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SEVENTEENTH CONGRESS

First Regular Session RESISTRATION UNIT

7 Ban 98" BILLS AND «NOEX SERVICE
louse Bill No.

Introduced by Rep. LAWRENCE LEMUEL H. FORT!

EXPLANATORY NOTE

Article II, Section 9 of the 1987 Constitution declares that, “The State shall promote a just and
dynamic social order that will ensure the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote full employment, a rising standard of
living, and an improved quality of life for all.” Furthermore, Article Il, Section 18 states that, “The State
affirms labor as a primary social economic force. It shall protect the rights of workers and promote their
welfare.”

This Bill seeks the protection and empowerment of workers in the informal economy. In the 2008
Informal Sector Survey (2008 ISS) of the Philippines conducted by the National Statistics Office with the
assistance of the United Nations Economic and Social Commission for the Asia and the Pacific, there were
about 10.5 million informal sector operators. Informal sector operators were defined as are either self
employed without any paid employee or employer in own-family operated farm or business the self
employed numbered about 9,1 million while the employer numbered at 1.3 million. In the Employment
Situation (July 2015) report and released last March 2016 by the Philippine Statistics Authority, of the totally
employed, 26.1 % were self-employed without any paid employee, 3.4 % were employers in own family-
operated farm or business, while the unpaid family workers made up of 8.1%.

In the Philippines, workers in the informal economy are commonplace. These workers seek
employment on a short-term basis or temporary employment to alleviate their economic situation In many
instances, they likewise create a form of employment for themselves in order to survive. ‘These workers
typically do not have the social benefits or legal protections despite the fact they are very vulnerable to
health risks, injury and other occupational hazards.

It is of paramount importance that the rights of every worker in the informal economy to decent
working conditions, access to social benefits and other humane working environments be recognized,
promoted and protected.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session
987

House Bill No.

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF
AND FOR OTHER PURPOSES

Section 1. 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:

(a) To promote the total well-being of all workers in the informal economy, provided, that
focus will be on the poorest and most vulnerable of these workers;

(b) To ensure their human dignity, economic advancement and access to justice by providing
timely services, including social, political, economic and legal;

(c) To recognize, promote, protect, fulfill and ensure the civic and constitutional rights of
workers in the informal economy, including the rights to self-organization, just and
humane working conditions, access to social protection, security of workplaces; peaceful
concerted activities; represent their organizations, and participate in policy and decision-
making processes affecting their rights and benefits and towards the provision of a
comprehensive package or reforms, interventions, and services in accordance with their
articulated needs and interests;

(d) To recognize the roles, give proper value to the contributions of workers in the informal
economy and make them visible in the national and local statist

(e) To provide venues for dialogue and consultation with informal economy workers so that
their concerns and needs are effectively addressed by lasting and workable reforms in
enforcement of labor standards, advancement of labor relations;

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


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(g) To 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 girl 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;

(h) To 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 in decision-making bodies and processes;

(i) To develop the local economy through maximization of the potential and contribution of
informal economy business activities and enterprises;

(i) To 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;

(&) To 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;

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

(m)To protect vulnerable groups in the informal economy such as children, older persons,
differently-abled persons, indigenous peoples, 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; and

(n) to integrate ethnicity as a factor in the formulation of programs and mechanisms to
promote and protect rights of workers in the informal economy.

SEC. 3. Framework and Principles. - Article II Section 9 of Philippine Constitution
declares that “The State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a rising standard of living, and an
improved quality of life for all.” Therefore, it is the State’s responsibility to 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
inequalities by redistributing wealth and political power for the common good; and to develop an
enabling environment conductive to responsible citizenship. Towards this end the government shall
pursue and implement a comprehensive, rights-based, participatory, sustainable and gender
responsive framework for workers in the informal economy that includes but not limited to:

(a) Policies and programs that will bring marginalized workers and economic units into
the economic and social mainstream; and spur entrepreneurial or growth-oriented


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informal business to graduate to formal status based on their own pace and self-
determination thereby reducing their vulnerability and exclusion;

(b) Structural reforms in all relevant levels of government by creating committees, special
offices for development and protection of workers in the informal economy and
supporting their representational, entrepreneurial and other rights through their
organizations;

(c) Accessible and affordable social protection, including labor market interventions,
social insurance coverage, basic health care, occupational safety and health,
reproductive health services, social welfare programs and safety nets;

(d) Policies, programs and interventions that will ensure security of workplaces of
workers in the informal economy towards a work environment that protects their
rights and enables them to become more productive.

