Republic of he Bhlipines
House of Representatives
Quezon City, Metco Mails

Twentieth Congress
First Regular Session

HOUSE BILL NO. 3138

Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda
Marie K. Romualdez, Andrew Julian K. Romualdez and Jude A. Acidre

AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS, ENTERPRISES,
AND ORGANIZATIONS IN THE INFORMAL ECONOMY AND
INSTITUTIONALIZING MECHANISMS FOR RECOGNITION,
INTEGRATION, AND TRANSITION TO THE FORMAL ECONOMY, FOR
IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES

EXPLANATORY NOTE

In the Philippines, workers in the informal economy comprise a significant
yet often overlooked portion of the workforce due to lack of formal contracts, social
security and ample protection under labor laws. Despite operating outside the formal
employment framework, they are considered as significant contributors to the
national revenue system, particularly through indirect taxes such as the Value-Added
Tax (VAT) on goods and services. If adequately supported and formally recognized,
they have the potential to boost the country’s productivity and economic growth’.

+ Royeca, G.(2023, December 12). Informal workers: A path to inclusive growth and prosperity. Philippine Star.
Retrieved July 19, 2025, from https:/www-philstar.convopinion/2023/12/12/231824 l/informal -workers-path-
inclusive-growth-and-prosperity


Thus, this bill seeks to establish the Magna Carta of Workers in the Informal
Economy, which shall establish and fully implement an integrated and coherent
policy at all levels of government for the formalization of informal economic units
and informal economy workers, and ensure their visibility in all relevant national
and local statistics. In furtherance of the provision in the 1987 Philippine
Constitution which provides 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 to establish rights and liberties that will promote a healthier and safer
work environment for all workers involved. There will be a notable improvement in
productivity and morale for those within affected offices, as workers are provided
with securities and programs that will secure their welfare within their established
work environments.

Workers in the informal economy shall be afforded the same basic rights
accorded to all workers, as stated in the Philippine Constitution, the Labor Code as
amended, and relevant international human rights instruments and international
labor standards.

In view of the foregoing, the passage of this bill is earnestly sought.

FERDINAND MARTIN. ROJIUALDEZ \_Y! JA MARIE K. ROMUALDEZ

ANDREW JULIAN K. ROMUALDEZ JUDE Af ACIDRE


wy’
Republic of the Bhiippines

House of Representatives
Quezon City, Metes Mavila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 3138

Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda
Marie K. Romualdez, Andrew Julian K, Romualdez and Jude A. Acidre

AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS, ENTERPRISES,
AND ORGANIZATIONS IN THE INFORMAL ECONOMY AND
INSTITUTIONALIZING MECHANISMS FOR RECOGNITION,
INTEGRATION, AND TRANSITION TO THE FORMAL ECONOMY, FOR
IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of the Representatives of the

Philippines in Congress assembled:

TITLE I
GENERAL PROVISIONS

Chapter I
GENERAL PRINCIPLES


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

Section 2. Declaration of Policy. — It is hereby declared the policy of the State

(a) Promote a just and dynamic social order that shall ensure the prosperity
and independence of the nation and free the people from poverty through
policies that provide adequate social services; promote decent,
environmentally sound, and full employment; a rising standard of living;
and an improved quality of life for all;

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

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

and local statistics.

Section 3. Coverage, — This Act shall apply to all workers and economic units
- including enterprises, entrepreneurs, and households - in the informal economy, in

particular:


(a) Those who own and operate economic units including:
= self-employed workers;
- self-employed own-account workers;
- employers;
= members of cooperatives; and
= members of other social and solidarity economy units.
(b)Home-based workers or contributing family workers, irrespective of
whether they work in economic units in the formal or informal economy;
(©) Employees holding informal jobs in or for formal enterprises, or for
economic units in the informal economy, including but not limited to those
in contract arrangement and/or in supply chains, or as non-regular paid
domestic workers employed by households;
(d)Workers in unrecognized or unregulated employment relationships
provided that the work performed is not illegal;
(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.

Section 4. Definition of Terms. — As used in this Act, the following terms

shall mean:

(a)“Informal Economy” - Refers to all economic activities by workers and
economic units that are, in law or in practice, not covered or insufficiently

covered by formal arrangements.
(b)“Economic Units” in the informal economy include but are not limited to:

- units that employ hired labor;


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

- cooperatives and other social and solidarity economy units; and

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

(©) “Informal Economy Workers' Organization” - Refers to a group or groups
of informal workers, whether formally constituted or otherwise, that are
organized with the primary objective of promoting the rights and welfare
of workers in informal economy.

