NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
s. No. 338
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*22 JUL 12 A10 38
RtCElVbO m;
Introduced by Senator Grace Poe
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY, INSTITUTIONALIZING 
MECHANISMS FOR IMPLEMENTATION THEREOF, AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
Under the National Statistical Coordination Board (NSCB) Resolution No. 15, 
Series of 2002, informal sector consists of "units" engaged in the production of 
goods and services with the primary objective of generating employment and 
incomes to the persons concerned In order to earn a living.1
Data on workers in the Informal economy in the country are hard to come by. 
However, based on past studies, we know that they are composed mostly of 
individuals or unincorporated organizations of one to two workers.2 They are mostly 
employed in agriculture, hunting and forestry, or wholesale and retail trade, repair of 
motor vehicles, motorcycles and personal and household goods.3 Historically, the 
sector accounts for close to 50% of total employment and 50% of total gross 
domestic product (GDP).4 Women likewise make up a large portion of the informal
1 http://nap.psa.gov.ph/resolutions/2002/I5.asp
2 Sibal, J.V. "Measuring the Informal Sector in the Philippines and the Trends in Asia" Paper presented 
at the 10th National Convention on Statistics (2007). Accessed from: 
https://citeseerx.ist. psu.edu/viewdoc/download?doi=10.1.1.599.6117&rep=repl&type=pdf
3 Philippine Statistics Authority (PSA). "Informal sector operators counted at 10.5 million (Results from 
the 2008 Informal Sector Survey) (01/14/09).
4 Venida, V.S. "Employment, Productivity and The Informal Sector In The Philippines, 1974-88: An 
Input- Output Analysis". Accessed from: https://www.iioa.org/conferences/12th/pdf/nydrfr98.pdf


economy, and are mostly found in small home businesses, contractual jobs In the 
manufacturing and service sectors, and others.5
It can be inferred that workers in the informal economy account for a large 
portion of the labor force and for a substantial portion of GDP, acting as a "sponge" 
for individuals who could not enter the formal economy. However, despite their 
substantial share in employment and economic growth, workers in the informal 
economy are not provided adequate social protection or assistance. Around 70.6% 
of workers in the Informal economy rely on their savings as their primary source of 
capital,6 while 48.6% lack access to capital and markets,7 and 98.5% do not receive 
any loan assistance.8 Workers in the informal economy are generally not members of 
the Social Security System. They also do not have adequate representation in policy 
and decision-making processes and institutions.
Congress has yet to enact a measure that would adequately protect workers 
in the informal economy. Various laws protect subsectors of the informal economy. 
However, the Informal sector as a whole is not provided with sufficient protection.9 
This contradicts the social justice provisions of the 1987 Philippine Constitution, 
foremost of which is Article XIII, Section 1, which states: "The Congress shall give 
highest priority to the enactment of measures that protect and enhance the right of 
all the people to human dignity, reduce social, economic, and political Inequalities, 
and remove cultural inequities by equitably diffusing wealth and political power for 
the common good."
Thus, this bill seeks to protect and support workers in in the informal 
economy. This measure seeks to achieve this by:
5 Philippine Commission on Women, (n.d.). "Magna Carta of Workers in the Informal Economy". 
Accessed from: https://pcw.gov.ph/magna-carta-of-workers-in-the-informal-economy/
6 Sibal, J.V. "Measuring the Informal Sector in the Philippines and the Trends in Asia" Paper presented 
at the 10th National Convention on Statistics (2007). Accessed from: 
https://citeseerx.ist. psu.edu/viewdoc/download?doi=10.1.1.599.6117&rep=repl&type=pdf
7 Ibid.
8 Ibid.
9 Tolentino, M., Sibal., J.V. et.al.. "Survey and Assessment of Laws on the Informal Sector" Philippine 
Journal of Developmer)t Number 51: Vol. 27, No. I (2001).


1. Defining who workers, businesses and organizations in the informal economy 
are and specifying their rights and benefits.
2. Creating the following institutional mechanisms:
i. The Informal Economy Development Council, which serves as the 
policy making body for informal economy workers, businesses and 
organizations on the national level. The lEDCs powers and functions 
include, but are not limited to, the following:
a. Developing a simple registration system for informal economy 
workers, enterprises, and organizations;
b. Crafting, implementing and monitoring plans for the informal 
economy, which shall be part of the NEDA's Medium Long-Term; 
and
G. Ensuring the protection of the rights of Informal economy 
workers, enterprises and organizations, 
li. Workers in Informal Employment Local Development Offices 
(WIELDO) In every city and municipality. WIELDOs shall lead the 
implementation of this measure on the local level.
In view of the foregoing, the immed^fe approval of this legislative measure is 
hereby earnestly sought.
GRACE POE,


