NINETEENTH CONGRESS OF THE ) Zs
REPUBLIC OF THE PHILIPPINES ) oY RECEIVED va\
FIRST REGULAR SESSION ) 7dUN 30 0G

HOUSE of REPRESENTATIVES

House Biil No. _ 347

Introduced by: HON. DANILO RAMON S. FERNANDEZ

EXPLANATORY NOTE

‘This Magna Carta for Workers in the Informal Economy (MACWIE} is long overdue.
Bills on this have been filed in both the Senate and the House of Representatives
since the 13th Congress and have undergone various revisions and updating with
the patient and vigilant participation of leaders representing organizations of
informal workers.

Passage of the bill is an urgent matter if social justice is to be achieved for a huge
number of Filipino workers laboring under harsh and unprotected conditions,
among them homebased workers, vendors, small farmers and fisherfolk, small
transport operators, non-regular construction workers, volunteer workers in
government instrumentalities, waste recyclers, micro-entrepreneurs, etc. Many of
them are women saddled with unpaid care work and have no recourse but to work
in informal, unprotected, and low-quality jobs that are compatible with their
domestic burdens. Informal workers contribute a lot to the national economy,
especially during times of crises when the informal economy serves as the catch
basin of those displaced in the formal sector. However, their rights and welfare
barely recognized, represented, and prioritized in government bodies, policies and

programs,

For far too long, labor rights in the Philippines have been recognized merely in favor
of workers in the formal sector. It is about time that the same rights are accorded
to those laboring in the informal economy, who, by some estimates comprise about
twenty five million (25,000,000) forming the overwhelming majority of the working
people of this country. This bill will be a huge, if not a revolutionary step forward,

which the 19' Congress can proudly claim as a historic achievement.

2



‘This bill draws its principles from the Philippine Constitution, and derives many of
its definitions and provisions from the landmark 2014 Resolution of the ILO on
transitioning workers in the informal economy (WIE), as well as informal
organizations, livelihood activities and enterprises comprising the bulk of micro and
small businesses, from informality to formality. Said ILO resolution acknowledges
informal work as a persistent global phenomenon that needs to be addressed

comprehensively.

‘The MACWIE bill is a product of many years of discussions and negotiations
between and among WIE organizations, relevant government instrumentalities, and
other stakeholders. The bill contains chapters on the rights and benefits to be
accorded to the various actors in the informal economy, with emphasis on security
of and in the workplace; social protection especially of vulnerable groups; access to
productive resources; and enforcement of labor laws and standards for informal
workers. It institutes policy making, coordinating, and implementing mechanisms
at both national and local levels which ensure representation of informal workers,
and with facilitative processes for the registration of informal works as well as
accreditation of informal organizations and economic units. All these will address
the needs, rights, and welfare of WIE, their organizations, and enterprises. Most

importantly, the bill will facilitate their transition to formal economy.

Justice delayed is justice denied. Informal workers, their organizations, and their
enterprises have been waiting for decades. They cannot _be made to wait any

longer. The passage of this bill is earnestly sougiy

DANILO RAMON 8S. FERNANDEZ’
Lone District of Santa Rosa City, Laguna


NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

Introduced by Hon. Danilo Ramon S. Fernandez

An Act Providing for A Magna Carta For Workers, Enterprises and Organizations In
The Informal Economy and Institutionalizing Mechanisms For Recognition,
Integration, and Transition To the Formal Economy, For implementation Thereof And
For Other Purposes

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

GENERAL PROVISIONS

Chapter |
GENERAL PRINCIPLES

SEC. 1. Short Title.This Act shall be known as the “Magna Carta of Workers in the Informal
Economy” or MACWIE

SEC. 2. Declaration of Policy. It is hereby declared the policy of the State to:

(a) Promote a just and dynamic social order that shall ensure the prosperity and
independence of the nation and free the peopie from poverty through policies that provide
adequate social services; promote decent, environmentally sound and full employment;
a rising standard of living; and an improved quality of life for alt;

