Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

HOUSE BILL No.__2307 3

Introduced by: DIWA (Democratic Independent Workers! Association) Party-list
Representative Emmeline Y. Aglipay

EXPLANATORY NOTE

The importance of the contribution of the informal sector workers to our economy
cannot be overstated. In the Philippines, figures based on the 2005 labor force survey show
that the informal sector now comprise 76.34 percent or 24.6 million of the country’s total
employed, an increase of several percentage points from previous estimates (National Labor
Force Survey, 2005) Numerous as they may be, the government lacks in providing for
programs and institutions that government lacks in providing for programs, and institutions
that would not only address the needs of these workers, but also protect their rights and
promote their welfare. The plight of these workers for the provision of basic services and
programs to uplift their livelihood can no longer be ignored

This bill is a consolidated version of the House Bills on the Magna Carta of Workers in
the Informal Economy that were filed in the 15" Congress. It is a product of discussion within
the House Committee on Labor and Employment and the stakeholders. Contentious matters
such as the definition of workers of the informal economy, the Council to accredit and organize
the informal economy workers and the powers and functions of such council

| earnestly seek the approval of this Bill which will ensure not only social protection of
workers of the informal economy but also institute a framework for their development that will
enable them to become more productive

Ena J 9
Emmeline Y. Aglipay
Representative, DIWA Party-List

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

HOUSE BILL NO.__2307

Introduced by: DIWA (Democratic Independent Workers’ Association) Party-list Representative
Emmeline Y. Aglipay

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.

TITLE |
GENERAL PROVISIONS

Chapter |
Framework and Principles

SEC. 1. Short Title. - This Act shall be known as the “Magna Carta of Workers in the
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;

(a) 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;

(e) To provide venues for dialogue and consultation with informal economy workers so that
their concems 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

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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;

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

(k) To include the concems of workers in the informal economy in the policies, plans,
programs, projects and activities of relevant national government agencies, government
financial institutions, and local government units;

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

(m) To protect vulnerable groups in the informal economy such as children, older persons,
differently-abled persons, indigenous peoples, and people living with HIV and AIDS from
discrimination, exploitation, abuse and harassment, as well as from performing work
hazardous to their occupational, physical, mental, emotional, reproductive and spiritual
health; and

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

SEC. 3. Framework and Principles. Article \I, 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 responsibility to give the highest
priority to the enactment of measures that protect and enhance the rights of all people to
human dignity; reduce social, economic and political inequalities; lessen vulnerabilities to risks
including those brought about by environmental degradation and natural disasters, remove
cultural 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 @ 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;

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(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:

(9) 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.

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

(a) Informal Economy - Based on the International Labor Conference (ILC) 2002a, this
refers to “all economic activities by workers and economic units that are — in law or in
practice ~ not covered or insufficiently covered by formal arrangements”

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

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services with the primary objective of generating employment and incomes to the persons
concerned. It consists of households and unincorporated enterprises that are market and
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:

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

c.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;
c.5. on-call fish workers, porters and batillo;
c.6. home-based workers who are independent producers of goods or services;

¢.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;

©.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:
‘parkers’, fare collectors; dispatchers; and other workers who share income with self-

employed or unincorporated operators;

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

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;

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©.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):
©.18. non-corporate cargo handlers and allied workers;

0.19. 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. ;

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

6.24. 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 @ 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.

(f) 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

(g) 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.

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(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

(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 RA 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. §. Coverage. This shali 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

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avail of development programs, provided, that the poorest and the most vulnerable workers
shall be given priority.

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

The concerned LGU shail 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 shail also indicate informal businesses
which may be categorized as livelihood enterprises, and entrepreneurial or growth oriented
informal businesses. Further, the database shail include information on payments collected
from IE workers, business activities or enterprises and organizations.

The aforesaid comprefiensive 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) concerned, in consultation with their
respective Workers in informal Economy Local Development Office (WIELDO) referred to in
Title I, Chapter IX of this Act. In no case shall the annual dues to be paid by IE workers be
more than Two Hundred percent (200%) of the prescribed daily minimum wage as determined
by the Regional Tripartite Wages and Productivity Board (RTWPB) in their respective regions
or provinces

These annual dues shall accrue to the respective LGU where they are accredited. The
accumulated funds from these dues shall be used for programs to benefit IE workers, business
activities, enterprises and organizations, as recommended by the WIELDO. Such programs
and disbursement of funds shall be approved by the concerned LGU Council.

