HOUSE \F REPRESENTATIVES
RECEIVED

SEVENTEENTH CONGRESS OF THE REPUBLIC ) DA

OF THE PHILIPPINES ) TIM
First Regular Session ) By: 7
HOUSE OF REPRESENTATIVES

HB.No._ C4 REGISTRATION UNIT
BILLS AND INDEX SERVIGE

Introduced by Representative Herminio Harry L. Roque Jr.

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

EXPLANATORY NOTE

‘The Constitution, Article 2, Section 18 states: “The State affirms labor as a primary social

economic force. It shall protect the rights of worker

and promote their welfare.”

The Const

ion, Article 13, Section 1 provides that the Congress shall give highest

pri

to the enactment of measures that protect and enhance the right of all the people to
human dignity, reduce social, economic, and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power of the common good.

According to the World Bank, the informal sector is a pervasive and persistent economic
feature of most developing economies, contributing significantly to employment creation,
production, and income generation. Recent estimates of the size of the informal sector in
developing countries in terms of its share of non-agricultural employment range roughly between
one-fifth and four-fifths. In terms of its contribution to GDP, the informal sector accounts for
between 25% and 40% of annual output in developing countries in Asia and Africa.’

Under National Statistical Coordination Board (NSCB) Resolution No. 15, Series of

20022, informal sector consists of “units” engaged in the production of goods and services with
the primary objective of generating employment and incomes to the persons concemed in order

to eam a living.

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1DK:20224904-menuPk:584866-pagePK 148956-plPK2 1661 8-thesiteP390615,00.htm.
* iee:/www.1~scb.~ov.uh/resolutions/20023/ 1a5S p-
1



The resolution states that these units typically operate at a low level of organization, with
little or no division between labor and capital as factors of production. It consists of household
unincorporated enterprises that are market and non-market producers of goods as well as market
producers of services. Labor relations in this sector are supposedly based on casual employment,
kinship or personal and social relations rather than formal or contractual arrangements.

The NSCB, through its Statistical Survey Review and Clearance System (SSRCS),
granted clearance for the conduct of the 2008 Informal Sector Survey (ISS) of the National
Statistical Office (NSO). The ISS is a one-shot survey, conducted by the NSO in April 2008,
aimed at: (a) improving the availability of reliable and sound data on informal employment and
informal sector and (b) providing indicators that will contribute to evidence-based policy-
making. The results of this survey can also be used for the estimation of Gross Value Added
(GVA) of the informal sector.*

This bill seeks to address the development, rights and protection of the significant

number of poor, marginalized, unprotected and underrepresented workers in the informal sector.*

dy

HERMINIO HARRY L. ROQUE JR.

> Lieu:/Avww.nscb.gov.uh/uressreleases/2008~R~200805-P1-P0 3 NSO.as2
*tatev://www.dsw~.or~.uh/contenthview/27/141.
2


Perera

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SEVENTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

H.B.No__ gga

Introduced by Representative Herminio Harry L. Roque Jr.

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

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

TITLEL
GENERAL PROVISIONS
Chapter I

Framework and Principles

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

Informal Employment.”

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 informal employment, 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;
(©) To recognize, promote, protect and fulfill the right to decent work of every worker in informal
employment, including the rights to: self-organization; just and humane working conditions;
access to social protection; security of workplaces; represent their organizations in a continuing

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process of consultation and dialogue towards the provision of a comprehensive package of
reforms, interventions, and services in accordance with their articulated needs and interests
(4) To recognize the roles, give proper value to the contributions of workers in informal

employment, and make them

‘ible in the national and local statistics;

(e) To develop and enhance their technical, entrepreneurial and other skills and capabilities
necessary towards becoming more productive and self-reliant citizens, thereby ensuring
participation in mainstream economic activities;

(f) To promote gender equity and equality and protect women workers in informal employment

against gender-based discri

ination, exploitation and abuse; advance women’s social, economi
political, and reproductive rights; and improve their access to social protection and participation
in decision-making bodies and processes;

(g) To protect vulnerable groups in the informal economy such as children, differently-abled

persons, indigenous peoples, and people living with HIV from discrimination, exploitation, abuse

and harassment, as well as from performing work hazardous to their occupational, physical,
mental, emotional, reproductive and spiritual health;

(h) 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

ination of cultural factors that directly or indirectly tolerate, even accept child labor;

(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 informal employment 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; and
k) to include the concems of workers in informal employment in the policies, plans, programs,
projects and activities of relevant national government agencies, government financial

institutions, and local government units.


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SEC. 3. Framework and Principles ~ Article Il, 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

ing standard of living, and an
improved quality of life for all.” Towards this end, the government shall pursue a comprehensive,
rights-based, participatory, gender-responsive, and culturally sensitive framework for workers in
informal employment including but not limited to:

(a) Policies and programs that will bring marginalized workers and economic units into
the economic and social mainstream, 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 informal employment and supporting their
representational rights through their legitimate 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
informal workers 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 employment;

(®) 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/associations;

(h) Applicable labor standards;

(i) Recourse mechanisms to address violations of informal workers’ rights;


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

(k) Mechanisms that promote responsibility on the part of the workers in informal
employment 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 tights.

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 (domestic workers), and wage

workers with no fixed employer (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 or lack of social security usually accompanied with poor earings,
low productivity, and lack of legal protection. To a large extent, women and disadvantaged

groups such as youth, persons living with HIV, persons with disabilities, indigenous people and

migrant workers are overrepresented in the informal economy.

