EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
< .  .1 
■; 
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■ 
.' (®Htrr of Ur.
S E N A T E
s. No. 
3l4
•19 JUl.lO A 9:40
RECL.V :-L
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
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,5 while 48.6% lack access to capital and markets,6 and 98.5% do not receive
1 http://nap.psa.gov.ph/resolutions/2002/I5.asp
2 Sibal, J.V. "Measuring the Inform al Sector in the Philippines and the Trends in Asia" Paper presented 
at the 10th National Convention on Statistics (2007).
3 Philippine Statistics Authority (PSA). "Inform al sector operators counted at 10.5 million (Results from  
the 2008 Inform al Sector Survey) (01/14/09).
4 Venida, V.S. "Employment, Productivity and The Inform al Sector In The Philippines, 1974-88: An 
Input- O utput Analysis"
5 Op. a t


any loan assistance.6 7 Workers in the informal economy are generally not members of 
the Social Security System.
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.8 
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;
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 IE 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 IE 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
c. Ensuring the protection of the rights of informal economy 
workers, enterprises and organizations.
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.
6 Ibid.
7 Ibid
8 Tolentino, M., Sibal., J.V. et.al.. "Survey and Assessment o f Laws on the Inform al Sector" Philippine 
Journal o f Development Number 51: Vol. 27, No. I (2001).


In view of the foregoing, the immediate approval of this legislative measure is 
hereby earnestly sought.
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/ g r a c e  POE
/


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S. No. 
t°. ! 4
. . 
Xr*. ■ *
t*.
of i*1-’ 
’ * Uiii t
T9 JULIO A 9 ’40
RCCLIV. J I
Introduced by Senator Grace Poe
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
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Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
TITLE I
GENERAL PROVISIONS 
Chapter I
Framework and Principles
Section. 1. 
Short Title. -  This Act shall be known as the "Magna Carta o f 
Workers in the Inform al Economy"{y\kONlE).
Sec. 2. Declaration o f 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, promotes 
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


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represent their organizations in a continuing process of consultation and
2 
social dialogue, with equitable membership in relevant tripartite bodies;
3 
and
4 
c) Establish and fully implement an integrated and coherent policy, at all
5 
levels of government, of formalization of informal economic units and
6 
informal economy workers and make them visible in all relevant national
7 
and local statistics.
8 
Sec. 3. Coverage. -  This Act shall apply to all workers and economic units -
9 
including enterprises, entrepreneurs and households -  in the informal economy, in
10 
particular:
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(a) Those who own and operate economic units including self-employed
12 
workers; self-employed own-account workers; employers; members of
13 
cooperatives; and members of other social and solidarity economy units.
14 
(b) Home-based workers or contributing family workers, irrespective of
15 
whether they work in economic units in the formal or informal economy;
16 
(c) Employees holding informal jobs in or for formal enterprises, or for
17 
economic units in the informal economy, including but not limited 
to
18 
those in contract arrangement and/or in supply chains, or as non-regular
19 
paid domestic workers employed by households;
20 
(d) Workers 
in 
unrecognized 
or unregulated 
employment relationships
21 
provided that the work performed is not illegal;
22 
(e) Volunteer; contractual; job orders; and other vulnerable workers in
23 
government instrumentalities; and
24 
(f) Agricultural 
workers 
or fisherfolk 
in 
unrecognized 
or 
unregulated
25 
agricultural or farming endeavors and fishing activities.
26 
Sec. 4. Definition o f Terms. 
-  The following terms are defined for the
27 
purposes of this Act:
28 
a) Informal Economy -  refers to all economic activities by workers and
29 
economic units that are, in law or in practice, not covered or insufficiently
30 
covered by formal arrangements.
31 
b) Economic Units in the informal economy include but are not limited to
32 
units that employ hired labor; units that are owned by individuals working


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on their own account, either alone or with the help or contributing family 
workers; cooperatives and other social and solidarity economy units; and 
informal work that may be found across all sectors of the economy, in 
households, as well as public and private spaces including government 
instrumentalities and Government Owned and Controlled Corporations 
(GOCCs).
c) 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 o f 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.


