Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

4203

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

This bill proposes that workers in the informal economy shall be
entitled to all the rights accorded to workers by the 1987 Philippine
Constitution, the Labor Code of the Philippines, as amended, and
relevant human rights instruments and international labor standards.

Section 18 of Article II of the 1987 Constitution states that:
“The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.”

Section 3 of Article XIII further provides that:

“The State shall afford full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peacefull concerted activities,
including the right to strike in accordance with law as part of their right
to participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.”

According to the Social Security System (SSS), self-employed
persons include, but are not limited to: (1) self-employed
professionals. (2) partners, single proprietors of businesses and board
directors of corporation duly registered with appropriate government
agencies; (3) actors, actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the term
“employee;” (4) professional athletes, coaches, trainers and jockeys; (4)
farmers and fisher folks; and (5) workers in the informal sector such
as market and ambulant vendors, public utility transport drivers,
tourism industry-related workers, and others similarly situated.

Other workers categorized as informal include unpaid family
workers. A 2016 World Bank study estimates that around three-
quarters of all jobs. Among wage workers, 6 out of 10 are hired


informally and about 50 percent of the informal workers, the rest are
self-employed and unpaid family workers.

The government, among others, shall guarantee informal
workers the right to a living wage and equal remuneration for work,
particularly for women, who shall be guaranteed equal wages for work
similar to those of men."

This bill primarily aims to alleviate poverty, promote equality in
the segments of the labor force, and achieve inclusive development.
This bill also recognizes the vital role played by the informal sector in
the economy and the significant portion of Filipinos who fall under
such sector.

Thus, the immediate passage of the bill is earnestly sought.

“Compulsory Coverage of Self-Employed Persons,” Social Security System,
http:/ /www.sss.gov.ph/sss//appmanager/ pages. jsp?page=selfemployedcoverage

“Republic of the Philippines: Labor Market Review- Employment and poverty,” World Bank Workers in the
informal sector, however, are among the most vulnerable members of the informal sector due to their
relatively lower wages or earnings as well as limited labor rights and production coverage.

“Republic of the Philippines: Labor Market Review- Employment and Poverty," World Bank, January 22,

‘Review-FINAL=Jan22-16.pdf

1 Food thresholds are estimated using actual prices collected by PSA for the estimation of the
Consumer Price Index (CPI). In consonance with the updating of the market basket for the
collection of prices for CPI, First Semester 2015 Poverty Statistics were revised accordingly.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

4203

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

This bill proposes that workers in the informal economy shall be
entitled to all the rights accorded to workers by the 1987 Philippine
Constitution, the Labor Code of the Philippines, as amended, and
relevant human rights instruments and international labor standards.

Section 18 of Article II of the 1987 Constitution states that:
“The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.”

Section 3 of Article XIII further provides that:

“The State shall afford full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law as part of their right
to participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.”

According to the Social Security System (SSS), self-employed
persons include, but are not limited to: (1) self-employed
professionals. (2) partners, single proprietors of businesses and board
directors of corporation duly registered with appropriate government
agencies; (3) actors, actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the term
“employee;” (4) professional athletes, coaches, trainers and jockeys; (4)
farmers and fisher folks; and (5) workers in the informal sector such
as market and ambulant vendors, public utility transport drivers,
tourism industry-related workers, and others similarly situated.

Other workers categorized as informal include unpaid family
workers. A 2016 World Bank study estimates that around three-
quarters of all jobs. Among wage workers, 6 out of 10 are hired


informally and about 50 percent of the informal workers, the rest are
self-employed and unpaid family workers.

The government, among others, shall guarantee informal
workers the right to a living wage and equal remuneration for work,
particularly for women, who shall be guaranteed equal wages for work
similar to those of men.!

This bill primarily aims to alleviate poverty, promote equality in
the segments of the labor force, and achieve inclusive development.
This bill also recognizes the vital role played by the informal sector in
the economy and the significant portion of Filipinos who fall under
such sector.

Thus, the immediate passage of the bill is earnestly sought.

