-
-
- --------------------
Republic of the Philippines 
SENATE OF THE PHILIPPINES 
Pasay City 
SIXTEENTH CONGRESS 
First Regular Session 
Senate Bill No.-1941 
Introduced by SENATOR SONNY ANGARA 
EXPLANATORY NOTE 
Srfn:rrt> 
\~jh;r 1,1 Il:c ;tft.tbr~ 
'13 
I~OV 21 
I~ri :31 
This bill seeks to provide an integrated, holistic, comprehensive, rights-based, gender-
responsive, culturally-sensitive, and democratically policy instrument to empower the poor, 
marginalized, unprotected and underrepresented workers in informal employment and bring 
them into the mainstream of the Philippine economy. It carries a strong bias to prioritize and 
empower the poorest of the poor. It is the culmination of persistent advocacy efforts involving 
informal workers' associations, women's groups, human rights and other civil society 
organizations stretching for almost a decade. It may be recalled that the first bill of Magna Carta 
of informal workers wa~ filed in the 12th Congress, followed by similar bills filed by different 
proponents in the 13th, 14th and 15th Congress. It is hoped that this bill will finally be passed in 
the current Congress, since it has ~ndergone rigorous process of consul.tations and dialogues 
among its major proponents and interested stakeholders closing ranks and seeking common 
ground in the interest of the working poor. 
The ranks of informal workers have been increasing through the years, with estimates 
varying from about half the country's labor force to as many as 25 million or 77 per cent of the 
country's total employed (ECOP, 2008," based on Labor Force Survey and Survey of the 
Philippine Business and Industry). Most of the working poor are in informal economy since 
informality is very much linked to poverty. The "working poor" are those who are working but 
cannot work their way out of poverty because of very low earnings and very high risks. In 2007, 
the International Labor Organization (lLO) estimated that one out of ten workers in the 
Philippines lived in extreme poverty (less than US$2 a day). Thus, it is essential to look after the 
rights and interests of informal workers, many of whom live in substandard conditions and 
cannot meet their basic needs, if poverty in the country is to be effectively addressed, and if the 
country is to comply with its commitments to the Millennium Development Goals, specifically the 
target of achieving full and productive employment and' decent work for all, including women 
and young people, under Goal 1 (eliminating extreme poverty and hunger). 
Estimates of informal sector contribution to GOP range from 30 per cent to as many as 
43 per cent, figures that are insufficiently recognized but nevertheless cannot be ignored by the 
country's policy makers. The ILO, various UN agencies, the European Union and other 
international agencies in fact now use ,the more encompassing phrase "ir;]formal economy" to 
refer to informal sector in recognition of the fact that what used to be marginalized as the 
, 
"informal sector" did not disappear with industrial progress but instead has become a permanent 
and ever expanding source of jobs, goods, and services for low-income populations all over the 
world. It is connected to the formal sector, and encompasses both traditional forms of work as 
well as emerging ones such as "tele-homework" for high technology industries. 


, r 
... 
~ 
The informal economy includes a wide variety of activities, enterprises and workers 
under both self-employment and wage employment, and include, among others, micro-
entrepreneurs, home-based workers, vendors, small transport operators, small and landless 
farmers, artisanal fisherfolk, non-corporate construction workers, waste pickers and recyclers, 
petty retailers, barter traders, small-scale miners and quarry workers, entertainers, beauticians, 
laundry persons, hairdressers, on-call domestic helpers, barangay health workers and other 
volunteer workers, barkers, unorganized cargo handlers, etc. 
Most economically active women are in the informal economy. Women in informal work 
are saddled with problems of multiple burden, discrimination, abuse and harassment, etc. 
because they are women - these on top of the issues they face as workers in the informal 
economy. Child labor, which is embedded in many forms of informal work not only violates 
children's rights, it robs our children of the[r childhood. 
Most informal workers are not covered. by the Labor Code and other legislation that 
could protect their rights. They are often subject to exploitation by unscrupulous employers, both 
formal and informal, who make them work long hours and at very low wages, without benefits 
and under very poor working conditions. They suffer from usurious rates of money lenders, as 
well as extortion and harassment from corrupt police authorities. Their work environment is not 
subject to regulation and monitoring, making them vulnerable to occupational safety and health 
hazards. They have limited access to productive resources, justice, social protection, and 
programs preventive of work-related diseases and risks. They are severely underrepresented in 
policy making bodies relevant to their issues. 
Thus, it is imperative that a Magna Carta for informal workers recognize, defend, protect, 
promote and fulfill their rights through a continuous process of capacity-building and 
empowerment. This is in consonance with the Constitutional provisions on social justice and 
with the country's adherence to the Universal Declaration of Human Rights (UDHR), the 
International Covenant on Economic, Social and Cultural Rights (lESCR)r the UN Convention 
on the Elimination of Discrimination of Women (CEDAW), ard various ILO conventions 
upholding core labor standards and decent work. 
There is also an urgent need to provide informal workers access to social protection and 
justice, make them visible in statistics, simplify their accreditation, provide appropriate standards 
and regulations in their favor, develop and implement meaningful plans, policies and programs 
that will harness their full potentials to become effective and productive economic actors. These 
will be the mandate of participatory institutional mechanisms at both national and local levels 
that will be created by this bill. As the 2002 ILO document on the informal economy 
emphasizes, government has the responsibility to bring informal workers into the economic and 
social mainstream, reduce their vulnerability and exclusion, ensure that they are covered by the 
legal and institutional framework, and support their representational rights through their 
legitimate, 
democratic, 
accessible, 
transparent 
and 
accountable 
membership-based 
organizations. 
It is in this context that early passage of this measure is earnestly sought. 


1 
2 
3 
4 
5 
6 
Republic of t,he Philippines 
SENATE OF THE PHILIPPINES 
Pasay City 
SIXTEENTH CONGRESS 
First Regular Session 
Senate Bill No,~9 41 
Introduced by SENATOR SONNY ANGARA 
'13 
NOV 21 
/111 :31 
AN ACT PROVIDING FORTHE MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY, 
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR OTHER 
PURPOSES 
TITLE I 
GENERAL PROVISIONS 
Chapter I 
Framework and Principles 
7 
SEC. 1. Shott Title. This Act shall be known as the "Magna Catta of Workers in Informal Economy." 
8 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the State: 
9 
10 
11 
(a) To promote the total well-being of all workers in informal economy, provided, that focus will be",n 
the poorest and most vulnerable of these workers; 
12 
(b) To ensure their human dignity, economic advancement and access to justice by providing timely 
13 
services, including social, political, economic, and legal; 
14 
15 
(c) To recognize, promote, protect and fulfill t/le right to decent work of every worker in informal 
16 
economy including the rights to: self-organization; just and humane working conditions; access to 
17 
social protection; security of workplaces; represent their organizations in continuing process of 
18 
consultation and dialogue towards the provision of a comprehensive package of reforms, 
19 
interventions and services in accordance with their articulated needs and interests; 
20 
21 
(d) To recognize the roles, give proper value to the contributions of worker& in informal economy, and 
22 
make them visible in the national ana local statistics; 
23 
24 
(e) To develop and enhance their technical, entrepreneurial and other skills and capabilities 
25 
necessary towards becoming more productive and self-reliant citizens, thereby ensuring 
26 
participation in mainstream economic activities; 
27 
28 
(f) To promote gender equity and equality and protect women workers in informal economy against 
29 
gender-based discrimination, exploitation and abuse; advance women's social, economic, 
30 
political, and reproductive rights; and improve their access to social protection and participation ih 
31 
decision-making bodies and processes; 
32 
1 