(b) Informal Sector, as defined by NSCB Resolution No. 15, series of 2002, refers to

units engaged in the production of goods and services with the primary objective of generating
employment and incomes to the persons concerned. It consists of households unincorporated
enterprises that are market and non-market producers of goods as well as market producers of

services.


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

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

(©) Workers in Informal Employment - 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 or sharecroppers, 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 market their catch directly;

€.5. home-based workers who are independent producers of goods or services;

©.6. industrial homeworkers — workers involved in a system of production under which work for
an employer or contractor is carried out by a homeworker at his/her home and where materials
may or may not be furnished by the employer or contractor;

©.7. self-employed who are engaged by other enterprises through subcontracting arrangements;
©.8, vendors, whether with stalls or without permanent workplace ineluding street hawkers or
those plying their goods and trades in the streets 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;

9. drivers 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;

c.10, 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;


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c.l1. domestic workers which refer to persons who provide service to households such as maids,
cooks, family drivers, gardeners and baby sitters on a live-out basis and “on-call” arrangement
only;

€.12, non-corporate construction workers;

¢.13, 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.14. workers of Barangay Micro Business Enterprises (BMBEs);

¢.15. non-corporate cargo handlers and allied workers;

€.16. waste pickers and recyclers;

c.17. workers engaged in producing seasonal products;

c.18. 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;

19, “on-call” workers in the entertainment, movie, and media such as bit players, stuntmen and

women, crew, make-up artists, etc.;

©.20. 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;

21. unpaid family members, or workers receiving allowances and seasonally hired workers

who are engaged in micro-enterprises or assist unincorporated household enterprises; and

.22. other similar economic activities that are not illegal, criminal or life threatening in nature.
(4) Worker is a general term referring to either or both the self-employed or paid

employee covered under the provisions of this Act.

(©) 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.


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(8) Worker of Minor Age refers to children fifteen (15) to seventeen (17) years of age
who are engaged in productive employment under a valid contract of employment.

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

(h) Securit

in the Workplace refers to the right of every worker to an enabling
environment that guarantees and protects the spaces for informal workers 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 that will be involved to enable the 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/her health and safety.

(i) 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

ilaterally 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 from public,
private and voluntary organizations and informal networks, to support communities, households
and individuals, both women and men, in their efforts to: reduce poverty; prevent, manage and
‘overcome risks and vulnerabilities throughout their life cycle; and realize their rights as citizens
participating fully and equally in all decision making affecting or may affect their access to and

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


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These interventions shall: promote and sustain livelihood and employment; protect against
hazards and sudden loss of income; and include, among others, 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 of the community)

is responsible for the implementation of the work and therefore functions as contractor.

Chapter I

Coverage, Qualifications, and Accreditation
SEC. 5. Coverage. This shall include individual workers in the informal economy (IE), as
defined in Section 4 of this Act, IE businesses and enterprises, and organizations of workers in

informal employment.

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 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 signifying
eligibility to avail of development programs for workers in informal employment, provided, that

the poorest and the most vulnerable shall be given priority.

Any IE business activity or enterprise, or organization of workers in informal
employment, if qualified under this Act, 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,


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The concerned LGU shall review, revalidate and reassess such accreditation every two (2)

years from the date of last accreditation. Renewal of eligibility shall be in accordance with the
merit and fitness principle, and with the condition 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, gender, 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 those entrepreneurial or growth oriented
informal businesses.

The aforesaid comprehensive database shall form part of the bases of the assessment and

monitoring of the growth of the informal economy.

SEC. 7. Annual Dues, — 1E workers, business activities or enterprises, and organizations
shall pay annual dues which shall accrue to the municipality or city where they are accredited and
shall be exclusively used for IE development programs approved by the municipal or city council
as recommended by the Workers in Informal Employment Local Development Office (WIELDO)
referred to in Chapter VII of this Act. Such dues, which shall cover the cost of the issuance of
licenses to operate, shall be paid to the municipal or city treasurer in the area where they are
accredited, starting on their second year of operations, based on the following schedule:

(a) Those with assets amounting to not more Two Thousand Pesos (P2,000.00) — One
Hundred Pesos (P100.00)

(6) Those with assets of more than Two Thousand Pesos (P2,000.00) up to Five
‘Thousand Pesos (P5,000.00) - Two Hundred Pesos (P200.00)

(©) Those with assets of more than Five Thousand Pesos (P5,000.00) up to Fifty
‘Thousand Pesos (P50,000.00) - Three Hundred Pesos (P300.00)

(@) Those with assets of more than Fifty Thousand Pesos (P50,000.00) up to One

Hundred Fifty Thousand Pesos (P150,000.00) — Five Hundred Pesos ( P500.00)

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(e) Those with assets of more than One Hundred Fifly Thousand Pesos (P150,000.00)

up to Three Hundred Thousand Pesos (P300,000.00) ~ Six Hundred Pesos (P600.00)

(f) Those with assets of more than Three Hundred Thousand Pesos (P300,000.00) up to

Five Hundred Thousand Pesos (P500,000.00) ~ Seven Hundred Pesos (P700.00)

(g) Those with assets of more than Five Hundred Thousand Pesos (P500,000.00) up to

One Million Pesos (P1,000,000.00) — One Thousand Pesos (P1,000.00)