1 
Social protection schemes shall include labor market interventions,
2 
social insurance, social welfare, safety nets, disaster risk reduction and
3 
management mechanisms, adaptive measures in the context of climate
4 
change, affordable housing, and other provisions necessary for vulnerable
5 
groups to adequately address and manage risks, vulnerabilities, and
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threats to workers' livelihood activities and overall quality of life.
7 
g) Social and Solidarity Economy Units 
-  refers to enterprises and
8 
organizations including cooperatives as defined under Repubiic Act No.
9 
9520, mutual benefit societies, associations, foundations and sociai
10 
enterprises which produce goods, services and knowledge that meet the
11 
needs of the community they serve, through the pursuit of specific social
12 
and environmental objectives and the fostering of solidarity.
13 
h) Volunteer, contractual, jo b  orders, and other vulnerable workers in
14 
government instrumentalities 
-  
refers 
to 
workers 
in 
government
15 
instrumentalities who do not occupy plantilla positions; receive salaries but
16 
not benefits; are contracted out for specific periods of time; and/or who
17 
receive ailowances or honoraria. These include but are not limited to: job
18 
order and other contractual workers, project staff, barangay health
19 
workers, barangay tanod, barangay nutrition scholars, barangay daycare
20 
workers, barangay volunteers and other vulnerable workers in government
21 
instrumentalities for disasters, enumerators, among others.
22 
i) Social Protection Floor -  Refers to a set of guarantees ensuring access to
23 
essential health services, income support for chiidren for education,
24 
health, and nutrition, income assistance for economicaily active groups
25 
who do not have sufficient earnings in case of emergencies , and financial
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support for elderly population, and women informal workers in difficult and
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vulnerable circumstances like single mothers, and women survivors of
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abuse and violence.
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Chapter I I
30 
Rights and Benefits
31 
Sec. 5. Basic rights. -  Workers in the informal economy shall have the same
32 
basic rights accorded to all workers, as enshrined in the Philippine Constitution, the


1 
Labor Code as amended, and relevant international human rights instruments and
2 
international labor standards. Accordingly, the state shall guarantee all workers in
3 
the informal economy the following rights:
4 
a) Security of and in the workplace;
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b) Make a living through work freely chosen or accepted; and avail of
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technical and vocational guidance and training programs;
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c) Just and favorable conditions of work, including provision for work-life
8 
balance such as child care and other facilities to reduce and redistribute
9 
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
12 
equal wages for work similar or equivalent to those done by men;
13 
e) Equal opportunity for promotion, subject to no other considerations than
14 
seniority and competence;
15 
f) Safe and healthy working conditions safeguarding general, occupational
16 
and reproductive health;
17 
g) Basic services including but not limited to affordable medical care,
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reproductive and other health services including modern family planning,
19 
low-cost housing, water, sanitation, electricity 
and transport;
20 
h) Rest, leisure and reasonable limitation of working hours and periodic
21 
holidays with pay, as well as remuneration for public holidays whenever
22 
applicable;
23 
i) Maternity and paternity benefits, as provided for by law;
24 
j) Equal access to education, skills training, and economic resources to
25 
develop self-reliance, especially 
of children and young persons, without
26 
any discrimination;
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k) Self-organization to collectively negotiate with government and other
28 
entities in the promotion of their welfare and advancement of their
29 
interests, free from any political interference;
30 
I) An adequate standard of living for workers and their families, adequate
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food, clothing, and shelter, and the continuous improvement of such
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standard;