1 
(g) To protect vulnerable groups in the informal economy such as children, differently-abled persons, 
2 
indigenous peoples, and people living with HIV from discrimination, exploitation, abuse and 
3 
harassment, as well as from performing work hazardous to'their occupational, physical, m'ental, 
4 
emotional, reproductive and spiritual health; 
5 
6 
(h)To progressively eliminate child labor through the creation of more quality jobs for adults effective 
7 
enforcement of laws against child labor, elimination of gender-based discrimination against girl 
8 
child workers, improved access to universal education and social protection, and elimination of 
9 
cultural factors that directly and indirectly tolerate, even accept child labor; 
10 
11 
12 
13 
(i) To develop the local economy through maximization of the potential and contribution of informal 
economy business activities and enterprises; 
, 
14 
Ul To encourage and support workers in informal economy to form self-help groups, mutual benefit 
15 
associations, unions, cooperatives, and other forms of self-organization for their mutual aid, 
16 
benefit, protection and for other legitimate purposes; and 
17 
18 
(k)To include the concerns of workers in informal economy in the policies, plans, programs, projects 
19 
and activities of relevant national governrnent agencies, government financial institutions and 
20 
local government units, 
21 
22 
23 
24 
SEC. 3. Framework and Principles. Article II, Section 9 of the Philippine Constitution declares that "The 
state shall promote to 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, provide 
25 
full employment, a rising standard of living, and an improved quality of life for all." Towards this end, the 
26 ,government shall pursue a comprehensive, rights-based, partiCipatory, gender-responsive and culturally 
27 
sensitive framework for workers in informal economy including but not limited to: 
28 
29 
30 
31 
(a) Policies and programs that will bring marginalized workers and economic units into the economic 
and social mainstream, thereby reducing their vulnerability and exclusion; 
I 
32 
(b) Structural reforms in all relevant levels of government by creating committees, special offices for 
33 
development and protection of workers in informal economy and supporting their representational 
34 
rights through their legitimate organizations; 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
(c) Accessible and affordable social protection, including labor market interventions, social insurance 
coverage, basic health care, occupational safety and health, reproductive health services, social 
welfare programs and safety nets; 
(d) Policies, programs and interventions that will ensure ses;urity of wor~places of informal workers' 
towards a work environment that protects their rights and enables them to 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-, national-level federation/associations; 
54 
(h) Applicable labor standards; 
55 
56 
(i) Recourse mechanisms to address violations of informal workers' rights; 
2 


1 
U) Mechanisms and processes that prioritize the provision of services to, the poorest and the most 
2 
vulnerable workers, 
. 
3 
4 
(k) Mechanisms that promote responsibility on the part of the workers in informal economy to comply 
5 
with their obligations, provided that the State shall put in place responsive, transparent and 
6 
accountable mechanisms and systems that ensure recognition, protection, promotion and 
7 
realization of their rights. 
8 
9 
SEC. 4. Definitions of Terms. As used in this Act, the following terms shall mean: 
10 
11 
(a) Informal Economy - Based on the International Labor Conference (ILC) 2002a, this refers to "all 
12 
economic activity by workers and economic units that are - in law or in practice - not covered or 
13 
insufficiently covered by formal arrangements." 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
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 (domestic workers), and wage 
workers with no fixed employer (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 or lack of social security usually accompanied with poor earnings, low 
productivity, and lack of legal protection. To a large extent, women and disadvantaged groups 
such as youth, persons living with HIV, persons with disabilities, indigenous people and migrant 
workers are overrepresented in the informal economy. 
(b) Informal Sector, as defined by 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 unincorporated enterprises that are 
market and non-market producers of goods as well as market producers of services. 
' 
33 
These enterprises are operated by own-account workers, which may employ unpaid family 
34 
workers as well as occasional, seasonally hired workers. 
35 
36 
These enterprises may also be owned and operated. by employers which may employ less than 
37 
ten (10) employees on a continuous basis. 
. 
38 
39 
(c) Workers in Informal Economy - include but are not limited to the following: 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
c.1. small farmers owning land not more than three (3) hectares; 
c.2. rural and agricultural workers who are tenants, sharecroppers, 'or laborers; 
c.3. small fisherfolk/operators owning boats of three (3) gross tons or less and other fishing 
equipment; 
c.4. fisherfolk who are without fishing equipment and market their catch directly; 
c.5. home-based workers who are independent producers of goods and services; 
c.6. industrial homeworkers - workers involved in a system of production under which work for ~n 
employer or contractor; 
c.7. self-employed who are engaged by otherenferprises through subcontracting arrangements; 
57 
c.B. vendors, whether with stalls or without permanent workplace, including street hawkers or 
58 
those plying their goods and trades in the streets and those engaged in sari-sari stores with 
59 
operating capitalization of not more than one million pesos (P1,000,000.00), excluding land and 
60 
building; 
3 


1 
c.9. drivers of modes of transportation on land and sea whether motorized or not, including two (2) 
2 
wheels such as ka/esa, three (3) wheels such as pedicabs and tricycles, four (4) wheels such as 
3 
jeepneys and buses, and boats one (1) ton and below; "barkers," fare collectors, dispatchers and 
4 
other workers who share income with self-employed or unincorporated operators; 
5 
6 
c.10. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation whose 
7 
capitalization is not more than one million pesos (P1,000,000.00), excluding land and building; • 
8 
' 
9 
c.11. domestic workers which refer to persons who provide service to households such as maids, 
10 
cooks, family drivers, gardeners and baby sitters on a live-out basis and "on-call" arrangement 
11 
only; 
12 
13 
c.12. non-corporate construction workers; 
14 
15 
c.13. small-scale miners doing their own product processing, including those involved in small 
16 
scale mining and quarrying with capitalization of below one million pesos (P1,000,000.00); 
17 
18 
c.14. workers of Barangay Micro Business Enterprises (BMBEs); 
19 
20 
c.15. non-corporate cargo handlers and allied workers; 
21 
22 
c.16. waste pickers and recyclers; 
23 
24 
c.17. workers engaged in producing seasonal products; 
25 
26 
c.18. own account workers, including but not limited to those engaged in the maintenance and 
27 
repair of equipment and appliances, clothing and footwear, and those providing services such as 
28 
beauticians, barbers, and masseuses; 
29 
30 
c.19. "on-call" workers in the entertainment, movie and media such as bit players, stuntmen and 
31 
women, crew, make-up artists, etc.; 
32 
33 
c.20. volunteer workers in the government and non-government entities who only receive 
34 
allowances or honoraria, including but not limited to barangay health workers (BHW), barangay 
35 
tanod, barangay nutrition scholars (BNS), barangay daycare workers, and volunteers in non-
36 
government or people's organizations; 
37 
38 
c.21. unpaid family members, or workers receiving allowances and seasonally hired workers who. 
39 
are engaged in micro-enterprises or assist unincorporated· household enterprises and 
40 
41 
c.22. other similar economic activities that are not illegal, criminal or life threatening in nature. 
42 
43 
(d) Worker is a general term referring to either or both the self-employed or paid employee covered 
44 
under the provisions of this Act. 
45 
46 
(e) Self-employed Worker refers to any person who has no employed and who works for 
47 
himself/herself by producing goods and services for the market. 
48 
49 
50 
(I) Worker of Minor Age refers to children fifteen (15) to seventeen (17) years of age who are 
engaged in productive employment under a valid contract of employment. 
51 
52 
(g) Employer refers to a natural person or group or partnership of people for whom a paid worker 
53 
renders productive employment or service. 
54 
55 
(h) Security in the Workplace refers to the right of eVf!!ry worker to an enabling environment that 
56 
guarantees and protects the spaces for informal workers to undertake their work, including the 
57 
right to feel safe in one's own work space, legal security of tenure and freedom from 
58 
discrimination, risk, danger, doubt, anxiety or fear of being removed, evicted or prevented to work. 
59 
Towards this end, the State shall take mea;;ures that will ensure legal security of tenure of 
60 
workplaces, taking into account and including the physical environment, services, processes and 
61 
systems that will be involved to enable work. 
4 