Chapter ITT

Basic Rights

SEC. 8. Workers in informal employment have the same basic rights accorded to all

workers as enshrined in the Philippine Constitution and in international instruments. These

include the rights to:

a) work, which includes the right to make a living by work freely chosen or accepted, and
the right to avail of technical and vocational guidance and training programs;

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

) a living wage and equal remuneration for work of equal value without distinction of any
kind, in particular for women who shall be guaranteed conditions of work not inferior to
those enjoyed by men;

4) equal opportunity for promotion to an appropriate higher level, subject to no
considerations other than those of seniority and competence;

©) safe and healthy working conditions safeguarding general, occupational and reproductive

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

g) matemity protection, inclu leave during a reasonable period before and after

childbirth;

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economy, being the wor

h) an adequate standard of living for workers and their families, primarily adequate food,

clothing, and shelter, and the continuous improvement of such standard;

i) education, especially of children and young persons, without any discrimination;
i) social protection, comprising mainly of, but not limited to labor market programs, social

security, health care and insurance, and social welfare i

terventions;

k) self-organization to, among others, collectively negotiate with other parties in the
promotion of their welfare and advancement of their interests;

1) substantially participate in policy and decision-making processes, including access to
information and other necessary resources relevant to the promotion and protection of
their rights and welfare;

m) be free from any form of discrimination, violence, sexual exploitation, harassment and
abuse;

nn) equal treatment before the law; and

©) equal access to justice though appropriate mechanisms, including, but not limited to,
alternative dispute resolution mechanisms and processes.

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

1g poor’s primary instruments to address and overcome poverty, shall

be accorded by the State the following rights:

) 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;

ies;

©) access to markets, ineluding capacity building to access E-marketing facil
4) access to affordable, appropriate and adequate financial services, including, among others,

collateral-free and gender-balanced credit at low interest;

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°)

8)

)

access to appropriate and adequate machinery, equipment, and other technologies, with

the end in view of increasing productivity and growth;

protection from unjust dislocation from places where economic activities are conducted;
special measures against racketeering, extortion, and harassment, by both State and non-

State elements; and

fiscal relief, including among others exemption from taxes, fees and other assessments, to

be put into place by concerned national agencies and local government ur

60 days after

the effectivity of this Act.

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

cooperatives, mutual benefit associations, etc. shall have the right to:

a)

b)

°)

d)
e)

8)

freely function and act as the representatives of their members in policy- and deci

‘making processes, collective negotiations, and other similar bodies and processes;
establish national federations or confederations and the right of the latter to form or join
international trade-union organizations;

be furnished by concerned government institutions and other parties, upon written request,
with information pertinent to the protection and promotion of the rights and welfare of
their members;

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

undertake all other activities, not contrary to law, designed to benefit the organizations

and their members; and

be accorded preferential option in the awarding of contracts for the undertaking of national

and local projects funded by either the National Government or any local government ,
unit including foreign-assisted projects, the guidelines of which shall be put into place by
concemed national agencies and local government units within 60 days after the

effectivity of this Act.

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Further,

h) notwithstanding any provision of a general or special law to the contrary, the income and
the properties of legitimate labor 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. Monitoring of growth. The local government units (LGUs) in cooperation with
the Workers in Informal Employment Local Development Office shall monitor the growth of the
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

Chapter IV

SOCIAL PROTECTION

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

SEC.12. Labor Market Programs. ‘The State shall provide adequate resources to sustain

labor market programs following decent work standards, including emergency and guaranteed

‘elihood security and prevent or

‘employment schemes, to ensure itigate the effects of sudden

loss of income in the context of sustainable development and developing local economies in both

rural and urban areas.

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

organic farming, and food production programs.

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b) LGUs shall encourage and provide incentives to constituents who want to engage or are
engaged in sustainable and/or organic farming. All idle private or public lands within their
jurisdiction shall be cultivated or planted with organic food crops like com, root crops or
vegetables. LGUs must allocate their local funds for mangrove reforestation and prohibit
conversion of any mangrove forest to residential, commercial or industrial use shall be
prohibited.

©) 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.

4d) The State shall encourage entrepreneurship among the disadvantaged, especially women and
young people in informal employment, through the simplification and facilitation of business
registration procedures in one-stop action centers, and the provision of adequate and
affordable marketing facilities such as economic freedom parks.

¢) The State through local government units shall promote community contracting to give

preference to informal workers and their organizations in accessing employment

‘opportunities and related benefits.

SEC. 13. 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.

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b) The $SS shall also develop schemes involving government subsidies and sponsorship
programs to enable those who cannot afford to enroll and sustain their membership.

©) To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives,
women’s and people’s organizations, trade unions and informal workers’ 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 conduet regular consultations with and provide information and reports to

its membership. Both formal and informal workers shall be represented in the SSS

Commission, where gender balance shall also be observed.

¢) 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 workers in informal employment so that these can be sustained,
systematized and upscaled.

{) 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. 14. Social Security for Volunteers of Government Instrumentalities. Volunteet

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.

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SEC 15. Health Care System and Financing. The State shall establish a comprehensive

and integrated health care system that guarantees pro

mn 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 to five percent of the Gross Domestic Product.

SEC. 16. Universal Health Insurance. The Philippine Health Insurance Corporation
(PhilHealth) shall ensure and substantiate universal, actual, active, and up to date coverage of all
Filipinos by 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 shall be allowed to be collecting agents

of premiums with incentives.

