Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 2396

Introduced by DIWA Party-list Representative Pepito M. Pico

EXPLANATORY NOTE

The importance of the contribution of the informal sector workers to our economy
cannot be overstated. There were about 10.5 million informal sector operators identified in
the 2008 Informal Sector Survey! (2008 ISS) of the Philippines. Numerous as they may
be, the 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" and 16" Congresses. 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,

I 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.

PEPITO M. PICO
Representative, DIWA Party-list

2 Nationwide survey conducted by the National Statistics Office with funding assistance provided by the United Nations
Economic and Social Commission for Asia and the Pacific (UN ESCAP).

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

House Bill Noe 296

Introduced by DIWA Party-list Representative Pepito M. Pico

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 House of Representatives of the Republic of the Philippines in Congress
assembled:

TITLE
GENERAL PROVISIONS

Chapter I
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. - It is hereby declared the policy of the State:

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

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

(©) 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;

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(@) 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 concerns and needs are effectively addressed by lasting and workable
reforms in enforcement of labor standards, advancement of labor relations;

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

(g) To progressively eliminate child labor through the creation of more quality jobs
for adults, effective enforcement of laws against child labor, elimination of gender-
based discrimination against girl child workers, improved access to universal
education and social protection, and elimination of cultural factors that directly or
indirectly tolerate, and even accept child labor;

(h) To promote gender equity and equality by protecting women workers in the
informal economy against gender-based discrimination, exploitation and abuse;
advancing women's social, economic, political, and reproductive rights; and
improving their access to social protection and participation in decision-making
bodies and processes.

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

(1) 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.

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SEC. 3. Framework and Principles. Article II, 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 al " 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; redL1ce social, economic and political inequalities; lessen vulnerabilities
to risks including those brought about by environmental degradation and natural disasters,
remove cultural inequities by redistributing wealth and political power for the common good:
and to develop an enabling environment conducive to responsible citizenship. Towards this
end, the government shall pursue and implement a comprehensive, rights-based,
participatory, sustainable and gender responsive framework for workers in the informal
economy that includes but not limited to:

(a) Policies and programs that will bring marginalized workers and economic units
into the economic and social mainstream; and spur entrepreneurial or growth-oriented
informal business to graduate to formal status based on their own pace and self-
determination thereby reducing their vulnerability and exclusion;

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

(©) 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 actlvities or
enterprises in the informal economy preferably with the cooperation and support of
the private sector:

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

(h) Applicable labor standards;

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

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

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(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:

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

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

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;

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

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

5. on-call fish workers, porters and batillo;

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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;

8, self-employed who are engaged by other enterprises through subcontracting

arrangements;

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

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

11. vendors with stalls in public and private markets and those engaged in sari-
sari stores with operating capitalization of not more than one million
pesos (P1,000,000 00) excluding land and building;

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

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

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

15. non-corporate construction workers;

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

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

18. non-corporate cargo handlers and allied workers;

19, waste pickers and recyclers;

26. workers engaged in producing seasonal products;

. 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, ete.;

. 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
(SNS), barangay daycare workers, and volunteers in non-government or
people's organizations;

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

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

2:

r

a

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Worker is a general term that refers to both self-employed and paid employees
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.

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

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

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.

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.

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.

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

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

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.

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

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.

‘Non-Government Organization (NGO), as defined in R.A. No. 8425, refers to a
duly registered non-stock, 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.

People's Organization (PO), consistent with R.A. No. 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.

Informal Economy Workers' Organization refers to a group or groups of informal
sector workers, whether formally constituted or otherwise, that are organized with
the primary objective of promoting the welfare of workers in informal economy

Chapter IL
Coverage, Qualifications, and Accreditation

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

SEC. 6. Accreditation, There shall be a simple and standard system of accreditation in
accordance with the framework and principles of this Act. A one-time accreditation fee of
not more than Fifty pesos (P50.00) per individual worker and not less than One Hundred
pesos (P100.00) per IE business activity, enterprise, or organizations shall be paid to the
municipality or city where they operate or intend to operate.