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
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‘22 JUL 12 A10 38
S. No. o
Introduced by Senator Grace Poe
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AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY, INSTITUTIONALIZING 
MECHANISMS FOR IMPLEMENTATION THEREOF, AND FOR OTHER 
PURPOSES
V‘.
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
TITLE I
GENERAL PROVISIONS 
CHAPTER I
FRAMEWORK AND PRINCIPLES
Section. 1. Short Title. - This Act 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 will ensure that the prosperity 
and independence of the nation and free the people from poverty through 
policies that provide adequate social services and promote decent and full 
employment, a rising standard of living, and an improved quality of life for all;
b. Protect, promote, and fulfill 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


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organizations in a continuing process of consultation and social dialogue, with
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equitable membership in relevant tripartite bodies; and
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c. Establish and fully implement an Integrated and coherent policy, at all levels
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of government, of formalization of Informal economic units and informal
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economy workers and make them visible in all relevant national and local
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statistics.
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Sec. 3. Coverage. - This Act shall apply to all workers and economic units -
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including enterprises, entrepreneurs and households - in the informal economy. In
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particular:
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a. Those who own and operate economic units including self-employed workers,
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self-employed own-account workers, employers, members of cooperatives,
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and members of other social and solidarity economy units;
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b. Home-based workers or contributing family workers. Irrespective of whether
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they work In economic units In the formal or informal economy;
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c. Employees holding informal jobs in or for formal enterprises, or for economic
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units In the informal economy. Including but not limited to those in contract
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arrangement and/or in supply chains, or as non-regular paid domestic
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workers employed by households;
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d. Workers in unrecognized or unregulated employment relationships provided
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that the work performed is not Illegal;
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e. Volunteer, contractual, job orders, and other vulnerable workers in
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government instrumentalities; and
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f. Agricultural workers or fisherfolk In unrecognized or unregulated agricultural
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or farming endeavors and fishing activities.
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Sec. 4. Definition of Terms. - The following terms are defined for the
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purposes of this Act:
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a. Informai Economy- refers to all economic activities by workers and economic
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units that are, in law or in practice, not covered or insufficiently covered by
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formal arrangements;
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b. Economic Units in the informal economy include but are not limited to units
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that employ hired labor; units that are owned by individuals working on their
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own account, either alone or with the help or contributing family workers;


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c.
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; ^
d. Informal employment- refers:to an employment arrangement in the formal 
or informal sectors or in households that exist based mostly on casual 
employment, kinship or personal and social relations with no formal 
guarantees on legal and social protection and employment benefits, and 
prevalent in economic units that are unregistered, unlicensed and 
unregulated;
e. 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 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 from working;
f. 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


1 
housing, and other provisions necessary for vulnerable groups to adequately
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address and manage risks, vulnerabilities, and threats to workers' livelihood
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activities and overall quality of life;
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g. Social and Solidarity Economy Units - refers to enterprises and organizations
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including cooperatives as defined under Republic Act No. 9520, mutual benefit
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societies, associations, foundations and social enterprises which produce
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goods, services and knowledge that meet the needs of the community they
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serve, through the pursuit of specific social and environmental objectives and
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the fostering of solidarity;
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h. Volunteer, contractual, job orders, and other vulnerable workers in
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government instrumentalities - refers to workers in government
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instrumentalities who do not occupy plantilla positions; receive salaries but
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not benefits; are contracted out for specific periods of time; and/or who
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receive allowances or honoraria. These include but are not limited to: job
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order and other contractual workers, project staff, barangay health workers,
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barangay tanod, barangay nutrition scholars, barangay daycare workers,
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barangay volunteers and other vulnerable workers in government
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instrumentalities for disasters, enumerators, among others; and
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i. Social Protection Floor - Refers to a set of guarantees ensuring access to
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essential health services, income support for children for education, health,
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and nutrition. Income assistance for economically active groups who do not
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have sufficient earnings in case of emergencies, and financial support for
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elderly population, and women informal workers in difficult and vulnerable
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circumstances like single mothers, and women survivors of abuse and
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violence.
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CHAPTER II
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RIGHTS AND BENEFITS
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Sec. 5. Basic rights. - Workers in the informal economy shall have the same
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basic rights accorded to all workers, as enshrined In the Philippine Constitution, the
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Labor Code as amended, and relevant international human rights instruments and
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international labor standards. Accordingly, the state shall guarantee all workers in
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the informal economy the following rights:


