Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO

EXPLANATORY NOTE

Workers in the informal sector or economy account for a major portion of the country’s
labor force and is recognized as a major contributors to the economy. In 2006, the informal
sector under the informal economy accounted for 61 percent of the Philippines’ Gross Domestic
Product representing almost 4 Billion Pesos, showing that workers in the informal economy are
very much integral players in the labor market. The National Statistics Office even reported that
there were about 10.5 million informal sector operators identified in its 2008 Informal Sector
Survey of the Philippines, while the Bureau of Labor and Employment Statistics (BLES) under
the Department of Labor and Employment (DOLE) estimated that there were about 731,548
non-regular workers employed in non-agricultural establishments in the Philippines in 2008.
The International Labour Organization estimated also that from 40 up to 80 per cent of Filipino
workers are in the informal economy.

However, workers in this sector are for the most part not registered or recorded in
official statistics and are beyond the reach of social protection and labor legislation, leaving,
them vulnerable having no job and income security, exploitative working conditions, lacking,
access to skill development opportunities, also having inadequate support from the State, and
often left in the pitiful situation of voicelessness.

Thus, there is a need to address these issues and change the status quo, by developing
and promoting effective policies and strategies with suitable social protection systems so that
the mantle of social security is extended to workers in informal economy. A holistic and
coherent vision on social protection in the country is needed to move progressively towards the
provision of universal and basic social protection to all, and the recognition, promotion, and
protection of the constitutional rights of workers in informal economy. For social protection is
an investment by the State to the human potential of poor workers in the informal economy,
especially of poor women and children, and is a key instrument in the fight for better health
care and against poverty.

For these reasons, I urge my colleagues to consider the immediate passage of this bill.

ie hacks
Representative

Lone District, Province of Aurora


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

H.B.No, 8409

Introduced by Congresswoman BELLAFLOR J. ANGARA-CASTILLO

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

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

TITLET
GENERAL PROVISIONS

Chapter I
Framework and Principles

SECTION. 1. Short Title. - This act shall be known as the “Magna Carta of Workers in
Informal Economy.”

SEC. 2 Declaration of Policies. - It is hereby declared the policies of the State:

(a) 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;

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

(©) To recognize, promote, protect, fulfill and ensure the civic and constitutional rights
of workers in the informal economy, including the rights to: self-organization; just and
humane working conditions; access to social protection; security of workplaces; peaceful
concerted activities; represent their organizations, and participate in policy and_decision-
making processes affecting their rights and benefits and towards the provision of a
comprehensive package of reforms, interventions, and services in accordance with their
articulated needs and interests;

(a) To recognize the roles, give proper value to the contributions of workers in the
informal economy, and make them visible in the national and local statistics;

(@) To provide venues for dialogue and consultation with informal economy workers so
that their concerns and needs are effectively addressed by lasting and workable reforms in
enforcement of labor standards, advancement of labor relations;

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

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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;

(g) 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;

(h) 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;

(i) To develop the local economy through maximization of the potential and
contribution of informal economy business activities and enterprises;

() To encourage and support workers in the informal economy to form self-help
groups, mutual benefit associations, unions, cooperatives, and other forms of self-organization
for their mutual aid, benefit, protection and for other legitimate purposes;

(k) 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;

(1) 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;

(m) 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

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

SEC. 3. Framework and Principles. - Article II, Section 9 of the Philippine Constitution
declares that: “The State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through policies
that provide adequate social services, promote full employment, a rising standard of living,
and an improved quality of life for 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 environmental degradation and natural disasters,
remove cultural inequities by redistributing wealth and political power for the common good;
and to develop an enabling environment conducive to responsible citizenship. Towards this
end, the government shall pursue and implement a comprehensive, rights-based,
participatory, sustainable and gender responsive framework for workers in the informal
economy that includes but not limited to:

(a) Policies and programs that will bring marginalized workers and economic units
into the economic and social mainstream; and spur entrepreneurial or growth-oriented

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informal business to graduate to formal status based on their own pace and self-determination
thereby reducing their vulnerability and exclusion;

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

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

(a) Policies, programs and interventions that will ensure security of workplaces of
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 of ingenuity
and entrepreneurial spirit among workers in informal economy;

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

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

(h) Applicable labor standards;
(i) Recourse mechanisms to address violations of informal workers’ rights;

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

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

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

(a) _ Informal Economy ~ 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
practice ~ not covered or insufficiently covered by formal arrangements”.