(b) Protect, promote, and fulfil the rights of every worker including gender equity, non-
discrimination, the right to self-organization, just and humane conditions of work, access
to social protection programs and services, access to justice, security of and in the
workplaces, and the right to represent their organizations in a continuing process of
consultation and social dialogue, with equitable membership in relevant tripartite bodies;
and

() Establish and fully implement 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 all relevant national and iocal 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)

(b)

()

(d)

(fy

Those 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;

Home-based workers or contributing family workers, irrespective of whether they work
in economic units in the formal or informal economy;

Employees holding informal jobs in or for formal enterprises, or for economic units in the
informal economy, including but not limited to those in contract arrangement and/or in
supply chains, or as non-regular paid domestic workers employed by households;

Workers in unrecognized or unregulated employment relationships provided that the
work performed is not illegal;

Volunteer; contractual; job orders; and other vulnerable workers in government
instrumentalities; and

Agricultural workers or fisherfolk in unrecognized or unregulated agricultural or farming
endeavors and fishing activities

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

(a)

(b)

(©)

(d)

“informal Economy” refers to “all economic activities by workers and economic units that
are, in law or in practice, not covered or insufficiently covered by formal arrangements.”

“Economic Units" in the informal economy include but are not limited to:
units that employ hired labor;

units that are owned by individuals working on their own account, either alone or with the
help or contributing family workers;

cooperatives and other social and solidarity economy units; and

informal work that may be found across all sectors of the economy, in households, as
well as public and private spaces including government instrumentalities and Government
Owned and Controlled Corporations (GOCCs).

“informal Economy Workers’ Organization” ~ Refers to a group or groups of informal
workers, whether formally constituted or otherwise, that are organized with the primary
objective of promoting the rights and welfare of workers in informal economy,

“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 forma! guarantees on legal and social protection and
employment benefits, and prevalent in economic units that are unregistered, unlicensed
and unregulated.


(e)

0)

“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,
facilities, and structures to undertake their work, including the right to fee! 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 from working,

“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 all 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 may affect their access to and control over resources necessary to maintain and
sustain a decent and secure life

Social protection schemes shall include labor market interventions, social insurance, social
welfare, safety nets, disaster risk reduction and management mechanisms, adaptive
measures in the context of climate change, affordable housing, and other provisions
necessary for vulnerable groups to adequately address and manage risks, vulnerabilities, and
threats to workers’ livelihood activities and overall quality of life.

(9)

(h)

Social and Solidarity Economy Units” - Refers 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
knowiedge that meet the needs of the community they serve, through the pursuit of
specific social and environmental objectives and the fostering of solidarity.

“Volunteer, contractual, job orders, and other vulnerable workers in government
instrumentalities’ — Refers to workers in government instrumentalities who do not occupy
plantilla positions;receive salaries but not benefits; are contracted out for specific periods
of time; and/or who receive allowances or honoraria. These include but are not limited
to: [job order and other contractual workers,] project staff, barangay health workers,
barangay tanod, barangay nutrition scholars, barangay daycare workers, barangay
volunteers and other vulnerable workers in government instrumentaiities for disasters,
enumerators, among others.

Social Protection Floor— Refers to a set of guarantees ensuring access to essential health
services, income support for children for education, health, and nutrition, income
assistance for economically active groups who do not have sufficient earnings in case of
emergencies , and financial support for elderly population, and women informal workers
in difficult and vulnerable circumstances like single mothers, and women survivors of
abuse and violence.