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a. Security of and in the workplace;
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b. Make a living through work freely chosen or accepted; and avail of technical
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and vocational guidance and training programs;
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c. Just and favorable conditions of work, including provision for work-life
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balance such as child care and other facilities to reduce and redistribute
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family and domestic responsibilities;
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d. A living wage and equal remuneration for work of equal value without
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distinction of any kind. In particular for women who shall be guaranteed equal
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wages for work similar or equivalent to those done by men;
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e. Equal opportunity for promotion, subject to no other considerations than
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seniority and competence;
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f. Safe and healthy working conditions safeguarding general, occupational and
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reproductive health;
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g. Basic services including but not limited to affordable medical care,
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reproductive and other health services including modern family planning, low-
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cost housing, water, sanitation, electricity and transport;
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h. Rest, leisure and reasonable limitation of working hours and periodic holidays
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with pay, as well as remuneration for public holidays whenever applicable;
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i. Maternity and paternity benefits, as provided for by law;
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j. Equal access to education, skills training, and economic resources to develop
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self-reliance, especially of children and young persons, without any
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discrimination;
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k. Self-organization to collectively negotiate with government and other entities
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in the promotion of their welfare and advancement of their interests, free
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from any political interference;
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I. An adequate standard of living for workers and their families, adequate food,
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clothing, and shelter, and the continuous Improvement of such standard;
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m. Freedom from any form of discrimination, violence, exploitation including
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sexual exploitation, harassment, abuse and any form of inhumane treatment
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which debases, degrades or demeans the intrinsic worth and dignity of the
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worker as a human being;


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n. Accessible, affordable, and appropriate social protection as defined in Section
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4, (f) of this Act;
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0. Equal treatment before the law;
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p. Substantial participation in policy and decision-making processes through their
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organizations and the use of social dialogue, including access to information
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and other resources relevant to the promotion and protection of their rights
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and welfare;
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q. Equal access to justice though appropriate mechanisms, including, but not
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limited to, alternative dispute resolution processes; and
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r. Access to public procurement including advice and reserving quotas for
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informal economic units.
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Sec. 6. Own-account workers and informal economic units. - Own-account
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workers as well as informal economic units, being the working poor's primary
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instruments to address and overcome poverty, shall be accorded the following
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preferential rights by the State:
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a. Infrastructure support such as farm to market roads, common, affordable and
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secure workplaces and facilities, merchandising centers, farmers' markets or
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Bagsakan with proper storage facilities, and inventory bulk-buying centers;
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b. Policy support to promote and protect local and domestically-produced
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products and services, and support In enhancing their participation in the
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value chain process;
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c. Ease and facilitation of access to markets, including capacity-building to
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access and maximize e-marketing facilities;
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d. Access to affordable, appropriate and adequate financial services, including,
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among others, collateral-free and gender-responsive credit at low interest;
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e. Access to appropriate and adequate machinery, equipment, and other
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technologies, with the end 
In view of increasing productivity, enhancing
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quality of products and services, and growth;
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f. Protection from unjust dislocation from places where economic activities are
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conducted with the "provision of relocation before demolition";
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g. Measures against racketeering, extortion, and harassment, by both State and
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non-state elements;


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h. Freedom from deprivation of property without valid cause and due process of
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law; and
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i. Affordable and customized social security and insurance programs.
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Sec. 7. Rights of Legitimate Organizations of Workers in the Informai
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Economy. - Organizations of workers in informal employment, including unions,
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cooperatives, social and solidarity economic units/organizations and mutual benefit
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associations, shall have the right to:
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a. Freely function and act as the representatives of their members in policy and
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decision-making processes, collective negotiations, and other similar bodies
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and processes in the context of tripartism and multi-sector;
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b. Establish, join or affiliate with local unions, national federations or
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confederations, and international trade union organizations, a right which
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shall be duly recognized, protected and supported by the national
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government;
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c. Access information from concerned government institutions and other parties
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that are pertinent to the protection and promotion of the rights and welfare of
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their members;
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d. Own property, real or personal, for the use and benefit of their organizations
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and members;
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e. Sue and be sued under their registered names; and
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f. Undertake all other activities, not contrary to law, designed to benefit their
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organizations and members.
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Sec. 8. Organizing Workers in Informai Economy. - Workers in informal
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economy shall be encouraged to organize themselves into self-help organizations,
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associations, federations, and confederations for their mutual benefit and protection,
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and for other legitimate purposes. Special attention shall be given to organizing
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women and other vulnerable workers In informal economy.
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Sec. 9. Assistance to Organizations of Workers in the Informal Economy. - All
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concerned national government agencies, government financial institutions and local
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government units shall include in their annual plans and budgets, programs and
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projects that support and address concerns of organizations of workers In the
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Informal economy and their members.