Chapter Ill
RIGHTS AND BENEFITS

SEC. 8. Workers in inforrnal 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;

(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 heaith services, low-cost housing, water, sanitation, electricity and transport;

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

(h) maternity and paternity benefits, as provided for by law,

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

(j) self-organization to collectively negotiate with government and other entities in the
promotion of their welfare and advancement of their interests free from any political
interference;

(k) an adequate standard of living for workers and their families, sufficient food, clothing, and
shelter, and the continuous improvernent 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 end 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
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-baianced credit at iow interest,

(e) access to appropriate and adequate machinery, equipment, and other technologies, with
the end in view of increasing productivity and growth;

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(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;

(j) 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 concerned government institutions and other parties that are
pertinent to the protection and promotion of the rights and welfare of their. members;

(d) own property, real or personal, for the use and benefit of their organizations and members;
(e) sue and be sued under their registered names

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

(g) be accorded preferential option in the awarding of contracts for the undertaking of national
and local projects funded by either the National or local government units including foreign-
assisted projects. Guidelines for this shall be developed by the 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 government shail 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 iower cost, obtain fair prices for their produce, avail of credit
assistance and skills training, and share from collective gains of the cooperatives

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

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

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, shail 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 shail 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. 18. Prohibition Against Hazardous Work ard Conditions. Workers shall not be
engaged to do any hazardous work, activity or undertaking, or be exposed to hazardous
working conditions

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

(a) any work whicn 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 abu!

(c) any work which involves manual handling or transport of heavy loads:

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

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

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

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

(h) any use, procuring or offering of the worker for the commission of any offense or crime,
particularly for the production, trafficking, or sale of narcotic drugs and substances as
defined in the Dangerous Drugs Act;

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

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

SEC. 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 uphoiding or exercising his/her rights;

Page 11 of 25


(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 lawiul 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 effects of
sudden loss of income, in the context of sustainabie 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, ana ergaging 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 oragrams.

(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 st ed with organic food crops jike com, root crops or
vegetables. Reievant LGUs musi 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 frarmework and plan on occupational safety and health that covers all
workers, formal and informal, and implemented at both nationai and local levels.

(d) The Siate shail encourage entrepreneurship among the disadvantaged, especially women
and young people in informal empioyment, 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. - 10 ine 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 Sociai Security System (SSS) shalll cover ali 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 snail cover what should have been the
employers’ share for contributions of informal workers had they been formally employed

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Ae


(b) The SSS shall also develop schemes involving government 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 and reports
to its membership. Both formal and informal workers shall be represented in the SSS
Commission, where gender balance shail aiso 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 nance organizations initiated or
participated in by WIE so that thes iatized 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 insurarice S: (GS8IS) and be entitled to at least a minimum
package of customized products, services ant nefits to be designed with their participation
and with adequate government subsiay

SEC 20. Health Care System and Financing. The State shall establish a comprehensive and
integrated health cave system that guarariees provision of service by duly accredited and
adequately furnished heaitiy facililies, and appropriately educated and rationally compensated
health personnel to underserved areas all the way down to the bararigay level. Provided that,
such healthcare system include reproductive health services, and provided finally, that
priority in the deuvery 5 shall be the poor and marginalized.

The State shail erisure adequate resources to finance health cere for all, by, among others,
progressively increasing the budget for health care untii it meets the Worid Health Organization
recommendation of at leas! four percent (4%) of the Gross Domestic Product.

SEC. 21. Universal Heaitl Insurance. Ali 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 aso ensure the provision of a minimum
benefit package whic \l be periodically upgrades te meet the goal of universal coverage
which is afforda 1 and appropriate to eds of all

(a) Governmenit subsiaies for Pnii-izalth soonsorship programs shall be expanded to cover not
only the ultra poor but also the working poor wae mostly belong to the informal economy
For the working poor, what should have been contributed by employers if they were
enrollec as formally employed shail be covered by government subsidies in the interest of

equity.

