Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

/ WED
( 6 2019

ONE
Taal: =
4, bt J

Sixteenth Congress
First Regular Session

HOUSE BILL NO, 2295.

Introduced by Honorable Danilo Ramon S, Fernandez

EXPLANATORY NOTE

This bill seeks to provide an integrated, holistic, comprehensive, rights-based, gender-responsive,
culturally sensitive, and democratically crafted policy instrument to empower the poor, marginalized,
unprotected and underrepresented workers in informal employment and bring them into the,
‘mainstream of the Philippine economy. It carries a strong bias to prioritize and empower the poorest
of the poor. It is the culmination of persistent advocacy efforts involving informal workers’
associations, women's groups, human rights and other civil society organizations stretching for
almost a decade. It may be recalled that the first bill for a Magna Carta for informal workers was
filed in the 12th Congress, followed by similar bills filed by different proponents in the 13", 14th and
15" Congress. It is hoped that this bill will finally be passed in the current Congress, since it has
undergone a rigorous process of consultations and dialogues among its major proponents and
interested stakeholders closing ranks and seeking common ground in the interest of the working
poor.

“The ranks of informal workers have been increasing through the years, with estimates varying from
about half the country's labor force to as many as 25 million or 77 percent of the country's total
employed (ECOP, 2008, based on Labor Force Survey and Survey of Philippine Business and
Industry). Most of the working poor are in informal employment, since informality is very much
linked to poverty. The "working poor” are those who are working but cannot work their way out of
poverty because of very low earnings and very high risks. In 2007, the International Labor
Organization (ILO) estimated that one out of ten workers in the Philippines lived in extreme poverty
(on less than US$1 a day), and three out of five lived below the poverty line (then defined as less
than USS2 a day). Thus, itis essential 10 look after the rights and interests of informal workers, many
of whom live in substandard conditions and cannot meet their basic needs, if poverty in the country
is to be effectively addressed, and if the country is to comply with its commitments to the
Millennium Development Goals, specifically the target of achieving full and productive employment
and decent work for all, including women and young people, under Goal 1 (eliminating extreme
poverty and hunger)

1



Estimates of informal sector contribution to GDP range from 30 percent to as much as 43 percent,
figures that are insufficiently recognized but nevertheless cannot be ignored by the country's policy
makers, The ILO, various UN agencies, the European Union and other international agencies in fact
now use the more encompassing phrase “informal economy" to refer to the informal sector. in
recognition of the fact that what used to be marginalized as the "informal sector” did not disappear
with industrial progress but instead has become a permanent and ever expanding source of jobs,
goods, and services for low-income populations all over the world. It is connected to the formal
sector, and encompasses both traditional forms of work as well as emerging ones such as “tele-
homework” for high technology industries

The informal economy includes a wide variety of activities, enterprises and workers under both self
employment and wage employment, and include, among others, micro-entrepreneurs, homebased
workers, vendors, small transport operators, small and landless farmers, artisanal fisherfolk, non-
corporate construction workers waste pickers and recyclers, petty retailers, barter traders, small-scale
miners and quarry workers, , entertainers, beauticians, laundry persons, hairdressers, on-call
domestic helpers, barangay health workers and other volunteer workers, barkers, unorganized cargo
handlers, etc.

Most economically active women are in the informal economy. Women in informal work are saddled
with problems of multiple burden, discrimination, abuse and harassment, etc. because they are
women. These on top of the issues, they face as workers in the informal economy. Child labor, which
is embedded in many forms of informal work not only violates children's rights, it robs our children.
of their childhood.

Most informal workers are not covered by the Labor Code and other legislation that could protect
their rights. They are often subject to exploitation by unscrupulous employers, both formal and
informal, who make them work long hours at very low wages, without benefits, and under very poor
working conditions. They suffer from the usurious rates of money lenders, as well as extortion and
harassment from corrupt police authorities, Their work environment is not subject to regulation and
monitoring, making them vulnerable to occupational safety and health hazards. They have limited
access to productive resources, justice, social protection, and programs preventive of work- related
diseases and risks. They are severely under-represented in policy making bodies relevant to their
issues

‘Thus, it is imperative that a Magna Carta for informal workers recognize defend, protect, promote
and fulfill their rights through a continuous process of capacity-building and empowerment, This is
in consonance with the Constitutional provisions on social justice and with the country's adherence
to the Universal Declaration of Human Rights (UDR), the International Covenant on Economic,
Social, and Cultural Rights (IESCR), the UN Convention on the Elimination of Discrimination
Against Women (CEDAW), and various ILO conventions upholding core labor standards and decent
work.