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

() Mechanisms for the growth and expansion of the various business activities or
enterprises in the informal economy preferably with the cooperation and support of
the private sector;

(g) Organization, establishment, strengthening and expansion of the various business
activities or enterprises in the informal economy at the barangay level, preferably to
be unified under municipality-, provincial-, regional- and national-level federations or
associations;

(h) Applicable labor standards;
(i) Recourse mechanisms to address violations of informal workers’ rights;

(j) Mechanisms and processes that prioritize the provision of services to the poorest and
the most vulnerable workers; and

(k) Exacting responsibility on the part of the workers in the informal economy to comply
with their obligations, provided that the State shall put in place responsive, transparent
and accountable mechanisms and systems that ensure recognition, protection,
promotion and realization of their rights.

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

(a) Informal Economy - Based on the International Labor Conference (ILC) 2002a, 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."

The Informal Economy includes a wide variety of activities, enterprises and workers.
Self- employment consists of employers of informal enterprises who hire other workers
and own-account workers. Wage-employment includes informal employees of both


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formal and informal firms, subcontracted workers, wage workers for households or
domestic workers, and wage workers with no fixed employer or casual day workers. The
working conditions, opportunities and risks faced by these different categories of informal
workers are very diverse

Informal workers often experience poor working conditions such as long working hours,

high level of health hazards, lack of social security, poor earnings, low productivity, and

lack of legal protection. To a large extent, women and disadvantaged groups such as
youth, persons living with HIV and AIDS, persons with disabilities, indigenous peoples
and migrant workers are overrepresented in the informal economy.

(b) Informal Sector as defined by the National Statistical Coordination Board (NSCB)
Resolution No. 15, series of 2002, refers to units engaged in the production of goods
and services with the primary objective of generating employment and incomes to the
persons concerned. It consists of households and unincorporated enterprises that are
market and nonmarket producers of goods, as well as market producers of services.

‘These enterprises are operated by own-account workers, which may employ unpaid
family workers as well as occasional, or seasonally-hired workers.

‘These enterprises may also be owned and operated by employers which may employ
less than ten (10) employees on a continuous basis.

(©) Workers in the Informal Economy - are hereinafter referred to as WIE include but
are not limited to the following:

1. small farmers owning land not more than three (3) hectares;
2. rural and agricultural workers who are tenants, sharecroppers, of laborers;

3. small fisherfolk/operators owning boats of three (3) gross tons or less and other
fishing equipment;

4, fisherfolk who are without fishing equipment and who market their catch;

5. on-call fish workers, porters and batillos

6. home-based workers who are independent producers of goods or services;

7. industrial homeworkers are workers involved in a system of production under
which work is carried out at their homes and where materials mayor may not be

furnished by the employer or contractor;

8. self-employed who are engaged by other enterprises through subcontracting
arrangements;

9, ambulant vendors or peddlers refer to vendors who ply their trades in search of
buyers;


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10. street vendors refer to vendors who sell their merchandise on streets and
sidewalks;

11. vendors with stalls in public and private markets and those engaged in sari-sari
stores with operating capitalization of not more than one million pesos
(P1,000,000.00) excluding land and building;

12, drivers and workers of modes of transportation on land and sea whether motorized
or not, including: two (2) wheels such as calesa; three (3) wheels such as pedicabs,
tricycles; four (4) wheels such as jeepneys and buses; and boats one (1) ton and below;
‘barkers'; fare collectors; dispatchers; and other workers who share income with self-
employed or unincorporated operators;

13. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation
whose capitalization is not more than one million pesos (P1,000,000.00) excluding
land and building;

14, all unregistered and unprotected domestic workers who are generally not covered
by social protection such as maids, cooks, family drivers, gardeners and baby sitters

15, non-corporate construction workers;
16, small scale miners doing their own product processing; including those involved in
small scale mining and quarrying with capitalization of below one million pesos
(P1,000,000.00);

17, workers of Barangay Micro Business Enterprises (BMBEs);

18, non-corporate cargo handlers and allied workers;

19, waste pickers and recyclers;

20. workers engaged in producing seasonal products;

21. own account workers including but not limited to those engaged in the
maintenance and repair of equipment and appliances, clothing and footwear, as well as

those providing services such as beauticians, barbers, masseuses;

22. "on-call" workers in the entertainment, movie, and media industries such as but
not limited to bit players, stImtmen and women, crew, make-up artists, ete.;

23. volunteer workers in government and non-government entities who only receive
allowances or honoraria, including but not limited to: barangay health workers
(BHW), barangay tanod, barangay nutrition scholars (BNS), barangay daycare
workers, and volunteers in non-government or people's organizations;

24, unpaid family members, or workers receiving allowances and seasonally hired
workers who are engaged in micro-enterprises or assist unincorporated household
enterprises; and


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25. other similar economic activities that are not illegal, criminal or life-threatening in
nature.

(4) Worker is a general term that refers to both self-employed and paid employee
covered under the provisions of this Act.

(c) Self-employed Worker - refers to any person who has no employer and who works
for himself/herself by producing goods or services for the market

(0) Worker of Minor Age - refers to a child fifteen (15) to seventeen (17) years of age
who is engaged in productive employment under a valid contract of employment.

(@) 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.

(h) Security in the Workplace - refers to the right of every worker to an enabling
environment that guarantees and protects the spaces for WIE 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 to work. Towards this end, the State shall take measures that will
ensure legal security of tenure of workplaces, taking into account and including the
physical environment, services, processes and systems needed to enable workers to
productively and safely perform their work:

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

(j) Working Hours - refers to the period of time within which a worker is required to be
on call to perform any and all tasks that may be designated, regardless of whether
there are actual tasks being undertaken.

(k) Daily Basis - refers to the per day mode of paying a worker as bilaterally agreed upon
by the employer and worker.

(1) Monthly Basis - refers to the per month mode of paying a worker as bilaterally
agreed upon by the employer and worker

(m)Pakyaw - Basis refers to the pre-contracted wholesale mode of paying a worker as
bilaterally agreed upon by the employer and worker.

(n) 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


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affecting or may affect their access to and control over resources necessary to
maintain and sustain a decent and secure life.

(0) Social protection schemes shall include labor market interventions, social insurance,
basic health care, social welfare and safety nets.

(p) Community Contracting - refers to the process of concluding an agreement between
a community and a contracting authority, where by the community (or a section
thereof) is responsible for the implementation of the work, and therefore, functions as
contractor.

(q) Non-government Organization (NGO) as defined in R.A. 8425, refers to a duly
registered nonstock, nonprofit organization focusing on the upliftment of the basic or
disadvantaged sectors of society by among others, providing advocacy, training,
community organizing, research, access to resources, and other similar activities,

(0) People's Organization (PO) consistent with R.A. 8425 refers to a self-help group
belonging to the basic sectors or disadvantaged groups composed of members having
a common bond of interest who voluntarily join together to achieve lawful’ common
goals.

(s) 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.

Chapter IT
Coverage, Qualifications, and Accreditation

SECTION 5. Coverage. - This shall include individual WIE, as defined in Section 4 of this
Act, IE businesses and enterprises, and organizations of workers in informal economy

SECTION 6. Accreditation. There shall be a simple and standard system of accreditation in
accordance with the framework and principles of this Act. A one time accreditation fee of not more
than Fifty pesos (P50.00) per individual worker and not less than One Hundred pesos (PI00.00) per
IE business activity, enterprise, or organizations shall be paid to the municipality or city where they
operate or intend to operate.