Any IE worker meeting the necessary accreditation requirements provided for in this
Act shall be listed in the centralized database system, and shall be issued an identity card
and a record book that shall list all services and benefits availed of by the WIE. These
signify eligibility to avail of development programs, provided, that the poorest and the most
vulnerable workers shall be given priority.

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 shall review, revalidate and reassess such accreditation every
two (2) years from the date of last accreditation. Renewal of eligibility shall be in accordance
and fitness principle, and with the conditions that no child labor shall be used
ies harmful to the environment shall be implemented.

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A comprehensive database of accredited IE business activities and enterprises shall be
developed and maintained. Such database shall take into account the different sub-
classifications in terms of geography, premises, sex, ethnicity, vulnerability, occupation,
nature of employment, and roles and functions. The database shall also indicate informal
businesses which may be categorized as livelihood enterprises, and entrepreneurial or growth
oriented informal businesses. Further, the database shall include information on payments
collected from IE workers, business activities or enterprises and organizations.

The aforesaid comprehensive database shall form part of the bases of assessment and
monitoring of the growtt1 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 informal economy have the same basic rights accorded to all
workers as enshrined in the Philippine Constitution, the Labor Code as amended, and relevant
international human rights instruments and labor Conventions. These include, but are not
limited to the rights to:

(a) work, which includes the rights to: security at the workplace; make a living
by work freely chosen or accepted; and avail of technical and vocational
guidance and training programs;

(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;

(@) 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,

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reproductive and other health services, low-cost housing, water, sanitation,
electricity and transport;

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

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

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

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

(k) an adequate standard of living for workers and their families, sufficient food,
clothing, and shelter, and the continuous improvement of such standard;

(1) 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, healthcare and insurance, and social
welfare interventions;

(n) equal treatment before the law;

(0) substantial participation in policy and decision-making processes, including
access to information and other resources relevant to the promotion and
protection of their rights and welfare through organizations that truly
represent the sector;

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

SEC. 9. Own account workers as well as marginal economic enterprises in the
informal economy, being the working poor’s primary instruments to address and overcome
poverty, shall be accorded by the State the following rights:

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

(©) access to markets, including capacity building to access E-marketing
facilities;

(@) access to affordable, appropriate and adequate financial services, including,
among others, collateral-free and gender-balanced credit at low interest;

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

(f) protection from unjust dislocation from places where economic activities are
conducted;

(g) measures against racketeering, extortion, and harassment. by both State and
non-State elements; and

(h) fiscal relief, including among others exemption from taxes, fees and other
assessments , to be put into place by concerned national agencies and local
government units 60 days after the effectivity of this Act.

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(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:

1. freely function and act as the representatives of their members in policy-
and decision- making processes, collective negotiations, and other similar
bodies and processes;

2. establish national federations or confederations and the right of the latter to
form or join international trade-union organizations;

3. access information from concemed government institutions and other
parties that are pertinent to the protection and promotion of the rights and
welfare of their members;

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

5. sue and be sued under their registered names;

6. undertake all other activities, not contrary to law, designed to benefit
their organizations and members; and

7. 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,

8. 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 shall encourage and assist these workers In the
formation of their self-help organizations, associations, federations and confederations

Government shall encourage the formation of cooperatives among marginalized

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

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

SEC. 12. Assistance to Organizations of Workers in the Informal Economy. All
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, shall monitor the growth of informal employment business
activities or enterprises three (3) years after the enactment of this Act and every three (3)
years thereafter. The centralized database referred to in Section 6 shall be the basis of this
monitoring.

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

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

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

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

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

2. any work or activity which eposes the worker to physical, emotional or sexual abuse, or
threats of such abuse:

3. any work which involves manual handling or transport of heavy loads;

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

5. any work which requires workers to continuously render service during late nights;

6. 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;

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7. any use, procuring or offering of the worker for prostitution or pornography;

8. 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;

9. 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

10. 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:

1, preventing any worker from upholding or exercising his/her rights;

2. preventing any worker from joining or assisting organizations for purposes not contrary to
law;

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

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

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

6. 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 Joss of income, in the context of sustainable development and developing
local economies in both rural and urban areas.