There is also an urgent need to provide informal workers access to social protection
and justice, make them visible in statistics, simplify their accreditation, provide
appropriate standards and regulations in their favor, develop and implement
meaningful plans, policies, and programs that will hamess their full potentials to
become effective and productive economic actors. These will be the mandate of
participatory institutional mechanisms at both national and local levels that will be
created by this bill. As the 2002 ILO document on the informal economy emphasizes,
government has the responsibility to bring informal workers into the economic and
social mainstream, reduce their vulnerability and exclusion, ensure that they are
covered by the legal and institutional framework, and support their representational
rights through their legitimate, democratic, accessible, transparent, and accountable
membership-based organizations.

Itis in this context that f this measure is earnestly sought

ANDEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

Sixteenth Congress
First Regular Session

HOUSE BILL NO.2295

Introduced by REPRESENTATIVE DANILO RAMON S. FERNANDEZ

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

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

LEI
GENERAL PROVISIONS

Chapter!
Framework and Principles

SEC. 1, Short Title. - This Act shall be known as the “Magna Carta of Workers in Informal
Economy.”

SEC. 2. Declaration of Policy. - \t 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 of 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 statistics;

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(€) 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,

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

(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;

() 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;

(k) 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 Prineciptes.-Article ||, Section. 9. of the 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 responsibilty to

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give the highest priority to the enactment of measures that protect and enhance the rights
of all people to human dignity; reduce social, economic and political inequalities; lessen
vulnerabilities to risks including those brought about by environmental degradation and
natural disasters, remove cultural inequities by redistributing wealth and political power for
the common good; and to develop an enabling environment conducive to responsible
citizenship. Towards this end, 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 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.

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

(f) 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,

(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.

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

(a) Informal Economy — Based on the Intemational 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 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 concemed. It consists of households and unincorporated enterprises that are
market and non-market 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.

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

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

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

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c.7. industrial homeworkers — workers involved in a system of production under which
work is carried out at their homes and where materials may or may not be furnished by
the employer or contractor,

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

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

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

c.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;

c.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 milion pesos (P1,000,000.00)
excluding land and building:

c.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);

c.17. workers of Barangay Micro Business Enterprises (BMBEs);

c.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, stuntmen and women, crew, make-up artists, etc.;

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¢.23. volunteer workers in goverment 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

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

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

(e) 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.

() 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.

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

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(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 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, basic
health care, social welfare and safety nets.

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

(p) 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.

(q) 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.

(r) 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 Il
Coverage, Qualifications, and Accreditation

SEC. 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.

SEC. 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 (P100.00) 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.

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

The concemed 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.

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

SEC. 7. Annual Dues. IE workers and organizations shall pay annual dues to be
determined by the Local Government Unit (LGU) concemed, in consultation with their
respective Workers in Informal Economy Local Development Office (WIELDO) referred to in
Title |, Chapter IX of this Act. In no case shall the annual dues to be paid by IE workers be
more than 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 ill
RIGHTS AND BENEFITS

‘SEC. 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 rights to: security at the workplace; make a living by work
freely chosen or accepted; and avail of technical and vocational guidance and training
programs;

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

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

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

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

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

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

(h) maternity and patemity 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;

() selforganization 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 law;

(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.

