Protection of Children Against Child Abuse, Exploitation and
Discrimination Act,” in the employment of minors. — In cases where minors are
contracted or hired to render work or services, the age must be at least fifteen
(15) years old, and there [is] must be a parental or legal guardian’s consent in
the employment contract, which is presented and attested to by any
representative of the LGU or duly elected barangay official where the work is
to be done, and that the employers of these children must provide them with
access to at least elementary or secondary education, either through
traditional schooling or alternative learning systems.

SEC. 37. Penaltie: (a) Any person who fails to comply with the minimum
labor standards and occupational health and safety standards; charge or levy
recruitment or finders’ fees regardless of whether the worker was sourced either
through an employment agency or a third party: or caused the worker to do
hazardous work, activity, or undertaking or be exposed to hazardous working
conditions, in violation of Section 37 (a), (b) and (c) of this Act, shall, upon
conviction, be punished by a fine of not less than Two hundred thousand pesos
(P200,000.00), but not more than Three hundred thousand pesos (P300,000.00), or
imprisonment of one (1) month and one (1) day to six (6) months, or both at the
discretion of the court.

(b) Any person who willfully interferes with, restrain or coerce a worker in the
exercise of the worker's rights under Section 37 (d) of this Act, shall, upon
conviction, be punished by a fine of not less than Three hundred thousand pesos
(P300,000.00), but not more than Five hundred thousand pesos (P500,000.00), or
imprisonment of six (6) months and one (1) day to six (6) years, or both at the
discretion of the court.

(c) Any person who fails to comply with RA 7610 in the employment of minors
under Section 37 (e) of this Act shall, in addition to the penalty of imprisonment
imposed by RA 7610, be punished by a fine of not less than Three hundred

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thousand pesos (P300,000.00), but not more than Five hundred thousand pesos
(P500,000.00).

(d) Any person who violates the provision on policy on confiscation of
materials, and impounding of vehicles under Section 11 of this Act, shall be punished
with a fine of not less than One hundred thousand pesos (P100,000.00), but not
more than Two hundred thousand pesos (P200,000.00). Nothing herein shall prohibit
the aggrieved WIE from initiating a criminal or civil action against the responsible
person or officer.

(e) Any official or employee who fails to implement the provision on the
relocation of vending sites and policy on relocation of terminals under Sections 12
and 13 of this Act shall be administratively liable pursuant to RA 7160 and other
applicable laws without prejudice to any civil or criminal case that may be filed
against the erring official or employee. If the act is committed by a private person or
private juridical entity, its business license shall be suspended or revoked at the
discretion of the court.

If the offender is a public official or employee, the court may impose the
penalty of disqualification to hold public office, in addition to the penalties provided in
the preceding paragraph.

If the offender is a juridical entity, the person criminally liable shall be its board
of directors, officers or employees who participated in the illegal acts.

SEC. 38. Transitory Clause. — Within five (5) years from the effectivity of this
Act, all workers in the informal economy are entitled to the same labor standards as
workers in the formal economy, in accordance with Section 22 of this Act.

SEC. 39. Appropriations. — The amount of One hundred million pesos
(P100,000,000.00) from the presidential discretionary fund is hereby appropriated for
the initial implementation of this Act. Thereafter, such sums as may be necessary for
its continued implementation shall be included in the annual General Appropriations
Act.

SEC. 40. Implementing Rules and Regulations. — Within ninety (90) days
from the effectivity of this Act, the Secretary of Labor and Employment shall, in
consultation with the Director-General of NEDA, concerned government agencies,
and WIE organizations, promulgate the necessary rules and regulations for the
effective implementation of this Act.

SEC. 41. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid, the provisions not affected shall continue to be in full force
and effect.

SEC. 42. Repealing Clause. — All laws, decrees, orders, rules and

regulations or other issuances inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly

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SEC. 43. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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