NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 42
stHE e«-,
DATE:
BILLS & INDEX
Introduced by SENATOR JINGGOY EJERCITO ESTRADA
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY
EXPLANATORY NOTE
The legislation is one significant contribution toward fulfilling the Constitutional 
mandate of social justice and human rights for the poor. The 2008 Informal Sector 
Survey (2008 ISS) showed that there were about 10.5 million informal operators who 
are either self-employed (without any paid employee) or employer in own-family 
operated farm or business. Contrary to the usual notion, the informal sector is truly 
productive. They provide array of services to the public and are engaged in legitimate 
undertakings. According to official estimates, one-third of the country's total gross 
domestic product (GDP) can be attributed to the informal sector.
Sadly, this contribution of the informal sector to the economy is insufficiently 
recognized. This is proven by the inadequate legal and social protection accorded to 
this sector. What is worse Is that members of informal sector groups have been a 
source of not only of local revenues such as market taxes, and some are even 
vulnerable to "kotong."
During the deliberations of the Bayanihan Act which sought to provide 
immediate relief and assistance for the distressed sectors of the economy at the height 
of the novel Coronavirus pandemic, it was learned that there are no clear data as to 
the true number and accurate description of the composition of this sector. Such


severely affected the government's efforts to reach the most vulnerable segment of 
the population.
The proposed Magna Carta for Workers in the Informal Sector is consistent with 
the provisions of the International Covenant on Economic, Sociai and Culturai Rights, 
to which the Philippines is a State Party.
This measure provides the rights and benefits of workers, as well as the rights 
of legitimate organization of workers in the informal economy, establishes labor 
standards and enforcement of labor laws for workers in the informal economy, and 
prescribes social protection such as accessibility of safety nets from the Department 
of Labor and Employment (DOLE), Department of Social Welfare and Development 
(DSWD), Department of Agriculture (DA) and other agencies, and provision of social 
insurance programs from SSS, Pag-Ibig and PhilHealth.
A separate chapter ensuring security in the workplace of workers in informal 
economy or employment Is also provided under this bill, to wit:
a) Workers in the informal economy shall not be evicted from their homes and 
workplaces without legal ground and provision of livelihood opportunities, 
adequate water and electricity availability and decent conditions of living;
b) 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;
c) In cases where demolition or eviction is warranted, the person, government 
agencies or their respective agents who conduct the same shall issue an 
itemized receipt of all products, goods, and other materials seized or 
confiscated from vendors. Tricycles, pedicabs, and other modes of 
transportation shall not be impounded for violations of license, registration, 
or traffic regulations.
d) Designated terminals for tricycles, pedicabs, and other similar modes of 
transportation shall not be arbitrarily relocated without prior notice and 
consultation with small transport groups.
I am refiling this bill, which Is a product of rigorous consultations with informal 
sector groups and leaders from the five informal sub-sectors in Luzon, VIsayas, and


Mindanao in 2008, and which I originally submitted during the Fifteenth Congress in 
2010. This version is an output of the Senate Committees on Labor, Employment and 
Human Resources Development; Social Justice, Welfare and Rural Development; Ways 
and Means; and Finance during the Seventeenth Congress.
In this light, the immediate passage of this bill is highly recommended.
31NGGOY EJERCITO ESTRADA
-i J


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. 42
DATE
INDEX
BILLS
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Chapter I
2 
GENERAL PRINCIPLES
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Section 1. Short Tide. - This Act shall be known as the "Magna Carta for
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Workers in the Informal Economy."
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Sec. 2. Declaration of Policy. - It Is hereby declared the policy of the State to:
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a) Promote a Just and dynamic social order that shall ensure the prosperity
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and independence of the nation and free the people from poverty through
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policies that provide adequate social services, promote decent,
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environmentally sound and full employment, a rising standard of living,
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and an Improved quality of life for all;
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b) Protect, promote and fulfil the rights of every worker. Including gender
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equity, non-dlscrimlnatlon, the right to self-organization, just and humane
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conditions of work, access to social protection programs and services,
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access to Justice, security of and in the workplaces, and the right to
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represent their organizations in a continuing process of consultation, social
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dialogue and tripartite bodies; and