1 
m) Freedom from any form of discrimination, violence, exploitation including
2 
sexual exploitation, harassment, abuse and any form of inhumane
3 
treatment which debases, degrades or demeans the intrinsic worth and
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dignity of the worker as a human being;
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n) Accessible, affordable, and appropriate social protection as defined in
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Section 4, (f) of this Act;
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o) Equal treatment before the law;
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p) Substantial participation in policy and decision-making processes through
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their organizations and the use of social dialogue, including access to
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information and other resources relevant to the promotion and protection
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of their rights and welfare;
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q) Equal access to justice though appropriate mechanisms, including, but not
13 
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
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and secure workplaces and facilities, merchandising centers, farmers'
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markets or Bagsakan with proper storage facilities, and inventory bulk-
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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,
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including, among others, collateral-free 
and gender-responsive credit at
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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
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are conducted with the "provision of relocation before demolition";
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g) Measures against racketeering, extortion, and harassment, by both State
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and non-state elements;
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h) Freedom from deprivation of property without valid cause and due process
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of law; and
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i) Affordable and customized social security and insurance programs.
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Sec. 7. 
Rights o f Legitimate Organizations o f Workers in the Informal
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Economy. 
-  Organizations of workers in informal employment, including unions,
13 
cooperatives, social and solidarity economic units/organizations and mutual benefit
14 
associations, shall have the right to:
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a) Freely function and act as the representatives of their members in policy
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and decision-making processes, collective negotiations, and other similar
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bodies 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
21 
government;
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c) Access information from concerned government institutions and other
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parties that are pertinent to the protection and promotion of the rights
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and welfare of their members;
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d) Own property, real or personal, for the use and benefit of their
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organizations 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
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their organizations and members.
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Sec. 8. Organizing Workers in Informal 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 o f 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 I I I
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Security in the W orkplace of W orkers in the Inform al Economy
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Sec. 10. Designation o f Workplaces. 
-  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
15 
workers; which may include markets and vacant areas near markets,
16 
vacant public spaces and spaces which may be a private property that the
17 
LGU may acquire, lease or negotiate with legitimate organizations of
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workers in the informal economy for lease under a memorandum of
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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. Policy on Eviction and Demolition. 
-  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
30 
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. Policy on Confiscation o f Materials and Impounding o f Vehicles. -  In
2 
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
7 
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.
10 
Sec. 13. Policy on Relocation o f 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
12 
a temporary or new public market. Notice of the intention to close, sell, or demolish
13 
any public market shall be made to all concerned vendors at least sixty (60) days
14 
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)
20 
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 o f 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. Provided further, that after the enactment of such ordinance, notice of
2 
intention to relocate terminals shall be made to affected transport groups and
3 
community at least sixty (60) days before the actual relocation.
4 
Chapter IV
5 
Social Protection for W orkers in the Inform al Economy
6 
Social protection as defined in Section 4(f) of this Act shall have the following
7 
components:
8 
Sec. 15. Institutionalization o f Social Protection Floor for the Workers in the
9 
Informal Economy. -  The State shall support, sustain, enhance, and institutionalize
10 
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
12 
and health insurance subsidies to workers in the informal economy. Such resources
13 
shall also be used for programs for the unemployed, children, women in difficult and
14 
vulnerable circumstances, and older persons based on applicable and ever improving
15 
standards.
16 
Sec. 16. Social Welfare Efforts. 
-  The Department of Social Welfare and
17 
Development (DSWD) shall consolidate its strategic social welfare efforts to address
18 
the needs of the workers in the informal economy, including but not limited to direct
19 
assistance, policy development and community engagement for the workers.
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Sec. 17. Pole o f the Department o f Labor and Employment -  The DOLE shall
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engage in labor market interventions that shall provide adequate protection for the
22 
workers in the informal economy. The DOLE shall likewise ensure timely and
23 
immediate action for labor concerns, security of tenure, job generation and other
24 
pertinent concerns. It shall, in collaboration with other livelihood and enterprise
25 
development implementing agencies. Department of Local Government (DILG) and
26 
Department of Finance (DOF), develop a typology of formalization of informal
27 
economic units in terms of, among others, registration and standardized, affordable
28 
business permit cost , increased compliance, and extension of labor and social
29 
security program.
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Sec. 18. Social Safety Nets. 
-  The State shall ensure that the social safety
31 
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
10