1. 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.

2. LGUs shall encourage and provide incentives to constituents who want to engage or are

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engaged in sustainable and/or organic farming. All idle private or public lands within their
jurisdiction shall be cultivated or planted with organic food crops like corn, root crops or
vegetables. Relevant LGUs must allocate their local funds for mangrove reforestation and
prohibit conversion of any mangrove forest to residential, commercial or industrial use.

3. In pursuit of decent work, the State in all its labor market programs shall adopt a
comprehensive framework and plan on occupational safety and health that covers all workers,
formal and informal, and implemented at both national and local levels.

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

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

SEC. 18. Social Security. - In the spirit of promoting social justice, the State shall
endeavor to extend social security protection to all workers and their beneficiaries against the
hazards of disability, sickness, maternity, old age, death, unemployment, and other
contingencies resulting in loss of income or financial burden.

1. 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.

2. The SSS shall also develop schemes involving government subsidies and sponsorship
programs to enable those who cannot afford to enroll and sustain their membership

3. To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives,
women's and people's organizations, trade unions and \NIE 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.

4. 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. 8otrl formal and informal workers shall be represented in the SSS
Commission, where gender balance shall also be observed.

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

6. An enabling environment for such organizations and schemes shall be developed. Toward
this end, the Insurance Commission (IC) a:nd other relevant regulatory agencies are hereby
mandated to review its policies and framework to make them more developmental and

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supportive of the alternative schemes outlined above.

SEC. 19. Social Security for Volunteers of Government instrumentalities.
Volunteer workers of government instrumentalities as defined in Sec 4 of this Act, shall be
covered by the Government Service Insurance System (GSIS) and be entitled to at least a
minimum package of customized product, services and benefits to be designed with their
participation and with adequate government subsidy.

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

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

SEC. 21. Universal Health Insurance. All citizens of the Philippines shall be
covered by the National Health Insurance Program as provided for in RA 0606, The National
Health Insurance Act of 2013. To achieve this, PhilHealth with the participation of all
stakeholders shall critically review its current operations. It shall also ensure the provision of
a minimum benefit package which shall be periodically upgraded to meet the goal of
universal coverage which is affordable, accessible and appropriate to the needs of all.

1. 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.

2. 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.

3. 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 healtfl insurance and other indigenous schemes initiated and participated
in WIE.

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

CHAPTER VI
Security in the Workplace of Workers in Informal Employment

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

SEC. 22. Designation of Workplaces. The concerned Local Government unit
(LGU), in coordination with their respective WIELDO, and after consultation with WIE,
affected communities, and other relevant groups, 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 WIE prefer to conduct their economic activities within an identified
private property, the LGU shall negotiate with the owner of the property for the possible use
of such property as WIE’s workplace. The LGU shall likewise encourage and assist the
parties in forging a possible memorandum of agreement.

The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to
identify viable vacant areas suitable for routes, terminals, lanes, productivity and
merchandising centers and workplaces for use of WIE in their respective localities.

The LGUs shall, within 90 days after the survey and based on recommendations of
WIELDO and consultations with concerned VVIE, affected inhabitants and relevant sectors,
pass an ordinance designating such workplaces.

SEC. 23. Protection of Agricultural Lands and their Occupants. The LGUs, in
coordination with the Department of Agrarian Reform (Dar) shall protect all agricultural
lands from conversion or reclassification to non-agricultural uses. Special Economic Zones
Sites, Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable
lands.

The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the
agricultural lands as protected zones.

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

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SEC. 24, Use of Municipal Waters, Beach Fronts, and Foreshores. Municipal
waters shall be used exclusive for marginalized fisherfolk and allied workers. They shall be
given priority in the granting of permits and licenses for the establishment of fish pens, fish
corrals, fish traps, shellfish culture or similar structures for culture of marine products within
the municipal waters.