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

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

(f) “Social Protection” - Refers to policies and programs that seck to reduce
poverty and vulnerability to risks and enhance the social status of the
marginalized by promoting and protecting livelihood and employment,


protecting against hazards and sudden loss of income, and improving

people's capacity to manage risk, as well as all other interventions that

support communities, households, and individuals, both women and men,
and realizing their rights as citizens through their full participation in
decision-making affecting or may affect their access to and control over

resources necessary to maintain and sustain a decent and secure life.

Social protection schemes shall include labor market interventions, social
insurance, social welfare, safety nets, disaster risk reduction and
management mechanisms, adaptive measures in the context of climate
change, affordable housing, and other provisions necessary for vulnerable
groups to adequately address and manage risks, vulnerabilities, and threats

to workers’ livelihood activities and overall quality of life.

(g)“Social and Solidarity Economy Units” - Refers to enterprises and
organizations including cooperatives as defined under Republic Act No.
9520, mutual benefit societies, associations, foundations, and social
enterprises which produce goods, services, and knowledge that meet the
needs of the community they serve, through the pursuit of specific social

and environmental objectives and the fostering of solidarity.

(h)“Volunteer, contractual, job orders, and other vulnerable workers in
government instrumentalities” - Refers to workers in government
instrumentalities who do not occupy plantilla positions, receive salaries
but not benefits, are contracted out for specific periods of time, and/or who

receive allowances or honoraria. These include but are not limited to:


project staff, barangay health workers, barangay tanod, barangay nutrition
scholars, barangay daycare workers, barangay volunteers and other
vulnerable workers in government instrumentalities for disasters,

enumerators, among others.

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

abuse and violence.

Chapter II
RIGHTS AND BENEFITS

Section 5. Workers in the informal economy shall have the same basic rights
accorded to all workers, as enshrined in the Philippine Constitution, the Labor Code
as amended, and relevant international human rights instruments and international
labor standards. Accordingly, the state shall guarantee all workers in the informal

economy the following rights:
(a) Security of and in the workplace;

(b)Make a living through work freely chosen or accepted; and avail of

technical and vocational guidance and training programs;


(c) Just and favorable conditions of work, including provision for work-life
balance such as childcare 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;

(c) Equal opportunity for promotion, subject to no other considerations than

seniority and competence;

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

(g)Basic services including but not limited to affordable medical care,
reproductive, and other health services including modem family planning,

low-cost housing, water, sanitation, electricity, and transport,

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

applicable;

(i) Maternity and paternity 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 4, (f) of this Act;

(0) Equal treatment before the law;

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

of their rights and welfare;


(q)Equal access to justice though appropriate mechanisms, including, but not

limited to, alternative dispute resolution processes; and

(r) Access to public procurement including advice and reserving quotas for

informal economic units.

Section 6. Own-account workers as well as informal economic units, being
the working poor's primary instruments to address and overcome poverty, shall be

accorded the following preferential rights by the State:

(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 the 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;


(c) Access to appropriate and adequate machinery, equipment, and other
technologies, with the end in view of increasing productivity, enhancing

quality of products and services, and growth;

(f) Protection from unjust dislocation from places where economic activities

are conducted with the “provision of relocation before demolition”;

(g) Measures against racketeering, extortion, and harassment, by both State

and non-State elements;

(h) Freedom from deprivation of property without valid cause and due

process of law; and
(i) Affordable and customized social security and insurance programs.

Section 7. Legitimate Organizations of Workers in the Informal Economy

(WIE), Organizations of workers in informal employment, including unions,

cooperatives, social and solidarity economic units/organizations and mutual benefit

associations, shall have the right to:

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

bodies and processes in the context of tripartism and multi-sector;


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

government;

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

welfare of their members;

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

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

(6) Undertake all other activities, not contrary to law, designed to benefit their

organizations and members.

Section 8. Organizing Workers in Informal Economy. — Workers in informal
economy (WIE) shall be encouraged to organize themselves into self-help
organizations, associations, federations, and confederations for their mutual benefit
and protection, and for other legitimate purposes. Special attention shall be given to

organizing women and other vulnerable workers in informal economy.