SEC. 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:

(a) infrastructure support such as farm to market roads, common, affordable and secure

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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; and

(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;

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

SEC. 10. Organizations of workers in informal employment, including unions, cooperatives,
mutual benefit associations, etc. shall have the rights 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 concemed goverment institutions and other parties that are
pertinent to the protection and promotion of the rights and welfare of their members;

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

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

(f) undertake all other activities, not contrary to law, designed to benefit their 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 govemment units
including foreign-assisted projects. Guidelines for this shall be developed by the

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Implementing Rules and Regulations of this Act.
Further,

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

SEC. 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 govemment 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,
fisherfolk, manufacturing, transport, retail, services, and home-based workers to enable
members to: purchase inputs at lower cost, obtain fair prices for their produce, avail of
credit assistance and skills training, and share from collective gains of the cooperatives

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

SEC. 12. Assistance to Organizations of Workers in the Informal Economy. All
concemed national goverment agencies, government financial institutions and local
government units shall include in their plans, programs, projects and activities efforts that
will support and address concems of organizations of WIE.

SEC. 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

SEC. 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;

SEC. 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

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

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

(©) any work which involves manual handling or transport of heavy loads;

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

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

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

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

(h) any use, procuring or offering of the worker for the commission of any offense or crime,

particularly for the production, trafficking, or sale of narcotic drugs and substances as
defined in the Dangerous Drugs Act;

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

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

SEC. 16. Prohibition Against Interference and Coercion. Any person is prohibited from
committing any of the following acts of interference and coercion:

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

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

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

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

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

(f) other acts calculated to diminish the independence and freedom of workers’
organization to direct its own affairs.

Chapter V
SOCIAL PROTECTION

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

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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 corn, root
crops or vegetables. Relevant LGUs 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.

(4) 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.

SEC. 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 goverment subsidies and sponsorship
programs to enable those who cannot afford to enroll and sustain their membership.

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

(d) The SSS Commission, in the spirit of democracy, transparency, accountability, and
equity, shall be required to conduct regular consultations with and provide information

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and reports to its membership. Both formal and informal workers shall be represented
in the SSS Commission, where gender balance shall also be observed.

(e) 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.

SEC. 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.

SEC 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.

SEC. 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 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

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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.

(c) 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, microfinance 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:

SEC. 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, shal identify and designate viable workplaces for
informal workers; routes, terminals, and specific lanes for small transport workers; and
design a system of assigning these to accredited informal workers, These may include
markets and vacant areas near markets, vacant public spaces and other spaces which may
be designated as allowable workplaces for informal workers.

Should concerned WIE prefer to conduct their economic activities within an identified
private property, the LGU shall negotiate with the owner of the property for the possible use
of such 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 concemed WIE, affected inhabitants and relevant sectors,
pass an ordinance designating such workplaces

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SEC. 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.

SEC. 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 a marine
protected area or a fish sanctuary by the national or local government unit.

SEC. 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;

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

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

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

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

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

SEC. 26. Policy on Confiscation of Materials and Impounding of Vehicles. \n cases
where demolition or eviction is warranted, the person who conducts the same shall issue an
itemized receipt of all products, goods, and other materials seized from the affected WIE.

Tricycles, pedicabs, and other modes of transportation shall not be impounded for violations
of license, registration, or traffic regulations unless the said vehicles were utilized in the
conduct of criminal activities. In cases of mere violation of traffic regulations, a traffic
violation ticket shall be issued to the erring driver without impounding his/her vehicle

SEC. 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 shall
be made to all concerned vendors at least sixty (60) days before the actual transfer or
relocation to another market site. Within the sixty (60)-day period after issuance of notice,
the LGU shall conduct consultations with affected vendors on the selection of the relocation
site and implementation of the relocation

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

In the event that a new public market is constructed in place of an old one, market vendors.

with stalls displaced from their workplaces shall be given priority in the assignment of stalls
in the new market,

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SEC. 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 VIL
Special Allocations of Development Initiatives

SEC. 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 truly benefit WIE.

SEC. 30. Sourcing and Adopting Development initiatives. - Other sources of funds to
be used exclusively for initiatives addressing the needs and empowerment of WIE shall be
identified in the IRR of this Act and may include the following:

(a) Government financial institutions and mechanisms such as the Land Bank of the
Philippines (LBP), Development Bank of the Philippines (DBP), National Livelihood
Support Fund (NLSF), and Quedan Rural Credit and Guarantee Corporation shall set
aside a specific percentage of their loan portfolio to informal economy enterprises and
shall give priority to women-led informal economy enterprises by providing loans at an
interest of not more than twelve percent (12%) per annum consistent with the spirit of
R.A. 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

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

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

SEC. 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.

