ZS RE.
(Frscsve caer my
is RECEIVED “2

EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
Second Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No, 8626
EXPLANATORY NOTE

According to the Bureau of Workers with Special Concerns (BWSC), the Philippines is
currently among the last two member-countries of the Association of Southeast Asian Nations
(Asean) without any formal statistical indicator for informal sector workers.

As evidence of this, the Philippine Statistics Authority (PSA) was able to conduct an Informal
Sector Survey (ISS) in 2008 specifically to measure the number of informal sector workers.
And there have been no survey ever since. However, the PSA would usually estimate the
number of informal sector workers in the country using data of self-employed workers and
unpaid family workers from its regular Labor Force Survey.

Data from the PSA would show that as of 2017, the estimated number of self-employed
workers nationwide is around 14.3 million, or around 35.1 percent of the 40.83 milion work
force for that period.

This shows how neglected the informal sector is.

According to the International Labor Organization (ILO), the informal economy consists of
independent, self-employed small-scale producers and distributors of goods and services.
Workers in this sector are for the most part not covered by the country’s labor laws and
regulations. Proxy measurement and related indicators for the informal economy include the
vulnerable employment rate, defined as the share of own-account and contributing family
workers in total employment.

Despite this, the contribution of the informal sector workers to our economy cannot be
overstated.

In view of the foregoing, immediate passage of this measure is earnestly requested.

RUFYS B. RODRIGUEZ


EIGHTEENTH CONGRESS }
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Ruius B. Rodriguez
House Bill No, 8626

ANACT
‘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:

TITLE!
GENERAL PROVISIONS
Chapter 1
Framework and Principles

SEC. 1. Short Title. - This Act shall be known as the "Magna Carta of Workers in the Informal
Economy’.

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

{a) To 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;

(d) 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;

(e) 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;

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

(@) 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 concems of workers in the informal economy in the policies, plans,
programs, projects and activities of relevant national government agencies, government
financial institutions, and local government units;

() To advance the autonomy and empowerment of local government units and their capability
“to be more responsive to the needs of the workers in informal economy among their
constituents;

(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 Il, 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 al " 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; redLtce 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 informal
business to graduate to formal status based on their own pace and self-determination thereby
reducing their vulnerability and exclusion;



(b) Structural teforms 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 nels;

(d) 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
{0 become more productive.

(e) 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
in the 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;

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

{k) Exacting responsibilty-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:

informal Economy - Based on the International Labor Conference (ILC) 2002, 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.


informal Sector, 2 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 operaled by own-acvount 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:

4. 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;

4. fisherfolk who are without fishing equipment and who market their catch;

5. on-call fish workers, porters and batillo;

6. home-based workers who are independent producers of goods or services;

7. industrial homeworkers - workers involved in a system of production under which work is
carried out at their homes end where materials may or may not be furnished by the employer
or contractor;

8. self-employed who are engaged by other enterprises through subcontracting arrangements;
9, ambulant vendors or peddlers refer to vendors who ply their trades in search of buyers;
10. street vendors refer to vendors who sell their merchandise on streets and sidewalks;

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 pe808 {P1,000,000 00) excluding tand.
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; 'barkers’, fare
collectors; dispatchers; and other workers who share income with self-employed or
unincorporated operators;

13. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation whose
capitalization is not more than one million pesos (P1,000,000.00) excluding land and building;
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.

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);

48. non-corporate cargo handlers and allied workers;

19. waste pickers and recycler
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, berengay nutrition scholars (SNS), 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
26. other similar economic activities that are not illegal, criminal or life-threatening in nature.

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

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

Worker of Minor Age refers to a child fifteen (15) to seventeen (7) years of age who is
engaged in productive employment under a valid contract of employment.

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

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

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, iliness or death due to the presence of biologic agents,
fadiation, chemicals, substances, hazardous materials; physical hazards in the work
environment; or the nature of work processes performed, or equipment used therein.

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.

Daily Basis refers to the per day 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

“Pakyaw" Basis refers to the pre-contracted wholesale mode of paying a worker as bilaterally
agreed upon by the employer and worker.