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


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

(b) Informal Sector, as defined by the National Statistical 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 non-
market producers of goods, as well as market producers of services.

These enterprises are operated by own-account workers, which may employ unpaid
family workers as well as occasional, or seasonally-hired workers.

‘These enterprises may also be owned and operated by employers which may employ
less than ten (10) employees on a continuous basis.

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

cl, _ 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 boats of three (3) gross tons or less and other
fishing equipment;

cA, _ 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 - workers involved in a system of production under

which work is carried out at their homes and where materials may or may not be furnished by
the employer or contractor;

c.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;

c.10. street vendors refer to vendors who sell their merchandise on streets and
sidewalks;

c.11. vendors with stalls in public and private markets and those engaged in sari-sari
stores with operating capitalization of not more than One million pesos (P1,000,000.00)
excluding land and building;

¢.12. drivers and workers of modes of transportation on land and sea whether

motorized or not, including: two (2) wheels such as calesa; three (3) wheels such as pedicabs,
tricycles; four (4) wheels such as jeepneys and buses; and boats one (1) ton and below;

Page 4


‘barkers’; fare collectors; dispatchers; and other workers who share income with self-employed
or unincorporated operators;

c.13. operators of  jeepneys, tricycles, pedicabs, taxi, and other vehicles or
transportation whose capitalization is not more than One million pesos (21,000,000.00)
excluding land and building; :

c.14. all unregistered and unprotected domestic workers who are generally not
covered by social protection such as maids, cooks, family drivers, gardeners and baby sitters;

c.15. non-corporate construction workers;

¢.16, small scale miners doing their own product processing; including those involved
in small scale mining and quarrying with capitalization of below One million pesos
(P1,000,000.00);

17. workers of Barangay Micro Business Enterprises (BMBEs);

¢.18. _non-corporate cargo handlers and allied workers;

c.19, waste pickers and recyclers;

¢.20. workers engaged in producing seasonal products;

21, own account workers including but not limited to those engaged in the
maintenance and repair of equipment and appliances, clothing and footwear, as well as those

providing services such as beauticians, barbers, masseuses;

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

¢.23, volunteer workers in government and non-government entities who only receive
allowances or honoraria, including. but not limited to: barangay health workers (BHW),
barangay tanod, barangay nutrition scholars (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 assist unincorporated household enterprises;
and

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

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

(€) 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.

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

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

Page 5


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

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

(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.

Social protection schemes shall include labor market interventions, social insurance,
basic health care, social welfare and safety nets.

(0) Community Contracting refers to the process of concluding an agreement between
a community and a contracting authority, whereby the community (or a section thereof) is
responsible for the implementation of the work, and therefore, functions as contractor.

(p) _ 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 others, providing advocacy, training, community
organizing, research, access to resources, and other similar activities.

(q@)__ 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.

() 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.

Page 6


Chapter II
Coverage, Qualifications, and Accreditation

SEC. 5. Coverage. ~ This shall include individual WIE, as defined in Section 4 of this
Act, IE businesses and enterprises, and organizations of workers in informal economy,

SEC. 6. Accreditation. ~ There shall be a simple and standard system of accreditation in
accordance with the framework and principles of this Act. A one time accreditation fee of not
more than Fifty pesos (P50.00) per individual worker and not less than One Hundred pesos
(P100.00) per IE business activity, enterprise, or organizations shall be paid to the municipality
or city where they operate or intend to operate.

Any IE worker meeting the necessary accreditation requirements provided for in this
Act shall be listed in the centralized database system, and shall be issued an identity card and
a record book that shalll 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 businesses
which may be categorized as livelihood enterprises, and entrepreneurial or growth oriented
informal businesses. Further, the database shall include information on payments collected
from IE workers, business activities or enterprises and organizations.

The aforesaid comprehensive database shall form part of the bases of assessment and
monitoring of the growth of informal economy.

