Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH (20") CONGRESS
First Regular Session

2643

HOUSE BILL NO.

Introduced by KAMANGGAGAWA Partylist
Representative ELIJAH R. SAN FERNANDO

EXPLANATORY NOTE

The informal economy comprises a significant portion of the Philippine labor
force, which is engaged in various forms of informal work, including street vending,
home-based work, tricycle and pedicab driving, construction, domestic work, and
other livelihood activities not regulated or protected by existing labor laws. According
to IBON Foundation, the number of those in informal work increased to 20.4 million
of the total employed in 20231.

Despite their vital contribution to the national economy, workers in the
informal economy often remain vulnerable to exploitation, poor working conditions,
lack of social protection, and exclusion from labor rights and benefits afforded to

formal sector workers.

The absence of legal recognition and institutional support for informal
economy workers perpetuates their marginalization and economic insecurity. While
Article XIII, Section 3 of the 1987 Constitution guarantees the right of all workers to

self-organization, security of tenure, humane conditions of work, and a living wage,

1 Atienza, K. (2024, February 9). Falling unemployment masks lack of quality jobs — think tank. BusinessWorld.
hutps://www-bworldonline.com /labor-and-management/2024/02/09/574663/falling-unemployment-masks lack
of-quality-jobs-think-tank/

Page 1 of 46


these rights are often inaccessible to those in the informal economy due to structural

barriers and inadequate policy frameworks.

This bill seeks to institutionalize the rights of those working in the informal
economy by ensuring access to social protection, promoting the right to a safe working
environment which includes access to training and protective equipment, access to
livelihood support, skills development, financial services, and market opportunities,
and establishing inter-agency coordination by mandating Local Government Units
(LGUs) to deliver programs and services for informal workers.

This measure was a substitute bill previously filed during the 19th Congress by
Hon. Rufus B. Rodriguez.

In solidarity with the working class, the passage of this bill is earnestly sought.

FERNANDO

AGAWA PARTYLIST

Page 20f 46


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH (207) CONGRESS
First Regular Session

HOUSE BILL NO. 264 3

Introduced by KAMANGGAGAWA Partylist
Representative ELIJAH R. SAN FERNANDO

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 Philippines in Congress

assembled:

TITLET
GENERAL PROVISIONS

Chapter I
Framework and Principles

SECTION 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:

(@) 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;

Page 3 of 46


)

(a)

(3)

(8)

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;

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;

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;

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;

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

Page 4 of 46


(h)

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(m)

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

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;

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;

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
goverment units;

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

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

To integrate ethnicity as a factor in the formulation of programs and
mechanisms to promote and protect rights of workers in the informal

economy.

Page 5 of 46


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
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
; redLice social,

economic and political inequalities; lessen vulnerabilities to risks including those

protect and enhance the rights of all people to human dignii

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

Page 6 of 46


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;

(b) Applicable labor standards;

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

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

(k) Exacting responsibility on the part of the workers in the informal economy
to comply with their obligations, provided that the State shall put in place
responsive, transparent and accountable mechanisms and systems that

ensure recognition, protection, promotion and realization of their rights.

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

(a) “Informal Economy” 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, based on the International Labor

Conference (ILC) 2002.

‘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

Page 7 of 46


firms, subcontracted workers, wage workers for households or domestic
workers, and wage workers with no fixed employer or casual day workers.
The working conditions, opportunities and risks faced by these different

categories of informal workers are very diverse.

Informal workers often experience poor working conditions such as long
working hours, high level of health hazards, lack of social security, poor
earnings, low productivity, and lack of legal protection. To a large extent,
women and disadvantaged groups such as youth, persons living with HIV
and AIDS, persons with disabilities, indigenous peoples and migrant

workers are overrepresented in the informal economy.