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 tivelincod and employment; preve 7
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 shail inciude tabor ‘market interventions, social insurance, basic
heaith care, social welfare and safety nets.



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.

Non-Government Organization (NGO), as defined in R.A. No. 8425, refers to a duly registered
non-stock, nonprofit. organization focusing on the 1 ‘of the basic or disadvantaged
sectors of society by among others, providing advocacy, training, community organizing,
research, access to resources, and other similar activities.

People's Organization (PO), consistent with R.A. No. 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

Chapter Il
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 1£ worker meeting the necessary accreditation requirements provided for in this
Act shall be listed in the centralized database system, and shall be issued an identity card and
a record book that shall list all services and benefits availed of by the WIE. These signify
eligibility to avail of development programs, provided, that the poorest and the most vulnerable
workers shall be given priority.

Qualified IE business activity or enterprise, or organization of WIE, shall be issued a
vettificate of accreditation, which shail be released within thirty-six (86) 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 enierprises 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 growit1 of informal economy.

{| 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 Genter shall ensure that processing of the business permit of the informal sector business
activities or enterprises shall be expedited within one day.


SEG. 7. Annual Dues. IE workers and organizations shall pay annual dues to be determined
by the Local Government Unit (LGU) concemed, 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 respactive regions or provinces.

‘These annual dues shall accrue to the respective LGU where they are accredited. The
accumulated funds from these dues shail be used for programs to benefit IE workers, business
activities, enterprises and organizations, as recommended by the WIELDO. Such programs
and disbursement of funds shall be approved by the concerned LGU Council.

Chapter lll 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 instruments 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,

{©) aliving wage and equal ration 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 heatth;

() 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;

() 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;

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

(I) 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, healthcare and insurance, and social welfare interventions;

(n) equal treatment before the law;

(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:

SEC. 10. Orger

(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 tocally/domestically produced products;

(c) access to markets, including capacity building to access E-marketing facilities;

(d) access to affordable, appropriate and adequate financial services, including, among
others, collateral-ree 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 aclivilies are
conducted;

(@) 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;

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

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

ns of workers in informal employment, including unions, cooperatives,

mutual benefit associations, eto. shalt 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;

. 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;

i. own property, real or personal, for the use and benefit of their organizations and members;

Sue and be sued under their registered names;

undertake all other activities, not contrary to law, designed to benefit their organizations
and members;

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, 44. 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 1n 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 Tower cost, obtain fair prices for their produce, aval
of credit assistance and skills training, and share from collective gains of the cooperatives.

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

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 thal wil support ard
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.

For purposes of this Section, hazardous work or conditions shall include, but shall not
be limited to the following:

1. any work which requires workers to render services beyond eight (8) hours without
commensurate compensation;

2, any work or activity which eposes the worker to physical, emotional or sexual abuse, or
threats of such abuse:

3. any work which involves manual handling or transport of heavy loads;

4, any work in an unhealthy environment. which exposes workers to hazardous substances,
gents or processes, or to temperature, noise levels, or vibrations damaging or potentially
damaging to their health;

5, any work which requires workers to continuously render service during late nights;

6. 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;

7. any use, procuring or offering of the worker for prostitution or pornography;


‘8. 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;

9, 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

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

SEC. 16. Prohibition Against Interference and Coercion. Any person is prohibited from
‘committing any of the following acts of interference and coercion:

4. preventing any worker from upholding or exercising his/her rights;

2. preventing any worker from joining or assisting organizations for purposes not contrary to
law;

3. preventing any worker from.carrying out his/her duties or functions in an organization, or to
penalize the same for any lawful action performed in that capacity;

4, harassing, threatening, coercing or intimidating any worker that result in preventing him or
her from performing his or her duties and functions;

5. transferring, penalizing or terminating the services of a worker without valid or legal ground;
and

6. 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:

SEG.17. Labor Market Programs. The State shall provide adequate resources to sustain labor
market programs following decent work standards, including emergency and guaranteed
employment schemes, to ensure livelihood security and prevent or mitigate the effects of
sudden Joss of income, in the context of sustainable development and developing local
economies in both rural and urban areas.