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

SEC. 7. Annual Dues. - IE workers and organizations shall pay annual dues to be
determined by the Local Government Unit (LGU) concerned, in consultation with their
respective Workers in Informal Economy Local Development Office (WIELDO) referred to in
Title |, Chapter IX of this Act. In no case shall the annual dues to be paid by IE workers be
more than Two Hundred percent (200%) of the prescribed daily minimum wage as determined
by the Regional Tripartite Wages and Productivity Board (RTWPB) in their respective regions
or provinces.

These annual dues shall accrue to the respective LGU where they are accredited. The
accumulated funds from these dues shall be used for programs to benefit IE workers, business

Page 7


activities, enterprises and organizations, as recommended by the WIELDO. Such programs
and disbursement of funds shall be approved by the concerned LGU Council.

Chapter III
RIGHTS AND BENEFITS

SEC. 8. Workers in informal economy have the same basic rights accorded to all
workers as enshrined in the Philippine Constitution, the Labor Code as amended, and relevant
international human rights insttuments and labor Conventions. These include, but are not
limited to the rights to:

(a) work, which includes the rights to: security at the workplace; make a living by
work freely chosen or accepted; and avail of technical and vocational guidance and training,
programs;

(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;

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

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

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

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

(h) maternity and paternity benefits, as provided for by law;

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

() __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;

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

() freedom from any form of discrimination, violence, exploitation including
sexual exploitation, harassment, abuse, and any form of inhumane treatment which debases,
degrades or demeans the 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;

Page 8


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

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

SEC. 9, Own account workers as well as marginal economic enterprises in the informal
economy, being the working poor's primary instruments to address and overcome poverty,
shall be accorded by the State the following rights:

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

(b) policy support to promote and protect locally /domestically produced products;
(©) access to markets, including capacity building to access E-marketing facilities;

(4) access to affordable, appropriate and adequate financial services, including,
among others, collateral-free and gender-balanced credit at low interest;

(e) access to appropriate and adequate machinery, equipment, and other
technologies, with the end in view of increasing productivity and growth;

(protection from unjust dislocation from places where economic activities are
conducted; .

(g) _ measures against racketeering, extortion, and harassment, by both State and non-
State elements; and

(h) fiscal relief, including among others exemption from taxes, fees and other
assessments, to be put into place by concerned national agencies and local government units
60 days after the effectivity of this Act.

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

(j) freedom from deprivation of property without valid cause and due process of
law;

SEC. 10. Organizations of workers in informal employment, including unions,
cooperatives, mutual benefit associations, etc. shall have the rights to:

(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 join international trade-union organizations;

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

(@) own property, real or personal, for the use and benefit of their organizations and
members; :

Page 9


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

(® undertake 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 this shall be developed by 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 other assessments. The exemptions provided herein may be
withdrawn only by a special law expressly repealing this provision.

SEC. 11, Organizing Workers in Informal Economy. ~ WIE shall be encouraged to
organize themselves for their mutual benefit and protection, and for other legitimate purposes,
Toward this end, the government shall encourage and assist these workers in the formation of
their self-help organizations, associations, federations and confederations.

Government shall encourage the formation of cooperatives among marginalized
farmers, fisherfolk, manufacturing, transport, retail, services, and home-based workers to
enable members to: purchase inputs at lower cost, obtain fair prices for their produce, avail of
credit assistance and skills training, and share from collective gains of the cooperativi

Attention will be given to organizing women and other vulnerable WIE.

SEC. 12. Assistance to Organizations of Workers in the Informal Economy. ~ All
concerned national government agencies, government financial institutions and local
government units shall include in their plans, programs, projects and activities efforts that will
support and address concerns of organizations of WIE.

SEC. 13. Monitoring of growth. - The local government units (LGUs) which will
supervise the Workers in Informal Economy Local Development Office (WIELDO) as created
by Chapter IX of this Act, shall monitor the growth of informal employment business
activities or enterprises three (3) years after the enactment of this Act and every three (3) years
thereafter. The centralized database referred to in Section 6 shall be the basis of this
monitoring.