Section 9. Assistance to Organizations in the Informal Economy. — All
concerned national government agencies, government financial institutions, and

local government units shall include in their annual plans and budgets, programs,


and projects that support and address the concerns of organizations of WIE and their

members.
Chapter IIT
SECURITY IN THE WORKPLACE OF WORKERS IN INFORMAL
ECONOMY

Section 10. Designation of Workplaces. — Local Government Units (LGUs),
in coordination with organizations of WIE within their jurisdiction, affected
communities, and other relevant groups, shall endeavor to identify, designate, and

design a system of assignment on the following:

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

agreement; and

(b) Routes, terminals, and specific lanes for small transport workers.

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

organizations and stakeholders.


Section 11. Policy on Eviction and Demolition. — Workers in the informal
economy or employment shall not be evicted from their homes and workplaces
without legal ground as provided for by Republic Act No. 7279, otherwise known
as the “Urban Development and Housing Act of 1992,” provision of livelihood
opportunities, adequate water, and electricity availability, as well as decent
conditions of living in accordance with law. Logistical viability for the displaced
shall be given priority in determining resettlement areas, provided that there shall be

no demolition without ensuring appropriate resettlement.

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

other affected WIE.

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.

Section 13. Policy on Relocation of Vending Sites. - Before any public
market is closed, sold, or demolished, all market vendors shall first be relocated by
the LGU to a temporary or new public market, Notice of the intention to close, sell,
or demolish any public market shall be made to all concerned vendors at least sixty
(60) days before the actual transfer or relocation to another market site. Within the

sixty (60)-day period after issuance of notice, the LGU shall conduct consultations


with affected vendors on the selection of the relocation site and implementation of

the relocation.

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

consultations with affected vendors.

Ifa new public market is constructed in place of an old one, market vendors
with stalls displaced from their workplaces shall be assured of stall assignment in
the new market. Displaced ambulant vendors, shall, as much as practicable also be

given appropriate selling sites.

Section 14. Policy on Relocation of Terminals. — Designated terminals for
tricycles, pedicabs, and other similar modes of transportation shall not be arbitrarily
relocated without prior notice and consultation with small transport groups,
legitimate organizations of workers in the informal economy, affected community
and other relevant sectors. Relocation of terminals can only be effected through an
Ordinance. Provided, that after the enactment of such ordinance, notice of intention
to relocate terminals shall be made to affected transport groups and community at

least sixty (60) days before the actual relocation.

Chapter IV


SOCIAL PROTECTION FOR WORKERS IN THE INFORMAL
ECONOMY

Social protection as defined in Section 4(f) of this Act shall have the following

components:

Section 15. Institutionalization of Social Protection Floor for the Workers
in the Informal Sector. — 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.

Section 16. Social Welfare Efforts. — The Department of Social Welfare and
Development (DSWD) shall consolidate its strategic social welfare efforts to address
the needs of the workers in the informal economy, including but not limited to direct

assistance, policy development, and community engagement for the workers.

Section 17. Role of the Department of Labor and Employment. -The DOLE
shall engage in labor market interventions that shall provide adequate protection for
the WIE. The DOLE shall likewise ensure timely and immediate action for labor
concerns, security of tenure job generation, and other pertinent concerns. It shall, in
collaboration with other livelihood and enterprise development implementing
agencies, Department of Local Government (DILG), and Department of Finance

(DOF), develop a typology of formalization of informal economic units in terms of,


among others, registration and standardized, affordable business permit cost,

increased compliance, and extension of labor and social security program.

Section 18. Social Safety Nets. — The State shall ensure that the social safety
nets provided by the DOLE, DSWD, Department of Agriculture (DA), and other
government agencies shall be easily accessible to the WIE and their organizations.
These shall include but not be limited to conditional cash transfers, unconditional
cash transfers, school feeding programs, unconditional in-kind transfers, public

works, cash-for-work, emergency employment schemes, and fee waivers.

Section 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
informal economy workers in accordance with Sections 9 and 10 of R.A. 11210,
otherwise known as the 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 and target 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 formal economy.

Section 20. Social Insurance. — As specified in the IRR of this Act, the
government shall ensure that all social insurance programs including but not limited
to Social Security, Pag-IBIG (Home Development Mutual Fund), and PhilHealth
shall be fully available, accessible, and affordable to WE, 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. In the interest
of equity, the State shall subsidize the corresponding employers’ contribution, had

they been in formal employment.

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

organizations.

Chapter V
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS FOR
WORKERS IN THE INFORMAL ECONOMY

Section 22. Applicability of the Provisions of the Labor Code. — The
provisions of the Labor Code 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 in coordination with the IEDC, shall assess the capacity
of these enterprises to comply with general labor standards. Those incapable of

meeting the standards shall be assisted to upgrade their capacity to improve their


businesses, as well as the capacity to comply with relevant labor and social

standards,

Section 23. Prioritization for Education and Training. — The State shall
implement adequate training and information campaigns to provide WIE and their
employers the full knowledge on applicable labor and occupational safety and health

standards for their subsequent compliance.