Chapter I!
RIGHTS AND BENEFITS

‘SEC. 5. Workers in the informal economy shall 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 international labor standards. Accordingly,
the state shall guarantee all workers in the informal economy the following rights:

(a) Security of and in the workpiace;

(b) Make a living through work freely chosen or accepted; and avail of technical and vocational
guidance and training programs;

(c) Just and favorable conditions of work, including provision for work-life balance such as
child care and other facilities to reduce and redistribute family and domestic
responsibilities;

(d) 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) Equal opportunity for promotion, subject to no other considerations than seniority and
competence:

(Safe and healthy working conditions safeguarding general, occupational and reproductive
health;

(9) Basic services including but not limited to affordable medical care, reproductive and other
health services including modem family planning, low-cost housing, water, sanitation,
electricity and transport;

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

(i) Maternity and paternity benefits, as provided for by law;

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

(k) 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, adequate food, clothing, and
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, affordable, and appropriate social protection as defined in Section 4, (f) of
this Act;


(p)

(a)

0)

Equal treatment before the law:

Substantial participation in policy and decision-making processes through their
organizations and the use of social dialogue, including access to information and other
resources relevant to the promotion and protection of their rights and welfare;

Equal access to justice though appropriate mechanisms, including, but not limited to,
alternative dispute resolution processes; and

Access to public procurement including advice and reserving quotas for informal
economic units.

SEC. 6. Own-account workers as well as informal economic units, being the working poor's
primary instruments to address and overcome poverty, shall be accorded the foliowing
preferential rights by the State

(a)

()

()

(d)

(e)

7)

(9)

(h)
@

Infrastructure support such as farm to market roads, common, affordable and secure
workplaces and facilities, merchandising centers, farmers’ markets or Bagsakan with
proper storage facilities, and inventory bulk-buying centers;

Policy support to promote and protect local and domestically-produced products and
services, and support in enhancing their participation in the value chain process;

Ease and facilitation of access to markets, including capacity-building to access and
maximize e-marketing facilities;

Access to affordable, appropriate and adequate financial services, including, among
others, collateral-free and gender-responsive credit at low interest:

Access to appropriate and adequate machinery, equipment, and other technologies, with
the end in view of increasing productivity, enhancing quality of products and services, and
growth;

Protection from unjust dislocation from places where economic activities are
conducted with the “provision of relocation before demolitio

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

Freedom from deprivation of property without valid cause and due process of law; and,

Affordable and customized social security and insurance programs.

SEC. 7. Rights of Legitimate Organizations of Workers in the Informal Economy (WIE),
Organizations of workers in informal employment, including unions, cooperatives, social and
solidarity economic units/organizations and mutual benefit associations, shall have the 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 in the
context of tripartism and multi-sector;

(b) Establish, join or affiliate with local unions, national federations or confederations , and
international trade union organizations, a right which shall be duly recognized, protected
‘and supported by the national government;

(c) 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 organizations and
members;

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

() Undertake all other activities, not contrary to law, designed to benefit their organizations
and members.

SEC. 8. Organizing Workers in Informal Economy. Workers in informal economy [WIE]
shall be encouraged to organize themselves into self-help organizations, associations,
federations, and confederations for their mutual benefit and protection, and for other legitimate
purposes. Special attention shall be given to organizing women and other vulnerable workers
in informal economy.

SEC. 9.Assistance to Organizations of Workers in the Informal Economy. All concerned
national government agencies, government financial institutions and locai government units
shall include in their annual plans and budgets, programs and projects that support and
address concerns of organizations of WIE and their members.

Chapter Ill
SECURITY IN THE WORKPLACE OF WORKERS IN INFORMAL ECONOMY

SEC. 10, Designation of Workplaces. Local Government Units (LGU), in coordination with
organizations of WIE within their jurisdiction, affected communities, and other relevant groups,
shall endeavor to identify, designate, and design a system of assignment on the following:

(a) Productivity and merchandizing centers as viable workplaces for informal workers; which
may include markets and vacant areas near markets, vacant public spaces and spaces
which may be a private property that the LGU may acquire, lease or negotiate with
legitimate organizations of workers in the informal economy for lease under a
memorandum of agreement, and

(b) routes, terminals, and specific lanes for small transport workers;
The process of identifying and designation of such workplaces shall be determined in the

Implementing Rules and Regulations (IRR) of this Act, provided, that such process shall have
the substantial participation of relevant WIE organizations and stakeholders.