PhilHealth programs for indigents and the working poor shall be expended and improved in
order to develop effective parmerships win organized groups, especially those composed
and led by informal workers, women. senior citizens. persons with disabilities, persons with

Page 13 of 25


HIV and AIDS and other marginalized sectors, to better serve increasing numbers of those
in need. Organized groups with at least 500 members shall be allowed to be collecting
agents of premiums with incentives.

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

(c) PhilHealth, in accordancs with its guiding principles, shali 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.
PhilHeaitn snaii extend appropriate recogniuon, technical assistarice, and other forms of
material and non-material support to mutual benefié associations, microfinance
organizations, community-based health insurance and other indigenous schemes initiated
and participated in by WIE

1 of ail stakeholders, snail review its benefit package
3, indigenous peoples, persons with disabilities
persons with HIV and other marginalized groups sustainabiy; emphasize
preventive measures such as annual physical and medicai check-ups and other outpatient
services, coveray e-related injuries and ilnesses affecting both formal and
informal workers, treatment of chronic ailments such as hypertension and diabetes; and
inclusion of hospital-based reproductive heaith services, commodities and supplies.

(d) PhilHeaith, with maximum participation
in order to co: r citiz

CHAPTER Vi
Security in the Workplace of Workers in Informal

ployment

Security in the workpiace as Getinea in Sec. 4 of this Act shail involve the foliowing:

SEC, 22. Designation of Workplaces. The concemed Local Government Unit (LGU), in
coordination with their respective WIELDO, and after consultation with WIE, affected
communities, end other relevant groups, shal identify and designate viable workplaces for
informal workers: rou terminals, arid spe as for small vansport workers; and design
a system of assigning these to accredited informal workers, These may include markets and
vacant areas near mar vacant public spaces and other spaces which may be designated
as allowable workplaces for informal workers.

s within an identified private
for ine possible use of such
ist the parties in

Should coricerned V\ to conduct their economic activit
property, the LGU shail the owner pre
property as WIE's workplace. Tne LGU shail likewise encourage and a
forging a possible memorandum of agre

The LGUs, within 60 days frorn 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 stiall, within 90 cays after the survey and based on recommendations of WIELDO
and consuliaiions with cor d WIE, affected inhabitants and relevant sectors, pass an

ordinance designating such workplaces.

SEC. 23. Protection of Agricultural Lands and their Occupants. Tn2 LGUs, in coordination
with the Department of Agrarian Reform (DAR) shall protect ell agricultural lands from
conversion or reclassification to non-agricultural uses. Special Economic Zones Sites, Tourist
Sites or Socialized Housing Siies shall not oe allowed i innigated and irrigable lands.

The LGUs shail include in their Comprehensive Land Use Plan (CLUP) all the agricultural
lands as protectad zones

Page 14 of 25


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 exciusively for marginalizes fisnera ed workers. They snall be given priority
in the granting of permits and licenses for the establi sh pens, fish corrals, fish
traps, shelifisit culture or similar structures for cuiure of marine products within the municipal
waters,

Ik al

Beach fronts and foreshores 2 are public domain and may be used by any person especially
marginalized fisherfolk. |.GLUs shall ensure thet no beach within their jurisdiction is exclusive for
the use of resort quests or private persons

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

nail be required before an area is declared a marine
jonal or local government. unit

4 fisherfolk s
nctuary by the

The consent of the affec
protected area or a [isn s

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;
on the matter of -esettlement with the duly designated
nilies to be resettled and the affected communities in the areas
cated

(b) adequate consultstio
representatives of the
where they are

(c) presence of local government officials or thei representatives during eviction or
demoii

(a) proper

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

identifica’ taking part in the demolition:
oF

all be committed against women, children, senior
ni

nable force §
and other identities s

ly situated in the course of

persons wit!
eviction or demolition,
iotures that are permanent and

(g) non-use of he: ment for demolition except for st

of cor
ilippine National Police (PNP) who shall occupy the
proper ontral procedures; and