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

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

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

SEC. 25. Policy on Eviction and Demolition. WIE shall not be evicted from their
homes and workplaces without legal round 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:

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

2, adequate consult8tions on the matter of resettlement with the duly designated
representative of the families to be resettled and the affected communities in the areas where
they are to be relocated.

3. presence of local government ofilcials or their representatives during eviction or
demolition;

4. proper identification of all persons taking part in the demolition;

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

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

7. non-use of heavy equipment for demolition except for structures that are permanent and of
cemented material;

8. 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

9, adequate relocation whether temporary or permanent; provided. however, that in cases of

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

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

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

SEC. 27. Policy on Relocation of Vending Sites. Before any public market is closed,
sold or demolished, all market vendors shall first be relocated by the LGU to a temporary or
new public market. Notice of the intention to close, sell or demolish any public market shall
be made to all concerned vendors at least sixty (60) days before the actual transfer or
relocation to another market site. Within sixty (60) day period after issuance of notice, the
LGU shall conduct consultations with affected vendors on the selection of relocation site and
implementation of the relocation.

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

SEC. 28. Policy on Relocation of Terminals. Designated terminal 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 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 of Development Initiatives

SEC. 29. Special Allocations of Development Initiatives. - The development of
initiatives for WIE shall form part of an integrated and convergent plan to address poverty

Page 18 of 28


and vulnerability. The national and local government units shall work together in support of
such plan to maximize impact of meager resources.

1. At least ten percent (10%) or the annual national budget shall be appropriated for programs
and services for WIE. These programs shall be implemented based on the principles of merit
and equity of the Department of Labor and Employment (DOLE) at the national level and the
WIELDO at the local level.

2. For purposes of program implementation, the DOLE shall manage 30%, and WIELDO,
70% of the funds from the General Annual Appropriations Act (GAA) as provided for in the
previous paragraph this section.

3. The Implementing Rules and Regulations (IRR) of this Act shall determine additional
guidelines on, among others, ttle 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 a:-id empowerment of WIE shall
be identified in the IRR of this Act and may include the following

1, 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 set aside
a specific 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 RA
7882, An Act Providing Assistance to Women Engaging in Micro and Cottage Enterprises.

2. The Department of Social Welfare and Development (DSWD) shall strengthen its Self-
Employment Assistance Program (SEAK) to uplift and empower women in poverty,
particularly those in the informal economy, by adopting an integrated, credit-plus approach to
micro-finance.

3. 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 models 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 the qualified worker or business activity or
enterprise, under such terms and conditions adopted by its Board.

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

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

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SEC. 31. Exclusivity of Government Programs. ~ The government shall ensure that
programs of financing, grants, and other similar incentives meant to benefit WIE shall be
exclusively extended to accredited workers, business activities, enterprises or organizations in
the informal economy.

SEC. 32. Exclusivisity of Benefits. — The exemptions and other benefits provided in
this Act shall apply for a period of not exceeding ten (10) years from the date of accreditation
of such IE worker, business activity, enterprise, or organization.

Chapter VIII
Informal Economy Development COUNCIL (IEDC)

SEC. 33. Creation of the Informal Economy Development Council (IEDC). -
There is hereby created an Informal Economy Development Council, hereinafter referred to
as the IEDC, which shall be an agency within the Department of Labor and Employment
(DOLE). The DOLE shall institute appropriate reforms within its structure programming
and other processes, including adjusting its human resource capabilities to ensure that
WIE-focused programs will be efficiently and adequately implemented to address. the
needs of these workers.

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

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

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

2. Provide guideline 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;

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

4. Develop and ensure effective implementation of labor standards covering WIE as provided
for by this Act,

5. Develop and implementation of gender-based monitoring and evaluation mechanisms,
efficient and effective programs and policies, and gender-responsiveness of interventions
toward harnessing the full potentials of women WIE:

6. Coordinate with LGUs for the development and implementation of periodic evaluation of
all accredited IE members, enterprises and organizations -- taking into account their
accomplishments, capabilities and potentials. The results of such evaluation shall be used as

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bases for accreditation, the grant of awards and incentives, training and retraining;

7. Establish a performance appraisal system for all accredited workers, enterprises and
organizations in this informal economy which shall be the basis for granting or renewal of
incentives to ensure their active participation and involvement.

