Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8917

HOUSE BILL NO.

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

The informal economy, which consists of independent, self-employed, small-scale producers and
distributors of goods and services, plays a significant and crucial role in job and income generation
particularly in situations where there is high unemployment, inequality and poverty. It generally
serves as a refuge for individuals who would otherwise be unemployed or without livelihood. The
2008 Informal Sector Survey (2008 ISS) of the Philippines reported an estimated 15.68 million
individuals employed in the informal sector.

While the informal economy provides reasonable economic opportunities to some, most workers
in the informal economy are exposed to unsafe working conditions; are not provided adequate
skill training; do not have security of tenure; have lower and irregular incomes; and lack collective
bargaining and representation rights. It is then upon the State to legislate a Magna Carta for
these workers which will recognize, defend, protect, promote and fulfil their rights through a
continuous process of capacity-building and empowerment.

Among the salient provisions of this measure is the establishment of a simple and standard system
of accreditation of informal economy workers, enterprises, and organizations. This measure shall
likewise provide informal workers access to social protection and justice; make them visible in
statistics; provide appropriate standards and regulations in their favor; develop and implement
meaningful plans, policies and programs that will harness their full potential to become effective
and productive economic actors.

(On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.

AYAR | fi A
REP, 3 }. TAMBUNTIN'
id District, Parafiaque City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 8917

Introduced by HON, JOY MYRA S. TAMBUNTING

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

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

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;

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;

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

e) 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;

f) To recognize the roles, give proper value to the contributions of workers in the informal

economy and make them visible in the national and local statistics;

To provide venues for dialogue and consultation with informal economy workers so that

their concerns and needs ate effectively addressed by lasting and workable reforms in

enforcement of labor standards, advancement of labor relations;

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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;

J) To promote gender equity and equality by protecting women workers in the informal

economy against gender-based discrimination, exploitation and abuse, advancing

women's social, economic, political, and reproductive rights, and improving their access
to social protection and participation in decision-making bodies and processes;

To develop the local economy through maximization of the potential and contribution of

informal economy business activities and enterprises;

1) 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;

To advance the autonomy and empowerment of local government units and their

capability to be more responsive to the needs of the workers in informal economy among

their constituents;

©) To protect vulnerable groups in the informal economy such as children, older persons,

differently-abled persons, indigenous peoples, and people living with HIV and AIDS from

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

To integrate ethnicity as a factor in the formulation of programs and mechanisms to

promote and protect rights of workers in the informal economy.

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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

b)

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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;

Structural reforms in all relevant levels of government by creating committees, special
offices for development and protection of workers in the informal economy and supporting
their representational, entrepreneurial and other rights through their organizations;
Accessible and affordable social protection, including labor market interventions, social
insurance coverage, basic health care, occupational safety and health, reproductive health
services, social welfare programs and safety nets;

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;

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;
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;

Applicable Labor standards;

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

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.


b)

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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.

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 households 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.

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

1) Small farmers owning land not more than three (3) hectares;

2) Rural and agricultural workers who are tenants, sharecroppers, or laborers;

3) Small fisherfolk/operators owning 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 (P 1,000,000.00)
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;


d)

e)

9)

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13) Operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation
whose capitalization is not more than one million pesos (P 1,000,000.00) excluding
land and rebuilding;

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 (P
1,000,000.00);

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, stunt men 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.

14)

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

Self-employed Worker ~ refers to any person who has no employer and who works for
himself/herself by producing goods or services for the market.

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

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

Security in the Workplace — refers to the right of every worker to an enabling
environment that guarantees and protects the spaces for WIE to undertake their work,
including the right to feel safe in one's own work space, legal security of tenure and
freedom from discrimination, risk, danger, doubt, anxiety, or fear of being removed,
evicted or prevented to work. Towards this end, the State shall take measures that will


ensure legal security of tenure of workplaces, taking into account and including the
physical environment, services, processes and systems needed to enable workers to
productively and 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.

j) 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.

1) 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.