1 
(i) Hazardous Work Condition refers to any activity or circumstance where a worker is exposed to 
2 
any risk which constitutes imminent danger to his/her health and safety. 
3 
4 
U) Working Hours refers to the period of time within which a worker is required to be on call to 
5 
perform any and all tasks that may be designated, regardless of whether there are actual tasks 
6 
being undertaken. 
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 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
(k) Daily Basis refers to the per day mode of paying a worker as bilaterally agreed upon by the 
employer and worker. 
(I) Monthly Basis refers to the per month mode of paying a worker as bilaterally agreed upon by the 
employer and worker. 
. 
(m)" Pakyaw" Basis refers to the pre-contracted wholesale mode of paying a worker as bilaterally 
agreed upon by the employer and worker. 
' 
. 
. 
(n) Social Protection refers to policies, programs and all other interventions from public, private and 
voluntary organizations and informal networks to support communities, households and 
individuals, both women and men, in their efforts to reduce poverty, prevent, manage and 
overcome risks and vulnerabilities throughout their life cycle, and realize their rights as citizens 
participating fully and equally in all decision making affecting or may affect their access to and 
control over resources necessary to maintain and sustain a decent and secure life, 
These interventions shall promote and sustain livelihood and employment; protect against hazards 
and sudden loss of income; and include among others, labor market interventions, soeial 
insurance, basic health care, social welfare and safety nets. 
(0) Community Contracting refers to the process of concluding an agreement between a community 
and a contracting authority, whereby the community (or a section of the community) is responsible 
for the implementation of the work and therefore functi?ns as contractor. 
Chapter II 
Coverage, Qualifications and Accreditation 
SEC 5, Coverage. This shall include individual workers in the informal economy (IE), as defined in 
Section 4 of this Act, IE businesses and enterprises and organizations of worker,s 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 
(PSO.OO) 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 intend to operate. 
Any IE worker meeting the necessary accreditation requirements provided for this Act shall be listed in the 
centralized database system, and shall be issued an identity card signifying eligibility to avail of 
development programs for workers in informal economy, provided, that the poorest and the mo!!t 
vulnerable shall be given priority. 
48 
Any IE business activity or enterprise, or organization of workers in informal economy, if qualified under 
49 
this Act, shall be issued a certificate of accreditation, which shall be released within the thirty six (36) 
50 
hours upon submission of complete requirements and payment of accreditation fees. 
51 
52 
The concerned LGU shall review, revalidate and reassess such accreditation every two (2) years from the 
53 
date of last accreditation. Re'newal of eligibility shall be in accordance with the merit and fitness principle, 
54 
and with the condition that no child labor shall be used and no activities harmful to the environment shall 
55 
be implemented. 
56 
57 
A comprehensive database of accredited IE business activities and enterprises shall be developed and 
58 
maintained. Such database shall take into account the different sub-classifications in terms of geography, 
59 
gender, ethnicity, vulnerability, occupation, nature of employment, and roles and functions. The database 
5 
" 


1 
2 
3 
shall also indicate informal businesses which may be categorized as livelihood enterprises and those 
entrepreneurial or growth oriented informed businesses. 
4 
The aforesaid comprehensive database shall from part of the bases of the assessment and monitoring of 
5 
the growth of the informal economy. 
6 
7 
SEC. 7. Annual Dues. IE workers, business activities or enterprises, and organizations shall pay annual 
8 . dues which shall accrue to the municipality or city where they are accredited and shall be exclusively used 
9 
for IE development programs approved by the municipal or city council as recommended by the Workers 
10 
in Informal Economy Local Development Office (WIELDO) referred to in Chapter VII of this Act. Such 
11 
dues, which shall cover the cost of issuance of licenses to operate, shall be paid to the municipal or city 
12 
treasurer in the area where they are accredited, starting on their second year of operations, based on the 
13 
following schedule: 
14 
15 
(a) Those with assets amounting to not more Two hundred Pesos (P2,OOO.00) - One Hundred 
16 
Pesos (P100.00) 
17 
18 
19 
20 
(b) Those with assets of more than Two Th04sand Pesos (P2,OOO.00) up to Five Thousand Pesos 
(P50,OOO.00) - Two Hundred Pesos (P200.00) 
21 
(c) Those with assets of more than Five Thousand Pesos (p5,OOO.00) up to Fifty Thousand Pesos 
22 
(P50,OOO.00) - Three Hundred Pesos (P300.00) 
23 
24 
(d) Those with assets of more Fifty Thousand Pesos (P50,OOO.00) up to One Hundred Fifty 
25 
Thousand Pesos (P150,OOO.00) - Five Hundred Pesos (P500.00) 
26 
27 
(e) Those with assets of more than One Hundred Fifty Thousand Pesos (P150,OOO.00)up to Three 
28 
Hundred Thousand Pesos (P300,OOO.00) - Six Hundred Pesos (P600.00) 
29 
30 
(f) Those with assets of more than Three Hundred Pesos (P300,OOO.00) up to Five Hundred 
31 
Thousand Pesos (P500,OOO.00) - Seven Hundred Pesos (P700.00) 
32 
33 
(g) Those with assets of more than Five Hundred Thousand Pesos (P500,OOO.00) -' One 
34 
Thousand Pesos (P1,OOO.00) 
35 
36 
37 
CHAPTER II 
38 
BM~R~~ 
39 
40 
SEC. 8. Workers in informal economy have the same basic rights accorded to all workers as enshrined in 
41 
the Philippine Constitution and in international instruments. These include the rights to: 
42 
43 
44 
45 
46 
47 
a.) work, which includes the right to make a living by work freely chosen or accepted, and the right 
to avail of technical and vocational guidance and training programs; 
• 
b.) the enjoyment of just and favourable conditions and work; 
48 
c.) a living wage and equal remuneration for work and equal value without distinction of any kind, 
49 
in particular for women who shall be guaranteed conditions of work not inferior to those 
50 
enjoyed by men; 
. 
51 
52 
d.) equal opportunity for promotion to an appropriate higher level, subject to no considerations 
53 
other than those of seniority and competence. 
54 
55 
e.) Safe and healthy working conditions safeguarding general, Qccupational and reproductive 
56 
health; 
57 
58 
f.) rest, leisure and reasonable limitation of working hours, and periodic holidays with pay, as well 
59 
as remuneration for public holidays; 
60 
6 


1 
g.) maternity protection, including paid leave· during a reasonable period before and after 
2 
childbirth; 
3 
4 
h.) an adequate standard of living for workers and their families, primarily adequate food, clothing, 
5 
and shelter, and the continuous improvement of such standard; 
6 
7 
L) education, especially of children and young persons, without any discrimination; 
8 
9 
j.) social protection, comprising mainly of, but not limited to, labor market programs, social 
10 
security, health care and insurance, and social welfare interventions; 
11 
12 
k.) self-organization to, among others, collectively negotiate with other parties in the promotions of 
13 
their welfare and advancement of their interest; 
14 
15 
16 
17 
18 
19 
20 
I.) substantially participate in policy and decision-making processes, including access to 
information and other necessary resources and relevant to the promotion and protection of 
their rights and welfare; 
m.) be free from any form of discrimination, violence, sexual exploitation, harassment and abuse; 
21 
n.) equal treatment before the law; and 
22 
23 
0.) equal access to justice though appropriate mechanisms including but not limited to, alternative 
24 
dispute resolution mechanisms and proc~sses. 
25 
26 
SEC. 9. Own account workers, as well as marginal economic enterprises in the informal economy, being 
27 
the working poor's primary instruments to address and overcome poverty, shall be accorded by the State 
28 
the rights to: 
29 
30 
a.) infrastructure support such as· farm to market roads, common, affordable and secure 
31 
workplaces and facilities, merchandising centers, farmers' markets or a bagsakan with proper 
32 
storage facilities, and inventory bulk-buying centers; 
33 
34 
b.) policy support to promote and protect locally/domestically produced products; 
35 
36 
c.) access to markets, including capacity building to access E-marketing facilities; 
37 
38 
d.) access to affordable, appropriate and adequate financial services including among other!;, 
39 
collateral-free and gender-balanced credit at low interest; 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
e.) access to appropriate and adequate machinery, equipment, and other technologies, with the 
end view of increasing productivity and growth; 
f.) protection from unjust dislocation from places and where economic activities are conducted; 
" 
g.) special 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 sixty (60) days after 
the effectivity of this Act. 
53 
SEC. 10. Organizations of workers in informal economy, including unions, cooperatives, mutual benefit 
54 
associations, etc. shall have the right to: 
55 
56 
a.) freely function and act as the representatives of their members in policy and decision-making 
57 
processes, collective negotiations, and other similar bodies and processes; 
58 