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c) Establish an integrated and coherent policy, at all levels of government, of 
formalization of Informal economic units and Informal economy workers 
and make them visible In ail relevant national and local statistics.
Sec. 3. Coverage. - This Act shall apply to all workers and economic units. 
Including enterprises, entrepreneurs and households in the informal economy, in 
particular:
a) Those In the informal economy who own and operate economic units. 
Including self-employed workers, self-employed own account workers, 
employers, members of cooperatives, and members of other social and 
solidarity economy units;
b) Home-based workers or contributing family workers, irrespective of 
whether they work in economic units in the formal or informal economy;
c) Employers holding informal jobs in or for formal enterprises, or for 
economic units In the informal economy, including those in contract 
arrangement and/or in supply chains, or as paid domestic workers 
employed by households;
d) Workers in unrecognized or unregulated employment relationships;
e) Agricultural workers or fisherfolk in unrecognized or unregulated 
agricultural or farming endeavors and fishing activities; and
f) Non-regular domestic workers.
Sec. 4. Definition of Terms. - As used in this Act, the following terms shall
mean:
a) Informai Economy - refers to all economic activities by workers and 
economic units that are, in law or in practice, not covered or insufficiently 
covered by laws or formal arrangements.
b) Economic Units in the Informai Economy - refer to units that are owned 
by individuals working on their own account either alone or with the help 
or contributing family workers; household enterprises engaged in the 
production of goods and services or unincorporated enterprises owned by 
households; cooperatives and other social and solidarity economy units.


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c) Informal Economy Workers Organization - refers to a group of informal 
sector workers that are organized with the primary objective of promoting 
the rights and welfare of workers in the informal economy.
d) Informal Employment - refers to an employment arrangement In the 
formal or informal sectors or in households that exist based mostly on 
casual employment, kinship or personal and social relations with no formal 
guarantees on legal protection and benefits economic units that are 
unregistered, unlicensed and unregulated.
e) Own-account worker - refers to workers who, working on their own 
account or with one or more partners, hold the type of job defined as a 
self-employed job, and have not engaged on a continuous basis any 
employees to work for them during the reference period.
f) Security of and in the Workplace - refers to the right of every worker and 
Informal economic unit to an enabling environment that guarantees and 
protects the spaces to undertake their work. Including the right to be safe 
in one's own work space, free from discrimination, risk, danger, doubt, 
anxiety, or fear of being removed, evicted or prevented from working.
g) Social Protection ~ refers to policies and programs that seek to reduce 
poverty and vulnerability to risks and enhance the social status of the 
marginalized by promoting and protecting livelihood and employment, 
protecting against hazards and sudden loss of income, and improving 
people's capacity to manage risk, as well as other interventions that 
support communities, households, and Individuals, both women and men, 
and realizing their rights as citizens through their full participation In 
decision-making affecting or which may affect their access to and control 
over resources necessary to maintain and sustain a decent and secure life.
h) Social and Solidarity Economic Units - refer to enterprises and 
organizations including cooperatives as defined under Republic Act No. 
9520, mutual benefit societies, associations, foundations and social 
enterprises which produce goods, services and knowledge that meet the 
needs of the community they serve, through the pursuit of specific social 
and environmental objectives and the fostering of solidarity.