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

9, Establish and develop a centralized and sex-disaggregated database system to effectively
guide policy formulation and implementation relative to the WIE. The databank shall be
available for public use and shall include but not limited to the following:

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

ii. Sex-disaggregated data on information enterprises, including capitalization and sources of
capital number and status of workers, average incomes,

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

iv. Inventory of .tesolved and pending cases involving activities of WIE

v. 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

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

10. Develop and ensure implementation of a communication plan including massive
information dissemination activities targeting WIE, their enterprises and organizations, in the
various regions towards a better understanding and appreciation of the benefits this Act may
bring them;

11. Consistent with Section 2 (b) of this Act, to develop and ensure implementation of a
comprehensive plan to eliminate child labor;

12. Monitor and coordinate interpretation of policies and programs through the Regional
IEDC offices;

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

14. Monitor the LGU-generated incomes from informal employment through the LGUs
periodic report submitted to the Council.

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15. After consultations with WIE organizations, develop and ensure implementation of
policies and programs that will address specific needs and ensure right of WIE subsectors;

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

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

SEC. 35. Composition. - The chair of the IEDC shall be the secretary of Department
of Labor and Employment. IEDC members may elect from among themselves a Vice-Chair
to preside over meetings in the absence of the Chair. The members shall be the following:

1. Secretary of the Department of Trade and Industry (DTI)

2. Director General of the National Economic and Development Authority (NEDA)
3. Secretary of Department of Agriculture (DA)

4, Secretary Social Welfare and Development (DSWD)

5, Secretary of the Department of Interior and Local Government (DILG)
6. Chair of the Commission on Human Rights (CHR)

7. Lead Convenor of the National Anti-Poverty Commission (NAPC)

8, Secretary of Department of Transportation and Communication (DOTC);
9. Chair of Social Security System (SSS)

10. Chair the Philippine Health Insurance Corporation (PhilHealth)

11. Chair of the Philippine Commission on Women (PCW)

12. Secretary of the Department of Public Works and Highways (DPWH)

13. One (1) representative from the private sector at large, all Filipino citizens, proven to
have been active in assisting the informal economy workers.

14. One (1) representative each ftom the League of Cities, League of Municipalities, League
of Provinces and League of Councilors;

15. The incumbent NAPC Informal Sector Sectoral Representative

16. At least 30% of total membership of IEDC shall come from organizations of workers in
the informal economy, as well as People s Organizations (POs), NGOs, and women's

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organizations actively working with and for the rights of WIE provided that regional and sub-
sectoral representation shall be ensured. Provided further, that at least 40% of the 30% are
women. Guidelines for the selection of non-government IEDC members, including processes
and mechanics shall be determined by the IRR of this Act.

Representatives from the private sector, NGOs and WIE organizations shall serve as
IEDC members for a term of three (3) years without re-election and shall be subject to
terms and conditions provided for by the IRR.

The private sector, workers in informal economy and women’s organizations’
representatives to the IEDA shall be entitled to receive per diem of at least Two
Thousand Five Hundred Pesos (P2,500) per meeting.

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

SEC. 37. Initial IEDC Funds. — Ten million pesos (P10,000,000) shall be allocated
from the Presidential discretionary fund for the initial operating expenses of the IEDC.

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

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

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

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

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

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

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

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

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

SEC. 40. Regional and Provincial IEDC Officers. — The DOLE Regional and
provincial offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers who

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shall be appointed by the IEDC and shall have functions that include: monitoring and
coordinating of IEDC initiatives in the regions and Provinces; evaluation of policies
programs for workers informal economy; providing technical assistance in the development
of local plans and programs; as well as other administrative functions necessary for the
success of IEDC initiatives in their jurisdiction.