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CHAPTER III
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SECURITY IN THE WORKPI_ACE OF WORKERS IN THE INFORMAL ECONOMY
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Sec. 10. Designation of Workpiaces. - Local Government Units (LGU), in
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coordination with organizations of workers in the informal economy within their
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jurisdiction, affected communities, and other relevant groups, shall endeavor to
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identify, designate, and design a system of assignment on the following:
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a. Productivity and merchandizing centers as viable workplaces for informal
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workers; which may include markets and vacant areas near markets, vacant
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public spaces and spaces which may be a private property that the LGU may
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acquire, lease or negotiate with legitimate organizations of workers in the
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informal economy for lease under a memorandum of agreement; and
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b. Routes, terminals, and specific lanes for small transport workers.
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The process of identifying and designation of such workplaces shall be
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determined in the Implementing Rules and Regulations (IRR) of this Act: Provided,
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That such process shall have the substantial participation of relevant workers in the
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informal economy organizations and stakeholders.
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Sec. 11. Poiicy on Eviction and Demoiition. - Workers in the informal
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economy or employment shall not be evicted from their homes and workplaces
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without legal ground as provided for by R.A. 7279, otherwise known as the "Urban
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Development and Housing Act of 1992", and provision of livelihood opportunities,
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adequate water and electricity availability, as well as decent conditions of living in
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accordance with law. Logistical viability for the displaced shall be given priority in
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determining resettlement areas: Provided, That there shall be no demolition without
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ensuring appropriate resettlement.
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Sec. 12. Poiicy on Confiscation of Materiais and Impounding of Vehicies. - In
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cases where demolition or eviction is warranted, the person, government agencies or
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their agents who conduct the same shall issue a duly signed itemized receipt of all
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products, goods, and other materials seized from vendors and other affected
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workers In the informal economy.
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Tricycles, pedicabs, and other modes of transportation shall not be
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impounded for violations of license, registration, or traffic regulations unless the said


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vehicles were utilized in the conduct of criminal activities. In cases of violation of
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traffic regulations, the issuance of a traffic violation ticket shall suffice.
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Sec. 13. Policy on Relocation of Vending Sites. - Before any public market is
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closed, sold or demolished, all market vendors shall first be relocated by the LGU to
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a temporary or new public market. Notice of the intention to close, sell, or demolish
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any public market shall be made to all concerned vendors at least sixty (60) days
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before the actual transfer or relocation to another market site. Within the sixty (60)-
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day period after issuance of notice, the LGU shall conduct consultations with affected
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vendors on the selection of the relocation site and implementation of the relocation.
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Vendors, ambulant or otherwise, occupying public places not previously
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designated as vending sites shall be provided with viable temporary sites by the
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LGU. Notice of temporary transfer shall be given to the vendors at least fifteen (15)
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days before the actual transfer. This shall likewise apply to vendors granted with
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permits but whose workplaces are withdrawn from the list of allowable vending
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sites. Any change in the list of allowable vending sites shall only be done after
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consultations with affected vendors.
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In the event that a new public market is constructed in place of an old one,
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market vendors with stalls displaced from their workplaces shall be assured of stall
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assignment in the new market. Displaced ambulant vendors shall, as much as
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practicable, also be given appropriate selling sites.
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Sec. 14. Policy on Relocation of Terminals. - Designated terminals for
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tricycles, pedicabs and other similar modes of transportation shall not be arbitrarily
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relocated without prior notice and consultation with small transport groups,
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legitimate organizations of workers in the informal economy, affected community
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and other relevant sectors. Relocation of terminals can only be effected through an
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Ordinance. Providedf That after the enactment of such ordinance, notice of intention
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to relocate terminals shall be made to affected transport groups and community at
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least sixty (60) days before the actual relocation.
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CHAPTER IV
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SOCIAL PROTECTION FOR WORKERS IN THE INFORMAL ECONOMY
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Social protection as defined in Section 4(f) of this Act shall have the following
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components:


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Sec. 15. Institutionalization of Social Protection Floor for the Workers in the
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Informal Economy. - The State shall support, sustain, enhance, and institutionalize
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social protection initiatives for workers In the informal economy through the
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convergence of resources of various agencies to provide continuous social security
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and health insurance subsidies to workers in the informal economy. Such resources
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shall also be used for programs for the unemployed, children, women in difficult and
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vulnerable circumstances, and older persons based on applicable and ever improving
8 
standards.
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Sec. 16. Social Welfare Efforts. - The Department of Social Welfare and
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Development (DSWD) shall consolidate its strategic social welfare efforts to address
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the needs of the workers In the Informal economy, including but not limited to direct
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assistance, policy development and community engagement for the workers.
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Sec. 17. Pole of the Department of Labor and Employment. - The DOLE shall
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engage in labor market interventions that shall provide adequate protection for the
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workers in the informal economy. The DOLE shall likewise ensure timely and
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immediate action for labor concerns, security of tenure, job generation and other
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pertinent concerns. It shall, in collaboration with other livelihood and enterprise
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development implementing agencies. Department of Local Government (DILG) and
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Department of Finance (DOF), develop a typology of formalization of informal
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economic units in terms of, among others, registration and standardized, affordable
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business permit cost, increased compliance, and extension of labor and social
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security program.
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Sec. 18. Social Safety Nets. - The State shall ensure that the social safety
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nets provided by the DOLE, DSWD, Department of Agriculture (DA) and other
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government agencies shall be easily accessible to the workers in the informal
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economy and their organizations. These shall include but not be limited to
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conditional cash transfers, unconditional cash transfers, school feeding programs,
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unconditional In-kind transfers, public works, cash-for-work, emergency employment
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schemes, and fee waivers.
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Sec. 19. Women, Family and Child Care Program. - The DOLE, Department of
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Health (DOH), Philippine Health Insurance Corporation (PhllHealth), and DSWD shall
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ensure that maternity protection Is extended to informal economy workers in
10