Any IE worker meeting the necessary accreditation requirements 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 by the WIE. These signify eligibility to avail
of development programs, provided, that the poorest and the most vulnerable workers shall be
given priority.

Qualified IE business activity or enterprise, or organization of WIE, shall be issued a
certificate of accreditation, which shall be released within thirt six (36) hours upon submission
of complete requirements and payment of accreditation fees.


The concerned LGU shall review, revalidate and reassess such accreditation every two
(2) years from the date of last accreditation. 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.

‘A comprehensive database of accredited IE business activities and enterprises shall be
developed and maintained. Such database shall take into account the different sub-classifications in
terms of geography, premises, sex, ethnicity, vulnerability, occupation, nature of employment, and
roles and functions, The database shall also indicate informal businesses 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, business activities or
enterprises and organizations.

The aforesaid comprehensive database shall form part of the bases of assessment and
monitoring of the growth of informal economy.

Alll local government units shall formulate a uniform and simple checklist of requirements for
registration and establish an IE One-Stop Shop Center which shall handle all transactions and
processing of business permit applications within their respective jurisdiction, The Center shall
ensure that processing of the business permit of the informal sector business activities or enterprises
shall be expedited within one day.

SECTION 7. 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 Two
Hundred percent (200%) 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, business
activities, enterprises and organizations, as recommended by the WIELDO. Such programs and
disbursement of funds shall be approved by the concerned LGU Council

Chapter III
Rights and Benefits

SECTION 8. Workers in informal economy 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 right to: security at the workplace; make a living by work freely
chosen or accepted; and avail of technical and vocational guidance and training programs;

(b) the enjoyment of just and favorable conditions of work;


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(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;

(¢) 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, sufficient food, clothing, and
shelter, and the continuous improvement of such standard;

(I) 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 lat

(0) 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.

SECTION 9. Own account workers as well as marginal economic enterprises in the informal

economy, being the working poor's primary instruments to address and overcome poverty, shall be
accorded by the State the following rights:


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

(b) policy support to promote and protect locally/domestically produced products;

(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;

(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 60 days
after the effectivity of this Act;

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

(j) freedom from deprivation of property without valid cause and due process of law.

SECTION 10. Organizations of workers in informal employment, including unions,

cooperatives, mutual benefit associations, etc. 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;

(b) establish national federations or confederations and the right of the latter to form or join
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;

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

(¢) sue and be sued under their registered names;

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

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


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Guidelines for the implementation of this Act shall be provided for in the Implementing
Rules and Regulations of this Act. Furthermore, 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,

SECTION 11. 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 government shall encourage and assist these workers in the formation of their
self-help organizations, associations, federations and confederations.

Government shall encourage the formation of cooperatives among marginalized farmers,
fisher folk, 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.

SECTION 12. 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.

SECTION 13. Monitoring of Growth. - The local government units (LGUs) which will
supervise the Workers in Informal Economy Local Development Office (WIELDO) as created by
Chapter IX of this Act, shall 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 6 shall be the basis of this monitoring

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

SECTION 14. Prohibition Against Recruitment or Finders! Fees. - Regardless of whether
the workers were sourced either through an employment agency or a third party, said workers shall
neither be charged nor levied a recruitment fee or finders’ fee by the aforementioned employment
agency or third party;

SECTION 15. Prohibition Against Hazardous Work and Conditions. - Workers shall not
be engaged to do any hazardous work, activity or undertaking, or be exposed to hazardous working
conditions.