SEC. 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 Vill
Informal Economy Development COUNCIL (IEDC)

SEC. 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.

SEC. 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;

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

(c) Develop and ensure implementation of annual, long-term and medium term plans for the
informal economy, the last of which should form part of the Philippine Development Plan
towards institutionalizing comprehensive, rights-based, gender-responsive and child-
friendly programs and policies for the IE;

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

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

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

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

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

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

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

3. List and contact information of goverment and non-government organizations

(NGOs) that provide educational, socio-economic, legal, and other services to
WIE;

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

i.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 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;

(I) 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 goverment 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 concemed with or
affecting the growth and development of the IE.

SEC. 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 (DT!)
(b) Director General of the National Economic and Development Authority (NEDA);
(c) Secretary of Department of Agriculture (DA);

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

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

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(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);

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

(m) One (1) representative from the private sector at large, all Filipino citizens , 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
sub-sectoral 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 by the IRR.

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

SEC. 36, EDC Meetings - The IEDC shall meet once every two (2) months and may call
for special meetings as the need arises; provided, that the frequency of such special
meetings shall not exceed four (4) times annually.

SEC. 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.

SEC. 38. Executive Committee of the IEDC - An Executive Committee of nine (9)
members shall be convened. Besides the Chair and Vice-Chair, the following shall be
elected by the IEDA members from among themselves or their duly designated altemate
representatives: four (4) representatives of WIE organizations, one (1) from the different
leagues of local officials, one (1) from the private sector, and one (1) from a national
government agency, provided, that at least three (3) members of the Executive Committee
are women.

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

SEC. 39. JEDC Secretariat. The following secretariat functions shall be integrated in the
DOLE secretariat functions:

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

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

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

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

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

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

SEC 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
\EDC 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

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

SEC. 41. Rationalization of Programs, \EDC shall conduct continuing review of
government programs for the poorest of the poor and the WIE and submit to Congress and
the President of the Philippines a report thereon together with its policy recommendations.

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

SEC. 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
subsectors and recommend appropriate measures to be taken;

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

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

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

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

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

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

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

() 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;

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

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

(n) Provide services, which shall include but not 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.

SEC. 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

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WIELDO’s decision-making body are women. Other relevant guidelines on WIELDO's
operations shall be included in the IRR of this Act.

SEC. 44. Local Government Unit Informal Economy Development Fund (LGU-IEDF) -
‘An Informal Economy Development Fund shall be established by every municipality and
city. Such fund will be supervised and managed by the concemed LGU through the
WIELDO but subject to audit by the Commission on Audit (COA),

For the establishment and initial operations of WIELDO, each LGU shall allocate at least
three per cent (3%) of their twenty percent (20%) Development Fund from their IRA.

Thereafter, the LGU-IEDF shall be funded using:

(a) 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 LGUs.

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

SEC. 45. Additional Sources of Funds — The following may tapped by LGUs as additional
sources of funds for WIELDO initiatives:

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

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

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

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

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

TITLE It
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter |
Requisites for Employment Agreement

SEC. 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.

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

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

SEC. 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 concemed and attested to by a representative from the LGU or an elected
Barangay official in the city or municipality where the worker is designated to work.

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

(a) working arrangement/mode;
(b) period/duration of employment,
(c) compensation, which shall not be below the minimum standard, and mode of payment,

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

(e) duties and responsibilities;

(f) working hours and day-off schedules;

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

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

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

Minimum standard compensation referred to above shall be determined by the Regional

Wage Boards per subsector of WIE. In the case of piece rates, this shall be based on the

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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.

SEC. 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 It
IE Workers of Minor Age

SEC. 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 tit
FINAL PROVISIONS

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

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

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(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.

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

SEC. 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 will
start work on the IRR within three (3) months after the effectivity of this Act and finish within
six (6) months thereafter.

SEC. 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.

SEC. 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

SEC. 54. Effectivity — This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation or the Official Gazette, whichever comes
first.

Appoved,

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