VARGAS

“Compulsory Coverage of Self-Employed Persons,” Social Security System,

http://www. sss.gov.ph/ sss /appmanager/ pages. jsp?page=selfemployedcoverage

“Republic of the Philippines: Labor Market Review- Employment and poverty,” World Bank Workers in the
informal sector, however, are among the most vulnerable members of the informal sector due to their
relatively lower wages or earnings as well as limited labor rights and production coverage.

“Republic of the Philippines: Labor Market Review- Employment and Poverty,” World Bank, January 22,
2016, —_http://documents worldbank.org/curated /en/561291468294345 143/pdf/Phl-Labor- Market:
Review-FINALsJan22-16.pdf

1 Food thresholds are estimated using actual prices collected by PSA for the estimation of the
Consumer Price Index (CPI), In consonance with the updating of the market basket for the
collection of prices for CPI, First Semester 2015 Poverty Statistics were revised accordingly.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4203

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

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

Section 1. 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 develop a just and dynamic social order by creating and
implementing policies that promote full employment and equality
of employment opportunities for all;

(b) To recognize the vital role and contribution of workers in the
informal sector in the country’s economy;

(c) 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;

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

(c) To recognize, promote, protect, fulfill and ensure the civic and
constitutional rights of workers in the informal economy,
including the rights to self -organization, just and humane
working conditions, access to social protection, security of
workplaces; peaceful concerted activities; represent their
organizations, and participate in policy and decision making
processes affecting their rights and benefits and towards the
provision of a comprehensive package or 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;

(g) 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;

(h) To develop and enhance their technical, special, entrepreneurial
and other skills and capabilities necessary towards their
empowerment and enjoyment of benefits and entitlement
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 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;

(k)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;

(m) 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;

(n) 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;

(0) 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

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

)

(

SEC. 3. Framework and Principles. - Article II Section 9 of
Philippine Constitution declares that “The State shall promote a just
and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through


policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of
life for all.”

Therefore, it is the State’s responsibility to give the highest priority to
the enactment of measures that protect and enhance the rights of all
people to human dignity; reduce social, economic and_ political
inequalities; lessen vulnerabilities to risks including those brought
about by the environmental degradation and natural disasters,
remove cultural inequalities by redistributing wealth and_ political
power for the common good; and to develop an enabling environment
conductive to responsible citizenship. Towards this end the
government shall pursue and implement a comprehensive, rights
based, participatory, sustainable and gender responsive framework for
workers in the informal economy that includes but not limited to:

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

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

(c) Accessible and affordable social protection, including labor
market interventions, social insurance coverage, basic health
care, occupational safety and health, reproductive health
services, social welfare programs and safety nets;

(d) Policies, programs, and interventions that will ensure security of
workplaces or workers in the informal economy towards a work
environment that protects their rights and enables them to
become more productive;

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

() Mechanisms for the growth and expansion of the various
business activities or enterprises in the informal economy
preferably with the cooperation and support of the private
sector;

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

(h) Applicable Labor standards;

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


() 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.

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

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

The Informal Economy includes a wide variety of activities,
enterprises and workers. Self - employment consists of
employers of informal enterprises who hire other workers and
own-account workers. Wage-employment includes informal
employees of both formal and informal firms, subcontracted
workers, wage workers for households or domestic workers, and
wage workers with no fixed employer or casual day workers. The
working conditions, opportunities and risks faced by these
different categories of informal workers are very diverse.

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

(b) Informal Sectors as defined by the National Statistics
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 houscholds and
unincorporated enterprises that are market and nonmarket
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 ten (10)
employees on a continuous basis.

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


. 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 boat of three (3) gross tons
or less and other fishing equipment;

4. Fisherfolk who are without fishing equipment and who
market their catch;

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

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

7. Industrial homeworkers who are workers involved in a
system of production under which work is carried out at
their homes and where materials mayor 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 vendor who sell their merchandise
on streets and sidewalks

11. Vendors with stalls in public or 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 transportations 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
rebuilding;

14. All unregistered and unprotected domestic workers who
are generally not all 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, etch.;

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
nutrition scholars (BNS), barangay daycare workers, and
volunteers in non-government or people’s organizations.

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

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

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

(c) 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.