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

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


527 (b) any work or activity which exposes the worker to physical, emotional or sexual abuse, or
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530 (c) any work which involves manual handling or transport of heavy loads;

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

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

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

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

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543 (h) any use, procuring or offering of the worker for the commission of any offense or crime,
544 particularly for the production, trafficking, or sale of narcotic drugs and substances as

545 defined in the Dangerous Drugs Act;

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547 (i) any other type of work or activity which, by its nature or the circumstances in which if

548 carried out, is likely to jeopardize the health, safety, or morals of the workers; and

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550 (j) any other type of work, activity, condition or undertaking that maybe hereinafter be
551 defined as hazardous by the Department of Labor and Employment.

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353 SECTION 16. Prohibition Against Interference and Coercion. - Any person is prohibited
554 from committing any of the following acts of interference and coercion’

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

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558 (b) preventing any worker from joining or assisting organizations for purposes not contrary to
559 law;

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561 (c) preventing any worker from carrying out his/her duties or functions in an organization, or
562 to penalize the same for any lawful action performed in that capacit

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564 (d) harassing, threatening, coercing or intimidating any worker that result in preventing him
565 or her from performing his or her duties and functions;

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567 (e) transferring, penalizing or terminating the services of a worker without valid or legal

568 ground; and

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570 (0 other acts calculated to diminish the independence and freedom of workers’ organization
571 to direct its own affairs.

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575 Chapter V

576 Social Protection


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Social protection as defined in Section 4 of this Act shall have the following components:

SECTION 17, 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.

(a) The State shall ensure that these schemes shall be labor-intensive, developmental,
sustainable, and engaging both women and men, youth and older people in building
infrastructure, socialized housing, social forestry focusing on the planting of traditional trees,
organic farming, and food production programs

(b) 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 com, root crops or
vegetables. Relevant LOU s must allocate their local funds for mangrove reforestation and
prohibit conversion of any mangrove forest to residential, commercial or industrial use.

(c) 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.

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

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

SECTION 18. Social Security. - In the spirit of promoting social justice, 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 burden.

(a) The Social Security System (SSS) shall cover all workers, particularly the working poor
who mostly belong 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

(b) The SSS shall also develop schemes involving government subsidies and sponsorship
programs to enable those who cannot afford to enrol 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


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facilitators of claims with the least burdensome conditions and with appropriate incentives. It
shall develop effective partnerships with these organizations.

(d) 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.

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

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

SECTION 19. Social Security for Volunteers of Government Instrumentalities. -
Volunteer workers of government instrumentalities as defined in Sec. 4 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.

SECTION 20. Health Care System and Financing. - The State shall establish a
comprehensive and integrated health care system that guarantees provision of service by duly
accredited and adequately furnished health facilities, and appropriately educated and rationally
compensated health personnel to underserved areas all the way down to the barangay level

Provided that, such healthcare system shall include reproductive health services, and provided
finally, that priority in the delivery of such services shall be the poor and marginalized.

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

SECTION 21. Universal Health Insurance. - All citizens of the Philippines shall be covered
by the National Health Insurance Program as provided for in RA 10606, The National Health
Insurance Act of 2013. To achieve this, PhilHealth with the participation of all stakeholders shall
critically review its current operations, It shall also ensure the provision of a minimum benefit
package which shall be periodically upgraded to meet the goal of universal coverage which is
affordable, accessible and appropriate to the needs of all

(a) Government subsidies for PhilHealth sponsorship programs shall be expanded to cover
not only the ultra poor but also the working poor who mostly belong to the informal economy.
For the working poor, what should have been contributed by employers if they were enrolled
as formally employed shall be covered by government subsidies in the interest of equity

PhilHealth programs for indigents and the working poor shall be expanded and improved in
order to develop effective partnerships with organized groups, especially those composed and


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

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

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

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

CHAPTER VI
Security in the Workplace of Workers in Informal Employment

Security in the workplace as defined in Sec. 4 of this Act shall involve the following:

SECTION 22. Designation of Workplaces. - The concerned Local Government Unit (LGU), in
coordination with their respective WIELDO, and after consultation with WIE, affected
communities, and other relevant groups, shall identify and designate viable workplaces for informal
workers; routes, terminals, and specific lanes for small transport workers; and design a system of
assigning these to accredited informal workers, These may include markets and vacant areas near
markets, vacant public spaces and other spaces which may be designated as allowable workplaces
for informal workers.