(i) adequate relocation, whether temporary or permanent; provided, however, that in cases of
eviction and demolit rt order involving underprivileged and homeless
citizens, relocation sn the iceal government unit concemed and the
National Housing Authorit stance of other government agencies
within forty-five (45) days igmnent py the court, after which
period the seid shall be ex should relocation not be
possible within the said period, financi mount equivalent to the

nce in the ar

Page 15 of 25


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. In cases
where demolition or eviction is warranted, the person who conducts the same shall issue an
itemized receipt of all products, goods, and other materials seized from the affected WIE

Tricycles, peciicabs, and other modes of transportation shell 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 witout impounding his/her vehicle.

SEC. 27. Policy on Relocation of Vending Sites. Before any puolic market is closed, sold
or demolished, all market vendors shail first be relocated by the LGU io 4 temporary or new
public market, Nolice of tne interuion to close, sell, or demolish any public market shall be
made to all concerned vendars ai least sixty (60) days before tne actual iansfer or relocation
to another market site, Within the sixty (69)-day period efter @ of notice, the LGU shall
conduct consultations wit!) affected yendors on the selection of the relocation site and
implementation of the relocation.

uupying public places not
temporary sites by the
least fifteen (15) days
ied witn permits but whose
Any change in the list of

Pending the designation oF viable vending areas, vendors occu
previously designated as vendir be p

LGU. Notice of tempo
before the actual! transfer, This shall likey,
workplaces are withdrawn fron the list
allowable vending sites shall oniy be done

of ari id one, market vendors
it of stalls in

s constructed in pla
shali be given priority in the assigne

2 naw public m
J from their wo

In the event thi
with stalls dispia
the new market

plac

gnaies ienminais for tricycles and pedicabs
and consuraton with small transport

Provided, that relocation of terminals
Provided further that after the enactment of such
rninals shai be mace to ali small transport groups
lays before the actual ralocation.

SEC. 28. Policy on Relocation of Terminals, 0
shall not be arbitrarily reiv without prior
groups, affected community and ¢
can only be eff a througn an Ordinane
ordinance, notice of intention to reloc
and affected community at least sixty (61

Chapter Vil
Special Allocations of Development initiatives

oment initiatives for
ress poverty and vulnerability
ner in support of such plan to

SEC. 29. Specia/ Aliocatio
WIE shail forin
The national and |

maximize impact of

for Development Initiotiv
inl conver
ent units. st

ources

) of the annual national budge shal: be appropriated for programs
orograms shal! be implemented based on the principles of merit
Employmen (DOLL ational level and the

(a) At least ten percent (10
and services for WIE, Th
and equily oy wie Geva
WIELDO at tne iocat

vel,

the DOLE shail manage 30%, and WIELDO,

(b) For purposes 9
rations Act (GAA) as provided for in the

70% of the funds from the
previous paragraph of this

Page 16 of 23


(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 ana mechanisms sucn as the Land Bank of the
Philippines (L8P), 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 tieir 1a pon inforvial economy enterprises and shall give
priority 10 womei'-led informal economy enterprises by provicing loaris 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 upilt end empower women in poverty,
particularty the in the informal economy, by adopting an integrated, dit-plus approach
to micro-finar:

Cornoration (SBGFC) created under Republic
ng and adopting of development initiatives for
Nnology, production, management and

(c) The Small Business Guaren
Act (R.A.) No 8289 shell
competitive enterprises in te
business linke!
service reach vario.
activities or enierpris
venture capital, finan
to such business aciivives or enterpris
Corporation obiail a
enterprise, under sucit d conditions adopted by i

ig for conomy business
Juding but net limited to: direct and indirect project lending,
ial leasing, secondary mortgage and/or rediscounting of loan papers
and crop production financing. Further, the

ew or Ousiriess activity or

ine development of
upely chain and market
formal enterprises.

nd Industry (OT) shall c
{include ities

ali support technology-related
my,

(e) The Deperiment of Science and
initiatives of workers and enterprises in the i

SEC. 31.
programs ©’
exclusively ©
the informe

financing
ded to
sconnmy

's provided in this Act
f accreditation of such

SEC. 32. inclusivity 0 : nd other
shall apply for a period of not excaeding ten (10) years from the date
IE worker, business activity, prise, OF organization.