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

(h) Security in the Workplace -refers to the right of every worker to
an enabling environment that guarantees and protects the spaces for
WIE to undertake their work, including the right to feel safe in one’s
own work space, legal security of tenure and freedom from
discrimination, risk, danger, doubt, anxiety, or fear of being removed,
evicted or prevented to work. Towards this end, the State shall take
measures that will ensure legal security of tenure of workplaces,
taking into account and including the physical environment, services,
processes and systems needed to enable workers to productively and
safety perform their work:

(i) Hazardous Work Condition - refers to any activity or circumstance
where a worker is exposed to any risk which constitutes imminent
danger to his or her health or safety. This includes potential risks of


disability, injury, illness or death due to the presence of biologic
agents, radiation, chemicals, substances, hazardous materials;
physical hazards in the work environment; or the nature of work,
processes performed, or equipment used therein.

() Working Hours -refers to the period of time within which a worker
is required to be on call to perform any and all tasks that may be
designated, regardless of whether there are actual tasks being
undertaken.

(k) Daily Basis - refers to the per day mode of paying a worker as
bilaterally agreed upon by the employer and worker.

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

(m) Pakyaw - basis refers to the pre-contracted wholesale mode of
paying a worker as bilaterally agreed upon by the employer and
worker.

(n) Social Protection - refers to policies, programs, and all other
interventions that support communities, households and individuals,
both women and men, and aimed at: reducing poverty through the
promotion and sustenance of livelihood and employment; preventing,
managing and overcoming risks and vulnerabilities throughout their
life cycle like protection against hazards and sudden loss of income;
and realizing their rights as citizens through their full participation in
decision-making affecting or may affect their access to and control
over resources necessary to maintain and sustain a decent and secure
life.

(0) Social protection schemes - refers include labor market
interventions, social insurance , basic health care, social welfare and
safety nets.

(p) Community Contracting - refers to the process of concluding an
agreement between a community and a contracting authority, where
by the community (or a section thereof) is responsible for the
implementation of the work, and therefore, functions as contraction.

(q) Non-government Organization (NGO) - as defined in R.A. 8425,
refers to a duly registered nonstock, nonprofit organization focusing
on the upliftment of the basic or disadvantaged sectors of society by
among other, providing advocacy, training, community organizing,
research, access to resources, and other similar activities.


(r) People’s Organization (PO) - consistent with R.A. 8425 refers to a
self-help group belonging to the basic sectors or disadvantaged groups
composed of members having a common bond of interest who
voluntarily join together to achieve lawful common goals.

(s) 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

SECTION 5. Coverage. - This shall include individuals WIE, as
defined in Section 4 of this Act. IE business and enterprises, and
organization of workers in informal economy.

SECTION 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 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 growth oriented informal businesses. Further, the
database shall include information on payments collected from IE
workers, business activities or enterprises and organizations.

The aforesaid comprehensive database shall form part of the bases of
assessment and monitoring of the growth 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 expedite within one
day.

SECTION 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 1,
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
LOU 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

SECTION 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 limited to
the rights to:

(a) work, which includes the right 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 and transport;

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

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

(h) maternity and 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;

() freedom from any form of discrimination, violence,
exploitation including sexual exploitation, harassment, abuse,
and any intrinsic worth and dignity of the worker as a human
being;

(m) accessible social protection, comprising mainly of, but not
limited to labor market programs, social security, health care
and insurance, and social welfare interventions;

(n) equal treatment before the law;

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

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


SECTION 10. Organization of workers in informal employment,
including unions, cooperatives, mutual benefit associations, etc. shall
have right to:

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

(b) establish national federations or confederations and the right
of the latter to form or joint international trade-union
organization;

() access information from concerned government institutions

and other parties that are pertinent to the protection and
promotion of the rights and welfare of their members;

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

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

(9) undertaken all other activities, not contrary to law, designed
to benefit their organizations and members; and

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

(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 a special law expressly repealing this
provision.

SECTION 11. Organizing Workers in Informal Economy. - WIE
shall be encouraged to organize themselves for their mutual benefit
and protection, and for other legitimate purpose. Towards 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 farmers, fisher folk, 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.