In the event the 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 merchandising centers and
workplaces for use of WIE in their respective localities.

The LGUs shall, within 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.


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SECTION 23. 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 RA 3844 or the Agricultural Land
Reform Code. Tenants shall not be evicted based on unilateral termination of the tenancy
relationship by landowners.

SECTION 24. Use of Municipal Waters, Beach Fronts, and Foreshores. - Municipal
waters shall be used exclusively for marginalized fisherfolk 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 fisherfolk. LGUs shall ensure that no beach within their jurisdiction is exclusive for
the use of resort guests or private persons.

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

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

SECTION 25. Policy on Eviction and Demolition. - WIE shall not be evicted from their
homes and workplaces without legal ground as provided for in Republic Act 7279 or the Urban
Development and Housing Act of 1992. In cases where eviction or demolition is warranted under
Section 28 of RA 7279, the same shall be conducted upon compliance of the following

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

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

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

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

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


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(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 providing, 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 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.

SECTION 26. 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.

SECTION 27. 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 shal] 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.


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SECTION 28. Policy on Relocation of Terminals. - Designated terminals for tricycles and
pedicabs shall not be arbitrarily relocated without prior notice and consultation with small transport
groups, affected community and other relevant sectors. Provided, that relocation of terminals can
only be effected through an Ordinance. Provided further, that after the enactment of such ordinance,
notice of intention to relocate terminals shall be made to all small transport groups and affected
community at least sixty (60) days before the actual relocation.

Chapter VII
Allocations of Development Initiatives

Speci

SECTION 29. 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
uly benefit WIE.

SECTION 30. Soureing 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. 7882, An Act Providing
Assistance to Women Engaging in Micro and Cottage Enterprises.

(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 informal economy business activities


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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.

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

SECTION 31. 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.

SECTION 32. 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)

SECTION 33. 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 will be efficiently
and adequately implemented to address the needs of these workers.

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

SECTION 34. Mandate and Functions of IEDC. -- The mandate and functions of IEDC
shall include the following:

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

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

(©) 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 Philippine Development Plan


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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;

() 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;

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

(g) Establish a performance appraisal system for all accredited workers, enterprise 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 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:

1.1, Sex-disaggregated statistical profile of WIE based on age, location, type of work, average
monthly incomes, work hours, and other relevant statistical information;

1.2. Sex-disaggregated data on informal enterprises, including capitalization and sources of
capital, number and status of workers, average incomes;

i.3. List and contact information of government and non-government organizations (NGOs)
that provide educational, socio-economic, legal, and other services to WIE;

i.4. Inventory of resolved and pending cases involving activities of WIE;

1.5. 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

1.6. 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.

() Develop and ensure implementation of a communication plan including massive
information dissemination activities targeting WIE, their enterprises and organizations, in the


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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;

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

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

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

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

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

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

SECTION 35. Composition. - The Chair of the IEDC shall be the Secretary of Department

of Labor and Employment. IEDC members may elect from among themselves a Vice-Chair to
preside over meetings in the absence of the Chair. The members shall be the following:

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

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

(©) Secretary of Department of Agriculture (DA);

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

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

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

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

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

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

() Chair of the Philippine Health Insurance Corporation (PhilHealth);

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

(dD Secretary of the Department of Public Works and Highways (DPWH)

(m) — One (1) representative from the private sector at large, a Filipino citizen proven to
have been active in assisting informal economy workers;

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

(0) The incumbent NAPC Informal Sector Sectoral Representative;

(p) At least 30% of total membership of IEDC shall come from organizations of workers
in the informal economy, as well as People's Organizations (POs), NGOs, and
women’s organizations actively working with and for the rights of WIE, provided


that regional and subsectoral representation shall be ensured. Provided further, that
at least 40% of the 30% are women. Guidelines for the selection of non-government
IEDC members, including processes and mechanics shall be determined by the IRR
of this Act.