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b) PhilHealth shall immediately extend its services to underserved areas by facilitating and

accelerating accreditation of hospitals and clinics, and by ensuring that these service

providers remain viable through immediate reimbursement.
©) PhilHealth, in accordance with its guiding principles, shall promote maximum community
participation and shall recognize the roles and strengths of the public and private sectors in

healthcare, including people's organizations and community-based health organizations.

PhilHealth shall extend appropriate recognition, technical assistance, and other forms of

material and non-material support to mutual benefit associations, microfinance organizations,

community-based health insurance and other indigenous schemes initiated and participated in
by workers in informal employment.

4) PhilHealth, with maximum participation of all stakeholders, shall review its benefit package
in order to cover informal workers, senior citizens, indigenous peoples, persons with
disabilities persons with HIV/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.

SEC.17. Social Welfare and Safety Nets. The State shall veer away from dole outs which
violate the dignity of the poor and encourage dependency. It shall instead implement programs
whereby beneficiaries of social assistance are able to exchange their labor or any other resource
for the benefits received, and are assisted to progress out of poverty through self-empowering
measures.

1) Existing cash transfer programs shall be reviewed, improved, and expanded to enable the
poor to work and capacitate themselves out of poverty in an empowering and dignified
manner, Such programs shall benefit not only children of poor families, but also senior
citizens, especially older women, persons with disabilities, and other marginalized groups

with little or no assets.

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b) Barangay Day Care Centers shall provide 8-10 hour services to enable parents, especially
mothers, to pursue economic activities.

©) Barangay-based, gender-responsive, and participatory disaster preparedness and management
schemes shall be established to address and mitigate the effects of climate change and other

catastrophic risks.

Chapter V

Security in the Workplace of Workers in Informal Employment

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

Section 18. Designation of Workplaces. The concerned Local Government Unit (LGU),

in coordination with their respective Workers in Informal Employment Development Office
(WIELDO), after consultation with informal workers, affected communities, and other relevant
groups, shall identify and designate viable workplaces for informal workers; routes, terminals,
and specific lanes for small transport workers; and design a system of assigning these to
accredited informal workers, These may include markets and vacant areas near markets, vacant
public spaces and other spaces which may be designated as allowable workplaces for informal
workers.

Should concemed informal workers 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 informal workers’ 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 and workplaces for use of

informal workers in their respective localities.

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‘The LGUs shall, within 90 days after the survey and based on consultations with
concerned informal workers, affected inhabitants and relevant sectors as well as the

recommendations of WIELDO, pass an ordinance designating such workplaces.

Section 19. 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 reclassifics

yn to non-agricultural uses. Special Economic Zones Sites,
Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable lands. The
LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the agricultural lands as
protected zones.

The LGUs shall make an inventory of all agricultural lands under leasehold and shall
enforce the security of tenure of tenants, right of redemption and right of first refusal on the
subject land, The LGUs shall provide assistance and protection to tenants in agricultural lands
whose landowners violate the provisions of RA 3844 or the Agricultural Land Reform Code.
Tenants shall not be evicted based on unilateral termination of the tenancy relationship by

landowners.

Section 20. 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.

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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.

Section 21. Policy on Eviction and Demolition. informal workers 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;

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

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

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

(Ono 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

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(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 concemed and the National

Housing Authori

ty (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.

icy 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 informal
workers,

Tricycles, pedicabs, and other modes of transportation shall not be impounded for
violations of license, registration, or traffic regulations unless the said vehicle was utilized in the
conduct of criminal activities. In cases of mere violation of traffic regulations, a traffic violation

ticket shall be issued to the erring driver without impounding his/her vehicle.

Section 23. 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 the affected vendors on the selection of the relocation and the

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

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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.

Section 24 . 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 VI

Special Allocations for Development Initiatives

SEC. 25. Special Allocations for Development Initiatives. ~ The development initiatives
for workers in informal employment 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 workers in informal employment to be implemented by the Informal

Economy Development Auth

y (IEDA) and Workers in Informal Employment Local
Development Office (WIELDO) as created by Chapters VII and VIII of this Act. Support to

WIELDO shall be based on the principles of merit and equity.

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(b) 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 workers in informal employment.

SEC. 26. Sourcing and Adopting Development Initiatives. - Other sources of funds to
be used exclusively for initiatives addressing the needs and empowerment of workers in informal
employment shall be identified in the Implementing Rules and Regulations (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.

(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 informal employment, by adopting an integrated, credit-plus approach to
micro-finance.

(©) The Small Business Guarantee and Finance Corporation (SBGFC) created under

Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting of development initiatives
for competitive enterprises in terms of finance, technology, production, management and business
linkages. It shall also provide and promote, develop and widen in both scope and service reach

various alternative modes of financing for informal economy business activities 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.

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(d) The Department of Trade and Industry (DTI) shall contribute to enable the

development of a business en

yment 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, 27. Exclusivity of Government Programs. — The government shall ensure that

programs of financing, grants and other similar incentives shall be exclusively extended to

accredited workers, business activities, enterprises or organizations in the informal economy.

SEC. 28, Tax Exemption. - A duly accredited IE worker, business activity, enterprise, or

organization shall be exempted from all taxes, national or local, license and building permit fees

and other business taxes except real property and capital gains taxes, import duties and other taxes
‘on imported articles. In addition, any and all income, receipts and proceeds derived from their
business operations shall be excluded in the computation of gross income for purposes of

computing the individual income tax of the members thereof.