SECTION 12. Assistance to Organization of Workers in the
Informal Economy. - All concerned national government units shall
include in their plans, programs, projects and activities efforts that
will support and address concerns of organizations of WIE.

SECTION 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 bas is of this monitoring.

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

SECTION 14. Prohibition against Recruitment of 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;

SECTION 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 exposes the worker to physical,
emotional or sexual abuse, or threats of such abuse;

(c) Any work which involves manual handling or transport of
heavy loads;


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

(e) 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;

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

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

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

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

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

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

(b) Preventing any worker from joining or assisting organizations

for purposes not contrary to law;

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

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

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


() 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:

SECTION 17. Labor Market Programs. - The State shall provide
adequate resources to sustain labor market programs following decent
work standards, including emergency and guaranteed employment
schemes, to ensure livelihood security and prevent or mitigate the
effects of sudden loss of income, in the context of sustainable
development and developing local economies in both rural and urban
areas.

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

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

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

(d) The State 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.


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

SECTION 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 of financial burden.

(a) The Social Security System (SSS) shall cover all workers,
particularly the working poor who mostly belong to the informal
economy. The SSS, in consultation with informal workers’
organization, shall customize products and service for them that
are accessible and affordable. In the interest of equity, the State
shall cover what should have been the employer’s share for
contribution of informal workers had they been formally
employed.

(b) The SSS shall also develop schemes involving government
subsidies and sponsorship programs to enable those who
cannot afford to enrol and sustain their membership.

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

(d) The SSS Commission, in the spirit of democracy, transparency,
accountability, and equity, shall require conducting regular
consultations with and provide information and reports to its
membership. Both formal and informal workers shall be
represented in the SSS Commission, where gender balance shall
also be observed.

(e) The SSS in cooperation with other relevant national agencies
and LGU’s, 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 updated.

() 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 a framework to make them more
development and supportive of the alternative schemes outlined
above.

SECTION 19. Social Security for Volunteers of Government
Instrumentalities. - Volunteers 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 minimum package of customized products, services and benefits
to be designed with their participation and with adequate government
subsidy.

SECTION 20. Health Care System and Financing. - The State shall
establish a comprehensive and integrated health care system that
guarantees provision of service by duly accredited and adequately
furnished health facilities, and appropriately educated and rationally
compensated health personnel to underserved areas all the way down
to the barangay level.

Provided that, such healthcare system shall include reproductive
health services, and provided finally, that priority in the delivery of
such services shall be the poor and marginalized.

The State shall ensure adequate resources to finance healthcare 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.

SECTION 21. Universal Health Insurances. - All citizens of the
Philippines shall be covered by the National Health Insurance Program
as provided for in R.A No. 10606. Participation of all stakeholders
shall critically review its current operations. It shall upgrade to meet
the goal of universal coverage, which is affordable, accessible and
appropriate to the needs of all.

(a) Government subsidies for Phil Health sponsorship programs shall
be expanded to cover not only the ultra-poor but also the working
poor, what should have been contributed by employers if they
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, person with HIV zed groups with at least 500
members shall be allowed to be collecting agents of premiums with
incentives.

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

(c) PhilHeatlh, in accordance with its guiding principles, shall
promote maximum community in participation and shall recognize
the roles and strengths of the Public and private sectors
healthcare, including people’s organization and community-based
health organizations. PhilHealth shall extend appropriate


recognition, technical assistance, and other forms of material and
non-material support to mutual benefit associations, microfinance
organizations, community-based health insurance and other
indigenous schemes initiated and participated in by WIE.

(d) PhilHealth, with maximum participation of all stakeholders, shall
review its benefits 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
checkups and other outpatient services; coverage of workplace-
related injuries and illness 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;

SECTION 22. Designation of Workplaces- The concerned Local
Government Unit (LOU), in coordination with their respective
WIELDO, and after consultation with WIE, affected communities, and
other relevant groups, shall identify, and designated 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.

In the event the concerned WIE prefer to conduct their economic
activities within an identified private property, the LOU 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 LGU’s, within 60 days from the effectivity of this Act, shall
conduct @ survey to identify viable vacant areas suitable for routes,
terminals, lanes, productivity and merchandising centers workplaces
for use of WIE, affected inhabitants localities.