SEC. 11. 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 for by R.A. 7279, otherwise known as the “Urban Development and Housing Act of
1992", and provision of livelihood opportunities, adequate water and electricity availability
as well as decent conditions of living in accordance with law. Logistical viability for the
displaced shall be given priority in determining resettlement areas, provided that, there shall
be no demolition without ensuring appropriate resettlement

SEC. 12. Policy on Confiscation of Materials and Impounding of Vehicles. in cases
where demolition or eviction is warranted, the person, government agencies or their agents
who conduct the same shall issue a duly signed itemized receipt of all products, goods, and
other materials seized from vendors and other affected WIE

Tricycles, pedicabs, and other modes of transportation shail 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, the issuance of a traffic
violation ticket shall suffice.

SEC. 13. Policy on Relocation of Vending Sites. Before any public market is closed, sold
or demolished, ali 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 (60)-day period after issuance of notice, the LGU shail
conduct consultations with affected vendors on the selection of the relocation site and
implementation of the relocation.

Vendors, ambulant or otherwise, occupying public places not previously designated as
vending sites shall be provided with viable temporary sites by the LGU. Notice of temporary
transfer shall be given to the vendors at least fifteen (15) days before the actual transfer. This
shall likewise apply to vendors granted with permits but whose workplaces are withdrawn from
the list of allowable vending sites. Any change in the list of allowable vending sites shail 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 shail be assured of stall assignment in the new
market. Displaced ambulant vendors, shall, as much as practicable also be given appropriate
selling sites.

SEC. 14. Policy on Relocation of Terminals. 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, legitimate organizations of workers in the
informal economy, affected community and other relevant sectors. Relocation of terminals can
only be effected through an Ordinance. Provided further, that after the enactment of such
ordinance, notice of intention to relocate terminals shall be made to affected transport groups
and community at least sixty (60) days before the actual relocation

Chapter IV


SOCIAL PROTECTION FOR WORKERS IN THE INFORMAL ECONOMY

Social protection as defined in Section 4(f) of this Act shall have the following components:

SEC. 18. Institutionalization of Social Protection Floor for the Workers in the Informal
Economy. The State shall support, sustain, enhance, and institutionalize social protection
initiatives for WIE through the convergence of resources of various agencies to provide
continuous social security and health insurance subsidies to WIE. Such resources shall also
be used for programs for the unemployed, children, women in difficult and vulnerable
circumstances, and older persons based on applicable and ever improving standards.

SEC. 16.Social Welfare Efforts. The Department of Social Welfare and Development
(DSWD) shall consolidate its strategic social welfare efforts to address the needs of the
workers in the informal economy, including but not limited to direct assistance, policy
development and community engagement for the workers.

SEC. 17. Role of the Department of Labor and Employment. The DOLE shali engage in
labor market interventions that shall provide adequate protection for the WIE. The DOLE shall
likewise ensure timely and immediate action for labor concerns, security of tenure, job
generation and other pertinent concerns. It shall, in collaboration with other livelihood and
enterprise development implementing agencies, Department of Local Government (DILG) and
Department of Finance (DOF), develop a typology of formalization of informal economic units
in terms of, among others, registration and standardized, affordable business permit cost ,
increased compliance, and extension of labor and social security program.

SEC. 18. Social Safety Nets. The State shall ensure that the social safety nets provided by
the DOLE, DSWD, Department of Agriculture (DA) and other government agencies shall be
easily accessible to the WIE and their organizations. These shall include but not be limited
to conditional cash transfers, unconditional cash transfers, school feeding programs,
unconditional in-kind transfers, public works, cash-for-work, emergency employment
schemes, and fee waivers

SEC. 19. Women, Family and Child Care Program - The DOLE, Department of Health
(DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall ensure that
maternity protection is extended to informal economy workers in accordance with Sections 9
and 10 of R.A. 11210, the Expanded Maternity Leave Law. Programs on maternal and child
health and nutrition; child feeding; modern family planning; and other health-related services
shall be strengthened and target women WIE.