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economy and their organizations. These shali include but not be limited to
2 
conditional cash transfers, unconditional cash transfers, school feeding programs,
3 
unconditional in-kind transfers, public works, cash-for-work, emergency employment
4 
schemes, and fee waivers.
5 
Sec. 19. Women, Family and Child Care Program. -  The DOLE, Department of
6 
Health (DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall
7 
ensure that maternity protection is extended to informal economy workers in
8 
accordance with Sections 9 and 10 of R.A. 11210, the Expanded Maternity Leave
9 
Law. Programs on maternal and child health and nutrition; child feeding; modern
10 
family planning; and other health-related services shall be strengthened and target
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women workers in the informal economy.
12 
The State shall encourage the provision of and access to affordable quality
13 
childcare and other care services to promote gender equality in entrepreneurship,
14 
employment opportunities, and to enable the transition to formal economy.
15 
Sec. 20. Social Insurance. 
-  As specified in the IRR of this Act, the
16 
government shall ensure that all social insurance programs including but not limited
17 
to Social Security, Pag-Ibig (Home Development Mutual Fund) and PhilHealth shall
18 
be fully available, accessible and affordable to workers in the informal economy, and
19 
that the government agencies governing them shall formulate policies and
20 
mechanisms for their full 
utilization and 
benefit, 
in consultation with the
21 
representatives of workers in the informal economy. In the interest of equity, the
22 
State shall subsidize the corresponding employers' contribution, had they been in
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formal employment.
24 
Sec. 21. Disaster Risk Reduction and Management (DRRM) and Climate
25 
Change. 
-  The state, particularly at the community level, shall engage workers in
26 
the informal economy and their organizations in DRRM efforts from preparedness, to
27 
response, rehabilitation and recovery. Responding to climate change in terms of
28 
minimizing contributions to greenhouse gas emissions and adapting to its long-term
29 
impact through resiliency-building programs shall also involve workers in the
30 
informal economy and their organizations.
31 
Chapter V
32 
Labor Standards and Enforcem ent o f Labor Laws
11


1 
fo r W orkers in the Inform al Economy
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Sec. 22. Applicability o f the Provisions o f the Labor Code. -  The provisions of
3 
the Labor Code governing the employer-empioyee reiationship particularly on
4 
general labor standards and occupational safety and health standards shall apply to
5 
all forms of work arrangements in the informal economy.
6 
The state shall adopt a developmental perspective in dealing with informal
7 
economic units. The DOLE, in coordination with the lEDC, shall assess the capacity
8 
of these enterprises to comply with general labor standards. 
Those incapable of
9 
meeting the standards shall be assisted to upgrade their capacity to improve their
10 
businesses, as well as the capacity to comply with relevant labor and social
11 
standards.
12 
Sec. 23. Prioritization for Education and Training. -  The State shall implement
13 
adequate training and information campaigns to provide workers in the informal
14 
economy and their employers the full knowledge on applicable labor and
15 
occupational safety and health standards for their subsequent compliance.
16 
Sec. 24. Prohibited Acts Specific to Workers in the Inform al Economy. -  The
17 
following are deemed prohibited:
18 
1) Non-compliance with minimum labor standards and occupational health
19 
and safety standards. 
-  The employment contract shall be in writing
20 
specifying the terms and condition of engagement which must not be
21 
lower than the minimum standards provided by law. However, the
22 
absence of a written agreement does not mean the absence of an
23 
employment relationship.
24 
The contract shall be explained to the worker and attested to by an
25 
elected Barangay official in the barangay where the worker is designated
26 
to work.
27 
2) Recruitment or Finders' Fees. -  Regardless of whether the worker was
28 
sourced either through an employment agency or a third party, workers in
29 
the informal economy shall neither be charged nor levied a recruitment
30 
fee or finders' fee.
31 
3) Hazardous Work and Conditions in Forma! Workplaces. -  Workers shall not
32 
be engaged to do hazardous work, activity or undertaking, or be exposed
12