Chapter Viti
Inforrnal Economy Development COUNCIL (IEDC)

conomy Bevelopment Council (IEDC). ~ There is
hereby inetler reteired to as the
IEDC, which s evil of Labor and Employment (DOLE). The
DOLE shall institute aopropriate reforms within its structure. srogramming and other
processes, including adjusting its human resource capabilities to ensure that WIE-focused

Creation OF ile snk
informer

SEC. 33.

Page 17 of 25

w


programs will be efficienily and adequately implemented to adaress the needs of these
workers

The IEDC shail 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 standarcs and provisions of this Act;

(b) Provide guidelines for tne impiementation by LGUs of a fair and credible system of
evaluation, accraditation. raview and assessment, mert 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 ‘ast of which should form part of the Philippine Development Plan
towards ‘nstilutionalizing comprehensive, rights-based, gender-responsive and child-
friendly arograms and policies for ine 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-cased monitoring and evaluation
mechanisms, efficient and effective orograms and policies, and gender-responsiveness of
interventions toward hamessing the full potentials of women WIE

(f) Coordinate with LGUs jor the develoomert and implemeriation oF periodic evaluation of all
accreaited IE members, enterprises and organizations ~ taking into account their
accomplishments, capabilities and potentials, The results of such evaluation shall be used
as bases for accrediation, the awards end incentives, treining and retraining;

(g) Establish @ periormance appraisal system for all accredited workers, enterprises and
organizations in the informal economy which shall be the besis for granting or renewal of
incentives. rewards and recognition, training ard déveiapment, including adequate
mechanisms to snsure their active participation and involvement;

(h) Ensure effective parveipation of Wie and their organizenons throug the establishment of
regular consultative mechanisms and processes. Annual national, regional and provincial
consuitations arnong ihe organizations of WIE shall be conaucied to determine specific
issues and problems affecting specific WIE sub-se and teoniter and evaluate
implementation of programs and golicies.

system to effectively

(i) Establish and evel
daiabank shall be

guide policy formulation and impigme
available for public use and shall include but rot limited to tr

‘allowing

bai profile of WIE based on age, location, type of work,

id. Sex-disaggregeiad staistic
hours, and cther relevant statistical information,

average monthly incomes, wo

agregaled data on informal enterprises, including capitalization and sources
f capital. number and siaius of workers, average incomes

Page 18 of 25


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

1.4, Inventory of resolved and pending cases involving activities of WIE

15, 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 waliare of WIE and aforimation on how these workers may use or avail
of such instruments, laws and programs.

(i) Develop ard ensure implementation ef & communication pian including massive
information dissernination activities targeting WIE, their enterprises and organizations, in the
various regions towards a better understanding and appreciation of the benefits this Act may
bring ther:

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

ugh the Regional

(I) Monitor ana coorairate impiementetion of policies and programs

IEDC officers;

(m) Coordinate and harmonize ali informal economy-related policies, programs, projects and
activities of various go: nt agericies towards greater efficiency and ef

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

izations, develop and ensure implementation of
Decific reeds and ensure rights of WIE subsectors;

(0) After corisuilatios with Wi
policies and progranis

st conflict resolution and
conciliation, mediation and

(p) Develop and ensure implementation of accessible and
adjudication systems end mechanisms to promoie dialogue
redress of grievarices to protect the rights of WIE; and

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

© shail be the Secretary of Department of
st from among themselves a Vice-Chair to
‘all be the following

The Chair of the
ers may eu
of the Chair, The members s

SEC. 35. Composition
Labor ana Employment.
preside over meetings in the

(a) Secretary of the Department of Trave and industry (DTI)

(b) Director General of ihe Nationai Economic and Develooment Authority (NEDA)
(c) Secretary of Department of Agriculture (DA
(d) Secretary of a) Welfare and Deveiopment (DSWD);
(e) Secretary of the Departinent of inierior ana Loca: Government (OILG),
(f) Chair of the Cor non Human Rigits (CHR)