(b) “Informal Sector” refers to units engaged in the production of goods and
services with the primary objective of generating employment and incomes
to the persons concerned as defined by the National Statistical
Coordination Board (NSCB) Resolution No. 15, series of 2002. 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.
y employ ploy’

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;

Page B of 46


2)

@)

(4)

6)
(6)

8)

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(10)

(11)

(12)

rural and agricultural workers who are tenants, sharecroppers,
or laborers;

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

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

on-call fish workers, porters and batillo;

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

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;

self-employed who are engaged by other enterprises through
subcontracting arrangements;

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

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

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;

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;

Page 9 of 46


(13) operators of jeepneys, tricycles, pedicabs, taxi, and other
vehicles or transportation whose capitalization is not more than

one million pesos (P'1,000,000.00) 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;

(20) workers engaged in producing seasonal products;

(21) own account workers including but not limited to those
engaged in the maintenance and repair of equipment and
appliances, clothing and footwear, as well as those providing
services such as beauticians, barbers, masseuses;

(22) “on-call" workers in the entertainment, movie, and media
industries such as but not limited to bit players, stuntmen and
women, crew, make-up artists, etc.;

(23) volunteer workers in government and non-government entities
who only receive allowances or honoraria, including but not
limited to: barangay health workers (BHW), barangay tanod,
barangay nutrition scholars (SNS), barangay daycare workers,

and volunteers in non-government or people's organizations;

Page 10 of 46


(a)

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iC)

(24) unpaid family members, or workers receiving allowances and
seasonally hired workers who are engaged in micro-enterprises

or assist unincorporated household enterprises; and

(25) _ other similar economic activities that are not illegal, criminal or

life-threatening in nature.

“Worker” 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

Page 11 of 46


(h)

@

0)

(k)

1)

(m)

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;

Page 12 of 6


(n)

(0)

(P)

@

and realizing their rights as citizens through their full participation in
decision-making affecting or may affect their access to and control over

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

Social protection schemes shall include labor market interventions,

social insurance, basic health care, social welfare and safety nets;

“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-Goverment Organization (NGO)” 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, as defined in R.A. No. 8425;

“People's Organization (PO)” 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, consistent with R.A. No. 8425; and

“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 II
Coverage, Qualifications, and Accreditation

Page 13 of 46


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 with the merit and fitness principle, and with the conditions that no child
labor shall be used and no activities harmful to the environment shall be implemented.

A comprehensive database of accredited IE business activities and enterprises shalll 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.

Page 14 of 46


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

monitoring of the growth of informal economy.

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

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:

Page 15 of 46


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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;
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

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;

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

access to basic services including but not limited to affordable medical care,
reproductive and other health services, low-cost housing, water, sanitation,

electricity and transport;

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

applicable;
maternity and paternity benefits, as provided for by law;

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

self-organization to collectively negotiate with government and other
entities in the promotion of their welfare and advancement of their interests

free from any political interference;

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

Page 16 of 46


0)

(m)

(n)
(0)

()

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;

accessible social protection, comprising mainly of, but not limited to labor
market programs, social security, healthcare and insurance, and social

welfare interventions;
equal treatment before the law;

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; and

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:

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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;

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;

Page 17 of 46


12}

(8)

(h)

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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;

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

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;

common workplaces, adequate and affordable marketing facilities such as
economic freedom parks, merchandising centers, and inventory bulk-
buying centers; and

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:

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(b)

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(a)

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

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

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 their

organizations and members;

Page 18 of 46


(g) _ be accorded preferential option in the awarding of contracts for the
undertaking of national and local projects funded by either the National or
local government units including foreign-assisted projects Guidelines for
this shall be developed by the Implementing Rules and Regulations of this
Act; and

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

provision.

SEC. 11. Organizing Workers in Informal Economy. WIE shall be encouraged to
organize themselves for their mutual benefit and protection, and for other legitimate
purposes. Toward this end, the government 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 j,
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 goverment agencies, government financial institutions and local

Page 19 of 46



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:

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

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

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

Page 20 of 46


(4)

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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;

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

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;

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

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;

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

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

SEC. 16. Prohibition Against Interference and Coercion. - Any person is prohibited from

committing any of the following acts of interference and coercion:

(@)
()

©

(a)

preventing any worker from upholding or exercising his/her rights;
preventing any worker from joining or assisting organizations for purposes
not contrary to law;

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

harassing, threatening, coercing or intimidating any worker that result in

preventing him or her from performing his or her duties and functions;

Page 21 of 46


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

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

food production programs.