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

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

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

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

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

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

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

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

(e) Lead in the local implementation of Chapter Vi (Security on the Workplace of
WIE) of this Act;

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

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

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

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

(j) 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;

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

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

(n) Provide services, which shall include but not limited to counseling,
conciliation, mediation, and legal assistance for the furtherance of this Act,
prioritizing those with the least access to justice; and

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

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

SEC. 43, Composition. The Local Chief Executives (LCEs) shall be the primary
overseers of WIELDOs operations. The IRR of this Act shall provide for WIELDOs
composition provided that, informal workers’ representatives shall form at least fifty percent
(30%) of WIELDO’s decision-making body. Provided further, that IE representatives shall
not be less than five (5), and provided finally that at least forty percent (40%) of the members
of WIELDOs decision-making body are women. Other relevant guidelines on WIELDO’s
operations shall be included in the IRR of this Act.

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

For the establishment and initial operations of WIELDO, each LGU shall allocate at
least three percent (3%) of their twenty percent (20%) Development Fund from their IRA HB
768 Section 38 with modifications.

Thereafter, the LGU-IEDF shall be funded using:

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

(b) Shares from the 70% of at least 10% funds from the Annual General
Appropriations Act as provided for by Chapter VII Section 29 (a) and (b) of
this Act; and

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

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

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

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

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

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

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

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

TITLE
EMPLOYMENT OF WORKERS I

INFORMAL ECONOMY

Chapter I
Regquisites for Employment Agreement

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

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

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

SEC. 47. Provisions of Employment Agreement. The employment contract shall be
in written form. However, the absence of a written agreement does not mean the absence of
an employment relationship. As a matter of right, WIE can insist on a written agreement
based on minimum standards.

In cases wherein minors are contracted with the said negotiated contract shall be signed on by
his/her behalf by either parent or legal guardian, with the expressed written content of the
said minor.

In cases wherein illiterate workers are contracted with, the said contract shall be explained to
the worker concerned and attested to by a representative from the LGU or an elected
Barangay official in the city or municipality where the worker is designated to work.

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

(a) working arrangement/mode;
(b) duration of employment;

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(©) compensations, which shall not be below the minimum standard, and mode of
payment;

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

(©) duties and responsibilities;

(8 working hours and day-off schedules;

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

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

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

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

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

SEC. 48, Payment of Wages ~ Payment derived from negotiated agreement shall be
made directly to the workers. No deductions from such payments shall be made by the
employer except those provided for by law. The expressed written consent of the worker shall
be first secured before deductions are made.

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

Chapter II
IE Workers of Minor Age

SEC. 49. Allowable Employment of Workers of Minor Age ~ Children fifteen (15)
years up to seventeen (17) years of age may be employed provided, that parental or legal
guardian consent is presented and attested to by any representative of the LGU or duly
elected Barangay official where to work is to be done. In no instance, however, shall children
below fifteen (15) years old be engaged in whatever form of productive services.

Further, workers of minor age shall not be allowed to render work for money for more than
four (4) hours, five (5) days a week, exclusive of one (1) hour break for breakfast or lunch
whichever is applicable.

TITLE Il
FINAL PROVISIONS

SEC. 50. Penal Provisi

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(a) Any person who shall willfully interfere with restrain or coerce a worker in
the exercise of his or her rights or shall in any manner commit any act in
violation of any of the provisions of this Act shall, upon conviction, be
punished of a fine of not less than Twenty Thousand Pesos (P20, 000) or
imprisonment of one (1) to six (6) years or both fine and imprisonment at the
discretion of the Court.

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

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

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

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

SEC, 51. Implementing Rules and Regulations (IRR) ~ The Implementing Rules
and Regulations (IRR) of this Act shall be formulated by a drafting committee composed of
representatives of offices that will be members of IEDC and WIE organizations provided
that, at least 30% of committee members are women, Said committee will start work on the
IRR within three (3) months after the effectivity of this Act and finish within six (6) months
thereafter.

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

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

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

Approved,

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