I 
1 
b.) establish national federations or confederations and the right of the latter to form or join 
2 
international trade-union organizations; 
3 
4 
c.) be furnished by concerned government institutions and other parties, upon written requests, 
5 
with information pertinent to the protection and promotion of the rights and welfare of their 
6 
members; 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
d.) own property, real or personal, for the use and benefit of their organizations and members; 
e.) sue and be sued under their registered names; 
f.) undertake all other activities, not contrary to law, designed to benefit the organizations and 
their members; and 
g.) be accorded preferential option in the awarding of contracts for the undertaking of national and 
local projects funded by either the National Government or any local government, unit including 
foreign-assisted projects, the guidelines of which shall be put into place by concerned national 
agencies and local government units within sixty (60) days after the effectivity of this Act. 
Further, 
h.) notwithstanding any provision of a general or s'pecial law to the contrary, the income and the ' 
properties of legitimate labor 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. 
, 
29 
SEC. 11. Monitoring of growth. The local government units (LGUs) in cooperation with the Workers in 
30 
Informal Economy Local Development Office shall monitor the growth of the informal economy business 
31 . activities or enterprises three (3) years after the enactment of this Act and every three (3) years thereafter. 
32 
The centralized database referred to in Section 6 shall be the basis of this monitoring. 
33 
34 
35 
CHAPTER IV 
36 
SOCIAL PROTECTION 
37 
38 
Social protection as defined in Section 4 of this Act shall have the following components: 
39 
40 
SEC. 12. Labor Market Program -
The State shall provide adequate resources to sustain labor market 
41 
programs following decent work standards, including emergency and guaranteed employment schemes, 
42 
to ensure livelihood security and prevent or mitigate the effects of sudden loss of income in the context ~f 
43 
sustainable development and developing local economies in both rural and urban areas. 
• 
44 
45 
a.) The State shall ensure that these 
sch~mes shall be labor-intensive, developmental, 
46 
sustainable and engaging both women and men, youth and older people in building 
47 
infrastructure, socialized housing, social forestry focusing on the planting of traditional trees, 
48 
organic farming, and food production programs. 
49 
50 
b.) LGU shall encourage and provide incentives to constituents who want to engage or are 
51 
engaged in sustainable and/or organic farming. All idle private or public lands with their 
52 
jurisdiction shall be cultivated or planted with organic food crops like corn, root crops or. 
53 
vegetables. LGUs must allocate their local funds for mangrove reforestation and prohibit and 
54 
conversion of any mangrove forest to residential, commercial and industrial use. 
55 
56 
c.) In pursuit of decent work, the State in all its labor market programs shall adopt a 
57 
comprehensive framework and plan on occupational safety and health that covers all workers, 
58 
formal and informal, and implemen!ed at both national and local levels. 
59 
8 


1 
d.) The State shall encourage entrepreneurship among the disadvantaged, especially women and 
2 
young people in informal economy through the simplification and facilitation of business 
3 
registration procedures in one-stop action centers, and the provision of adequate and 
4 
affordable marketing facilities such as economic freedom parks. 
5 
6 
e.) The State through local government units shall promote community contracting to give 
7 
preference to informal workers and their organizations in accessing employment opportunities 
8 
and related benefits. 
9 
10 
SEC. 13. Social Security. In the spirit of promoting social justice, the State shall endeavour to extend 
11 
social security protection to all workers and their beneficiaries against the hazards of disability, sickness, 
12 . maternity, old age, death, unemployment, and other contingencies resulting in loss of income or financial 
13 
burden. 
14 
15 
a.) The Social Security System (SSS) shall cover all workers, particularly the working poor who 
16 
mostly belong to the informal economy. The SSS, in consultation with informal workers' 
17 
organizations, shall customize products and services for them that are accessible and 
18 
affordable. In the interest of equity, the State shall cover what should have been the employers' 
19 
share for contributions of informal workers had they been formally employed. 
) 
20 
21 
b.) The SSS shall also develop schemes involving government subsidies and sponsorship 
22 
programs to enable those who cannot afford to enrol and sustain their membership. 
23 
24 
c.) To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives, 
25 
women's and people's organizations, trade unions and informal workers' associations, 
26 
microfinance and micro-insurance institutions and similar groups are collecting agents of 
27 
premiums and facilitators of claims with the least burdensome conditions and with the 
28 
appropriate incentives. It shall develop effective partnerships with these organizations. 
29 
30 
d.) The SSS Commission, in the spirit of democracy, transparency, accountability, and equity, 
31 
shall be required to conduct regular consultations with and provide information and reports to 
32 
its membership. Both formal and informal workers shall be represented in the SSS 
33 
CommiSSion, where gender balance shall also be observed. 
34 
35 
e.) The SSS in cooperation with other relevant national agencies and LGUs, shall support 
36 
indigenous and community-based social protection schemes such as damayan, tulungan, 
37 
saranay, small mutual benefit associations, and micro-finance organizations initiated or 
38 . 
participated in by workers in informal economy so that these can be sustained, systemized and 
39 
upscaled. 
~ 
. 
41 
f.) An enabling environment for such organizations and schemes shall be developed. Toward this 
42 
end, the Insurance Commission (IC) and other relevant regulatory agencies are hereby 
43 
mandated to review its policies and framework to make them more developmental and 
44 
supportive of the alternative schemes. 
45 
46 
SEC. 14. Social Security for Volunteers of Government Instrumentalities - Volunteer workers of 
47 
government instrumentalities as defined in Sec. 4 of this Act, shall be covered by the Government Service 
48 
Insurance System (GSIS) and be entitled to at least a minimum package of customized products, services 
49 
and benefits to be designed with their participation and with adequate government subsidy. 
50 
51 
SEC. 15. Health Care System and Financing -
The State shall establish a comprehensive and 
52 
integrated health care system that guarantees provision of service by duly accredited and adequately 
53 
furnished health facilities, and appropriately educated and rationally.compensated health personnel to 
54 
underserved areas all the way down to the barangay level. Provided that, such healthcare system shall 
55 
include reproductive health services, and provided finally, that priority in the delivery of such services shall 
56 
be the poor and marginalized. 
57 
58 
The State shall ensure adequate resources to finance health care for all, by, among others, progressively 
59 
increasing the budget for health care until it meets the World Health Organization recommendation of at 
60 
least four to five percent of the Gross Domestic Product. 
9 


1 
SEC. 16. Universal Health Insurance - The Philippine Health Insurance Corporation (PhilHealth) shall 
2 . ensure and substantiate universal, active and up to date coverage of all Filipinos, including workers in the 
3 
informal economy, as specifically mandated by Republic Act 10606 or the National Health Insurance Act, 
4 
as amended. 
5 
6 
SEC. 17. Social Welfare and Safety Nets - The State shall veer away from dole outs which violate the 
7 
dignity of the poor and encourage dependency. It shall instead implement programs whereby beneficiaries 
8 
of social assistance are able to exchange their labor or any other resources for the benefits received, and 
9 
are assisted to progress out of poverty through self-empowering measures. 
10 
11 
a. Existing cash transfer programs shall be reviewed, improved and expanded to enable the poor 
12 
to work and capacitate themselves out of poverty in an empowering and dignified manner. 
13 
Such programs shall benefit not only children of poor families, but also senior citizens, 
14 
especially older women, persons with disabilities, and other marginalized groups with little or 
15 
no assets. 
16 
17 
18 
19 
20 
21 
22 
23 
b. Barangay Day Care Center shall provide eight (8) to ten (10) hour services to enable parents, 
especially mothers, to pursue economic activities. 
c. Barangay-based, 
gender-responsive, 
.and 
participatory 
management schemes shall be established to address and 
change and other catastrophic risks. 
disaster 
preparedness 
and 
mitigate the effects of climate 
24 
CHAPTER V 
25 
Security in the Workplace of Workers in Informal Economy 
26 
27 
Security in the workplace as defined in Sec. II of this Act shall involve the following: 
28 
29 
30 
31 
SEC. 18. Designation of Workplace - The concerned Local Government Unit (LGU), in coordination with 
their respective Workers in Informal Economy Development Office (WIELDO), after consultation with 
informal workers, affected communities, and other relevant groups, shall identify and deSignate viable 
32 
workplaces for informal workers; routes, terminals and specific lanes for small transport workers; and 
33 
design a system of aSSigning these to accredited informal workers. These may include markets and 
34 
vacant areas near markets, vacant public spaces, and other spaces which may be designated as 
35 
. allowable workplaces for informal workers. 
36 
! 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
Should concerned informal workers prefers 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 
informal workers' workplace. The LGU shall likewise' encourage and assist the parties on forging a 
possible memorandum of agreement. 
The LGUs, within sixty (60) days from the effectivity of this Act, shall conduct a survey to identify viable 
vacant areas suitable for routes, terminals, lanes and workplaces for use of informal workers in their 
respective localities. 
The LGUs shall, within ninety (90) days after .the survey and based on c9nsultations with concerned 
informal workers, affected inhabitants and relevant sectors as well as the recommendations of WIELDO, 
pass as ordinance designating such workplaces. 
50 
SEC. 19. Protection of Agricultural Lands and their Occupants - The LGUs, in coordination with the 
51 
Department of Agrarian Reform (DAR) shall protect irrigated and irrigable agricultural lands from 
52 
. conversion or reclassification to non-agricultural uses. Provided that, LGUs may continue to exercise its 
53 
power of expropriation or other mode of acquisition of private untenanted agricultural lands, for purposes 
54 
55 
56 
57 
of public use as provided under RA 6657 as amended. "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 tenanted agricultural lands as protected zones, 
58 
The LGUs shall make an inventory of all agricultural lands under leasehold and shall enforce the security 
59 
of the tenure of tenants, right of redemption and right of first refusal on the subject land. The LGUs shall 
10 