1 
to hazardous working conditions in accordance with existing laws and the
2 
IRR of this Act.
3 
4) Interference and Coercion. 
-  Any person is prohibited from committing
4 
any of the following acts of interference or coercion;
5 
a) Preventing any worker from upholding or exercising his/her rights;
6 
b) Preventing any worker from joining or assisting organization for
7 
purposes not contrary to law;
8 
c) Preventing any worker from carrying out his/her duties or functions
9 
in an organization, or to penalize the same for any lawful action
10 
performed in that capacity;
11 
d) Harassing, threatening, coercing or intimidating any worker that
12 
result in preventing him or her from performing his or her duties
13 
and functions;
14 
e) Transferring, penalizing or terminating the services of a worker
15 
without valid or legal ground; and
16 
f) Other acts that or threaten to diminish the independence and
17 
freedom of a workers' organization to direct its own affairs.
18 
5) Non-compliance with Republic Act No. 7610, as amended by Republic Act
19 
No. 9231 in the employment o f minors. 
-  In cases where minors are
20 
contracted or hired to render work or services, the age should be at least
21 
fifteen (15) years old and there is parental or legal guardian consent in the
22 
employment contract, which is presented and attested to by any
23 
representative of the LCD or duly elected Barangay official where the work
24 
is to be done, and that the employers of these children should provide
25 
them with access to at least elementary or secondary education, either
26 
through traditional schooling or alternative learning systems.
27 
Sec. 25. Visitoriai and Enforcement Power o f the Secretary o f Labor and
28 
Employment -  Employment contracts and/or engagements in the Informal Economy
29 
shall be subject to the visitoriai and enforcement power of the Secretary of Labor
30 
and Employment pursuant to Article 128 of the Labor Code of the Philippines.
31 
TITLE I I
32 
Chapter I
13


1 
Inform al Economy Development Council (lEDC)
2 
Sec. 26. Creation o f the Informal Economy Development Council (lEDC). -
3 
There is hereby created an Informal Economy Development Council, hereinafter
4 
referred to as the lEDC, which shall be an attached agency of the National Economic
5 
and Development Authority (NEDA). The lEDC shall institute appropriate reforms
6 
within its structure, programming and other processes, including adjusting its human
7 
resource capabilities to ensure that programs focused on workers in the informal
8 
economy are efficiently and adequately implemented to address the needs of these
9 
workers. An inter-agency committee shall be formed to coordinate policies and
10 
programs of 
various government agencies towards the transition 
of informal
11 
economic units to formal.
12 
The lEDC shall be constituted within thirty (30) days after the approval of the
13 
IRR of this Act.
14 
Sec. 27. Mandate and Functions o f lEDC 
-  The mandate and functions of
15 
lEDC shall include the following:
16 
a) Develop and ensure implementation of annual, long-term and medium-
17 
term plans for the informal economy. The last of which should form part
18 
of the Medium Term Philippine Development Plans (MTPDP) towards
19 
institutionalizing 
comprehensive, needs 
and 
rights-based, 
gender-
20 
responsive and child-friendly programs and policies for the informal
21 
economy;
22 
b) Develop policies to transition workers in the informal economy and
23 
informal economic units to formal economy and according to standards
24 
provided for in this Act and related laws, treaties or statutes;
25 
c) Develop and implement training programs, and certify workers for jobs in
26 
industries that produce goods and render services for the benefit of the
27 
workers in the informal economy;
28 
d) Develop and ensure implementation of gender-based monitoring and
29 
evaluation mechanisms, efficient and effective programs and policies, and
30 
gender-responsive interventions toward harnessing the full potentials of
31 
women workers in the informal economy;
14


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
e) Ensure that concerned government agencies shall allocate In their 
respective Special Allocation for Development Initiatives adequate 
resources for programs that will benefit workers in the informal economy;
f) Develop and ensure implementation of a simple system of registration of 
workers in the informal economy, and accreditation of informal livelihood 
activities enterprises, and organizations in accordance with the standards 
and provisions of this Act;
g) Provide guidelines for the implementation by LGUs of a fair and credible 
system of evaluation, accreditation, review and assessment, merit 
promotion, rendering of grant and incentive awards and other policies 
relative to the effective and efficient implementation of this Act;
h) Ensure the effective implementation of labor standards covering workers 
in the informal economy as provided for by this Act and corresponding 
IRR;
i) Coordinate with LGUs for the development and implementation of 
periodic evaluation 
of all 
accredited 
informal 
economy 
members, 
enterprises and organizations for use as bases for accreditation, the grant 
of awards and incentives, training and retraining;
j) Ensure effective participation of workers in the informal economy and 
their organizations through the establishment of regular consultative 
mechanisms and processes.
k) Establish and develop a centralized and sex-disaggregated database 
system to effectively guide policy formulation and implementation relative 
to the workers in the informal economy. The databank shall be available 
for public use while strictly complying with laws on privacy and 
confidentiality. The database shall include pertinent information as 
specified in the IRR of this Act.
l) Develop and implement a communication plan and campaign targeting 
workers in the informal economy, their enterprises and organizations, 
towards a better understanding and appreciation of the benefits of this 
Act;
15