(b) LGUs shalll encourage and provide incentives to constituents who want to
engage or are engaged in sustainable and/or organic farming, Alll 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.

Page 22 of 46


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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.

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.

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.

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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.

The $85 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 INIE

associations, microfinance and micro-insurance institutions and similar

Page 23 of 46


(4)

(2)

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.

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.

‘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.

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

alternative schemes outlined above.

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

Page 24 of 46


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.

(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.

Page 25 of 46


(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 healtf1 insurance and other

indigenous schemes initiated and participated in WIE.

(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

Page 26 of 46


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 concerned WIE prefer to conduct their economic activities within an identified
private property, the LGU shall negotiate with the owner of the property for the
possible use of such property as WIE's workplace. The LGU shall likewise encourage

and assist the parties in forging a possible memorandum of agreement.

The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to
identify viable vacant areas suitable for routes, terminals, lanes, productivity and

merchandising centers and workplaces for use of WIE in their respective localities.

The LGUs shall, within 90 days after the survey and based on recommendations of
WIELDO and consultations with concerned WIE, 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

Page 27 of 46


on the subject land. The LGUs shall provide assistance and protection to tenants in
agricultural lands whose landowners violate the provisions of RA 3844 or the
Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral

termination of the tenancy relationship by landowners.

SEC. 24, Use of Municipal Waters, Beach Fronts, and Foreshores. - Municipal waters shall
be used 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:

(a) notice upon the affected persons or entities at least thirty (30) days prior to

the date of eviction or demolition;

Page 28 of 46


)

(8)

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adequate consultations 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;

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

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;

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;

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

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

adequate relocation whether temporary or permanent; provided. however,
that in cases of eviction and demolition pursuant to a court order involving,
underprivileged and homeless citizens, relocation shall be undertaken by
the local government unit concerned and the National Housing Authority
(NHA) with the assistance of other government agencies within forty-five
(45) days from service of notice of final judgment by the court, after which
period the said order shall be executed; provided, further, that 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

Page 29 of 46


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

Page 30 of 46


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 VII
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 and

vulnerability. The national and local goverment units shall work together in support

of such plan to maximize impact of meager resources.

()

(b)

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‘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.

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.

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 and empowerment of WIE shall
be identified in the IRR of this Act and may include the following:

Page 31 of 46


(a)

(b)

©

(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 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;

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;

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;

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; and

Page 32 of 46


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

economy.

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

organizations in the informal economy.

SEC. 32. Exclusivity 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:

Page 33 of 46


(a)

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(8)

(h)

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;

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;

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

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

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;

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

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;

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

Page 34 of 46


specific WIE sub-sectors, and monitor and evaluate implementation of
programs and policies;

() Establish and develop a centralized and sex-disaggregated database system
to effectively guide policy formulation and implementation relative to the
WIE. The databank shall be available for public use and shall include but

not limited to the following:

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

(2) Sex-disaggregated data on information enterprises, including
capitalization and sources of capital number and status of workers,
average incomes;

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

(4) Inventory of resolved and pending cases involving activities of WIE;

(6) 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 WiE and information on how these

workers may use or avail of such instruments, laws and programs.

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

(k) Consistent with Section 2 (b) of this Act, to develop and ensure implementation

of a comprehensive plan to eliminate child labor;

Page 35 of 46


() Monitor and coordinate interpretation of policies and programs through the
Regional IEDC offices;
(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) After consultations with WIE organizations, develop and ensure
implementation of policies and programs that will address specific needs and
ensure right of WIE subsectors;

(p) Develop and ensure implementation of accessible and just conflict resolution

and adjudication systems and mechanisms to promote dialogue, conciliation,
mediation and redress of grievances to protect the rights of WIE; and

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

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

following:

(a) Secretary of the Department of Trade and Industry (DTI);

(b) Secretary of the Department of Economy, Planning, and Development
(DEPDev);