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Chapter II
RIGHTS AND BENEFITS
Sec. 5. Rights and Benefits of Workers in the Informal Economy. - Workers in 
the informal economy shall be entitled to all the rights accorded to workers by the 
Philippine Constitution, the Labor Code of the Philippines, as amended, and relevant 
International human rights instruments and International labor standards. 
Accordingly, the State shall guarantee all workers in the informal economy the 
following:
a) Right to security of and in the workplace;
b) Right to make a living by work freely chosen or accepted and avail of 
technical and vocational guidance and training programs;
c) Right to just and favorable conditions of work, including provision for 
work-life balance, child care and other facilities;
d) Right to 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;
e) Right to equal opportunity for promotion, subject to no other 
considerations than seniority and competence;
f) Right to safe and healthy working conditions safeguarding general, 
occupational and reproductive health;
g) Right to basic services Including affordable medical care, reproductive and 
other health services, low-cost housing, water, sanitation, electricity and 
transport;
h) Right to rest, leisure and reasonable limitation of working hours and 
periodic holidays with pay, as well as remuneration for public holidays 
whenever applicable;
I) Right to maternity and paternity benefits, as provided for by law;
j) Right to equal access to education, skills training, and economic resources 
to develop self-reliance, especially of children and young persons, without 
any discrimination;


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k) Right to self-organization and to collectively negotiate with government 
and other entitles In the promotion of their welfare and advancement of 
their Interests, free from any political Interference;
l) Right to adequate standard of living for workers and their faniilles, 
adequate food, clothing, shelter, and the continuous Improvement of such 
standard;
m) 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;
n) Accessible social protection and safety nets, labor market programs, and 
social welfare interventions such as social security, health care and 
insurance;
o) Equal treatment before the law;
p) Right to participate in policy and decision-making processes and social 
dialogue, including access to information and resources relevant to the 
promotion and protection of their rights and welfare;
q) Equal access to justice for redress of grievances. Including alternative 
dispute resolution processes; and
r) Access to public procurement including advice and reserving quota for 
informal economic units.
Sec. 6. Rights and Benefits of Own-Account Workers. - Own-account workers 
as well as Informal economic units, being the working poor's primary instruments to 
address and overcome poverty, shall be accorded preferential rights by the State 
over the following:
a) Infrastructure support such as farm to market roads, common, affordable 
and secure workplaces and facilities, merchandising centers, farmers' or a 
"bagsakan" with proper storage facilities, and inventory bulk-buyng 
centers;
b) Policy support to promote and protect locally-produced products and 
services Including enhancement of the local value chain;


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c) Ease and facilitation of access to markets, including capacity-building to 
access e-marketing facilities;
d) Access to affordable, appropriate and adequate financial services, 
including, among others, collateral-free and gender-balanced credit at low 
interest;
e) Access to appropriate and adequate machinery, equipment, and other 
technologies, with the end in view of increasing productivity and growth;
f) Protection from unjust dislocation from places where economic activities 
are conducted observing the policy of "relocation before demolition";
g) Measures against racketeering, extortion, and harassment, by both State 
and non-state elements;
h) Common workplaces, common technology facilities, adequate and 
affordable marketing facilities such as economic freedom parks, 
merchandising centers, and inventory bulk-buying centers;
i) Freedom from deprivation of property without valid cause and due process 
of law; and
j) Affordable and customized social security and insurance programs.
Sec. 7. Rights of Legitimate Organization of Workers in the Informai Economy 
or Empioyment - Workers in the informal economy or employment may organize 
into unions, cooperatives, social and solidarity economic units' organizations and 
mutual benefit associations. Legitimate organization of workers in the informal 
economy or employment shall have the right:
a) To freely function and act as the representatives of their members in 
policy and decision-making processes, collective negotiations, tripartite 
bodies and consultations, multi-sectoral and other similar bodies;
b) To establish, join or affiliate with national federations or confederations 
and international trade union organizations;
c) To 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) To own property, real or personal, for the use and benefit of their 
organizations and members;