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accordance with Sections 9 and 10 of R.A. 11210, the Expanded Maternity Leave
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Law. Programs on maternal and child health and nutrition; child feeding; modern
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family planning; and other health-related services shall be strengthened and target
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women workers in the informal economy.
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The State shall encourage the provision of and access to affordable quality
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childcare and other care services to promote gender equality in entrepreneurship,
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employment opportunities, and to enable the transition to formal economy.
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Sec. 20. Social Insurance. - As specified in the IRR of this Act, the
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government shall ensure that all social insurance programs Including but not limited
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to Social Security, Pag-Ibig (Home Development Mutual Fund) and PhilHealth shall
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be fully available, accessible and affordable to workers in the informal economy, and
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that the government agencies governing them shall formulate policies and
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mechanisms for their full utilization and benefit, in consultation with the
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representatives of workers In the informal economy. In the interest of equity, the
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State shall subsidize the corresponding employers' contribution, had they been in
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formal employment.
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Sec. 21. Disaster Risk Reduction and Management (DRRM) and Climate
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Change. - The state, particularly at the community level, shall engage workers in
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the informal economy and their organizations in DRRM efforts from preparedness, to
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response, rehabilitation and recovery. Responding to climate change in terms of
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minimizing contributions to greenhouse gas emissions and adapting to Its long-term
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impact through resiliency-building programs shall also involve workers in the
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informal economy and their organizations.
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CHAPTER V
25 
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS
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FOR WORKERS IN THE INFORMAL ECONOMY
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Sec. 22. Applicability of the Provisions of the Labor Code. - The provisions of
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the Labor Code governing the employer-employee relationship particularly on
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general labor standards and occupational safety and health standards shall apply to
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all forms of work arrangements in the informal economy.
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The state shall adopt a developmental perspective in dealing with informal
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economic units. The DOLE, in coordination with the Informal Economy Development
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Council (lEDC) created under Title II, Chapter 1 of this Act, shall assess the capacity
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of these enterprises to comply with general labor standards. Those incapable of
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meeting the standards shall be assisted to upgrade their capacity to improve their
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businesses, as well as the capacity to comply with relevant labor and social
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standards.
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Sec. 23. Prioritization for Education and Training. - The State shall implement
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adequate training and information campaigns to provide workers in the informal
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economy and their employers the full knowledge on applicable labor and
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occupational safety and health standards for their subsequent compliance.
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Sec. 24. Prohibited Acts Specific to Workers in the Informal Economy. - The
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following are deemed prohibited:
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1. Non-compliance with minimum labor standards and occupational health and
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safety standards. - The employment contract shall be in writing specifying the
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terms and condition of engagement which must not be lower than the
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minimum standards provided by law. However, the absence of a written
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agreement does not mean the absence of an employment relationship.
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The contract shall be explained to the worker and attested to by an elected
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Barangay official in the barangay where the worker is designated to work.
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2. Recruitment or Einders' Fees. - Regardless of whether the worker was
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sourced either through an employment agency or a third party, workers in the
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informal economy shall neither be charged nor levied a recruitment fee or
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finders' fee.
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3. Hazardous Work and Conditions in Eormai Workplaces. - Workers shall not be
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engaged to do hazardous work, activity or undertaking, or be exposed to
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hazardous working conditions in accordance with existing laws and the IRR of
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this Act.
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4. Interference and Coercion. - Any person is prohibited from committing any of
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the following acts of interference or coercion:
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a. Preventing any worker from upholding or exercising his/her rights;
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b. Preventing any worker from joining or assisting organization for
31 
purposes not contrary to law;
12


1 
c. Preventing any worker from carrying out his/her duties 6r functions in
2 
an organization, or to penalize the same for any lawful action
3 
performed in that capacity;
4 
d. Harassing, threatening, coercing or intimidating any worker that result
5 
in preventing him or her from performing his or her duties and
6 
functions;
7 
e. Transferring, penalizing or terminating the services of a worker without
8 
valid or legal ground; and
9 
f. Other acts that or threaten to diminish the independence and freedom
10 
of a workers' organization to direct its own affairs.
11 
5. Non-compliance with Republic Act No. 7610, as amended by Republic Act No.
12 
9231 in the employment of minors. - In cases where minors are contracted or
13 
hired to render work or services, the age should be at least fifteen (15) years
14 
old and there Is parental or legal guardian consent in the employment
15 
contract, which is presented and attested to by any representative of the LCD
16 
or duly elected Barangay official where the work Is to be done, and that the
17 
employers of these children should provide them with access to at least
18 
elementary or secondary education, either through traditional schooling or
19 
alternative learning systems.
20 
Sec. 25. Visitoriai and Enforcement Power of the Secretary of Labor and
21 
Employment - Employment contracts and/or engagements in the Informal Economy
22 
shall be subject to the visitoriai and enforcement power of the Secretary of Labor
23 
and Employment pursuant to Article 128 of the Labor Code of the Philippines.
24 
TITLE II
25 
CHAPTER I
26 
INFORMAL ECONOMY DEVELOPMENT COUNCIL (lEDC)
27 
Sec. 26. Creation of the Informal Economy Development Council (lEDC). -
28 
There is hereby created an Informal Economy Development Council, hereinafter
29 
referred to as the lEDC, which shall be an attached agency of the National Economic
30 
and Development Authority (NEDA). The lEDC shall institute appropriate reforms
31 
within its structure, programming and other processes, including adjusting its human
32 
resource capabilities to ensure that programs focused on workers in the informal
13