The State shall encourage the provision of and access to affordable quality childcare and other
care services to promote gender equality in entrepreneurship, employment opportunities, and
to enable the transition to formal economy

SEC. 20. Social Insurance. As specified in the IRR of this Act, the government shall ensure
that all social insurance programs including but not limited to Social Security, Pag-ibig (Home
Development Mutual Fund) and PhilHealth shall be fully available, accessible and affordable
to WIE, and that the government agencies governing them shail formulate policies and
mechanisms for their full utilization and benefit, in consultation with the representatives of WIE.


In the interest of equity, the State shall subsidize the corresponding employers’ contribution,
had they been in formai employment.

SEC. 21. Disaster Risk Reduction and Management (DRRM) and Climate Change. The
state, particularly at the community level, shall engage WIE and their organizations in DRRM
efforts from preparedness, to response, rehabilitation and recovery. Responding to climate
change in terms of minimizing contributions to greenhouse gas emissions and adapting to its
fong-term impact through resiliency-building programs shall also involve WIE and their
organizations

Chapter V
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS
FOR WORKERS IN THE INFORMAL ECONOMY

SEC. 22. 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,

The state shall adopt a developmental perspective in dealing with informal economic units.
The DOLE, in coordination with the IEDC, shall assess the capacity of these enterprises to
comply with general labor standards. Those incapable of meeting the standards shall be
assisted to upgrade their capacity to improve their businesses, as well as the capacity to
‘comply with relevant labor and social standards.

SEC. 23. Prioritization for Education and Training. The State shall implement adequate
training and information campaigns to provide WIE and their employers the full knowledge on
applicable labor and occupational safety and health standards for their subsequent
compliance.

SEC. 24, 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 empioyment contract shall be in writing specifying the terms and
condition 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 an elected Barangay official
in the barangay 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, WIE shall neither be charged nor levied
a recruitment fee or finders’ fee.


(3) Hazardous Work and Conditions in Formal Workplaces. Workers shall not be
engaged to do hazardous work, activity or undertaking, or be exposed to hazardous
working conditions in accordance with existing laws and the IRR of this Act.

(4) Interference and Coercion. Any person is prohibited from committing any of the
following acts of interference or coercion:

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

{b) Preventing any worker from joining or assisting organization 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;

(4) 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 that or threaten 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 minors 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, which is presented and attested to by
any representative of the LGU or duly elected Barangay official where the work is to be
done, and that the employers of these children should provide them with access to at
least elementary or secondary education, either through traditional schooling or
alternative learning systems

SEC. 25. Visitorial and Enforcement Power of the Secretary of Labor and Employment.
Employment contracts and/or engagements in the Informal Economy shall be subject to the
visitorial and enforcement power of the Secretary of Labor and Employment pursuant to Article
128 of the Labor Code of the Philippines.

TITLE I
Chapter |
INFORMAL ECONOMY DEVELOPMENT COUNCIL (IEDC)

SEC. 26. Creation of the Informal Economy Development Council (IEDC). There is hereby
created an Informal Economy Development Council, hereinafter referred to as the IEDC, which
shail be an attached agency of the National Economic and Development Authority (NEDA).
The IEDC shall institute appropriate reforms within its structure, programming and other
processes, including adjusting its human resource capabilities to ensure that WIE-focused
programs are efficiently and adequately implemented to address the needs of these workers.


An inter-agency committee shall be formed to coordinate policies and programs of various
government agencies towards the transition of informal economic units to formal.

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

SEC. 27. Mandate and Functions of IEDC. The mandate and functions of IEDC shall include
the following:

(a) Develop and ensure implementation of annual, long-term and medium-term plans for the
informal economy. The last of which should form part of the Medium Term Philippine
Development Plans (MTPDP) towards institutionalizing comprehensive, needs and
rights-based, gender-responsive and child-friendly programs and policies for the IE;

{b) Develop policies to transition WIE and informal economic units to formal economy and
according to standards provided for in this Act and related laws, treaties or statutes;

(c) Develop and implement training programs, and certify workers for jobs in industries that
produce goods and render services for the benefit of the WIE;