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

SEC. 14. Prohibition Against Recruitment or Finders’ Fees. - Regardless of whether the
workers were sourced either through an employment agency or a third party, said workers
shall neither be charged nor levied a recruitment fee or finders’ fee by the aforementioned
employment agency or third party;

SEC. 15. Prohibition Against Hazardous Work and Conditions. - Workers shall not be

engaged to do any hazardous work, activity or undertaking, or be exposed to hazardous
working conditions,

Page 10


ESoe@ ua wane

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;

(@) 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;

(Q any and all forms of slavery or practices similar to slavery, such as the sale and
trafficking of persons, forced or compulsory labor, debt bondage and serfdom;

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

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

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

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

'. 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;

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

(f) other acts calculated to diminish the independence and freedom of workers’
organization to direct its own affairs.

Chapter V
SOCIAL PROTECTION

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

SEC.17. Labor Market Programs. - The State shall provide adequate resources to
sustain labor market programs following decent work standards, including emergency and
guaranteed employment schemes, to ensure livelihood security and prevent or mitigate the

Page 11


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.

(b) LGUs shall encourage and provide incentives to constituents 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.

(©) Inpursuit 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.

(a) The State shall encourage entrepreneurship among the disadvantaged, especially
women and young people in informal employment, through simple and efficient procedures
and the provision of adequate and affordable marketing facilities such as those provided for
by Section 9 (i) of this Act.

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

SEC. 18. Social Security. - In the spirit of promoting social justice, the State shall
endeavor to extend social security protection to all workers and their beneficiaries against the
hazards of disability, sickness, maternity, old age, death, unemployment, and other
contingencies resulting in loss of income or financial burden.

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

(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 and facilitators of claims with the least burdensome conditions and with
appropriate incentives. It shall develop effective partnerships with these organizations.

(a) The SSS Commission, in the spirit of democracy, transparency, accountability,
and equity, shall be required to conduct regular consultations with and provide information
and reports to its membership. Both formal and informal workers shall be represented in the
$85 Commission, where gender balance shall also be observed.

(©) The SSS in cooperation with other relevant national agencies and LGUs, shall
support indigenous and community-based social protection schemes such as damayan,
tulungan, saranay, small mutual benefit associations, and micro-finance organizations initiated

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or participated in by WIE so that these can be sustained, systematized and upscaled.

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

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

SEC 20. Health Care System and Financing. ~ The State shall establish a comprehensive
and integrated 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 health care for all, by, among
others, progressively increasing the budget for health care until it meets the World Health
Organization recommendation of at least four percent (4%) of the Gross Domestic Product.

SEC. 21. Universal Health Insurance. ~ All citizens of the Philippines shiall be covered
by the National Health Insurance Program as provided for in RA 10606, The National Health
Insurance Act of 2013. To achieve this, PhilHealth with the participation of all stakeholders
shall critically review its current operations. It shall also ensure the provision of a minimum
benefit package which shalll be periodically upgraded to meet the goal of universal coverage
which is affordable, accessible and appropriate to the needs of all.

(@) Government subsidies for PhilHealth sponsorship programs shall be expanded
to cover not only the ultra poor but also the working poor who mostly belong to the informal
economy. For the working poor, what should have been contributed by employers if they were
enrolled as formally employed shall be covered by government subsidies in the interest of
equity. 3

PhilHealth programs for indigents and the working poor shall be expanded and
improved in order to develop effective partnerships with organized groups, especially those
composed and led by informal workers, women, senior citizens, persons with disabilities,
persons with HIV and AIDS and other marginalized sectors, to better serve increasing
numbers of those in need. Organized groups with at least 500 members shall be allowed to be
collecting agents of premiums with incentives.

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

(©) PhilHealth, in accordance with its guiding principles, shall promote maximum
community participation and shall recognize the roles and strengths of the public and private
sectors in healthcare, including people's organizations and community-based health
organizations. PhilHealth shall extend appropriate recognition, technical assistance, and other
forms of material and non-material support to mutual benefit associations, microfinance
organizations, community-based health insurance and other indigenous schemes initiated and
participated in by WIE.

Page 13


(4) PhilHealth, with maximum participation of all stakeholders, shall review its
benefit package in order to. cover WIE, senior citizens, indigenous peoples, persons with
disabilities persons with HIV and AIDS and other marginalized groups sustainably;
emphasize preventive measures such as annual physical and medical check-ups and other
outpatient services; coverage of workplace-related injuries and illnesses affecting both formal
and informal workers, treatment of chronic ailments such as hypertension and diabetes; and
inclusion of hospital-based reproductive health services, commodities and supplies.