(©) Secretary of Department of Agriculture (DA);

(a) _ Secretary Social Welfare and Development (DSWD);

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

() Chair of the Commission on Human Rights (CHR);

(g) Lead Convenor of the National Anti-Poverty Commission (NAPC);

(h) Secretary of Department of Transportation and Communication (DOTC);

Page 36 of 46


(i) Chair of Social Security System (SSS);
() Chair the Philippine Health Insurance Corporation (PhilHealth);

(k) Chair of the Philippine Commission on Women (PCW);

() Secretary of the Department of Public Works and Highways (DPWH);
(m) One (1) representative from the private sector at large, all Fi

proven to have been active in assisting the informal economy workers;

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

(0) The incumbent NAPC Informal Sector Sectoral Representative; and

(p) Atleast 30% of total membership of IEDC shall come from organizations of
workers in the informal economy, as well as People s Organizations (POs),
NGOs, and women's organizations actively working with and for the rights
of WIE provided that regional and sub-sectoral representation shall be
ensured. Provided further, that at least 40% of the 30% are women.
Guidelines for the selection of non-government IEDC members, including

processes and mechanics shall be determined by the IRR of this Act.

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

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

Page 37 of 46


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)

)

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(a)

10}

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;

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

Assist in coordinating and monitoring policies, programs and activities of
all government agencies with respect to the implementation of this Act;
Prepare, collate, and integrate all inputs to the EDC's yearly report on the
status of WIE, business activities or enterprises in the country, or other
matters as directed by the IEDA;

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

Perform other secretariat and administrative functions as authorized by the

IEDC or its Executive Committee.

Page 38 of 46


SEC. 40. Regional and Provincial IEDC Officers. - The DOLE Regional and provincial
offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers who
shall be appointed by the IEDC and shall have functions that include: monitoring and
coordinating of 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 shalll 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;

(6) Inconsultation with WIE organizations in the area, identify specific needs

of various IE subsectors and recommend appropriate measures to be taken;

Page 39 of 46


1)

(8)

(h)

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0

&)

0)

(m)

(n)

(0)

Ensure accreditation of WIE, especially those with assets of P150, 000 and
below, to facilitate their immediate access to benefits and services;
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 Vi (Security on the Workplace
of WIE) of this Act;

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

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;

Support organizing activities among WIE;

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

Provide offices and other necessary resources to support organizing,
advocacy, training and other activities of local organizations of WIE;
Conduct specialized training such as negotiation skills and conduct of time
and motion studies to determine proper wages;

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

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

Page 40 of 46


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 (LEs) 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 (50%)
of WIELDO's decision-making body. Provided further, that IE representatives shall
not be less than five (5), and provided finally that at least forty percent (40%) of the
members of 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-IEDE). ~ An
Informal Economy Development Fund shall be established by every municipality and
city Such fund will be supervised and managed by the concerned LGU through the
WIELDO but subject to audit by the Commission on Audit (COA).

For the establishment and initial operations of WIELDO, each LGU shalll 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-IED 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

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() 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;

(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;

(0) atleast fifty percent (50%) of collected fees and annual dues from small vendors
- for programs focusing on vendors;

(@) at least fifty percent (60%) of fees and annual dues collected from marginalized
fisherfolks - for programs focusing on fisherfolk; and

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

TITLE Il
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter I
Requisites for Employment Agreement

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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 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
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:

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(a) working arrangement/mode;

(b) duration of employment;

(©) 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;
() 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; and
() 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

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work on payment of loan or liability incurred by a parent, guardian, relative, or any

other person.

Chapter IT
IE Workers of Minor Age

SEC. 49. Allowable Employment of Workers of Minor Age. ~ Children fifteen (15) years up
to seventeen (17) years of age may be employed provided, that parental or legal
guardian consent is presented and attested to by any representative of the LGU or
duly elected Barangay official where 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 Provision:

(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.

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() 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 remaining provisions shall remain in full force and effect.

SEC. 53. Repealing Clause. - All laws, decrees, executive orders, rules, and regulations
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 54. Effectivity. - This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation.

Approved,

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