1 
provide assistance and protection to tenants in agricultural lands whose landowners violate the provisions 
2 
of RA 3844 or the Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral 
3 
termination of the tenancy relationship by landowners. 
4 
5 
SEC. 20. Use of Municipal Waters, Beach Fronts and Foreshores - Municipal waters shall be used 
6 
exclusively for marginalized fisherfolk and allied workers. They shall be given priority in the granting of 
7 
permits and licenses for the establishment of fish pens, fish corrals, fish traps, shellfish culture or similar 
8 
structures for culture and marine products within the municipal waters. 
9 
10 
Beach fronts and foreshores are public domain and may be used by any person especially marginalized 
11 . fisherfolk. LGUs shall ensure that no beach within their jurisdiction is exclusive for the use of resort guest~ 
12 
or private persons. 
' 
13 
14 
LGUs in coordination with the National Housing AuthQrity (NHA) shall establish and create fisherfolk 
15 
settlement areas on private and public lands, specifically those near the fishing grounds, for municipal 
16 
fisherfolk with security of tenure. 
17 
18 
A public consultation with the affected fisherfolks shall be required before an area is declared a marine 
19 
protected area or a fish sanciuary by the national or local government unit. 
20 
21 
SEC. 21. Policy on Eviction and Demolition - Informal workers shall not be evicted from their homes 
22 
and workplaces without legal ground as provided for in Republic Act 7279 or the Urban Development and 
23 
Housing Act of 1992. In cases where eviction or demolition is warranted under Section 28 of RA 7279, the 
24 
same shall be conducted upon compliance with the following: 
25 
26 
(a) notice upon the affected persons or entities at least thirty (30) days prior to the date of eviction 
27 
or demolition; 
28 
(b) adequate consultations on the matter of resettlement with the duly designated representatives 
29 
of the families to be resettled and the affected communities in the areas where they are to be 
30 
relocated; 
31 
(c) presence of local government officials or their representatives during eviction or demolition; 
32 
(d) proper identification of all personas taking part in the demolition; 
33 
(e) execution of eviction or demolition only during,'regular office hours from Mondays to Fridays 
, 
34 
and during good weather, unless the affected families consent otherwise; 
35 
(f) no violence or unreasonable force shall be committed against women, children, senior citizens, 
36 
persons with disabilities and other identities similarly situated in the course of eviction or 
37 
demolition. 
38 
(g) non-use of heavy equipment for demolition eX!i:ept for structures that are permanent of 
39 
concrete materials; 
. 
40 
(h) proper uniforms for members of the Philippine National Police (PNP) who shall occupy the first 
41 
line of law enforcement and observe proper disturbance control procedures; and 
42 
(i) adequate relocation, whether temporary or permanent; provided, however, that in cases of 
43 
eviction and demolition pursuant to court order involving underprivileged and homeless 
44 
citizens, relocation shall be undertaken by the local government unit concerned and the 
45 
National Housing Authority (NHA) with the assistance of other government agencies within 
46 
forty five (45) days from service of notice of final judgment,by the court, after which period the 
47 
said order shall be executed; provided, further, that should relocation not be possible within the 
48 
said period, financial assistance in the amount equivalent to the prevailing minimum daily wage 
49 
multiplied by sixty (60) days shall be extended to the affected families by the local government 
50 
unit concerned. 
51 
52 
SEC. 22. Policy on Confiscation of Materials and Impounding of Vehicles -
In cases where 
53 
demolition or eviction is warranted, the person who conducts the same shall issue an itemized receipt of 
54 
all products, goods, and other materials seized from the affected informal workers. 
1 
55 
56 
Tricycies, pedicabs and other modes of transportation shall not be impounded for violations of license, 
57 
registration, or traffic regulations unless the said vehicle 'was utilized in the conduct of criminal activities. In 
58 
cases of mere violation of traffic regulations, a traffic violation ticket shall be issued to the erring driver 
59 
without impounding his/her vehicle. 
60 
11 


1 
SEC. 23. Policy on Relocation of Vending Sites -
Before any public market is closed, sold or 
2 
demolished, all market vendors shall first be relocated by the LGU to a temporary or new public market. 
3 
Notice of the intention to close, sell, or demolish any public market shall be made to all concerned vendors 
4 
at least sixty (60) days before the actual transfer or relocation to another market site. Within the sixty (60) 
5 
day period after issuance of notice, the LGU shall conduct consultations with the affected vendors on the 
6 . selection of the relocation site and implementation of the relocation. 
7 
8 
9 
10 
11 
12 
13 
14 
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 lis! of 
allowable vending sites. Any change in the list of allowable vending sites shall only be done after 
consultations with affected vendors. 
15 
In the event a new that a new public market is constructed in place of an old one, market vendors with 
16 
stalls displaced from their workplaces shall be given priority in the assignment of stalls in the new market. 
17 
18 
SEC. 24. Policy on Relocation of Terminals - Designated terminals for tricycles and pedicabs shall not 
19 
be arbitrarily relocated without prior notice and consultation with small transport groups, affected 
20 
community and other relevant sectors. Provided, that relocation of terminals can only be affected through 
21 
an Ordinance. Provided further, that after the enactment of such ordinance, notice of intention to relocate 
22 
terminals shall be made to all small transport groups and affected community at least Sixty (60) days 
23 
before the actual relocation. 
24 
25 
CHAPTER VI 
26 
Special Allocation for qevelopment Initiatives 
27 
28 
SEC. 25. Special Allocation for Development Initiatives. The development initiatives for workers -in 
29 
informal economy shall form part of an integrated and convergent plan to address poverty and 
30 
vulnerability. The national and local government units shall work together in support of such plan to 
31 
maximize impact of meager resources. 
! 
32 
33 
(a) There shall be separate annual appropriation necessary to implement programs and services 
34 
for worker in informal economy to be i!l1pleniented by the Informal Economy Development 
35 
Authority (IEDA) and Workers in Informal Economy Local Development Office (WIELDO) as 
36 
created by Chapters VII and VIII of this Act. Support to WIELDO shall be based on, the 
37 
principles of merit and equity. 
38 
39 
(b) The Implementing Rules and Regulations (lRR) of this Act shall determine additional guidelines 
40 
on, among others, the use of finances to ensure that programs and services truly benefit 
41 
workers in informal economy. 
42 
43 
SEC. 26. Sourcing and Adopting Development Initiatives. Other sources of funds to be used 
44 
exclusively for initiatives addressing the needs and empowerment of workers in informal economy shall be 
45 
identified in the Implementing Rules and Regulations (lRR) of this Act and may include the following: 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
(a) Government financial institutions and mechanisms such as the Land Bank of the Philippines 
(LBP), Development Bank of the Philippines (DBP), National Livelihood Support Fund (NLSF), 
and Quedan Rural Credit and Guarantee Corporation shall set aside a specific percentage of 
their loan portfolio to informal economy enterprises and shall give priority to women-led 
informal economy enterprises by providin9 loans at an interest of not more than twelve percent 
(12%) per annum consistent with the spi~it of RA 7882. 
(b) The Department of Social Welfare and Development (DSWD) shall strengthen its Self-
Employment Assistance Program (SEAK) to uplift and empower women in poverty, particularly 
those in informal economy, by adopting an integrated, credit-plus approach to micro-finance. 
(c) The Small Business Guarantee and Finance Corporation (SBGFC) created under Republic Act 
(RA) No. 8289 shall assist in the sourcing and adopting of development initiatives for 
competitive enterprises in terms of finance, technology, production, management and business 
12 