4. The State shall eneure 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.

2. LGUs shall encourage and provide incentives to constituents who want to engage or are
engaged in susiainable and/or organic farming. All idle private or public tands 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.

3. In pursuit of decent work, the State in all its labor market programs shall adopt a
comprehensive framework and pian on occupational safety and health that covers all Workers,
formal and informal, and implemented at both national and local levels.


4, 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 (j) of this Act.

5. 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, matemity, old age, death, unemployment, and other contingencies
resulting in loss of income or financial burden.

4. The Social Security System (SSS) shall cover all workers, particularly the working poor who
mostly belong to the informal economy. The SSS, in consultation with informal workers’
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.

2. The SSS shall also develop schemes involving government subsidies and sponsorship
programs to enable those who cannot afford to enroll and sustain their membership

3. To achieve universe! coverage, the SSS shall facilitate the accreditation of cooperatives,
women's and people's organizations, trade unions and \NIE 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.

4. The BSS 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. 8otr1 formal and informal workers shall be represented in the SSS
Commission, where gender ba‘ance shall also be observed.

5. The SSS in cooperation with other relevant national agencies and LGUs, shall support
indigenous and community-based social protection schemes such as Gamayan, tuiungan,
saranay, smail mutual benefit associations and micro-finance organizations initiated or
participated in by WIE so that these can be sustained, systematized and upscaled.

6. An enabling environment for such organizations and schemes shall be developed. Toward
this end, the Insurance Commission (IC) aind 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 product, 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 healthcare system that guarantees provision, oil 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 healthoare system shell 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 shall be covered by the
National Health Insurance Program as provided for in RA 0606, 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 shall be periodically upgraded to meet the goal of universal coverage which is
affordable, accessible and appropriate to the needs of all.

4. Government subsidies for PhilHealth sponsorship programs shall be expanded to cover not
nly 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.

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.

2. 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
temain viable through immediate reimbursement.

3. 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 healtf! insurance and other indigenous schemes initiated and participated

in WIE.

4. PhilHeaith, 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 a8 annual physioal 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 Informai 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 smaill 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. a

‘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 ikewise 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 concemed 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 (CLUP) 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 tan rs 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 exclusive for marginalized fisherfolk and allied workers. They shall be given priority in
the granting of permits and licenses for the establishment of fish pens, fish corrals, fish traps,
shellfish culture or similar structures for culture of marine produets 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 settiement areas on private or public iands, 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 can be declared
a marine protected area or a fish sanctuary to 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 round 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:

4. notice upon the affected persons or entities at least thirty (30) days prior to the date of
-eyiction or demolition;

2. adequate consult8tions on the matter of resettlement with the duly designated
representative of the families to be resettled and the affected communities in the areas where
they are to be relocated.

3. presence of local government ofitcials or their representatives during eviction or demolition;

4. proper identification of all persons taking part in the demolition;



5. execution of eviction or demolition only during regular office hours from Mondays to Fridays
and during good weather, unless the affected families consent otherwise;

6. 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.

7, non-use of heavy equipment for demolition except for structures that are permanent and of
cemented material;

8. proper uniforms for members of the Philippine National Police (PNP) who shail occupy the
first line of law enforcement and observe proper disturbance coniroi procedures; and

9. 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 relocation should 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.

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 sixty (60) day period after issuance of notice, the LGU shall
conduct consultations with affected vendors on the selection of 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 sited. 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 terminal 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 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 VIE
Special Allocations of Development Initiatives

SEC, 29. Special Allocations of Development Initiatives. - The development of initiatives for
WEE shall form part of an integrated and convergent plan to address poverty and vulnerability.
‘The national and-local:govertment units shail work together in support of such plan to
maximize impact of meager resources.

4. At least ten percent (10%) or 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 of the Department of Labor and Employment (DOLE) at the national level and the
WIELDO at the local level.

2. For purposes of program implementation, the DOLE shall manage 30%, and WIELDO, 70%
of the funds from the General Annual Appropriations Act (GAA) as provided for in the previous
paragraph this section.