1 
m) Consistent with Section 2(h) of this Act, to develop and ensure
2 
implementation of a comprehensive plan to eliminate child labor;
3 
n) Assess all means to ensure the transition of informal economic units and
4 
the workers in the informal economy from their position in the informal
5 
economy to formal economy as contained in the IRR of this Act;
6 
o) Coordinate 
and 
harmonize 
all 
informal 
economy-related 
policies,
7 
programs, 
projects and activities of various 
government agencies
8 
including the Regional lEDC Officers towards greater efficiency and
9 
effectiveness;
10 
p) Monitor the LGU-generated incomes from informal employment;
11 
q) Conduct annual reviews of government programs for the workers in the
12 
informal economy and submit to Congress and the President of the
13 
Philippines corresponding reports thereon together with policy and other
14 
recommendations;
15 
r) Develop and ensure implementation of accessible just conflict resolution
16 
and 
adjudication 
systems and 
mechanisms 
to 
promote dialogue,
17 
conciliation, mediation and redress of grievances to protect the rights of
18 
workers in the informal economy; and
19 
s) From time to time, call on the participation of relevant government
20 
agencies in its deliberations as necessary.
21 
Sec. 28. Composition. -  The lEDC shall be co-chaired by the Director General
22 
of NEDA and the Secretary of Department of Labor and Employment. lEDC members
23 
may elect from among themselves a Vice-Chair to preside over meetings in the
24 
absence 
of the 
Chair. 
The 
members 
shall 
be 
the 
relevant 
government
25 
instrumentalities as determined by the IRR of this Act provided that, at least 30% of
26 
total membership of lEDC shall come from organizations of workers in the informal
27 
economy accredited with the SEC, DOLE or DA. Provided, further, that at least 40
28 
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. -  PlOO million pesos (PlOO,000,000.00) shall be
2 
allocated from the Presidential discretionary fund for the initial operating expenses of
3 
the lEDC, which shall include the initial allocation of funds for the operations of the
4 
WIELDU at the LGU 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 I I
18 
W orkers in Inform al Economy Local Development U nit (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 among
22 
others in consultation with the workers in the informal economy and their
23 
organizations:
24 
a) Prepare an overall development plan and work program that will address
25 
the needs of the workers in the informal economy. The barangay
26 
development plans shall be incorporated in this overall development plan;
27 
b) Encourage the organizing of informal economic units and workers in the
28 
informal economy;
29 
c) Develop and maintain a comprehensive, age, and sex-disaggregated
30 
database of all workers in 
the informal economy and economic units
31 
within the jurisdiction of 
the LGU that shall include all relevant
32 
information as contained in the IRR of this Act. Provided that, laws on
17