The LGU’s shall, with in 90 days after survey and based on
recommendations of WIELDO and consultations with concerned WIE,
affected inhabitations and relevant sectors, pass an ordinance
designating such workplaces.

SECTION 23. Protection of Agricultural Lands and their
Occupants. — The LGU’s, 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, Tourists 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 land as protected zones, The LGUs shall make an
inventory of all agricultural lands under leasehold and shall enforce
the security of tenure or tenants, right if 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 R.A. No. 3844 or the Agricultural Land Reform Code.
Tenants shall not be evicted based on unilateral termination of the
tenancy relationship by landowners.

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

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

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

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

SECTION 25. Policy on Eviction and Demolition. — WIE shall not be
evicted from their homes and workplace without legal ground as
provided for in Republic Act 7279 or the Urban development and
Housing Act 1992. In cases where eviction or demolition is warranted
under Section 28 of RA 7279, the same shall be conducted upon
compliance of the following:

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

(b) Adequate consultations on the matter of resettlement with
the duty designated representatives of the families to be resettled and
the affected communities in the areas where they are to be relocated.

(c) Presence of local government officials or their representatives
during eviction or demolition;


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

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

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

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

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

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

SECTION 26. Policy on Confiscation Materials of Impounding of
Vehicles. — In cases where demolition or eviction is warranted, the
person who conducts the same shall issue and 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.

SECTION 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 LOU 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) clays before
the actual transfer or relocation to another market site. Within the
sixty (60) day period after issuance of notice the LOU shall conduct


consultations with affected vendors on the selection of the relocation
site and implementation of the relocation.

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

In the event that a new public market is constructed in place of an old
one, market vendors with stalls displaced from their workplaces shall
be given priority in the assignment of stalls in the new market.

SECTION 28. Policy on Relocation of Terminals. — Designated
terminals for tricycles and pedicabs shall not be arbitrarily relocated
without prior notice and consultation with small transport groups,
affected community and other relevant sectors. Provided, that
relocation of terminals can only be effected through an Ordinance.
Provide further, that after the enactment of such ordinance, notice of
intention to relocate terminals shall be made to all small transport
groups and affected community at least sixty (60) days before the
actual relocation.

CHAPTER VII. Special Allocations of Development Initiatives

SECTION 29. Special Allocations for Development Initiatives. —
The development initiatives for WIE shall form part of an integrated
and convergent plan to address poverty and vulnerability. The
national and local government units shall work together in support of
such plan to maximize impact of meager resources.

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

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

(c) The Implementing Rules and Regulations (IRR) of this Act shall
determine additional guidelines on, among others, the use of such
finances to ensure that programs and services truly benefit WIE.

SECTION 30. Sourcing and Adopting Development Initiatives. —
Other sources of funds to be used exclusively for initiatives addressing


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

(a) Government financial institutions and mechanisms such as
the Land Bank of the Philippines (LBP), Development Bank of the
Philippines (DBP),National Livelihood Support Fund (NLSF), and
Quedan Rural Credit and Guarantee Corporation shall set aside a
specific percentage of their loan portfolio to informal economy
enterprises by providing loans at an interest of not more than twelve
percent (12%) per annum consistent with the spirit of R.A. 7882, An
Act Providing Assistance to Women Engaging in Micro and Cottage
Enterprises.

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

(c) The Small Business Guarantee and Finance Corporation
(SBGFC) created under Republic Act (R.A) No. 8289 shall assist in the
sourcing and adopting of technology, production, management,
and business linkages. It shall also provide and promote,
develop and widen in both scope and service reach various alternative
modes of financing for informal economy business activities or
enterprises, including but not limited to: direct and indirect project
lending, venture capital, financial leasing, secondary mortgage and/or
rediscounting of loan papers to such business activities or enterprises,
and crop production financing. Further, the Corporation shall
guarantee loans obtained by qualified worker or business activity or
enterprise, under such terms and conditions adopted by its Board.

(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.