‘on
nid Com

an (NAPC):
nication (DOTC);

(i) Chair of the
() Chair of the Pn
(k) Chair of n

(PhitHealth),
Ai)

Page 19 of 25


(ly Soeteians of the Depait ment Of Public Works and ete (DPWH}

(p) At least 30% of total from organizations of workers in the
informal economy, as wé ions (POs), NGOs, and women's
organizations actively working withi and for the rignts of WIE, provided that regional and
sub-sectoral representation snali 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

/' organizations shall serve as IEDC
jection ancl shail be subject to terms and

Representatives fro: 0
members for a term of thro
conditions provided for by th

in informai economy and women’s organizations’ representatives

The private sector, work
to the IEDA shal be enti
(P2, 500.00) per meeting.

SEC. 36. IEDC Mec!
special meetings as in:
shall not exceed four

1 once every two (2) months and may call for
that the frequency of such special meetings

ped arises; provided
times annually

SEC. 37. dnitial HOC Puan
the Presidentia! aiscretionary fur

+ Ten milion pesos (P10, 000,006.00) stall be allocated from
for the initial operating expenses of the IEDC

tive Committee of the IEOC - An Executive Committee of nine (9) members
Ides ine Chair arid Vice-Chair, the foliowing shall be elected by the
ated alternete representatives: four
es rations, one (1) from ‘the differant leagues of local officials,
one (1) from tie private sector, and one (1) from a national government agency, provided, that
at least three (3) members of tne Executive Committee are women

SEC. 36. Exec:
shall be conv:
IEDA members:

The Executive Conim snail Save the authority to act for and in benalf of IEDC during
intervais of meetings, and only within the spevilic authority graniea by the EDC.

secretariat fun shall be integrated in the

DOLE secretarial

in. coordin
J lor g-terr In

(a) Prepare and re
annual, _meciiurr-¢
of the IEDC,

(b) Coordinate ihe fation 6
approval churn

(c) Ass
agencies wir

(d) Prepare, collate, anc inte: | Inputs to the [EDC's yearly reoort on the status of WIE,
business a in tiie country, oF othe directea by IEDA;

and accomplishments of its work

(e) Submit periodic reports to IEDC on the ore
programs: and

Page 20 of 25


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

SEC 40. Regional and Provincial IEDC Officers - Tne DOLE Regional and Provincial offices
(NEDA Resolution) shall have Reg onal and Provincial IEDC Officers who shall be appointed
by the IEDC and | have functions that include: monitoring and coordinating of IEDC
initiatives in the regions and Provinces; evaluation of policies programs for workers in informal
economy; providing technical assistance in the development of local pians and programs, as
well as other administrative functions necessary for the success of IEDC initiatives in their
jurisdiction

nail nave automatic seats in all Regional Development Councils

IEDC Regional Officer
(RDCs)

SEC. 41. Rationalization of Programs. |EDC shail conduct continuing review of government
programs for the poorest of the poor and the Wie and submit to Congress and tne President of
the Philippines @ report thereon tagather with its policy recommendations.

Chapter ix
Workers in Informe! Employment Local Development Office (WIELDO)

{ Development Office (WIELDO) - The
DO) shail be established in
ciude but not limited to the

SEC. 42. Workers in Informa’ Employment L
Workers in Informal Employment Local Development Office (Wi
every city and municipaiily «© perierm functions that shall i
following

1 and work program that will address the needs of the

(a) Prepare en overall developmen: pl
it ble, and incorporate them in their respective

WIE, prioritizing the poor id most vulnel
city, municipal, anc bara glopment plar

y

(b) In consultation with WIE organizauons ini the area, identify specific needs of various IE

subsectors and recommend appropriate measures te be taken

(c) Ensure accreditation of WIE, especially those with assets of 150,000 and below, to
facilitate their ini sits i

dale acce:

ssess and esveluate implementation of the plans and programs as well as the

(a) Monitor,
kers, their economic activities and their organizations in the

performance of informal wor
areas;