3. The Implementing Rules and Regulations (IRR) of this Act shall determine additional
guidelines on, among others, tte use of such finances to ensure that programs and services
truly benefit WIE.

‘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

4. 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 ioan portfolio to informal economy enterprises and shall set aside @ specific
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 RA 7882, An Act
Providing Assistance to Women Engaging in Micro and Cottage Enterprises.

2. The Department of Social Welfare and Development (DSWD) shall strengthen its Self-
Employment Assistance Program (SEAR) to uplift and empower women in poverty, paiticularly
those in the informal economy, by adopting an integrated, credit-plus approach to micro-
finance.

3. 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 models 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 the qualified worker or business activity or enterprise, under such
terms and conditions adopted by its Board.

‘A. 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 te develop Special Gredit Windows to upscale informal enterprises.



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

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 fo accredited workers, business activities, enterprises or organizations in the
informal economy.

SEC. 32. Exclusivity 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 Vill
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.

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

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

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

2. Provide guideline 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;

3. 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;

4. Develop and ensure effective implementation of labor standards covering WIE as provided
Tor by this Act,

5. Develop and 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;

6. 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;

7. Establish a performance appraisal system for all accredited workers, enterprises and
organizations in this informal economy which shali be the basis for granting or renewat of
incentives to ensure their active participation and involvement.



8. 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.

9. Establish and develop a centralized and sex-disaggregated database system to effectively
guide policy formulation and implementation relative to the WIE. The databank shall be
available for public use and shall include but not limited to the following:

i, Sex-disaggregated statistical profile of WIE based on age, location, type of work,
average monthly incomes, work hours, and other relevant statistical information.

ji. Sex-disaggregated data on information enterprises, including capitalization and
‘sources of capital number and status of workers, average incomes,

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

iv. Inventory of resolved and pending cases involving activities of WIE

v. Database on the needs and problems of women and children in the informal
economy nationwide aimed at strenathening policies and programs against child labor;
and

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

10. 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;

14. Gonsistent with Section 2 (b) of this Act, to develop and ensure implementation of a
comprehensive plan to eliminate child labor;

12. Monitor and coordinate interpretation of policies and programs through the Regional IEDC
offices;

13. Coordinate and harmonize ail informal economy-related policies, jams, projects and
activities of various government agencies towards greater efficiency and effectiveness;

14, Monitor the LGU-generated incomes from informal employment through the LGUs periodic
report submitted to the Council.

15. Aiier consultations with WiE organizations, develop and ensure impiementation of policies
and programs that will address specific needs and ensure right of WIE subsectors;

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


417-From time to time call on the participation of any government agency or bureaucracy in its
deliberations especially when such agency is direct or indirectly concemed with or affecting
the growth and development of the IE.

SEC. 36. 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 folk q

4. Secretary of the Department of Trade and Industry (DT!)

2. Director General of the National Economic and Development Authority (NEDA)
3, Secretary of Department of Agriculture (DA)

4. Secretary Social Welfare and Development (DSWD)

5. Secretary of the Department of Interior and Local Government (DILG)

6. Chair of the Commission on Human Rights (CHR)

7. Lead Convenor of the National Anti-Poverty Commission (NAPC)

8, Secretary of Department of Transportation and Communication (DOTC);
9. Chair of Social Security System (SSS)

10. Chair the Philippine Health Insurance Corporation (PhilHealth)

411, Chair of the Philippine Commission on Women (PCW)

12. Secretary of the Department of Public Works and Highways (DPWH)

43. One (1) representative from the private sector at large, all Filipino citizens, proven to have
been active in assisting the informal economy workers.

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

15. The incumbent NAPC Informal Sector Sectoral Representative

16. At least 30% of total membership of IEDC shall come from organizations of workers in the
informal economy, a8 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
\EDC 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 (P2,500) per meeting.


‘SEC. 36, EDC Meetings.— The 1EDG shall meet once every two (2) months and may call for
special meeting 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) shalll 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 (8) members
shall be convened. Besides the Chair and Vice-Chair, the following shall be elected by the
IEDA members from among themselves their duly designated alternate representatives; four
(4) representatives of WIE organizations, one (1) from a national government agency,
provided, that at least three (3) members of the Executive Committee are women.