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

(@) Ensure that concerned government agencies shall allocate in their respective Special
Allocation for Development Initiatives adequate resources for programs that will benefit
WIE;

(f) Develop and ensure implementation of a simple system of registration of WIE, and
accreditation of informal livelihood activities enterprises, and organizations in accordance
with the standards and provisions of this Act;

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

(h) Ensure the effective implementation of labor standards covering WIE as provided for by
this Act and corresponding IRR;

(Coordinate with LGUs for the development and implementation of periodic evaluation of
all accredited IE members, enterprises and organizations for use as bases for
accreditation, the grant of awards and incentives, training and retraining;

() Ensure effective participation of WIE and their organizations through the _ establishment
of regular consultative mechanisms and processes

{k) 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 while strictly complying with laws on privacy and
confidentiality. The database [and] shall include pertinent information as specified in the
IRR of this Act.

(I) Develop and implement a communication plan and campaign targeting WIE, their
enterprises and organizations, towards a better understanding and appreciation of the
benefits of this Act;

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

(n) Assess all means to ensure the transition of informal economic units and the WIE
from their position in the informal economy to formal economy as contained in the
IRR of this Act;

(0) Coordinate and harmonize all informal economy-related policies, programs, projects and
activities of various government agencies including the Regional IEDC Officers towards
greater efficiency and effectiveness:

(p) Monitor the LGU-generated incomes from informal employment;

(@) conduct annual reviews of government programs for the WIE and submit to Congress
and the President of the Philippines corresponding reports thereon together with policy
and other recommendations;

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

(s) From time to time, call on the participation of relevant government agencies in its
deliberations as necessary.

SEC. 28. Composition. The IEDC shall be co-chaired by the Director General of NEDA and
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
shail be the relevant government instrumentalities as determined by the IRR of this Act
provided that, at least 30% of total membership of IEDC shall come from organizations of WIE
accredited with the SEC, DOLE or DA. Provided, further, that at least 40 percent of the 30
percent are women,

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

SEC. 29. Initial IEDC Funds. P100 million pesos (P100,000,000.00) shall be allocated from
the Presidential discretionary fund for the initial operating expenses of the IEDC, which shall
include the initial allocation of funds for the operations of the WIELDU at the LGU level


SEC. 30. EDC Secretariat. The IEDC Secretariat shall be jointly organized by the NEDA and
the DOLE with functions that shall be determined by the IRR of this Act and integrated in the
DOLE secretariat functions.

SEC, 31. Regional and Provincial IEDC Officers. There shail be Regional and Provincial
IEDC Officers who shall be appointed by the IEDC and shall have functions that include:
monitoring and coordinating of IEDC initiatives in the regions and Provinces; evaluation of
policies programs for WIE; 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).

Chapter It
WORKERS IN INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT (WIELDU)

SEC. 32. Workers in Informal Economy Local Development Unit (WIELDU). The Workers
in Informal Economy Local Development Unit (WIELDU) shall be established in every city and
municipality to perform the following functions among others in consultation with the WIE and
their organizations:

(a) prepare an overall development plan and work program that will address the needs of
the WIE. The barangay development plans shall be incorporated in this overalt
development plan;

(b) encourage the organizing of informal economic units and WIE;

(c) develop and maintain a comprehensive, age, and sex-disaggregated database of all
WIE and economic units within the jurisdiction of the LGU that shall include all relevant
information as contained in the IRR of this Act. Provided that, laws on privacy and
confidentiality shall be fully complied with. Provided further, that the database shall
include information on payments collected from WIE, organizations and economic units;

(d) 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; and,

() support MSME informal enterprise development towards transitioning to formality,

in addition, the WIELDU may also perform other similar functions and undertakings pursuant
to the provisions of this Act. In the performance of WIELDU’s functions, the principle of
preferential treatment to the poorest and most vulnerable shall be observed.