1 
linkages. It shall also provide and promote, develop and widen in both scope and service reach 
2 
various alternative modes of financing for informal economy business activities or enterprises, 
3 
including but not limited to: direct and indirect project lending, venture capital, financial leasing, 
4 
secondary mortgage and/or rediscounting of loan papers to such business activities or 
5 
enterprises and crop production financing. Further, the Corporation shall guarantee loans 
6 
obtained by qualified workers or business activity or enterprise, under such terms anl!l 
7 
conditions adopted by its Board. 
' 
8 
9 
(d) The Department of Trade and Industry (DTI), shall contribute to enable the development of a 
10 
business environment that shall include initiatives such as supply chain and market outlets, 
11 
and schemes to develop Special Credit Windows to upscale informal enterprises. 
12 
13 
(e) The Department. of Science and Technology (DOST) shall support technology-related 
14 
initiatives of workers and enterprises in the informal economy. 
15 
16 
SEC. 27. Exclusivity of Government Programs. The government shall' ensure that programs of 
17 
financing, grants and other similar incentives, as provided by this Act, shall be exclusively extended to 
18 
accredited workers, business activities, enterprises or organizations in the informal economy. 
19 
20 
SEC. 28. Tax Exemption. A duly accredited IE workers, business activity, enterprise, or organization shall 
21 
be exempted from all taxes, national or local, license and building permit fees and other business taxes 
22 
except real property and capital gain taxes, import duties and other taxes on imported articles. In addition, 
23 
any and all income, receipts and proceeds derived from their business operations shall be excluded in the 
24 
computation of gross income for purposes of computing the individual income tax of the members thereof. 
25 
26 
SEC. 29. Inclusivity of Benefits - The exemptions and other benefits provided in this Act shall apply {or 
27 
a period of not exceeding ten (10) years from the date' of accreditation of such IE worker, business 
, 
28 
activity, enterprise or organization. 
29 
30 
CHAPTER VII 
31 
Informal Economy Development Authority (IEDA) 
32 
33 
SEC. 30. Creation of the Informal Economy Development Authority (IEDA). There is hereby created 
34 
an Informal Economy Development Authority, herein otherwise referred to as the IEDA, which shall be 
35 
attached to the Office of the President and shall be constituted within thirty (30) days after the drafting and 
36 
approval of the IRR of this Act. 
37 
38 
The IEDA shall be the primary agency responsible for the promotion, growth, development and 
39 
empowerment of the workers in the informal: economy as well as their enterprises and organization in the 
40 
country. It shall be a one-stop shop that will facilitate and closely coordinate national efforts to promote the 
41 
informal economy's viability and growth, including the provision of an integrated program for skills 
42 
enhancement, literacy and education, health services, social welfare and services and assistance in 
43 
tapping of local as well as foreign funds. It shall perform regulatory and quasi-judicial and other functions 
44 
relative to the attainment of the objectives of this Act. 
45 
46 
SEC. 31. Mandate and Functions of IEDA. The mandate and functions of IEDA shall include the 
47 
following: 
48 
49 
(a) Develop and ensure implementation of a simple system of accreditation for the IE workers, 
50 
enterprises, and organizations in accordancEl, with the standards and provisions of this Act; 
51 
52 
(b) Provide guidelines for the implementation by LGUs of a fair and credible system of evaluation, 
53 
accreditation, review and assessment, merit promotion, rendering of grant and incentive 
54 
awards and other policies relative to the effective and efficient implementation of this Act; 
55 
56 
(c) Develop and ensure implementation of,"annual, long-term and medium-term plans for the 
57 
informal economy, the last of which should form part of the Medium Term Philippine 
58 
Development Plans (MTPDP) towards institutionalizing comprehensive, rights-based, gender-
59 
responsive and child-friendly programs and policies for the IE; 
60 
13 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
(d) Develop and ensure implementation of labor standards; 
(e) Develop and ensure implementation of gender-based monitoring and evaluation mechanisms, 
efficient and effective programs and pOlicies and gender-responsiveness of interventions 
toward harnessing the full potential of women workers in informal economy; 
(f) 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 potenti?ls .,. the 'results of which shall be used as bases for 
evaluation, accreditation, the grant of awards and incentives, training and retraining; 
12 
(g) Establish a performance appraisal system for all accredited workers, enterprises and 
13 
organizations in the informal economy which shall be the basis for granting or renewal of 
14 
incentives, 
rewards 
and 
recognition, training and development, 
including adequate 
15 
mechanisms to ensure their active participation and involvement; 
16 
17 
(h) Ensure effective participation of the workers in informal 'economy and their organizations 
18 
through the establishment of regular consultative mechanisms and processes. Annual national, 
19 
regional and provincial consultations among the organizations of workers in informal economy 
20 
shall be conducted to determine specific issues and problems affecting their sector, and 
21 
monitor and evaluate implementation of programs and policies. 
22 
23 
(i) Establish and develop a centralized and sex-disaggregated database system to effectively 
24 
guide policy formulation and implementation relative to the workers in informal economy. Th13 
25 
databank shall be available for public use and shall include but not be limited to the following: 
26 
27 
1.1. Sex-disaggregated statistical profile 'Of various informal economy workers based on 
28 
age, location, type of work, average monthly incomes, work hours, and other relevant 
29 
statistical information; 
30 
31 
1.2. Sex-disaggregated data on informal enterprises, including capitalization and sources of 
32 
capital, number and status of workers, average incomes; 
33 
34 
1.3. List and contact information of.government and non-government organizations (N<30s) . 
35 
that provide educational, socio-economic and 
legal services to workers in informal 
,'. 
36 
economy; 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
1.4. Inventory of resolved and pending cases involving activities of workers in informal 
economy; 
1.5. Database on the needs and problems of women and children in the informal economy 
nationwide aimed at strengthening policies and programs against child labor; and 
1.6. Compilation of international instruments, existing laws and programs affecting the 
interest and welfare of informal economy workers and information on how these workers 
may use or avail of such instruments, laws and programs. 
48 
U.) Develop and ensure implementation of a communication plan including massive information 
49 
dissemination activities targeting workers in informal economy, their enterprises and organizations, 
50 
in the various regions towards a better understanding and appreciation of the benefits this Act 
51 
may bring them; 
, 
52 
53 
(k) Consistent with letters h Section 2 of the Declaration of Policy, to develop and ensure 
54 
implementation of a comprehensive plan to eliminate child labor; 
55 
56 
57 
58 
(I) Monitor and coordinate implementation of pOlicies and programs through the 
Regional 
IEDA 
officers; 
(m) Coordinate and harmonize all informal economy-related policies, programs, projects and 
activities of various government agencies towards greater efficiency and effectives; 
14 