(e) lead in the local implementation of Chapter Vi (Security in the Workilace of WIE) of this
Act,

sector and other organizations with existing
ergence

i offices, private
integration and ¢

programs for WIE tov

(9) Conduct educati ousness especially on
but not lim tea to ew ideas especially to
those with the least assets 2 al education, and develop or upgrade technical,
entrepreneurial and leadership skill

s to credit, market, technology, social

(h) Provide technical support and feci
protection schemes, and training for WIE

ing and awareness-taising on
social protection;

() Train pools of
occupational safe

Page 21 of 25


()) 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

cessary resources Lo support organizing, advocacy, training and
izations of WIE

(!) Provide offices and other nn
other activities of local org

(m) Conduct specialized training such as negotiation skills and conduct of time and motion
studies (0 determine prover wages,

(n) Provide services, which shall include but not be limited to counseling, conciliation,
mediation, and | sistance for ihe furtherence of this Aci, prioriuzing those with the
least acce

d and gender-

ciated to undertake and implement rignts-bi

(0) Ensure that th fF
responsive programs for WIE

O's functions the principle of preferential treatment to the poorest
ll 08 observed

In the performance oi W
and most vuinerable s

SEC. 43. Composition. The Local Chief Executives (LCEs) shell be the primary overseers of
WIELDO s operations The IRR of this Act snail provide for WIELDO's composition provided
that, informal workers’ « tatives shall form at least fifty percent (50%) of WIELDO’s
decision-making body, . Provided further, that IE reoresentatives shall not be less than five (5),
and provided nelly, that at | 40%} oF the 1 DO's decision-
making body guidelines on WIELDO's operations shail be
included in the IRR of this Act,

F

Jnformal Economy Development Fund (LGU-IEDF) - An
und shal! 9e established by every rnunicipality and city, Such
le yea LGU througn the WIELOO but subject

SEC. 44. Local Government L
Informal Economy Oeveiwpmert
fund will b
to audit ay the C

ablishment and ‘citial operations of WIELDO, each |.GU shell allocate at least three
t (20%) Development Fur m thair IRA HB 768 Section

ent (20

For the ¢:
per cent (3%) of
38 with modincations

nded usi

Thereafier, the Lt

ag tion fees and annual dues paid by individual workers in the
their jivelinood activities, and organizations and sssociations as
1 7 of this Act

al jeast 10% funds from the Arinual General Appropriations Act
Vit Section 29 (a) and (b} of this Act:
ent Fund the o

informal @
provided fc
(b) Shares
as provided for by Chapte:
(c) Annual aligcalions fromm LGUs Deve
determined by 1.

any &

SEC. 45. Acioitio
sources Of fund:

ant dues collecie
nsport meusiry,

aqnual

{a) at east fifty percent /
programs for workers

ine serail tr

Page 22 of 25


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

(c) at least fifty percent (50%) of collected fees and annual dues from small vendors ~ for
programs focusing an vendors.

(a) at least fity percent (50%) of fees and annual dues collected from marginalized
fisherfolks ~ for programs focusing on fisherfolk

(e) at least fifty nt (50%) of funds from the Philippine Amus
Corporation (PAGCOR) ana Philippine Charity and Sweepsiakes Offi

nent and Gaming
PCSO)

TITLE Wi
EMPLOYMENT OF WORKERS IN INFORMAL E:

ONOMY

Chapter |
Requisites for Ernployment Agreement

SEC. 46. Minimum Standards — All working arrangements entered into by WIE shall be in
accordance with the minimum applicable laoor and social standards as contained in Title Il of
this Act.

These stanciards shal! be strictly enforced in informal economic enterprises supplying or doing
outsourcing work for exporievs, inivestors-iovenors in zones or industrial
parks licensed by the Export Processing Zone, and domestic formal sector manufacturers
and retailer s-disivibutors

dent informal economic , DOLE, in coordination

For workers engaged by inde ere
ses to comply with these standards. Those

with IEDA shail audit the cap e rp
incapable of meeting the siandards shail be assisied to Dg ity 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 © is the absence of an
employment r nip. As & matter of right, WIE cain insist on @ written agreernent based on
minimurn stanaaras.