CHAPTER VI
Security in the Workplace of Workers in Informal Employment

Security in the workplace as defined in Sec. 4 of this Act shall involve the following:

SEC. 22. Designation of Workplaces. ~ The concerned Local Government Unit (LGU), in
coordination with their respective WIELDO, and after consultation with WIE, affected
communities, and other relevant groups, shall identify and designate viable workplaces for
informal workers; routes, terminals, and specific lanes for small transport workers; and design
a system of assigning these to accredited informal workers, These may include markets and
vacant areas near markets, vacant public spaces and other spaces which may be designated as
allowable workplaces for informal workers.

Should concerned WIE prefer to conduct their economic activities within an identified
private property, the LGU shall negotiate with the owner of the property for the possible use
of such property as WIE’s workplace. The LGU shall likewise encourage and assist the parties
in forging a possible memorandum of agreement.

The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to
identify viable vacant areas suitable for routes, terminals, lanes, productivity and
merchandising centers and workplaces for use of WIE in their respective localities.

The LGUs shall, within 90 days after the survey and based on recommendations of
WIELDO and consultations with concerned WIE, affected inhabitants and relevant sectors,
pass an ordinance designating such workplaces.

SEC. 23. Protection of Agricultural Lands and their Occupants. ~ The LGUs, in
coordination with the Department of Agrarian Reform (DAR) shall protect all agricultural
lands from conversion or reclassification to non-agricultural uses. Special Economic Zones
Sites, Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable
lands.

The LGUs shall include in their Comprehensive Land Use Plan (ete) all the
agricultural lands as protected zones.

The LGUs shall make an inventory of all agricultural lands under leasehold and shall
enforce the security of tenure of tenants, right of redemption and right of first refusal on the
subject land. The LGUs shall provide assistance and protection to tenants in agricultural lands
whose landowners violate the provisions of RA 3844 or the Agricultural Land Reform Code.
Tenants shall not be evicted based on unilateral termination of the tenancy relationship by
landowners.

SEC. 24. Use of Municipal Waters, Beach Fronts, and Foreshores. - Municipal waters

shall be used 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,

Page 14


AuRO DE

fish traps, shellfish culture or similar structures for culture of marine products within the
municipal waters.

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

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

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

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

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

(b) adequate consultations on the matter of resettlement with the duly 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 the 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;

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

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

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

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

SEC. 26. Policy on Confiscation of Materials and Impounding of Vehicles. - In cases
where demolition or eviction is warranted, the person who conducts the same shall issue an
itemized receipt of all products, goods, and other materials seized from the affected WIE.

Page 15,


Tricycles, pedicabs, and other modes of transportation shall not be impounded for
violations of license, registration, or traffic regulations unless the said vehicles were utilized in
the conduct of criminal activities. In cases of mere violation of traffic regulations, a traffic
violation ticket shall be issued to the erring driver without impounding his/her vehicle.

SEC. 27. Policy on Relocation of Vending Sites. - Before any public market is closed,
sold or demolished, all market vendors shall first be relocated by the LGU to a temporary or
new public market. Notice of the intention to close, sell, or demolish any public market shall
be made to all concerned vendors at least sixty (60) days before the actual transfer or relocation
to another market site. Within the sixty (60)-day period after issuance of notice, the LGU shall
conduct consultations with affected vendors on the selection of the relocation site and
implementation of the relocation.

Pending the designation of viable vending areas, vendors occupying, public places not
previously designated as vending sites shall be provided with viable temporary sites by the
LGU. Notice of temporary transfer shall be given to the vendors at least fifteen (15) days before
the actual transfer. This shall likewise apply to vendors granted with permits but whose
workplaces are withdrawn from the list of allowable vending 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.

SEC. 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. Provided 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

SEC. 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 program 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.

Page 16


SEC. 30. Sourcing and Adopting Development Initiatives. - Other sources of funds to
be used exclusively for initiatives addressing the needs and empowerment of WIE shall be
identified in the IRR of this Act and may include the following:

(a) Government financial institutions and mechanisms such as the Land Bank of the
Philippines (LBP), Development Bank of the Philippines (DBP), National Livelihood Support
Fund (NLSF), and Quedan Rural Credit and Guarantee Corporation shall set aside a specific
percentage of their loan portfolio to informal economy enterprises and shall give priority to
women-led informal economy enterprises by providing loans at an interest of not more than
twelve percent (12%) per annum consistent with the spirit of 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 strengthen its
Self-Employment Assistance Program (SEAK) to uplift and empower women in poverty,
particularly those in the informal economy, by adopting an integrated, credit-plus approach to
micro-finance.