I 
1 
(n) Monitor the LGU-generated incomes from informal economy through the LGUs' periodic report 
2 
submitted to the Council; 
3 
(0) After consultations with WIE organizations, develop and ensure implementation of policies and 
4 
programs that will address specific needs and' ensure rights of workers in informal economy 
5 
subsectors including but not limited to: vendors, small transport, non-corporate construction 
6 
workers, home-basectworkers; and 
7 
(p) Develop and ensure implementation of accessible and just conflict resolution and adjudication 
8 
systems and mechanism to promote dialogue, conciliation, mediation and redress of grievances to 
9 
protect the rights of workers in informal economy. 
10 
SEC. 32. Composition. The Chair of the IEDA shall be appointed by the President of the Philippines 
11 
based on recommendation of IEDA members and shqll have the rank of a Secretary. IEDA members may 
12 
elect from among themselves a Vice-Chair to preside over meetings in the absence of the Chair. The 
13 
members shall be the following: 
'" 
14 
(a) Secretary of Department of Labor and Employment (DOLE); 
15 
(b) Secretary of the Department of Trade and Industry (DTI); 
16 
(c) Director General of the National Economic and Development Authority (NEDA); 
17 
(d) Secretary of Department of Agriculture (DA); 
18 
(e) Secretary of Department of Agrarian Reform (DAR); 
19 
(f) Secretary of Department of Social Welfare and Development (DSWD); 
20 
(g) Secretary of Department of Health (DOH): 
21 
(h) Secretary of Department of Transportation and Communication (DOTC); 
22 
(i) Secretary of Department of Public Works and Highways (DPWH); 
23 
U) Secretary of the Department of Interior and Local Government (DILG) 
24 
(k) Secretary of Department of Finance (DOF); 
25 
(I) Secretary of Department of Justice (DOJ); 
26 
(m) Chair of the Commission of Human Rights (CHR); 
27 
(n) Lead Convenor of the National Anti-Poverty Commission (NAPC); 
28 
(0) Director General of Technical Education and Skills Development Authority (TESDA); 
29 
(p) Director General of National Statistics Office (NSO) 
30 
(q) President of Development Bank of the Philippines (DBP); 
31 
(r) President of Land Bank of the Philippines (LBP); 
32 
(s) Chair of the Social Security System (SS8); 
33 
(t) Chair of PhilHealth; 
34 
(u) Chair of the Philippine Commission on Women (PCW); 
35 
(v) Head of the Housing and Urban Development Coordinating Council (HUDCC); 
36 
(w) Three (3) representatives from the private sector a large, all Filipino citizens, proven to have 
37 
been active in assisting informal economy workers, .. to represent Luzon, Visayas and 
38 
Mindanao; provided that at least one (1) is a woman; 
39 
(x) One (1) representative each from the League of Cities, League of Municipalities, League of 
40 
Provinces and League of Councilors; 
41 
(y) Fifteen (15) representatives from People's Organizations (Pas) of workers in informal 
42 
economy, five (5) each from Luzon, Visayas and Mindanao to be elected in a National 
43 
Assembly of these organizations duly called for that purpose. Provide that, one (1) shall be the 
44 
incumbent Sectoral Representative of the National Anti-Poverty Commission (NAPC)-Workers 
45 
in the Informal Economy. Provided further, that at least 50% of the remaining 14 represent 
15 


1 
2 
3 
4 
5 
6 
7 
subsectors of informal workers that may include vendors, small transport, marginalized 
farmers, marginalized fisherfolks, home-based workers or non-corporate construction workers; 
and the rest shall come from Non-Government, women's and other organizations actively 
working with and for the rights of informal workers. Provided finally, that at least 40% of the 
remaining 14 representatives are women. The guidelines for the nomination and election, 
including processes and mechanics shall be determined by the IRR of this Act. 
8 
Representatives from the private sector, NGOs and IE organizations shall serve as IEDA 
9 
members for a term of three (3) years without re-election and shall be subject to terms and 
10 
conditions provided for by the I RR'. 
' 
11 
12 
The private sector, workers in informal economy and women's organizations' representatives 
13 
to the IEDA shall be entitled to receive per diem of at least Two Thousand Five Hundred Pesos 
14 
(P2,500.00) per meeting. 
15 
16 
The IEDA members shall meet once every two (2) months and may call for special meetings as 
17 
the need arises; provided, that the frequency of such special meetings shall not exceed four (4) 
18 
times annually. 
19 
20 
Ten million pesos (10,000,000.00) shall be allocated from the Presidential discretionary fund 
21 
for the initial operating expenses of the IEDA., 
22 
23 
24 
SEC. 33. Executive Committee of the IEDA. An Executive Committee of seven (7) members shall be 
25 
convened. Beside the Chair and Vice-Chair, the following shall be elected by the IEDA members from 
26 
among themselves or their duly designated alternate representatives: two (2) representatives of 
27 
organizations of workers in informal economy, one (1) from the different leagues of local officials, one (1) 
28 
from the private sector, and one (1) from a national government agency, provided that at least two (2) 
29 
members of the Executive Committee are women'. 
30 
31 
The Executive Committee shall have the authority to act for and in behalf of IEDA during intervals of 
32 
meetings, and within the specific authority granted by the IEDA. 
33 
34 
SEC. 34. IEDA Secretariat. The Executive Committee shall create a secretariat that will have the 
35 
following duties and functions: 
36 
37 
(a) Prepare and recommend, in coordination with LGUs and other government agenCies, annual, 
38 
medium-term, and long-term Informal Economy Development Plans for approval of the IEDA; 
39 
40 
(b) Coordinate the preparation of position papers' and background materials for discussion'or " 
41 
approval during IEDA meetings; 
42 
43 
(c) Assist in coordinating and monitoring policies, programs and activities of all government 
44 
agenCies with respect to the implementation of this Act; 
45 
46 
(d) Prepare, collate, and integrate all inputs 'to the IEDA's yearly report on the status of informal 
47 
economy workers, business activities or enterprises in the country; 
48 
49 
(e) Submit periodic reports to IEDA on the progress and accomplishments of its work programs; 
50 
and 
51 
52 
(f) Perform other functions as authorized by the IEDA. 
53 
54 
SEC. 35. Authority of the IEDA to Solicit Assistance from Various AgenCies. The IEDA may, from 
55 
time to time, call for the participation of any government agency in its deliberations especially when such 
56 
agency is directly or indirectly concerned with and/or affecting the growth and development of the IE in 
57 
any particular area or manner. 
58 
59 
SEC. 36. RegionallEDA Officer. RegionallEDA Officers shall be appointed and shall have functions that 
60 
include: monitoring and coordinating of IEDA initiatives in the regions; evaluation of policies programs f,or 
16 


1 
workers in informal economy; providing technical assistance in the development of local plans and 
2 
programs; as well as other administrative functions necessary for the IEDA initiatives in their jurisdiction. 
3 
4 
IEDA Regional Officers shall automatic seats in all Regional Development Council (RDCs). 
5 
6 
SEC. 37. Rationalization of Programs. IEDA shall conduct continuing review of government programs 
7 
for the poorest of the poor and the workers in informal economy and submit to Congress and the 
8 
President a report thereon together with its policy recommendations. 
9 
10 
11 
Chapter VIII 
12 
Workers in Informal Economy Local Development Office (WIELDO) 
13 
SEC 38. Worker In Informal Economy Local Development Office (WIELDO). The Workers in Informal 
14 
Economy Local Development Office (WIELDO) shall be established in every province, city or municipality 
15 
to perform fUnctions that shall include but not be limited to the following: 
16 
(a) Prepare an overall development plan and work program that will address the needs of the 
17 
workers in informal economy, prioritizing the poorest and most vulnerable, and incorporate 
18 
them in their respective provincial, regional, city, municipal and barangay development plans; 
19 
(b) In consultation with organizations of workers in informal economy in the area, identify specific 
20 
needs of various subsectors of the IE and recommend appropriate measures to be taken; 
21 
(c) Ensure accreditation of workers in informal economy, especially those with assets P150,OOO 
22 
and below, to facilitate their immediate access to benefits and services; 
23 
(d) Monitor, assess and evaluate iinplementation of the plans and programs as well as the 
24 
performance of informal workers, their economic activities and their organizations in the areas; 
25 
(e) Lead in the local implementation of Chapter V (Security in the Workplace of Workers in 
26 
Informal Economy) of this Act; 
27 
(f) Coordinate with other local offices, private sector and other organizations with existing 
28 
programs for the workers in informal economy towards integration and convergence; 
I 
29 
(g) Conduct training programs which will provide new ideas to the IE workers, especially those 
30 
with the least assets and formal education, and upgrade the technical and entrepreneurial skills 
31 
of others who are already in the field; 
32 
(h) Implement consciousness-raising and capability building activities which include information on 
33 
workers', women's, children's rights and leadership training; 
34 
35 
(i) Provide technical support and access to credit, market, technology, social protection schemes, 
36 
and training for micro-entrepreneurs and those in service industry, small transport, non-corporate. 
37 
construction workers, etc.; 
38 
39 
U) Develop pools of community trainers . in business counseling and awareness-raising on 
40 
occupational safety and health hazards, risks and social protection; 
41 
42 
(k) Support organizing activities among workers in informal economy; 
43 
44 
(I) Establish sex-disaggregated databank on human resources and skills registry to be used as 
45 
tools for LGU planning and budgeting; 
46 
47 
48 
(m) Provide offices and other necessary resources to support organizing, advocacy, training, and 
other activities of local organizations of workers in informal economy; 
17 
, 