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e) To sue and be sued under their registered name; and
f) To undertake all other activities, not contrary to law, designed to benefit 
their organizations and members.
Sec. 8. Assistance to Organizations of Workers in the Informai Economy. - 
The State shall encourage and support the formation of organizations among 
marginalized farmers, fisherfolk, women, and workers in the Informal economy or 
employment whether in manufacturing, agriculture, transport, retail, services, and 
home-based workers.
Toward this end, ail national government agencies, government financial 
institutions and local government units' plans, programs and policies shall foster an 
atmosphere conducive to the exercise of the right to self-organization of the workers 
In the Informal economy and access to purchase inputs at lower cost, obtain fair 
prices for their produce, avail of credit assistance and skills training, and share from 
collective gains In the case of the cooperatives.
Chapter III
SECURITY IN THE WORKPUCE OF WORKERS IN 
INFORMAL ECONOMY OR EMPLOYMENT
Sec. 9. Designation of Workplaces. - Local Government Units (LGUs), In 
coordination with their respective organization of workers in the informal economy 
and their members, affected communities and other relevant groups, shall endeavor 
to identify, designate and design a system of assignment on the following:
a) Productivity and merchandising centers as viable workplaces for informal 
workers, which may Include markets and vacant areas near markets, 
vacant public spaces and other spaces which may be a private property 
that the LGU may acquire, lease or negotiate with legitimate organization 
of workers in the Informal economy for lease under a memorandum of 
agreement; and
b) Routes, terminals and specific lanes for small transport workers.
Sec. 10. Policy on Eviction and Demolition. - Workers In the informal 
economy or employment shall not be evicted from their homes and workplaces 
without legal ground as provided under Republic Act No. 7279, otherwise known as 
the "Urban Development and Housing Act of 1992," and provision of livelihood


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opportunities, adequate water and electricity avaliabliity as well as decent conditions 
of living in accordance with law. Logistical viability for the displaced shall be given 
priority In the course of determining the relocation sites or areas.
Sec. 11. Policy on Confiscation of Materials and Impounding of Vehicles. - In 
cases where demolition or eviction is warranted, the person, government agencies or 
their respective agents who conduct the same shall Issue an Itemized receipt of aii 
products, goods, and other materials seized or confiscated from vendors and other 
affected workers in the informal economy or employment.
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 violation of 
traffic regulations, a traffic violation ticket shall be issued to the erring driver without 
impounding his/her vehicle.
Sec. 12. Policy on Relocation of Vending Sites. - Before any public market is 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to 
a temporary or new public market. Notice of the intention to close, sell or demolish 
any public market shall be made to all concerned vendors at least sixty (60) days 
before the actual transfer or relocation to another market site. Within the sixty-day 
period after issuance of notice, the LGU shall conduct consultations with affected 
vendors on the selection of the relocation site and implementation of the relocation.
Vendors, ambulant or otherwise, occupying or selling in public places not 
previously designated as vending site shall be provided with viable temporary sites 
by the LGU and notice of temporary transfer shall be given to the vendors at least 
fifteen (15) days before the actual transfer to temporary vending site. The fifteen 
(15) days notice 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 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.


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Sec. 13. Policy on Relocation of Terminals. - Designated terminals for 
tricycles, pedlcabs, and other similar modes of transportation shall not be arbitrarily 
relocated without prior notice and consultation with small transport groups, 
legitimate organizations of workers in the Informal economy or employment, 
affected community and other relevant sectors. Relocation of terminals can only be 
implemented through an Ordinance, the enactment of such shall be subject to the 
required consultation and notice of intention to relocate terminals to affected small 
transport groups and community at least sixty (60) days before its issuance.
Chapter IV
SOCIAL PROTECTION FOR THE INFORMAL SECTOR
Sec. 14. Formalization of the Social Protection Floor. - The State shall 
support, sustain, enhance or institutionalize the social protection floor initiative 
through convergence of the resources of various agencies of the government for 
continuous social security and health insurance subsidies to vulnerable and other 
informal workers as well as initiate programs for the unemployed, children and older 
persons based on applicable and ever Improving standards.
Sec. 15. Social Welfare Efforts. - The Department of Social Welfare and 
Development (DSWD) shall consolidate social welfare efforts to address the needs of 
the workers in the informal economy, including direct assistance, policy development 
and community engagement for the workers.
Sec. 16. Role of the Department of Labor and Employment - The 
Department of Labor and Employment (DOLE) shall engage in labor market 
interventions that shall provide adequate protection for the workers in the informal 
economy and ensure timely and immediate action for labor concerns as well as 
security of tenure, job generation and other pertinent concerns.
Sec. 17. Social Safety Nets. - Social safety nets provided or implemented by 
the DOLE, DSWD, Department of Agriculture (DA) and other government agencies 
shall be made accessible to all workers In the informal economy and to their 
legitimate organizations.
Sec. 18. Social Insurance. - Social Insurance programs including Social 
Security, Pag-IBIG (Home Development Mutual Fund), and PhilHealth shall be fully 
available to workers of the Informal economy, and for this purpose, policies and