‘ln minors are contracted with the said negotiaiea coniract sail be signed on
legal guardian, with the expressed written consent of the said

In cases whi
his/her behaif by either
minor.

workers are contracted with, the said contract shall be explained to
ind attested to by ¢ entative from the |L.GU or an elected
'y of municipelity whe arker is « tad to work

In cases where
the worker cor
Barangay official

shail be provided with a full set of the duly signed agreement
ollowing basic provisions

Each of the
which shall include the

(a) working arrangement/made;

(b) periodleiuraiic

of ernployment

tandard, and mode of payment;

(c) comperisetion, winich shall not be below “imum §

ance including for those

(d) computation of contributions for social y ana medical

who fai! uncle, DOLE Department Order h

(e) dui

s and resp

Page 23 of 25

Ww



(f) working nours and day-oif 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 oereent (20%) down payment for labor cost end 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 ine case of piece rates, this shall be based on the conduct of
time and motion studies facilitated by the DOLE Bureau of Working Conditions. While there are
no standardized raves for work conomy jobs, {he basis of computation shall not
be below ine appii

ie minimum wage of the region where they are covered

Enforcement of the standard compensation vates shall be in accordance with the capability to
comply as explained in Sector 40 of this Act

SEC. 48. Payment of Wages ~ Payment derived irom negotiated agreement shail be made
directly ‘o the workers. No deductions fron such payments shail oe mace by the employer
except those provided for by law. 7 ed written coriseni of the worker shall be first
secured before deductions are made.

No parent, quarcien re'stive or any otner person shall be allowed to take a loan against the
felative-worker without the express written consent of the
‘worl a worker of minor age be mandates to work in payment of
loan or liability incurrec by 2 paren! guardian. relative, or any oiher person

Chapter Il
IE Workers of Minor Age

s of Minor Age ~ Chiidran fifteen (15) years up
to seventeen (17) yea age may be employed. provided, ‘hat parental or legal guardian
consent is presenied anc acgsted 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 ofd be engaged in whatever farin of productive services

SEC. 49. Mliowable Eniplovment of War

Further, workers of minor age shall not be allowed to render work for more than four (4) hours,
five (5) déiys 2 week, exclusive of ore (1) hour oreén ror oreakiast or lunch whichever is

applicaioi=

FINAL PROVISIONS
SEC. 50. Penal Provisions

(a) Any person who shati willfully interfere with restrain or coerce @ 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 oy a fine of not less than Twenty Thousand
Pesos (P20,000.00) or imprisonmme:é oF one (“) 10 six (6) years or both fine and
imprisonment at the discretion of the Court

in adoilion to the penalties provided in the

(b) If the offender i
> eddivonal oenaity of disqualification from oublic

preceding paray
office.



(c) Any person who violates Section 26 of this Act (Policy on Confiscation of Materials and
Impounding of Vehicles) shall oe liable Nothing herein shall prohibit the aggrieved WIE
from initiating 2 criminal or civil action against the responsible person or officer applicability

(d) Failure to implement Sections 27 and 28 of this Act (Policy on Relocation of Vending Sites
and Policy on Relocation of Terminals) shall render the responsible official/s
administratively liable pursuant to Republic Act 7160 and other pertinent laws and
criminaliy 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 susoension or revocation of business
license ai the discretion of the Court

wlations (RR) — The implementing Rules and
‘ed by a drafting committee composed of

SEC. 51. Implementing Rules and *
Regulations (IRR) of this Act shail be formule
representatives of offices that will be members of IEDC and WIE organizations provided that,
at least 30% of the aratt itee members shall come from the jatter and provided further
that at least 0% of commit amen, Said committee will start work on the IRR
within three (3) months after sfiectivity of this Act ana finish within six (6) months
thereafter

unconstitutional or

SEC. 52. Separability Claus
invalid, the provisions rot aff

All laws, decrees, ord cules and regulations or other

SEC. §3. Repealing Cia
the provisions of this Act are hereby repealed, amended or

issuances inconsistent
modified accordingly

fect fife
the Offi

n (18) days aiter is pubiication in at least
ial Gazette, whichever ies fi