Representatives from the 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 in 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,

SECTION 36. 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.

SECTION 37. 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.

SECTION 38. Executive Committee of the IEDC - An Executive Committee of nine
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.

SECTION 39, IEDC Secretariat. The following secretariat functions shall be integrated in
the DOLE secretariat functions:

(a) Prepare and recommend, II] 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


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

SECTION 40. 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)

SECTION 41. 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)

SECTION 42. Workers in Informal Employment Local Development Office (WIELDO)
-The Workers in Informal Employment Local Development Office (WIELDO) shall be established
in every city and municipality to perform functions that shall include but not limited to the
following:

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

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

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

() 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;


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

(® Train pools of community trainers in business counseling and awareness-raising on

occupational safety and health hazards, risks and social protection;
(i) 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;

(1) 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

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

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

SECTION 43. 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 decision-making body; Provided further, that IE representatives shall not be less than
five (5), and provided finally, that at least forty percent (40%) of the members of WIELDO's
decision-making body are women. Other relevant guidelines on WIELDO’s operations shall be
included in the IRR of this Act.

SECTION 44. Local Government Unit Informal Economy Development Fund
(LGUIEDF)

An Informal Economy Development Fund shalll 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 usi



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(a) Accreditation and registration fees and annual dues paid by individual workers in the
informal economy, their livelihood activities, and organizations and associations as provided
for by Sections 6 and 7 of this 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 29 (a) and (b) of this Act; and

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

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.

SECTION 45. Additional Sources of Funds - The following may be tapped by LGUs as
additional sources of funds for WIELDO initiatives;

(a) at least fifty percent (50%) of fees and annual dues collected from 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
bblishments 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 fifly percent (50%) of fees and annual dues collected from marginalized
fisherfolks - for programs focusing on fisherfolk;

(€) at least fifty percent (50%) of funds from the Philippine Amusement and Gaming
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO).

TITLE
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter I
Requisites for Employment Agreement

SECTION 46, 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,


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For workers engaged by independent informal economic enterprises, DOLE, in coordination
with TEDA shall audit the capacity of these enterprises to comply with these standards. Those
incapable of meeting the standards shall be assisted to upgrade their capacity to improve their
businesses, as well as the capacity comply with relevant labor and social standards.

SECTION 47. 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;

(@) computation of contributions for social security and medical insurance including or 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.


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SECTION 48, 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 I
Workers of Minor Age

SECTION 49. Allowable Employment of Workers of Minor Age. - Children fifteen (15)
years up to seventeen (17) 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 HI
FINAL PROVISIONS

SECTION 50. Penal Provisions-

(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 employee, the Court, in addition to the penalties
provided in the preceding paragraph, may impose the additional penalty of disqualification
from public office.

(©) Any person who violates Section 26 of this Act (Policy on Confiscation of Materials and
Impounding of Vehicles) shall be liable, Nothing herein shall prohibit the aggrieved WIE
from initiating a criminal or civil action against the responsible person or officer applicability.

(d) Failure to implement Sections 27 and 28 of this Act (Policy on Relocation of Vending
Sites and Policy on Relocation of Terminals) shall render the responsible official/s
administratively liable pursuant to Republic Act 7160 and other pertinent laws and criminally
liable whenever applicable.


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(c) 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.

SECTION 51. Implementing Rules and Regulations (IRR). - The Implementing Rules and
Regulations (IRR) of this Act shall be formulated by a drafting committee composed of
representatives of offices that will be members of IEDC 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 shall start work on the IRR within
three (3) months after the effectivity of this Act and finish within six (6) months thereafter.

SECTION 52. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, the provisions not affected shall continue to be in full force and effect.

SECTION 53. Repealing Clause. - All laws, decrees, orders, rules and regulations, or other
issuances inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SECTION 54. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation.

Approved,