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mechanisms for their full utilization and benefit shall be formulated by the SSS, 
HDMF, and PhilHealth.
Chapter V
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS 
FOR WORKERS IN THE INFORMAL ECONOMY
Sec. 19. Applicability of the Provisions of the Labor Code. - The provisions of 
the Labor Code governing the employer-employee relationship particularly on 
general labor standards and occupational safety and health standards shall apply to 
all forms of work arrangements in the informal economy.
Sec. 20. Prohibited Acts Specific to Workers in the Informal Economy. - The 
following are deemed prohibited:
1) Non-compliance with minimum labor standards and occupational health 
and safety standards. - The employment contract shall be In writing 
specifying the terms and conditions of engagement which must not be 
lower than the minimum standards provided by law. However, the 
absence of a written agreement does not mean the absence of an 
employment relationship.
The contract shall be explained to the worker 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.
2) Recruitment or Finders' Fees. - Regardless of whether the worker was 
sourced either through an employment agency or a third party, workers in 
the informal economy shall neither be charged nor levied a recruitment 
fee or finders' fee by the aforementioned employment agency or third 
party.
3) Hazardous Work and Conditions. - Workers shall not be engaged to do 
hazardous work, activity or undertaking, or be exposed to hazardous 
working conditions in accordance with law.
4) 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;
in


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b) Preventing any worker from joining or assisting organization 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
f) Other acts calculated to diminish the independence and freedom of 
workers' organization to direct Its own affairs.
5) Non-compliance with Republic Act No. 7610, as amended by Republic Act 
No. 9231 in the employment of minors. - In cases where mrnors are 
contracted or hired to render work or services, the age should be at least 
fifteen (15) years old and there Is parental or legal guardian consent In the 
employment contract. In addition, the employment contract should also be 
attested to by any representative of the LGU or duly elected oarangay 
official where the work Is to be done. The employers of the minors shall 
also provide them with access to at least elementary or secondary 
education, either through traditional schooling or alternative learning 
systems.
Sec. 21. Visitorlal and Enforcement Power of the Secretary of Labor and 
Employment - Employment contracts and/or engagements In the Informal Economy 
shall be subject to the visitorlal and enforcement power of the Secretary of Labor 
and Employment pursuant to Article 128 of the Labor Code of the Philippines.
Chapter VI
POLICY COORDINATION AND DEVELOPMENT
Sec. 22. Function of National Economic and Development Authority. - The 
Committee on Social Development of the National Economic and Development 
Authority (NEDA) shall develop policies and programs that shall institutionalize and 
strengthen informal economy workers and the informal economy units.
11


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Sec. 23. Informal Economy Initiatives of Local Development Council. - The 
Local Development Councils of all provinces, cities and municipalities shall establish a 
body of coordination, registration and assistance for workers in the Informal 
economy within their respective jurisdictions.
The Local Development Councils shall also form a sectoral or functional 
committee that shall facilitate the registration of Informal economy workers.
Chapter VII
REGISTRATION OF INFORMAL ECONOMY WORKERS
Sec. 24. Registration. - Pursuant to its functions under the Local Government 
Code, the Local Development Council, through its Secretariat or through the creation 
of a sectoral or functional committee, shall establish a system of registration of 
workers of the informal economy. The system shall be as follows:
a) Workers. - There shall be a simple and standard system of registration in 
accordance with the framework and principles of this Act. A one-time 
registration fee of not more than Fifty Pesos (P50.00) per individual 
worker shall be paid to the municipality or city where the worker resides.
Any Informal Economy (IE) worker registered in the local government 
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. Such Identification card shall serve as 
proof of the IE worker's right to avail of development programs: Provided 
that, the poorest and the most vulnerable workers shall be given priority.
The concerned LGU shall review, revalidate and reassess such 
database as a tool for local planning and for other purpose every two (2) 
years. 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.
b) Informal Economic Unit - A comprehensive database of all economic units 
shall be developed and maintained. Such database shall take into account 
the different sub-classifications in terms of asset size, number of workers, 
social insurance provided, statutory benefits and wages. Industry, 
geography, premises, sex, ethnicity, vulnerability and roles and functions.
1-?