(c) The Small Business Guarantee and Finance Corporation (SBGFC) created under
Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting of development
initiatives for competitive enterprises in terms of finance, technology, production,
management and business linkages. It shall also provide and promote, develop and widen in
both scope and service reach various alternative 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.

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

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

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

Chapter VIII
Informal Economy Development COUNCIL (IEDC)

SEC. 33. Creation of the Informal Economy Development Council (IEDC). - There is
hereby created an Informal Economy Development Council, hereinafter referred to as the
IEDC, which shall be an agency within the Department of Labor and Employment (DOLE).
The DOLE shall institute appropriate reforms within its structure, programming and other
processes, including adjusting its human resource capabilities to ensure that WIE-focused
programs will be efficiently and adequately implemented to address the needs of these
workers

Page 17


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

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

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

(b) 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

(©) 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 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;

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

(g) Establish a performance appraisal system for all accredited workers, enterprises 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 to ensure their active participation and involvement;

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

() 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 availabie 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;

i.2. Sex-disaggregated data on informal enterprises, including capitalization and
sources of capital, number and status of workers, average incomes;

Page 18


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

i4. Inventory of resolved and pending cases involving activities of WIE;

15. 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

1.6. Compilation of international instruments, existing laws and programs affecting the
interest and welfare of WIE and information on how these workers may use or avail of such
instruments, laws and programs.

(j) 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 this Act, to develop and ensure implementation of a
comprehensive plan to eliminate child labor;

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

(m) Coordinate and harmonize all informal economy-related policies, programs,
projects and activities of various government agencies towards greater efficiency and
effectiveness;

(n) Monitor the LGU-generated incomes from informal employment through the LGUs’
periodic report submitted to the Council;

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

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

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

SEC. 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);

Page 19


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

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

(h) Secretary of Department of Transportation and Communication (DOTO);
(i) Chair of the Social Security System (SSS);

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

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

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

(m) One (1) representative from the private sector at large, all Filipino citizens ,
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 organizations of
workers in the informal economy, as well as People’s Organizations (POs), NGOs, and
women’s organizations actively working with and for the rights of WIE, provided that
regional and sub-sectoral representation shall be ensured. Provided further, that at least 40%
of the 30% are women. Guidelines for the selection of non-government IEDC members,
including processes and mechanics shall be determined by the IRR of this Act.

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

The private sector, workers in informal economy and women’s organizations’
representatives to the IEDA shall be entitled to receive per diem of at least Two Thousand Five
Hundred Pesos (22, 500.00) per meeting.

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

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

SEC. 38. Executive Committee of the IEDC. ~ An Executive Committee of nine (9)
members shall be convened. Besides the Chair and Vice-Chair, the following shall be elected
by the IEDA members from among themselves or their duly 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.

Page 20


SEC. 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; :

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

(©) Assist in coordinating and monitoring policies, programs and acti
government agencies with respect to the implementation of this Act;

ities of all

(a) 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 IEDA;

(e) 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.

SEC 40. Regional and Provincial IEDC Officers. - The DOLE Regional and Provincial
offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers who shall be
appointed by the IEDC and shall have functions that include: monitoring and coordinating of
IEDC initiatives in the regions and Provinces; evaluation of policies programs for workers in
informal economy; providing technical assistance in the development of local plans and
rams; as well as other administrative functions necessary for the success of IEDC

IEDC Regional Officers shall have automatic seats in all Regional Development
Councils (RDCs).