1 
economy are efficiently and adequately implemented to address the needs of these
2 
workers. An inter-agency committee shall be formed to coordinate policies and
3 
programs of various government agencies towards the transition of informal
4 
economic units to formal.
5 
The lEDC shall be constituted within thirty (30) days after the approval of the
6 
IRR of this Act.
7 
Sec. 27. Mandate and Functions of lEDC - The mandate and functions of
8 
lEDC shall include the following:
9 
a. Develop and ensure implementation of annual, long-term and medium-term
10 
plans for the Informal economy. The last of which should form part of the
11 
Medium Term Philippine Development Plans (MTPDP) towards
12 
Institutionalizing comprehensive, needs and rights-based, gender-responsive
13 
and child-friendly programs and policies for the Informal economy;
14 
b. Develop policies to transition workers in the Informal economy and Informal
15 
economic units to formal economy and according to standards provided for in
16 
this Act and related laws, treaties or statutes;
17 
c. Develop and implement training programs, and certify workers for jobs in
18 
industries that produce goods and render services for the benefit of the
19 
workers in the informal economy;
20 
d. Develop and ensure Implementation of gender-based monitoring and
21 
evaluation mechanisms, efficient and effective programs and policies, and
22 
gender-responsive Interventions toward harnessing the full potentials of
23 
women workers in the informal economy;
24 
e. Ensure that concerned government agencies shall allocate in their respective
25 
Special Allocation for Development Initiatives adequate resources for
26 
programs that will benefit workers in the informal economy;
27 
f. Develop and ensure implementation of a simple system of registration of
28 
workers In the informal economy, and accreditation of informal livelihood
29 
activities enterprises, and organizations in accordance with the standards and
30 
provisions of this Act;
31 
g. Provide guidelines for the implementation by LGUs of a fair and credible
32 
system of evaluation, accreditation, review and assessment, merit promotion.
14


1 
rendering of grant and incentive awards and other policies relative to the
2 
effective and efficient implementation of this Act;
3 
h. Ensure the effective implementation of labor standards covering workers in
4 
the informal economy as provided for by this Act and corresponding IRR;
5 
I. Coordinate with LGUs for the development and implementation of periodic
6 
evaluation of all accredited informal economy members, enterprises and
7 
organizations for use as bases for accreditation, the grant of awards and
8 
incentives, training and retraining;
9 
j. Ensure effective participation of workers in the informal economy and their
10 
organizations through the establishment of regular consultative mechanisms
11 
and processes.
12 
k. Establish and develop a centralized and sex-disaggregated database system
13 
to effectively guide policy formulation and implementation relative to the
14 
workers in the informal economy. The databank shall be available for public
15 
use while strictly complying with laws on privacy and confidentiality. The
16 
database shall include pertinent information as specified in the IRR of this Act.
17 
I. Develop and implement a communication plan and campaign targeting
18 
workers in the informal economy, their enterprises and organizations, towards
19 
a better understanding and appreciation of the benefits of this Act;
20 
m. Consistent with Section 2(h) of this Act, to develop and ensure
21 
implementation of a comprehensive plan to eliminate child labor;
22 
n. Assess all means to ensure the transition of informal economic units and the
23 
workers in the informal economy from their position in the informal economy
24 
to formal economy as contained in the IRR of this Act;
25 
0. Coordinate and harmonize all informal economy-related policies, programs,
26 
projects and activities of various government agencies including the Regional
27 
lEDC Officers towards greater efficiency and effectiveness;
28 
p. Monitor the LGU-generated incomes from informal employment;
29 
q. Conduct annual reviews of government programs for the workers in the
30 
informal economy and submit to Congress and the President of the Philippines
31 
corresponding reports thereon together with policy and other
32 
recommendations;
15