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The database shall also Indicate Informal economic units which may be 
categorized as livelihood enterprises and entrepreneurial or growth 
oriented Informal businesses.
The database shall also Include Information on payments collected 
from IE workers, Workers In the Informal Economy (WIE) organizations 
and economic units. The Barangay Micro Business Enterprise (BMBE) 
Registry, in general, shall Include these Informal economic units, pursuant 
to the qualification of micro-enterprises under Repubiic Act No. 8425.
The aforesaid comprehensive database shall form part of the bases of 
assessment and monitoring of the growth of the 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 and worker's 
registration. The Center shall ensure that processing of the business 
permit of the informal economy units shall be expedited and shall be 
completed within one day.
The DOLE shall create a checklist of requirements for registration.
c) Informal Economy Organizations/Associations (lEO/A). - lEO/A shall 
register or accredit with the Department of Labor and Employment 
(DOLE).
Sec. 36. 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 Local Development Councils referred herein. In no case shall 
the annual dues to be paid by the IE workers be more than 30% 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 and organizations/associations, business activities, enterprises 
and organizations, as recommended by the Local Development Council. Such


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programs and disbursement of funds shall be approved by the concerned LGU 
Council in consultation with the local informal economy constituents.
Sec. 37. Registration and Non-Registration. - In no case shall registration be 
construed as a basis for rights and entitlements and rights under this Act, and it 
shall not be made as a prerequisite to work by any private enterprise or government 
unit.
Chapter VIII 
FINAL PROVISIONS
Sec. 38. Penai Provisions. -
a) Any person who shall wilfully 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 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, the Court, in addition to the penalties 
provided in the preceding paragraph, may Impose the additional penalty or 
disqualification from public office.
c) Any person who violates Section 11 of this Act (Policy on Confiscation of 
Materials and Impounding of Vehicles) shall be liable. Nothing herein shall 
prohibit the aggrieved workers in the Informal economy from initiating a 
criminal or civil action against the responsible person or officer.
d) Failure to Implement Sections 12 (Policy on Relocation of Vending Sites) 
and 13 (Policy on Relocation of Terminals) shall render the responsible 
official/s administratively liable pursuant to Republic Act No. 7160 and 
other applicable laws, without prejudice to any civil or criminal cases that 
may be filed against such erring official/s.
e) If a private institution/company is found to have violated any provisions of 
this Act, its business shall be suspended or revoked at the discretion of the 
Court.
Sec. 39. Impiementing Ruies and Reguiations (IRR). - The DOLE, DILG and 
NEDA, in coordination with other concerned agencies and stakeholders, shall
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formulate the implementing rules and regulations within one hundred eighty (180) 
days from the effectivlty of this Act.
Sec. 40. Separability Clause. - If any provision or part hereof Is held Invalid or 
unconstitutional, the remainder of the law or the provision or part not otherwise 
affected shall remain valid and subsisting.
Sec. 41. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of Instruction, administrative order, rule, or regulation 
contrary to or Inconsistent with the provisions of this Act are hereby repealed, 
modified, or amended accordingly.
Sec. 42. Effectivlty. - This Act shall take effect fifteen (15) days after Its 
publication in the Official Gazette or In a newspaper of general circulation.
Approved,
1K