Section 24. Prohibited Acts Specific to Workers in the Informal Economy.
~ The following are deemed prohibited:

(1) Non-compliance with minimum labor standards and occupational health
and safety standards. The employment contract shall be in writing
specifying the terms and condition of engagement which must not be
lower than the minimum standards provided by law, However, the absence
of a written agreement does not mean the absence of an employment

relationship.

The contract shall be explained to the worker and attested to by an
elected Barangay official in the barangay where the worker is designated

to work.

(2) Recruitment or Finders’ Fees. Regardless of whether the worker was
sourced either through an employment agency or a third party, WIE shall

neither be charged nor levied a recruitment fee or finders’ fee.


(3) Hazardous Work and Conditions in Formal Workplaces. Workers shall not

be engaged to do hazardous work, activity or undertaking, or be exposed

to hazardous working conditions in accordance with existing laws and the

IRR of this Act.

(4) Interference and Coercion. Any person is prohibited from committing any

of the following acts of interference or coercion:

a.

b.

Preventing any worker from upholding or exercising his/her rights;
Preventing any worker from joining or assisting organization for

purposes not contrary to law;

. Preventing any worker from carrying out his/her duties or functions

in an organization, or to penalize the same for any lawful action

performed in that capacity;

. Harassing, threatening, coercing, or intimidating any worker that

result in preventing him or her from performing his or her duties and

functions;

. Transferring, penalizing, or terminating the services of a worker

without valid or legal ground; and

. Other acts that threaten to diminish the independence and freedom

of a workers’ organization to direct its own affairs.

(5) Non-compliance with Republic Act No. 7610, as amended by Republic Act

No. 9231 in the employment of minors. In cases where minors are

contracted or hired to render work or services, the age should be at least

fifteen (15) years old and there is parental or legal guardian consent in the

employment contract, which is presented and attested to by any


representative of the LGU or duly elected Barangay official where the
work is to be done, and that the employers of these children should provide
them with access to at least elementary or secondary education, either

through traditional schooling or alternative learning systems.

Section 25. Visitorial and Enforcement Power of the Secretary of Labor and
Employment, -Employment contracts and/or engagements in the Informal Economy
shall be subject to the visitorial and enforcement power of the Secretary of Labor
and Employment pursuant to relevant provisions under the Labor Code of the

Philippines.

TITLE It
Chapter I
INFORMAL ECONOMY DEVELOPMENT COUNCIL (IEDC)

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

economic units to formal.

20


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

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

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

(b) Develop policies to transition WIE and informal economic units to formal
economy and according to standards provided for in this Act and related

laws, treaties, or statutes;

(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;

21


(e) Ensure that concermed government agencies shall allocate in their
respective Special Allocation for Development Initiatives adequate

resources for programs that will benefit WIE;

(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 ofa fair and credible
system of evaluation, accreditation, review and assessment, merit
promotion, rendering of grant and incentive awards, and other policies

relative to the effective and efficient implementation of this Act;

(h) Ensure the effective implementation of labor standards covering WIE as

provided for by this Act and corresponding IRR;

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

incentives, training, and retraining;

G) 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

22


relative to the WIE. The databank shall be available for public use while
strictly complying with laws on privacy and confidentiality. The database
shall include pertinent information as specified in the IRR of this Act;

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

(m)Consistent with Section 2 (h) of this Act, to develop and ensure

implementation of a comprehensive plan to eliminate child labor;

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

(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;
() 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;

23


(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

(s) From time to time, call on the participation of relevant government

agencies in its deliberations as necessary.

Section 28. Composition. - The IEDC shall be co-chaired by the Director
General of DEPDev and the Secretary of Department of Labor and Employment.
IEDC members may elect from among themselves a Vice-Chair to preside over
meetings in the absence of the Chair. The members shall be the relevant government
instrumentalities as determined by the IRR of this Act, provided, that at least 30%
of the total membership of IEDC shall come from organizations of WIE accredited
with the SEC, DOLE or DA. Provided, further, that at least 40% of the 30% are

women.

Representatives from the social partners, private sector, NGOs, and WIE
organizations shall serve as EDC members for a term of three (3) years without re-

election and shall be subject to terms and conditions provided for by the IRR.