1 
r. Develop and ensure implementation of accessible and just conflict resolution
2 
and adjudication systems and mechanisms to promote dialogue, conciliation,
3 
mediation and redress of grievances to protect the rights of workers in the
4 
informal economy; and
5 
s. From time to time, call on the participation of relevant government agencies
6 
in its deliberations as necessary.
7 
Sec. 28. Composition. - The lEDC shall be co-chaired by the Director General
8 
of NEDA and the Secretary of Department of Labor and Employment. lEDC members
9 
may elect from among themselves a Vice-Chair to preside over meetings in the
10 
absence of the Chair. The members shall be the following:
11 
a. Secretary of the Department of Trade and Industry (DTI);
12 
b. Director General of the National Economic and Development Authority
13 
(NEDA);
14 
c. Secretary of the Department of Agriculture (DA);
15 
d. Secretary of the Department of Social Welfare and Development (DSWD);
16 
e. Secretary of the Department of Interior and Local Government (DILG);
17 
f. Lead Convener of the National Anti-Poverty Commission (NAPC);
18 
g. Secretary of the Department of Transportation (DOTR);
19 
h. Chairperson of the Social Security System (SSS);
20 
i. Chairperson of Philippine Health Insurance Corporation (PhilHealth);
21 
j. Chairperson of the Philippine Commission on Women (PCW);
22 
k. One (1) representative from the private sector;
23 
I. One (1) representative each from the League of Cities, League 
of
24 
Municipalities, League of Provinces and League of Councilors; and
25 
m. Representatives from organizations of workers In the informal economy
26 
accredited with the SEC, DOLE or DA; Provided, That at least 30% of total
27 
membership of lEDC shall come from these representatives; Provided^
28 
further. That at least 40 percent of the 30 percent are women.
29 
Representatives from the social partners, private sector, NGOs and workers In
30 
the informal economy organizations shall serve as lEDC members for a term of three
31 
(3) years without re-election and shall be subject to terms and conditions provided
32 
for by the IRR.
16


1 
Sec. 29. Initial lEDC Funds. - One hundred million pesos (PIOO/OOO/OOO.OO)
2 
shall be allocated from the Presidential discretionary fund for the initiai operating
3 
expenses of the lEDQ which shall include the initial allocation of funds for the
4 
operations of the WIELDU at the LCD level.
5 
Sec. 30. lEDCSecretariat - The lEDC Secretariat shall be jointly organized by
6 
the NEDA and the DOLE with functions that shall be determined by the IRR of this
7 
Act and integrated in the DOLE secretariat functions.
8 
Sec. 31. Regional and Provincial lEDC Officers. - There shall be Regional and
9 
Provincial lEDC Officers who shall be appointed by the lEDC and shall have functions
10 
that include: monitoring and coordinating of lEDC initiatives in the regions and
11 
Provinces; evaluation of policies programs for workers in the Informal economy;
12 
providing technical assistance in the development of local plans and programs; as
13 
well as other administrative functions necessary for the success of lEDC initiatives in
14 
their jurisdiction.
15 
lEDC Regional Officers shall have automatic seats In all Regional Development
16 
Councils (RDCs).
17 
CHAPTER II
18 
WORKERS IN INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT (WIELDU)
19 
Sec. 32. Workers in Informal Economy Local Development Unit (WIELDU). -
20 
The Workers in Informal Economy Local Development Unit (WIELDU) shall be
21 
established In every city and municipality to perform the following functions in
22 
consultation with the workers in the informal economy and their organizations:
23 
a. Prepare an overall development plan and work program that will address the
24 
needs of the workers in the informal economy. The barangay development
25 
plans shall be Incorporated in this overall development plan;
26 
b. Encourage the organizing of informal economic units and workers in the
27 
Informal economy;
28 
c. Develop and maintain a comprehensive, age, and sex-disaggregated database
29 
of all workers in the Informal economy and economic units within the
30 
jurisdiction of the LGU that shall include all relevant information as contained
31 
in the IRR of this Act: Provided, That laws on privacy and confidentiality shall
17


1 
be fully complied with: Provided further. That the database shall include
2 
information on payments collected from, organizations and economic units;
3 
d. Establish an Informal Economy One-Stop Shop Center which shall handle all
4 
transactions and processing of business permit applications within their
5 
respective jurisdiction and worker's registration; and
6 
e. Support MSME informal enterprise development towards transitioning to
7 
I formality.
8 
) In addition, the WIELDU may also perform other similar functions and
9 
undertakings pursuant to the provisions of this Act. In the performance of WIELDU's
10 
fun<Sions, the principle of preferential treatment to the poorest and most vulnerable
11 
shall be observed.
12 
Sec. 33. Composition. - The Local Chief Executives (LCEs) shall be the
13 
primary overseers of WIELDU's operations. The IRR of this Act shall provide for
14 
WIELDU's composition: Provided, That informal workers' representatives shall form
15 
at least fifty percent (50%) of WIELDU's membership; Provided, Further, That
16 
informal economy representatives shall not be less than five (5): Provided, Finally,
17 
That at least forty percent (40%) of all WIELDO's members are women. Other
18 
relevant guidelines on WIELDU's operations shall be included in the IRR of this Act.
19 
Sec. 34. Local Government Unit Informal Economy Development Fund (LGU-
20 
lEDF). - An Informal Economy Development Fund shall be established by every
21 
municipality and city. Such fund will be supervised and managed by the concerned
22 
LGU through the WIELDU and subject to audit by the Commission on Audit (COA).
23 
For the initial operations of WIELDU, each LGU shall allocate a portion from
24 
their Internal Revenue Allotment or IRA.
25 
Thereafter, the LGU-IEDF shall be funded using:
26 
a. Registration fees paid by individual workers In the informal economy and
27 
accreditation fees of their livelihood activities, organizations, and enterprises;
28 
and
29 
b. Annual allocations from LGUs' Development Fund the percentage of which
30 
shall be determined by LGUs.
31 
Following the principle of merit and equity, LGUs that fulfill such allocations
32 
may receive additional assistance from the national government as recommended by