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


1 
Following the principle of merit and equity, LGUs that fulfill such allocations
2 
may receive additional assistance from the national government as recommended by
3 
lEDC; provided, that the LGUs have sufficiently complied with all requirements by
4 
the lEDC.
5 
Sec. 35. Registration o f Informal Economy Workers, and Accreditation o f
6 
Economic Units and Organizations. 
-  Pursuant to its functions under the Local
7 
Government Code, the Local Development Council in coordination with the WIELDU,
8 
shall establish a standard system of registration of workers in the informal economy,
9 
and accreditation of informal livelihood activities, organizations, and economic units
10 
provided that the system shall be simple, efficient, affordable, uniform, and
11 
accessible to all.
12 
Such registration or accreditation shall signify eligibility of the workers in the
13 
informal economy, their livelihood activities, organizations, or enterprises to avail of
14 
development programs, provided that, the poorest and most vulnerable shall be
15 
given priority. The registration or accreditation may be renewed subject to
16 
requirements set forth by the LDC in coordination with the WIELDU.
17 
Sec. 36. Annual Dues. 
-  Workers in the informal economy and their
18 
organizations shall pay annual dues to be determined by the concerned LGU, in
19 
consultation with their WIELDU. Said annual dues shall be no more than 30% of the
20 
legally prescribed daily minimum wage in their respective regions or provinces.
21 
These annual dues shall accrue to the concerned LGU and shall be used for
22 
programs to benefit workers in the informal economy, their organizations, business
23 
activities, and enterprises based on recommendations by the WIELDU and the local
24 
informal economy constituents.
25 
Sec. 37. Registration and Non-Registration. -  In no case shall registration be
26 
construed as a basis for rights and entitlements under this Act. Non-registration
27 
should not deprive workers in the informal economy of their rights stated in the Act.
28 
Registration as workers in the informal economy in the LGU is voluntary and shall
29 
not be made as a prerequisite to work by any private enterprise or government unit.
30 
However, registration shall guarantee prioritization and immediate recognition of the
31 
rights and benefits due to the workers in the informal economy.
32 
TITLE I I I
19


1 
Final Provisions
2 
Sec. 38. Pena! Provisions. -
3 
a) Any person who shall willfully interfere with, restrain or coerce a worker
4 
in the exercise of his or her rights or shall in any manner commit any act
5 
in violation of any 
of the provisions of this Act shall, upon conviction, be
6 
punished by a fine of not less than Twenty Thousand Pesos (P20,000.00)
7 
or imprisonment of one (1) to six (6) years or both fine and imprisonment
8 
at the discretion of the Court.
9 
b) If the offender is a public official or an official of a GOCC, the Court, in
10 
addition to the penalties provided in the preceding paragraph, may
11 
impose the additional penalty or disqualification from public office.
12 
c) Any person who violates the provision of this Act on Policy on
13 
Confiscation of Materials 
and Impounding of Vehicles shall be liable.
14 
Nothing herein shall prohibit the aggrieved workers in the informal
15 
economy from initiating a criminal or civil action against the responsible
16 
person or officer.
17 
d) Failure to implement the provisions of this Act on Relocation of Vending
18 
Sites and Policy on Relocation of Terminals shall render the responsible
19 
official/s administratively liable pursuant to Republic Act 7160 and other
20 
applicable laws without prejudice to any civil or criminal case that may be
21 
filed against erring officials. If a private institution or company is found to
22 
have violated any provision of this Act, its business license shall be
23 
suspended or revoked at the discretion of the Court.
24 
Sec. 39. Implementing Rules and Regulations (IRR). 
-  The Implementing
25 
Rules and Regulations (IRR) of this Act shall be formulated by a committee to be co-
26 
led by DOLE and NEDA. The members of the committee shall be the representatives
27 
of government offices mentioned in this Act, and workers in the informal economy
28 
organizations. Provided that, at least 30% of the committee members shall come
29 
from the latter, and provided further, that at least 30% of committee members are
30 
women. Said committee will start work on the IRR within three (3) months after the
31 
effectivity of this Act and finish within six (6) months thereafter.
20


1 
Sec. 40. Appropriations. -  The amount of one hundred (100) million pesos
2 
(PlOO,000,000.00) shall be appropriated for the initial implementation of this Act.
3 
Sec. 41. 
Separability Clause. 
-  If any provision of this Act is declared
4 
unconstitutional or invalid, the provisions not affected shall continue to be in full
5 
force and effect.
6 
Sec. 42. Repealing Clause. -  All laws, decrees, orders, rules and regulations
7 
or other issuances inconsistent with the provisions of this Act are hereby repealed,
8 
amended or modified accordingly.
9 
Sec. 43. 
Effectivity. 
-  This Act shail take effect fifteen (15) days after its
10 
publication in at least two (2) newspapers of general circulation or the Official
11 
Gazette, whichever comes first.
Approved,
21