Section 29. Initial IEDC Funds. - One hundred million pesos
(Php100,000,000.00) shall be allocated from the Presidential discretionary fund for
the initial operating expenses of the IEDC, which shall include the initial allocation
of funds for the operations of the Workers in the Informal Economy Local

Development Unit (WIELDU) at the LGU level.

24


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

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

jurisdiction.

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

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

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

organizations:

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

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

()develop and maintain a comprehensive, age, and sex-disaggregated
database ofall 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, fiurther, that the database shall include
information on payments collected from WIE, organizations and economic

units;

(d)establish an IE One-Stop Shop Center which shall handle all transactions
and processing of business permit applications within their respective

jurisdiction and worker's registration; and

(e) support MSME informal enterprise development towards transitioning to

formality,

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

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Section 33. Composition. — The Local Chief Executives (LCEs) shall be the
primary overseers of WIELDU's operations. The IRR of this Act shall provide for
WIELDU's composition; Provided, that, informal workers’ representatives shall
form at least fifty percent (50%) of WIELDU's membership; Provided, further, that
IE representatives shall not be less than five (5), and; Provided, finally, that at least
forty percent (40%) of all WIELDU's members are women. Other relevant
guidelines on WIELDU's operations shall be included in the IRR of this Act.

Section 34. Local Government Unit Informal Economy Development Fund
(LGU-IEDE). ~ An Informal Economy Development Fund shall be established by
every municipality and city. Such fund will be supervised and managed by the
concerned LGU through the WIELDU and subject to audit by the Commission on
Audit (COA). For the initial operations of WIELDU, each LGU shall allocate a
portion from their Internal Revenue Allotment or IRA.

Thereafter, the LGU-IEDF shall be funded using:
(a) Registration fees and annual dues paid by individual workers in the
informal economy and accreditation fees of their livelihood activities,

organizations, and enterprises; and

(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

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IEDC; provided, that the LGUs have sufficiently complied with all requirements by
the IEDC.

Section 35, Registration of Informal Economy Workers and Accreditation
of Economic Units and Organizations. — Pursuant to its functions under the Local
Government Code, the Local Development Council in coordination with the
WIELDU, shall establish a standard system of registration of WIE, and accreditation
of informal livelihood activities, organizations, and economic units provided that the

system shall be simple, efficient, affordable, uniform, and accessible to all.

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

Section 36. Annual Dues. — WIE and their organizations shall pay annual
dues to be determined by the concerned LGU, in consultation with their WIELDU.
Said annual dues shall be no more than 30% of the legally prescribed daily minimum

wage in their respective regions or provinces.

These 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 WIELDU and the local informal economy

constituents.

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

informal economy.

TITLE I
FINAL PROVISIONS

Section 38. 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, upon conviction, shall be
punished by a fine of not less than Twenty Thousand Pesos (Php
20,000.00) 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 an official of a GOCC, the Court, in
addition to the penalties provided in the preceding paragraph, may impose

the additional penalty or disqualification from public office.

(©) Any person who violates the provision of this Act on Policy on

Confiscation of Materials and Impounding of Vehicles shall be liable.

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Nothing herein shall prohibit the aggrieved WIE from initiating a criminal

or civil action against the responsible person or officer.

(d)Failure to implement the provisions of this Act on Relocation of Vending
Sites and Policy on Relocation of Terminals shall render the responsible
official/s administratively liable pursuant to Republic Act No. 7160,
otherwise known as the Local Government Code, and other applicable
laws without prejudice to any civil or criminal case that may be filed
against erring officials. Ifa private institution or company is found to have
violated any provision of this Act, its business license shall be suspended

or revoked at the discretion of the Court.

Section 39. Implementing Rules and Regulations (IRR). — The
Implementing Rules and Regulations (IRR) of this Act shall be formulated by a
committee to be co-led by DOLE and DEPDev. The members of the committee shall
be the representatives of government offices mentioned in this Act, and WIE
organizations; Provided, that at least 30% of the committee members shall come
from the latter; Provided, further, that at least 30% of committee members are
women. Said committee will start work on the IRR within three (3) months after the

effectivity of this Act and finish within six (6) months thereafter.

Section 40. Appropriations. - The amount of one hundred million pesos
(Php100,000,000.00) shall be appropriated for the initial implementation of this Act.

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Section 41. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, the provisions not affected thereby shall remain in full

force and effect.
Section 42. Repealing Clause. — All laws, presidential decrees, executive
orders, presidential proclamations, rules and regulations or parts thereof contrary to
or inconsistent with this Act are hereby repealed or modified accordingly.
Section 43. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,

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