SEC. 29. 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 VIL

Informal Economy Development Authority (IEDA)

SEC. 30. Creation of the Informal Economy Development Authority (IEDA). ~ There
is hereby created an Informal Economy Development Authority, herein otherwise referred to as
the IEDA, which shall be attached to the Office of the President and shall be constituted within

thirty (30) days after the drafting and approval of the IRR of this Act.

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The IEDA shall be the primary agency responsible for the promotion, growth,

development and empowerment of the workers in the informal economy as well as their

enterprises and organizations in the country. It shall be a one-stop shop that will facilitate and
closely coordinate national efforts to promote the informal economy's viability and growth,
including the provision of an integrated program for skills enhancement, literacy and education,
health services, social welfare and services and assistance in tapping of local as well as foreign

funds. It shall also perform regulatory and quasi-judicial and other functions relative to the

attainment of the objectives of this Act.

SEC. 31. Mandate and Functions of IEDA. ~ The mandate and functions of IEDA shall
include the following:

(a) Develop and ensure implementation of a

iple system of accreditation for the IE

workers, enterprises, and organiz ns of this

ns in accordance with the standards and provi

Act;

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

(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 Medium Term Philippine
Development Plans (MTPDP) towards institutionalizing comprehensive, rights-based, gender-
responsive and child-friendly programs and policies for the IE;

(4) Develop and ensure implementation of labor standards;

(©) 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 workers in informal employment:

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(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 which shall be used as bases for

evaluation, accreditation, the grant of awards and incentives, training and retraining;

(g) 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 the workers in informal employment and their
organizations through the establishment of regular consultative mechanisms and processes.

Annual national, regional and provincial consultations among the organizations of workers in

informal employment shall be conducted to determine specific issues and problems affecting their

sector, and monitor and evaluate implementation of programs and policies.
(i) Establish and develop a centralized and sex-disaggregated database system to
effectively guide policy formulation and implementation relative to the workers in informal

employment. The databank shall be available for public use and shall include but not be limited to

the following:

1, Sex-disaggregated statistical profile of various informal economy workers based on
age, location, type of work, average monthly incomes, work hours, and other relevant statistical
information;

1.2, Sex-disaggregated data on informal enterprises, including capitalization and sources

of capital, number and status of workers, average incomes;

List and contact information of government and non-government organizations

informal

(NGOs) that provide educational, socio-economic and legal services to workers i
employment;
4. Inventory of resolved and pending cases involving activities of workers in informal

economy;

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iS. 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

6. Compilation of international instruments, existing laws and programs affecting the
interest and welfare of informal economy workers and information on how these workers may use
or avail of such instruments, laws and programs.

(i) Develop and ensure implementation of a communication plan including massive
information dissemination activities targeting workers in informal employment, their enterprisess
and organizations, in the various regions towards a better understanding and appreciation of the

benefits this Act may bring them;

(k) Consistent with letter h Section 2 of the Declaration of Policy, to develop and ensure
implementation of a comprehensive plan to eliminate child labor;

(1) Monitor and coordinate implementation of policies and programs through the Regional
IEDA officers;

(m) Coordinate and harmonize all informal economy-related policies, programs, projects

and activities of various government agencies towards greater efficiency and effectiveness;
(n) Monitor the LGU-generated incomes from informal employment through the LGUs’
periodic report submitted to the Council;

(0) Afier consultations with WIE organizations, develop and ensure implementation of

policies and programs that will address specific needs and ensure rights of workers in informal
employment subsectors including but not limited to: vendors, small transport, non-corporate
construction workers, home-based workers; and

(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 workers in informal employment

SEC. 32. Composition. — The Chair of the IEDA shall be appointed by the President of

the Philippines based on recommendations of IEDA members and shall have the rank of a

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1 Secretary. IEDA members may elect from among themselves a Vice-Chair to preside over

2 meetings in the absence of the Chair. The members shall be the following:

3 (a) Secretary of Department of Labor and Employment (DOLE);
4 (b) Secretary of the Department of Trade and Industry (DT);
5 (©) Director General of the National Economic and Development Authority (NEDA);
6 (d) Secretary of Department of Agriculture (DA);
7 (e) Secretary of Department of Agrarian Reform (DAR);
8 (f) Secretary of Department of Social Welfare and Development (DSWD);
8 (g) Secretary of Department of Health (DOH);
10 (h) Secretary of Department of Transportation and Communication (DOTC);
n (i Secretary of Department of Public Works and Highways (DPWH);
2 () Secretary of the Department of Interior and Local Government (DILG);
3 (k) Secretary of the Department of Finance (DOP);
4 (I) Secretary of the Department of Justice (DOJ);
15 (m) Chair of the Commission on Human Rights (CHR);
16 (n) Lead Convenor of the National Anti-Poverty Commission (NAPC);
fu (0) Director General of Technical Education and Skills Development Authority (TESDA);
18 (p) Director General of National Statistics Office (NSO);
19 (q) President of Development Bank of the Philippines (DBP);
20 (1) President of Land Bank of the Philippines (LBP);
a (5) Chair of the Social Security System (SSS);
2 (t) Chair of PhilHealth;
23 (u) Chair of the Philippine Commission on Women (PCW);
24 (v) Head of the Housing and Urban Development Coordinating Council (HUDCC);
25 (w) Three (3) representatives from the private sector at large, all Filipino citizens , proven

26 to have been active in assisting informal economy workers, to represent Luzon, Visayas and