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

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

SEC. 42. Workers in Informal Employment Local Development Office (WIELDO). ~ The
Workers in Informal Employment Local Development Office (WIELDO) shalll be established in
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 plans;

(b) In consultation with WIE organizations in the area, identify specific needs of various
IE subsectors and recommend appropriate measures to be taken;

(0) Ensure accreditation of WIE, especially those with assets of P150,000 and below, to
facilitate their immediate access to benefits and services;

Page 21


(d) Monitor, assess and evaluate implementation of the plans and programs as well as
the performance of informal workers, their economic activities and their organizations in the
areas;

(©) lead in the local implementation of Chapter VI (Security in the Workplace of WIE) of
this Act;

(6) Coordinate with other local offices, private sector and other organizations with
existing programs for WIE 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 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;

(j) Support organizing activities among WIE;

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

() Provide offices and other necessary resources to support organizing, advocacy,
training and other activities of local organizations of WIE;

(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

(0) 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.

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

SEC. 44. Local Government Unit Inforvisal Economy Development Fund (LGU-IEDE). ~
An Informal Economy Development Fund shall be established by every municipality and city.
Such fund will be supervised and managed by the concerned LGU through the WIELDO but
subject to audit by the Commission on Audit (COA).

Page 22


For the establishment and initial operations of WIELDO, each LGU shall allocate at least
three per cent (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.

SEC. 45. Additional Sources of Funds. - The following may tapped by LGUs as
additional sources of funds for WIELDO initiatives:

(a) _ atleast 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;

(a) atleast fifty percent (50%) of fees and annual dues collected from marginalized
fisherfolks - for programs focusing on fisherfolk.

(©) _ atleast fifty percent (50%) of funds from the Philippine Amusement and Gaming,
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO).

TITLED
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter I
Requisites for Employment Agreement

SEC. 46, Minimum Standards. ~ All working arrangements entered into by WIE shall be
in accordance with the minimum applicable labor and social standards as contained in Title 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 IEDA shall audit the capacity of these enterprises to comply with these
standards. Those incapable of meeting the standards shall be assisted to upgrade their
capacity to improve their businesses, as well as the capacity comply with relevant labor and
social standards. :

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SEC. 47. Provisions of Employment Agreement. - The employment contract shall be in
written form. However, the absence of a written agreement does not mean the absence of an

employment relationship. As a matter of right, WIE can insist on a written agreement based on
minimum standards.

In cases wherein minors are contracted with, the said negotiated contract shall be
signed on 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 contract shall be
explained to the worker concerned and attested to by a representative from the LGU or an
elected Barangay official in the city or municipality where the worker is designated to work.

Each of the contracting parties shall be provided with a full set of the duly signed
agreement which shall include the following basic provisions:

(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 for
those who fall under DOLE Department Order No. 5;

(e) duties and responsibilities;

(8) working hours and day-off schedules;

(g) living quarters or sleeping arrangements (for live-in workers);
(h) the date, term and mode of delivery or date of completion;

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

Minimum standard compensation referred to above shall be determined by the
Regional Wage Boards per subsector of WIE. In the case of piece rates, this shall be based on
the conduct of time and motion studies facilitated by the DOLE Bureau of Working
Conditions. While there are no standardized rates for workers in informal economy jobs, the
basis of computation shall not be below the applicable minimum wage of the region where
they are covered.

Enforcement of the standard compensation rates shall be in accordance with the
capability to comply as explained in Section 40 of this Act.

SEC. 48. Payment of Wages. - Payment derived from negotiated agreement shall be
made directly to the workers. No deductions from such payments shall be made by the
employer except those provided for by law. The expressed written consent of the worker shall
be first secured before deductions are made.

No parent, guardian, relative or any other person shall be allowed to take a loan against
the compensation of his or her relative-worker without the express written consent of the

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concerned worker. Neither shall ‘a worker of minor age be mandated to work in payment of
Joan or liability incurred by a parent, guardian, relative, or any other person.

Chapter II
IE Workers of Minor Age

SEC. 49, Allowable Employment of Workers of Minor Age. ~ Children fifteen (15) years
up to seventeen (17) years of age may be employed; provided, that parental or legal guardian
consent is presented and attested to by any representative of the LGU or duly elected
Barangay official where 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 U1
FINAL PROVISIONS

SEC. 50. 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 (220,000.00) 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, 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 herein shall prohibit the aggrieved WIE
from initiating a criminal or civil action against the responsible person or officer applicability.

(a) 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 official/s
administratively liable pursuant to Republic Act 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.

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

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Caer sanavone

SEC. 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.

SEC. 54, Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation or the Official Gazette, whichever comes
first.

Approved,

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