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

SECTION 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, such as supply chain and
market outlets, and schemes to develop Special Credit Windows to
upscale informal enterprises.


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

CHAPTER VII. Informal Economy Development COUNCIL (IEDC)

SECTION 33. Creation of the Informal Economy Development
Council (IEDC).- There is hereby created an Informal Economy
Development Council, here in after referred to as the IEDC, which
shall be an agency 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.

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

(a) Develop and ensure implementation of a simple system of
accreditation for the WIE workers, enterprises, and
organizations in accordance with the standards and provisions
of this Act;

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

{c) Develop and ensure implementation of annual, long-term by
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;

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

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

() Coordinate with LGUs for the Development of Implementation
of periodic evaluation of al accredited IE members, enterprises
and organizations taking into account their accomplishments,
capabilities and potentials. The results of such evaluation shall


be uses as basis for accreditation, the grant of awards and
incentives, training and retraining.

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

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

(i) 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 informal 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 resolved 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
instrument's laws and programs.

() Develop and ensure implementation of a communication plan
including massive information dissemination activities targeting
WIE, their enterprises and organizations, in the various regions


towards a better understanding and appreciation of the benefits
this Act may bring them;

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

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

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

(n) Monitor the LOU-genera ted incomes from informal
employment through the LGUs’ periodic report submitted to the
Council;

(0) After consultations with WIE organizations, develop and
ensure implementation of Policies and programs that will
address specific needs and ensure rights of WIE subsectors;

(p) Develop and ensure implementation of accessible and just
conflict resolution and adjudication system and mechanisms to
promote dialogue, conciliation, mediation and redress of
grievances to protect the rights of WIE; and

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

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

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

b) Director General of the National Economic and
Development Authority (NEDA);

¢) Secretary of Department of Agriculture (DA)

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

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

f) Chair of the Commission on Human Right (CHR);

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

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


i) Chair of the Social Security System (SSS);

j) Chair of the Philippine Health Insurance Corporation
(PhilHealth);

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

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

m) One (1) representative from the private sector at large, a

Filipino citizen proven to have been active in assisting

informal economy workers;

One (1) representative each from the League of Cities,

League of Municipalities, League of Provinces and League

of Councilors;

The incumbent NAPC Informal Sector Sectoral

Representative;

At least 30% of total membership of IEDC shall come from

organization of workers in the informal economy, as well

as People’s Organization (POs), NGOs. And women’s

organizations actively working with and for the rights of

WIE, provided that regional and — subsectoral

representation shall be ensured. Provided further, that at

least 40% of the 30% are women. Guidelines for the

selection of nongovernment IEDC members, including

processes and mechanics shall be determined by the IRR

of this Act.

n)

0}

P)

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

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

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

SECTION 37. Initial IEDC Funds - Ten million pesos
(P10,000,000.00) shall be allocated from the Presidential discretionary
fund for the initial operation expenses of the IEDC.

SECTION 38. Executive Committee of the IEDC - An Executive
Committee of nine members shall be convened. Besides the Chair and
Vice-Chair, the following shall be elected by the IEDC members from
among themselves or their duty designated alternate representatives:
four (4) representatives of WIE organizations, one (1) from the different


leagues of local officials, one (1) from the private sector, and one (1)
from a national government agency, provided that at least three (3)
members of the Executive Committee are women.

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

SECTION 39. IEDC Secretariat. The following secretariat functions
shall be integrated in the DOLE secretariat functions:

a) Prepare and recommend, in coordination with LGUs and other

government agencies, annual, medium-term, and long-term

Informal Economy Development Plans for approval of the IEDC;

Coordinate the preparation of position papers and background

materials for discussion or approval during IEDS and its

Executive Committee meetings; Assist in coordinating and

monitoring policies, programs and activities of all government

c) Agencies with respect to the implementation of this Act;

d) 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 IEDC;

Submit periodic reports to 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.

b)

e)

SECTION 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 functions that include: monitoring and coordinating of IEDC
initiatives in the regions and Provinces; evaluation of policies
programs for workers on 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).