27 Mindanao; provided that at least one (1) is a woman;

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

(y) Fifteen (15) representatives from People’s Organizations (POs) of workers in informal
employment, five (5) each from Luzon, Visayas and Mindanao to be elected in a National
Assembly of these organizations duly called for that purpose. Provided that, one (1) shall be the
incumbent Sectoral Representative of the National Anti-Poverty Commission (NAPC)-Workers in
the Informal Employment. Provided further, that at least 50% of the remaining 14 represent
subsectors of informal workers that may include vendors, small transport, marginalized farmers,
marginalized fisherfolk, home-based workers or non-corporate construction workers; and the rest
shall come from Non-Government, women’s and other organizations actively working with and
for the rights of informal workers. Provided finally, that at least 40% of the remaining 14
representatives are women. The guidelines for the nomination and election, including processes
and mechanics shall be determined by the IRR of this Act.

Representatives from the private sector, NGOs and IE organizations shall serve as IEDA
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 employment 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.

The IEDA members 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.

Ten million pesos (P10, 000,000.00) shall be allocated from the Presidential discretionary

fund for the initial operating expenses of the IEDA.

SEC. 33. Executive Committee of the IEDA - An Executive Committee of seven (7)
members shall be convened. Besides the Chair and Vice-Chair, the following shall be elected by

the IEDA members from among themselves or their duly designated alternate representatives: two

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(2) representatives of organizations of workers in informal employment, 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 two (2) members of the Executive Committee are
women

The Executive Committee shall have the authority to act for and in behalf of IEDA during

intervals of meetings, and within the specific authority granted by the IEDA.

SEC. 34. IEDA Secretariat. — The Executive Committee shall create a secretariat that
will have the following duties and functions:

(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
IEDA;

(b) Coordinate the preparation of position papers and background materials for discussion
or approval during IEDA meetings;

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

(4) Prepare, collate, and integrate all inputs to the IEDA’s yearly report on the status of
informal economy workers, business activities or enterprises in the country;

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

(8 Perform other functions as authorized by the IEDA.

~The

SEC. 35. Authority of the IEDA to Solicit Assistance from Various Agencic
IEDA may, from time to time, call for the participation of any government agency or bureaucracy
in its deliberations especially when such agency is directly or indirectly concerned with and/or

affecting the growth and development of the IE in any particular area or manner.

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SEC 36. Regional IEDA Officer ~ Regional IEDA Officers shall be appointed and shall
have functions that include: monitoring and coordinating of IEDA initiatives in the regions;
evaluation of policies programs for workers in informal employment; providing technical
assistance in the development of local plans and programs; as well as other administrative
functions necessary for the success of IEDA initiatives in their jurisdiction.

IEDA Regional Officers shall have automatic seats in all Regional Development Councils

(RDCs).

SEC. 37. Rationalization of Programs. \EDA shall conduct continuing review of
government programs for the poorest of the poor and the workers in informal employment and

submit to Congress and the President a report thereon together with its policy recommendations.

Chapter VIII

Workers in Informal Employment Local Development Office (WIFLDO)

SEC. 38. Workers in Informal Employment Local Development Office (WIELDO) - The
Workers in Informal Employment Local Development Office (WIELDO) shall be established in
every province, city or municipality to perform functions that shall include but not be limited to
the following:

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

(b) In consultation with organizations of workers in informal employment in the area,
identify specific needs of various subsectors of the IE and recommend appropriate measures to be
taken;

(©) Ensure accreditation of workers in informal employment, especially those with assets
P 150,000 and below, to facilitate their immediate access to benefits and services;

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(@) 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;
(©) lead in the local implementation of Chapter V (Security in the Workplace of Workers
in Informal Employment) of this Act;
(f) Coordinate with other local offices, private sector and other organizations with existing

programs for the workers in informal employment towards integration and convergence;

(g) Conduct training programs which will provide new ideas to the IE workers, especially
those with the least assets and formal education, and upgrade the technical and entrepreneurial
skills of others who are already in the field;

(h) Implement consciousness-raising and capability building activities which include
information on workers’, women’s and children’s rights and leadership training;

(i) Provide technical support and access to credit, market, technology, social protection
schemes, and training for micro-entrepreneurs and those in service industry, small transport, non-
corporate construction workers, ete.;

() Train pools of community trainers in business counseling and awareness-rai

occupational safety and health hazards, risks and social protection;

(k) Support organizing activities among workers in informal employment:

(I) Establish sex-disaggregated databank on human resources and skills registry to be used
as tools for LGU planning and budgeting;

(m) Provide offices and other necessary resources to support organizing, advocacy,
training and other activities of local organizations of workers in informal employment;

(n) Train workers in informal employment on negotiation skills and on the conduct of time

and motion studies to determine proper wages; and

(0) 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.

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

In addition to fund allocations specified in this Act, the LGUs shall annually allocate at
least One Hundred Thousand Pesos (P100, 000.00) or at least 5% of the twenty percent (20%)
Development Fund of their respective IRA whichever is higher for the establishment and initial
operations of WIELDO.

Following the principle of merit and equity, LGUs that fulfill such allocations may receive
additional assistance from the national government as recommended by IEDA; provided, that they

have formulated their local development plan for workers in informal employment.

SEC. 39. 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 fifly percent
(30%) of WIELDO’s membership. Provided further, that IE representatives shall not be less than
five (5), and provided finally, that at least forty percent (40%) of all members are women. Other

relevant guidelines on WIELDO’s operations shall be included in the IRR of this Act.