1) 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 IT
Coverage, Qualifications, and Accreditation

SECTION 5. Coverage. - This shall include individuals WIE, as defined in Section 4 of this Act.
TE 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 I, Chapter
IX of this Act. In no case shall the annual dues to be paid by IE workers be more than Two
Hundred Percent (200%) of the prescribed daily minimum wage as determined by the Regional
Tripartite Wages and Productivity Board (RTWPB) in their respective LGU where they are
accredited. The accumulated funds from these dues shall be used for programs to benefit IE
workers, business activities. Enterprises, and organizations, as recommended by the WIELDO.
Such programs and disbursement of funds shall be approved by the concerned LGU Council.

Chapter IIT
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:

) 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;

©) a living wage and equal remuneration for work of equal value without distinction of any

kind, in particular for women who shall be guaranteed equal wages for work similar or

equivalent to those done by men;

equal opportunity for promotion, subject to no other considerations than seniority and

competence;

safe and healthy working conditions safeguarding general, occupational and reproductive

and transport;

f) access to basic services including but not limited to affordable medical care, reproductive

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

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

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;

self-organization to collectively negotiate with government and other entities in the

promotion of their welfare and advancement of their interests free from any political

interference;

an adequate standard of living for workers and their families, sufficient food, clothing and

shelter, and the continuous improvement of such standard;

1) 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;

d)

e)

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©) 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;

) 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;

f) 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 either 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.

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.

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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;

©) 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;

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

f)_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;

9) 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
cartied out, is likely to jeopardize the health, safety, or morals of the workers; and

i) 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;


©) 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 wor'/er without valid or legal
ground; and

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 schemes shall be labor-intensive, developmental,
sustainable, and engaging both women and men, youth and older people in building
infrastructure, socialized housing, social forestry focusing on the planting of traditional
trees, organic farming, and food production programs.

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.
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.

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

b

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2)

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 enroll and sustain their membership.

To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives,

women's and people's organizations, trade unions and 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.

) 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.

f)_ 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. —
Volunteer workers of government instrumentalities as defined in Sec. 4. of this Act, shall be
covered by the Government Service Insurance System (SIS) 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.

©)

PhilHealth, 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 (LGU), 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 LGU shall negotiate with the owner of the property for the possible use of
such property as WIE's workplace. The LGU shall likewise encourage and assist the parties in
forging a possible memorandum of agreement.

The LGU's, within 60 days from the effectivity of this Act, shall conduct a survey to identify viable
vacant areas suitable for routes, terminals, lanes, productivity and merchandising centers
workplaces for use of WIE, affected inhabitants localities,

The LGU's shall, within 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 LGU s 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:

@) 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.

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;

Non-use heavy equipment for demolition except for structures that are permanent and of

concrete materials;

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.

c)

g.
hy

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.

Tricydes, 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 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) clays before the actual transfer or relocation to another
market site. Within the sixty (60) pay 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,

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,

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.

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.

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

©)

C)

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
TE worker, business activity, enterprise, or organization.

CHAPTER VIL
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;


°)

t)

e)

g.

h)

i

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;

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

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.
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;

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.

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;

ili, 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;

1) 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;

Monitor the LGU-genera ted incomes from informal employment through the LGUs'

periodic report submitted to the Council;

©) After consultations with WIE organizations, develop and ens4re implementation of Policies

and programs that will address specific needs and ensure rights of WIE subsectors;

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

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,

n

L)

q

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);

9) 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);

i) 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;

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

0) The incumbent NAPC Informal Sector Sectoral Representative;

p) 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.


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 (P 2,500.00) 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 (P 10,000,000.00) 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

©) 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

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

b)

©)

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;

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 PIS0,000 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;

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

h) 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;

3) 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;

b)

©

d

e)


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

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

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

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;

b) 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

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

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

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;

d) At least fifty percent (50%) of fees and annual dues collected from marginalized fisher
folks - for programs focusing on fisher folk;

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

TITLE IT
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 spall 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;


©) 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 responsibilty;

f) Working hours and day-off schedules;

@) 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.S.

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 It
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 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 (P 20,000.00) or imprisonment of one (1) to six (6) years or both fine
and imprisonment at the discretion of the Court.

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.

Failure 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.

b)

d)

e)

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,