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

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


SECTION 42. Workers in Informal Employment Local
Development Office (WIELDO). - The Workers in Informal
Employment Local Development Office (WIELDO) shall be established
on 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 plains;

b) In consultation with WIE organization in the area, identify

specific needs of various IE sub sectors and recommend

appropriate measures to be taken;

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 organization in the areas;

Lead in the local implementation of Chapter VI (Security in the

Workplace of WIE) of this Act;

f) Coordinate with other local offices, private sector and other

organization with existing programs for VIE 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 of WIE;

Provide technical support and facilitate access to credit, market,

technology, social protection schemes, and training for WIE;

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

j) Support organizing activities among WIE;

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

1) Provide officers and other necessary to support organizing,
advocacy, training, and other activities of local organizations of
WIE;

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

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

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

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

SECTION 43. Composition. - The Local Chief Executives (LCEs) shall
be the primary overseers of WIELDO’s operations. The IRR of this Act
shall provide for WIELDO’s composition provided that, informal
workers’ representatives shall form at least fifty percent (50%) of
WIELDO’s decision-making body: Provided further, that IE
representative shall not be less than five (5), and provided finally, that
at least forty percent (40%) of the members of WIELDO’s decision-
making body are women. Other relevant guidelines on WIELDO’s
operation shall be included in the IRR of this Act.

SECTION 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. 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;

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

c) Annual allocations from LGUs Development Fund the

percentage of which shall be determined by LOUs.

b)

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.

SECTION 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;

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 fisher folks - for programs focusing on fisher
folk;

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

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e)

TITLE I
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter I
Requisites for Employment Agreement

SECTION 46. Minimum Standard. - 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 or industrial parks
licensed by the Export Processing Zone, and domestic formal sector
manufacturers and retailers-distributors.

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

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

In cases wherein illiterate workers are contracted with, the said
contact 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) Period /duration of employment;

c) Compensation, which shall not be below the minimum
standard, and mode of payment;

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

¢) Duties and responsibility;

f) Working hours and day-off schedules;

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

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

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

Minimum standard compensative referred to above shall be
determined by the Regional Wage Board 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 rates for workers in informal economy
jobs, the basis of computation shall not be below the 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.

SECTION 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 deduction are made.

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

Chapter II
Workers of Minor Age


SECTION 49. Allowable Employment of Workers of Minor Age. -
Children fifteen (15) 1284 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 duty
elected Barangay 1286 official where the work is to be done. In no
instance, however, shall children below fifteen (15) years old be
engaged in whatever form of productive services.

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

TITLE Ill
FINAL PROVISIONS

SECTION 50. Penal Provisions

a) Any person who shall willfully interfere with, restrain or coerce a
worker in the exercise of his or her or her rights or shall in any
man1ler commit any act in violation of any of the provisions of
this Act shall, upon conviction, be punished by a fine of not less
than Twenty Thousand Pesos (P20,000.00) or imprisonment of
one (1) to six (6) years or both fine and imprisonment at the
discretion of the Court.

b) If the offender is a public official or employee, the Court, in

addition to the penalties provided in the preceding paragraph,

may impose the additional penalty of disqualification from
public office.

Any person who violates Section 26 of this Act (Policy on

Confiscation of Materials and Impounding of Vehicles) shall be

liable. Nothing here in shall prohibit the aggrieved WIE from

initiating a criminal or civil action against the responsible
person or officer applicability.

Failyre to implement Sections 27 and 28 of this Act (Policy on

Relocation of Vending Sites and Policy on Relocation of

Terminals) shall render the responsible officials administratively

liable pursuant to Republic Act No. 7160 and other pertinent

laws and criminally liable whenever applicable.
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.

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SECTION 51. Implementing Rules and Regulations (IRR). — The
implementing Rules and Regulations (IRR) of this Act shall be
formulated by a drafting committee composed of representatives of
offices that will be members of IEDC and WIE organizations provided
that, at least 30% of the drafting committee members shall come from


the latter and provided further that at least 30% of committee
members are women. Said committee shall start work on IRR within
three (3) months after the effectivity of this Act and finish within six
(6) months thereafter.

SECTION 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.

SECTION 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.

SECTION 54. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in at least two (2) newspaper of general
circulation.

Approved,