TITLED

EMPLOYMENT OF WORKERS IN INFORMAL EMPLOYMENT

Chapter

Requisites for Employment Agreement

SEC. 40. Minimum Standards — All working arrangements entered into by workers in
informal employment shall be in accordance with the minimum applicable labor and social
standards as contained in Title Il of this Act.

These standards shall be strictly enforced in informal economic enterprises supplying or

doing outsourcing work for exporters, investors-locators in export processing zones or industrial

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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. 41. 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, informal workers can insist on a written agreement
based on minimum standards.

In cases wherein minors are contracted with, the said negotiated contract shall be si

‘on his/her behalf by

er 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.

(e) duties and responsibilities;
(®) 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;

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(®) minimum of twenty percent (20%) down payment for labor cost and services and

minimum of 50% for i

entory of raw materials used in the production for homeworkers per
DOLE Order Nos.

Minimum standard compensation referred to above shall be determined by the Regional
Wage Boards per subsector of IE workers. In the case of piece rates, this shall be based on the
conduct of time and motion studies facilitated by the DOLE Bureau of Working Conditions.
While there are no standardized rates for workers in informal economy jobs, the basis of
computation shall not be below the applicable minimum wage of the region where they are
covered.

Enforcement of the standard compensation rates shall be in accordance with the capability
to comply as explained in Section 40 of this Act.

SEC. 42. 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 by law. The expressed written consent of the worker shall be first secured before

deductions are made.

Chapter I

IE Workers of Minor Age

SEC. 43. 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 be presented and attested 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.

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.

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Chapter IIT

Prohibited Acts

SEC. 44, Prohibition Against Forced Night Work — \t is unlawful to force, threaten,
intimidate or otherwise harass workers in informal employment to engage in night work.
Moreover, workers of minor age shall not be allowed to render work between eight o’clock in the

evening and six o’elock in the morning of the following day.

SEC. 45. Prohibition Against Work to be Undertaken ~ Workers of minor age shall not

be allowed to render work beyond their physical and mental capabilities

SEC, 46. Prohibition Against Bonded Labor - A worker shall not be allowed to use
his/her future services as collateral for any loan or advances made to or to be made by said worker
with the employer. Likewise, no employer shall be allowed to bind the worker to his/her
continued employ as a form of payment for any loan or advances which he/she may have made
with the employer. Should there be an outstanding loan incurred and he/she decides to unilaterally

terminate the contract of employment, said loan or advance shall be paid by him/her to the

employer under terms and conditions specified in a duly executed promissory note between

parties.

SEC. 47. Prohibition Against Labor-Only Contracting — In no instance shall the
employer sub-contract the services of a worker to any third party, unless such activity falls within
the purview of an employment arrangement for which the necessary permits and licenses have
been priory secured.

Labor only contracting means that the contracting agency or party does not provide any
raw materials, inputs, or other forms of investment in the enterprise, , does not have any control
over the work process, merely supplies labor to a principal, and yet makes the false claim that
the contracting party is the employer.

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SEC. 48. Prohibition Against Recruitment and Finders Fees - Regardless whether the
worker was sourced either through an employment agency or a third party, said worker shall
neither be charged nor levied a share in the recruitment fees or finder’s fees by the

aforementioned employment agency or third party.

SEC. 49. Prohibition Against Hazardous Work and Conditions - Any worker shall not
be employed in any hazardous work, activity or undertaking, and neither shall he/she be exposed
to hazardous working conditions.

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

(a) Any work which requires workers to render services beyond ten (10) hours;

(b) Any work, employment or activity which exposes the worker to physical, emotional or
sexual abuse;

(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 to their

health;

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

() Any or 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 and trafficking of narcotic drugs and substances as defined
the Dangerous Drugs Act;

(j) 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 worker; and

() Any other type of work, activity, condition or undertaking that maybe hereinafter be

defined as hazardous by the DOLE.

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SEC. 50. Prohibition Against Interference and Coercion ~ Any person is prohibited
from committing any of the following acts of interference and coercion:

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

(b) prevent workers from joining or assisting organizations or unions for purposes not
contrary to law, in order to protect and defend their mutual interests and to obtain redress of
grievances through peaceful concerted efforts;

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

(d) harass, interfere, i

imidate or prevent the worker from performing his/her duties and
functions;

(e) harass, transfer, penalize or terminate the services of a worker who is carrying out
his/her function or role for and in behalf of his/her employer; and

(f) perform acts to diminish the independence and freedom of workers’ union or

organization to direct its own affairs.

Chapter IV

Rights and Benefits of Employed Workers in Informal Economy

SEC. 51. Rights to Wages Earned ~The employer shall directly pay the workers on time,
based on agreement any and all wages, remuneration or compensation earned by him/her during
the period of his/her employment.

No parent, guardian, relative or any other person shall be allowed to take a loan against
the compensation of his/her relative-worker of minor age without the express written consent of
the concerned relative-worker. Neither shall the worker of minor age be mandated to work in

payment of loan or liability by a parent, guardian, relative, or any other person.

SEC. 52. The Right to Privacy and Confidentiality ~ The employer shall respect the

privacy of workers during the latter’s rest periods. This right to privacy shall extend to any and all

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forms of personal communication, including letters or other forms of correspondence issued or
received. The worker shall be allowed communications coursed through the private telephone of
the employer; provided that any additional expense incurred due to such communication shall be
borne by the worker and shall be deducted after the employer's due notice to the worker of the
amount incurred.