“The Executive Committee shail have the authority to act for in behalf of IEDC during
intervals of meetings, and only within the specific authority granted by the IEDC.

SEC 39. IEDC Secretariat. The following secretariat funds shall be integrated in the DOLE
secretariat functions:
(@) Prepare and recommend, in coordination with the LGU and other government
agencias, 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 activities of all
government agencies with respect to the implementation of this Act;
(d) Prepare, collate, and integrate all inputs to the IEDC’s yearly report on the status
of WIE, business activities or enterprises in the country, or other matters as directed
by the IEDA;
(e) Submit periodic reports of IEDC on the progress and accomplishments of its work
programs; and
4) 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 Tegions and Provinces; evaluation of policies programs for workers informal
economy; providing technical assistance in the development of local plans and programs; as
well as other administrative functions necessary for the success of IEDC initiatives in their
jurisdiction.

\EDC Regional Officers shali have automatic seats in all Regional Development
Councils (RDCs).

SEC, 44. 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 theron together with its policy recommendations.

Chapter IX
Workers in Intormal Empioyment Local Development Office (WIELDO)

SEC. 42. Workers in Informal Employment Local Development Office (WIELDO). ~ the
‘Workers in Informal Employment Local Development Office (WIELDO) shall 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.

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

(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 on the Workplace of WIE) of this

(® 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 supports and facilitate access to credit, market, technology, social
protection schemes, and training for WIE;

() Train pools of community trainers in business counseling and awareness-raising on
‘occupational safety and health hazards, risks and social protection;

@ 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 limited to counseling, conciliation, mediation,
and iegal 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 shali be observed.

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

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

For the establishment and initial operations of WIELDO, each LGU shall allocate at
least three percent (3%) of their twenty percent (20%) Development Fund from their IRA HB
768 Section 38 with modifications.

Thereafter, the LGUEDF shall be funded using:


(8) 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 at least 10% funds from the Annual General Appropriations Act as
provided for by Chapter Vil Section 29 (a) and (b) ofthis Act; and ;

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

Following the principle of merit and equity, LGUs that fulfil 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 be tapped by LGUs a8 additional
sources of funds for WIELDO initiatives:

(@) at least fifty percent (50%) of fees and annual dues collected from small transport ~ for
programs for workers in the small transport industry.

(6) atleast 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;

(c) at least fifly percent (60%) of collected fees and annual dues from small vendors — for
programs focusing on vendors;

(@) at least fifty percent (50%) of fees and annual dues collected from marginalized fisherfolks
for programs focusing on fisherfolk;

(©) at least fifty percent (50%) of funds from the Philippine Amusement and Gaming
Corporation (PAGCOR) and Philippine Charity Sweepstakes Offices (PCSO)

TITLE It
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter!
Requisites for Employment Agreement

SEC. 48. 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 Il of
this Act.

These standards shall be strictly enforced in informal economic enterprises suppiying
or doing outsourcing work for exporters, investors-locators in export processing zones of
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 to comply with relevant labor and
social standards.

SEC. 47. Provisions of Employment Agreement. The employment contract shall be in written
form. However, the ebsence of a written agreement does not mean the absence of an
employment relationship. As @ 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 shail be
signed on by his/her behalf by either parent or legal guardian, with the expressed written
content of the said minor.

tn 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) duration of employment;

(@}) compensations, which
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;

(0 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.

be below the minimum standard, and mode of

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 rated 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.

En ‘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
concemed worker. Neither shall a worker of minor age be mandated to work on 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 to 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 shail not be allowed to render work for money 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 ttt
FINAL PROVISIONS

SEC. 50. Penal Provision:
{a) Any person who shail 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 of a fine of not less than Twenty Thousand Pesos



{P20, 000) 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.
{c) 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 applica!
(d) Failure to implement Section 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 irom suspension ot 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 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.

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
‘vo (2) riewspapers of genera! circulation of the Official Gazette, whichever comes first,

Approved,