1 
lEDC: Provided, That the LGUs have sufficiently complied with all requirements by
2 
the lEDC.
3 
Sec. 35. Registration of Informal Economy Workers, and Accreditation of
4 
Economic Units and Organizations. - Pursuant to its functions under the Local
5 
Government Code, the Local Development Council in coordination with the WIELDU,
6 
shall establish a standard system of registration of workers in the informal economy,
7 
and accreditation of informal livelihood activities, organizations, and economic units:
8 
Provided, That the system shall be simple, efficient, affordable, uniform, and
9 
accessible to all.
10 
Such registration or accreditation shall signify eligibility of the workers in the
11 
informal economy, their livelihood activities, organizations, or enterprises to avail of
12 
development programs: Provided, That the poorest and most vulnerable shall be
13 
given priority. The registration or accreditation may be renewed subject to
14 
requirements set forth by the LDC in coordination with the WIELDU.
15 
Sec. 36. Registration and Non-Registration. - In no case shall registration be
16 
construed as a basis for rights and entitlements under this Act. Non-registration
17 
should not deprive workers In the informal economy of their rights stated in the Act.
18 
Registration as workers In the Informal economy In the LGU is voluntary and shall
19 
not be made as a prerequisite to work by any private enterprise or government unit.
20 
However, registration shall guarantee prioritization and immediate recognition of the
21 
rights and benefits due to the workers In the informal economy.
22 
TITLE III
23 
FINAL PROVISIONS
24 
Sec. 37. Pena! Provisions. -
25 
a. Any person who shall willfully Interfere with, restrain or coerce a worker in the
26 
exercise of his or her rights or shall in any manner commit any act in violation
27 
of any of the provisions of this Act shall, upon conviction, be punished by a
28 
fine of not less than Twenty Thousand Pesos (P20,000.00), or imprisonment
29 
of one (1) to six (6) years, or both fine and imprisonment at the discretion of
30 
the Court.
19


1 
b. If the offender is a public official or an official of a GOCC, the Court, in
2 
addition to the penalties provided in the preceding paragraph, may impose
3 
the additional penalty or disqualification from public office.
4 
c. Any person who violates the provision of this Act on Policy on Confiscation of
5 
Materials and Impounding of Vehicles (Section 12) shall likewise be liable
6 
under paragraph (a) of this Section. Nothing herein shall prohibit the
7 
aggrieved workers in the informal economy from initiating a criminal or civil
8 
action against the responsible person or officer.
9 
d. Failure to implement the provisions of this Act on Relocation of Vending Sites
10 
(Section 13) and Policy on Relocation of Terminals (Section 14) shall render
11 
the responsible official/s administratively liable pursuant to Republic Act 7160
12 
and other applicable laws without prejudice to any civil or criminal case that
13 
may be filed against erring officials. If a private Institution or company is
14 
found to have violated any provision of this Act, its business license shall be
15 
suspended or revoked at the discretion of the Court.
16 
Sec. 38. Implementing Rules and Regulations (IRR). - The Implementing
17 
Rules and Regulations (IRR) of this Act shall be formulated by a drafting committee
18 
to be co-led by DOLE and NEDA. The members of the committee shall be composed
19 
of representatives of the government offices that are to be members of the lEDC
20 
and workers in the Informal economy organizations: Provided, That at least 30% of
21 
the committee members shall come from the latter: Provided, Further, That at least
22 
30% of committee members are women. Said committee will start work on the IRR
23 
within three (3) months after the effectivlty of this Act and finish within six (6)
24 
months thereafter.
25 
Sec. 39. Appropriations. - The amount of One hundred million pesos
26 
(P100,000,000.00) shall be appropriated for the Initial implementation of this Act.
27 
Sec. 40. Separability Clause. - If any provision of this Act Is declared
28 
unconstitutional or invalid, the provisions not affected shall continue to be In full
29 
force and effect.
30 
Sec. 41. Repealing Clause. - All laws, decrees, orders, rules and regulations
31 
or other issuances inconsistent with the provisions of this Act are hereby repealed,
32 
amended or modified accordingly.
20


1 
Sec. 42. Effectivity. - This Act shall take effect fifteen (15) days after its
2 
publication in at least two (2) newspapers of general circulation or the Official
3 
Gazette, whichever comes first.
Approved,
21