The State, further guarantees the protection of the right of workers to communicate with
relatives and other persons and to receive visitors subject to reasonable limits prescribed in the

‘employment contract agreed and entered into by both the employer and the worker.

SEC. 53. Access to Education and Training — A worker shall not be deprived of formal
or non-formal education. In cases where he/she is productively employed, he/she shall be allowed
to attend or pursue any kind of educational program during free time or any other time as agreed
by the employer and the worker.

‘The Department of Education (DEP ED), Commission on Higher Education (CHED) and
other appropriate agencies, shall extend services such as the Study Now, Pay Later Program to the

workers in the IE and their dependents.

SEC. 54. Access to Lawful Third Party Mediation - The LGUs shall provide workers
and their employers the names, addresses and telephone numbers of the designated liaison
officers of the following:

(@) DT

(b) DOLE;

(c) The Barangay office where he/she is productively working; and

(@) Duly registered NGOs accredited to mediate the disputes of their sector.

(©) IEDA

ication

The employer guarantees the worker the access to all available means of commut

for the purpose of contacting any of the above-enumerated institutions.

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SEC. 58. Normal Hours of Work - The normal hours of work is eight (8) hours per day,
exclusive of one (1) hour breaks each for breakfast, lunch and dinner. The worker shall be
allowed at least eight (8) hours of continuous rest per day. Otherwise, any work done by him/her

beyond the normal hours of work per day shall be duly compensated.

SEC. 56. Regular Working Days — No worker shall render work for more than six (6)

days per week.

SEC. 57. Longevity Pay - A longevity pay equivalent to five percent (5%) of his/her

latest monthly basic pay shall be paid to a worker for every two (2) years of continuous and

isfactory service rendered.

SEC. 58. Clothing and Personal or Protection Equipment Allowance ~ A worker shall
be entitled to a minimum of One Thousand (P1,000.00) pesos clothing and personal or protection
equipment (PPE) allowance annually. Provided, that the worker has rendered at least one (1) year

of continuous service in the employment he/she is currently in.

SEC. 59. Service Incentive Leave - A worker who has been employed for one (1) year
shall be entitled to a five (5)-day service incentive leave with pay, in addition to the one (1) day
per week designated as rest day. Said leave may only commence at the end of the first year of

‘employment and shall not cumulate from year to year.

SEC. 60. Maternity Benefits. - A female worker who has been employed for one (1) year

shall be entitled to matemity benefits as provided for by law.

SEC. 61. 13th Month Pay — A worker shall be entitled to 13th month pay equivalent to

‘one month’s basic salary provided, that the worker has reached the required minimum residency.

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Otherwise, the worker shall be entitled to receive a 13th month pay on a pro-rated basis as

provided for in DOLE D.O. No. 5.

SEC. 62. Allowing Subcontracting - A worker may enter into sub contractual
employment or may accept sub contractual jobs from any other enterprise or firm joining or may
Join productive employment through a cooperative consortium; provided, that the enterprise, firm,
cooperative, or consortium meets the requirements of Articles 106-109 of the Labor Code and
their Implementing Rules (DO 18-02), including registration requirements under the said DO 18-

02.

SEC. 63. Pre-Termination of Contract ~ The employer may, at his/her own discretion,

terminate the services of the worker; provided however, that the said employer provides the

worker with at least fifteen (15) day notice of termination, and termination pay equivalent to at
least one half (4) month’s salary. In lieu of the fifteen (15) day notice of termination, the
employer may immediately terminate the services of the worker, provided that said employer
provides the worker termination pay equivalent to one (1) month’s salary.

‘The employer may, for valid or just cause of loss of confidence, terminate the services of
the worker prior to the expiration of the contract without indemnifying the latter with termination
ay.

Should the worker decide, on his/her own volition, to unilaterally leave the workplace
prior to the expiration of the contract period, said worker shall forfeit any separation pay that may

be due him/her.

SEC. 64, Extent of Duty - The employer shall not require a worker to perform any task or

work outside what is stipulated in the agreement.

SEC. 65. Deployment Expenses — Deployment expenses of the worker, including
transportation and agency fees, shall be shouldered by the employer

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TITLE HII

FINAL PROVISIONS

SEC. 66. Penal Provisions

(a) Any person who shall willfully interfere with, restrain or coerce a worker in the
exercise of his/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) year to six (6) years or both fine and
imprisonment at the discretion of the Court.

(b) IF the offender is a public official, the Court, in addition to the penalties provided in
the preceding paragraph, may impose the additional penalty of disqualification from public office.

(©) Any person or officer who violates Section 22 of this Act shall be administratively
liable. Nothing herein shall prohibit the aggrieved informal worker from initiating a criminal or

civil action against the responsible person or officer whenever such action is applicable.

(@) Failure to implement Sections 23 and 24 of this Act shall render the responsible

official/s admit

istratively 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 a penalty ranging from suspension of license or revocation of such at the

discretion of the Court.

SEC. 67. Implementing Rules and Regulations (IRR) ~ The Implementing Rules and

Regulations of this Act shall be formulated by a drafting committee composed of representatives
of offices that will be members of IEDA. Provided that, at least 30% of the drafting committee
members shall come from organizations working on informal workers’ concerns. Said committee

will start work on the IRR within three (3) months after the effectivity of this Act.

a2



SEC. 68. 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. 69, 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. 70. 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.

Approved,

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