SEC. 33. Composition. The Local Chief Executives (LCEs) shall be the primary overseers of
WIELDU's operations. The IRR of this Act shall provide for WIELDU’s composition provided
that, informal workers’ representatives shall form at least fifty percent (50%) of WIELDU’s
membership. Provided further, that IE representatives shall not be less than five (5), and


provided finally, that at feast forty percent (40%) of all WIELDO's members are women. Other
relevant guidelines on WIELDU's operations shall be included in the IRR of this Act.

SEC. 34. Local Government Unit Informal Economy Development Fund (LGU-IEDF). An
Informat Economy Development Fund shall be established by every municipality and city.
Such fund will be supervised and managed by the concerned LGU through the WIELDU and
subject to audit by the Commission on Audit (COA).

For the initial operations of WIELDU, each LGU shall allocate a portion from their Internal
Revenue Allotment or IRA.

Thereafter, the LGU-IEDF shall be funded using:

(a) Registration fees and annual dues paid by individual workers in the informal economy; and
accreditation fees of their livelihood activities, organizations, and enterprises; and

(b) 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 goverment as recommended by IEDC; provided, that
the LGUs have sufficiently complied with all requirements by the IEDC.

SEC, 35. Registration of Informal Economy Workers, and Accreditation of Economic
Units and Organizations

Pursuant to its functions under the Local Government Code, the Local Development Council
in coordination with the WIELDU, shall establish a standard system of registration of WIE, and
accreditation of informal livelihood activities, organizations, and economic units provided that
the system shall be simple, efficient, affordable, uniform, and accessible to all,

Such registration or accreditation shall signify eligibility of the WIE, their livelihood activities,
organizations, or enterprises to avail of development programs, provided that, the poorest and
most vulnerable shall be given priority. The registration or accreditation may be renewed
subject to requirements set forth by the LDC in coordination with the WIELDU

SEC. 36. Annual Dues. WIE and their organizations shall pay annual dues to be determined
by the concerned LGU) in consultation with their WIELDU). Said annual dues shall be no more
than 30% of the legally prescribed daily minimum wage in their respective regions or
provinces.

‘These annual dues shall accrue to the concemed LGU and shall be used for programs to
benefit WIE, their organizations, business activities, and enterprises based on
recommendations by the WIELDU and 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 under this Act. Non-registration should not deprive WIE of
their rights stated in the Act. Registration as a WIE in the LGU is voluntary and shall not be



made as a prerequisite to work by any private enterprise or government unit. However,
registration shall guarantee prioritization and immediate recognition of the rights and benefits
due to the workers in the informal economy.

TITLE It
FINAL PROVISIONS
SEC. 38. Penal Provisions.

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

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

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

(d) Failure to implement the provisions of this Act on Relocation of Vending Sites and Policy
on Relocation of Terminals shall render the responsible official/s administratively liable
pursuant to Republic Act 7160 and other applicable laws without prejudice to any civil or
criminal case that may be filed against erring officials. If a private institution or company
is found to have violated any provision of this Act, its business license shall be suspended
or revoked at the discretion of the Court.

SEC. 39. Implementing Rules and Regulations (IRR). The Implementing Rules and
Regulations (IRR) of this Act shall be formulated by a committee to be co-led by DOLE and
NEDA. The members of the committee shall be the representatives of government offices
mentioned in this Act, and WIE organizations. Provided that, at least 30% of the committee
members shall come from the latter, and provided further, that at least 30% of committee
members are women. Said committee will start work on the IRR within three (3) months after
the effectivity of this Act and finish within six (6) months thereafter.

SEC. 40. Appropriations. The amount of one hundred (100) million pesos (P100,000,000.00)
shall be appropriated for the initial implementation of this Act.

SEC. 41. Separability Clause. if any provision of this Act is declared unconstitutional or
invalid, the provisions not affected shall continue to be in full force and effect.

SEC. 42. Repealing Clause. All laws, decrees, orders, rules and regulations or other
issuances inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly,


SEC. 43. Effectivity. This Act shall take effect fifteen (15) days after its publication in at least
two (2) newspapers of general circulation of the Official Gazette, whichever comes first.

Approved,