1 
2 
(n) Train workers in informal economy on negotiation skills and on the conduct of time and motion 
3 
studies to determine proper wages; and 
4 
5 
(0) Provide services, which shall include but not be limited to counseling, conciliation, mediation, 
6 
and legal assistance for furtherance of this Act, prioritizing those with the least access to justice. 
7 
8 
In the performance of WIELDO's functions, the principle of preferential treatment to the poorest 
9 
and most vulnerable shall be observed. 
10 
11 
In addition to fund allocations specified in this Act, the LGUs shall annually allocate at least OnEIl 
12 
Hundred Thousand Pesos (P1 00, 000.00) for the establishment and initial operations of WIELDO. 
. 
13 
14 
Following the principle of merit and equity, LGUs'that fulfill such allocations may receive additional 
15 
assistance from the national government as recommended by IEDA; provided, that they have formulated 
16 
their local development plan for workers in informal economy. 
17 
18 
SEC. 39. Composition. The Local Chief Executives (LCEs) shall be the primary overseers of WIELDO's 
19 . operations. The IRR of this Act shall provide for WIELDO's composition provided that, informal workers' 
20 
representatives shall form at least fifty p(lrcent (50%) of WIELDO~s membership. Provided further, that IE 
21 
representatives shall not be less than five (5), and provided finally, that at least forty percent (40%) of all 
22 
members are women. Other relevant guidelines on WIELDO's operations shall be included in the IRR of 
23 
this Act. 
24 
25 
26 
27 
28 
29 
30 
31 
TITLE II 
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY 
Chapter 1 
ReqUisites for Employment Agreement 
32 
SEC. 40. Minimum Standards. All working arrangements entered into by workers in informal 
33 
economy shall be in accordance with the minimum applicable labor and social standards as contained in 
34 
Title II of this Act. 
35 
36 
These standards shall be strictly enforced in informal economic enterprises supplying or doing outsourcing 
37 
work for exporters, investors-locators in export processing zones or industrial parks licensed by the Export 
38 
Processing Zone, and domestic formal sector manufacturers and retailers-distributors. 
39 
40 
For workers engaged by independent infon;nal economic enterprises, DOLE, jn coordination with IEDA 
41 
shall audit the capacity of these enterprises to comply with these standards. Those incapable of meeting 
42 
the standards shall be assisted to upgrade their capacity to improve their businesses, as well as the 
43 
capacity to comply with relevant labor and social standards. 
44 
45 
SEC. 41. Provisions of Employment Agreement. The employment contract shall be in written form. 
46 
However, the absence of a written agreement does not mean the absence of an employment relationship. 
47 
As a matter of right, informal workers can insist on a written agreement based on minimum standards. 
48 
49 
In cases wherein minors are contracted with, the said negotiated contract shall be signed on 
50 
his/her behalf by either parent or legal guardian, with the. expressed written consent of the said minor. 
51 
18 


1 
In cases wherein illiterate workers are contracted with, the said contract shall be explained to the 
2 
worker concerned and attested to by a representative from the LGU or an elected Barangay official in the 
3 
city or municipality where the worker is designated to work. 
4 
5 
Each of the corltracting parties shall be provided with a full set of the duly Signed agreement which 
6 
shall include the following basic provisions: 
7 
8 
(a) working arrangement/mode; 
9 
, 
10 
(b) period/duration of employment; 
11 
12 
13 
(c) compensation, which shall not be below the minimum standard, and mode of payment; 
14 
15 
16 
(d) computation of contributions for social security and medical insurance, including for the 
industrial homeworkers under the Implementing Rules of the Labor Code; 
17 
(e) duties and responsibilities; 
18 
19 
(f) working hours and day-off scheduJes; 
20 
21 
22 
23 
24 
(g) living quarters or sleeping arrangements (for live-in workers); 
(h) the date, term and mode of delivery or date of completion; 
25 
(i) minimum of twenty percent (20%) down payment for labor cost and services, and minimum of 
26 
50% for inventory of raw materials used in the production for homeworkers. 
27 
28 
Minimum standard compensation referred to above shall be determined by the Regional Wage Boards per 
29 
subsector of IE workers. In the case of piece rates, this shall be based on the conduct of time and motion 
30 
studies facilitated by the DOLE Bureau of Working Conditions. While there are no standardized rates for 
31 
workers in informal economy jobs, the basis of computation shall not be below the applicable minimum 
32 
wage of the region where they are covered. 
33 
34 
Enforcement of the standard compensation rates shall be in accordance with the capability to comply as 
35 
explained in Section 40 of this Act. 
36 
37 
SEC. 42. Payment of Wages - Payment derived from negotiated agreement shall be made directly to the 
38 
workers. No deductions from such payments shall be made by the employer except those provided by 
39 
law. The expressed written consent of the worker shall be first secured before deductions are made. 
40 
41 
42 
43 
44 
Chapter II 
IE Workers of Minor Age 
45 
SEC. 43. Allowable Employment of Workers of Minor Age -
Children fifteen (15) years up'to , 
46 
seventeen (17) years of age may be employed; provided, that parental or legal guardian consent be 
47 
presented and attested by any representative of the LGU or duly elected Barangay official where the work 
48 
is to be done. In no instance however, shall children below fifteen (15) years old be engaged in whatever 
49 
form of productive services. 
50 
51 
Workers of minor age shall not be allowed to render work for more than four (4) hours, five (5) days a 
52 
week, exclusive of one (1) hour break for breakfast or lunch whichever is applicable. 
19 


1 
2 
3 
Chapter III 
Prohibited Acts 
4 
SEC. 44. Prohibition Against Forced Night Work -
It is unlawful to force, threaten, intimidate, or 
5 
otherwise harass workers in informal economy to engage in night work. Moreover, workers of minor age 
6 
shall not be allowed to render work between eight o'clock in the evening and six o'clock in the morning of 
7 
the following day. 
8 
. 
9 . SEC. 45. Prohibition Against Work to be Undertaken - Workers of minor age shall not be allowed to 
10 
render work beyond their physical and mental capabilities'. 
11 
12 
SEC. 46. Prohibition Against Bonded Labor - A worker shall not be allowed to use his/her future 
13 
services as collateral for any loan or advances made or to be made by said worker with the employer. 
14 
Likewise, no employer shall be allowed to bind the worker to his/her continued employ as a form of 
15 
payment for any loan or advances which he/she may have made with the employer. Should there be an 
16 
outstanding loan incurred and he/she decides to unilaterally terminate the contract of employment, said 
17 
loan or advance shall be paid by him/her to the employer under the terms and conditions specified in a 
18 
duly executed promissory note between parties. 
19 
20 
SEC. 47. Prohibition Against Labor-Only Contracting - In no instance shall the employer subcontract 
21 
the services of a worker to any third party, unless such activity falls within the purview of an employment 
22 
arrangement for which the necessary permits and licenses have been priory secured. 
23 
24 
Labor-only contracting means that the contracting. agency or party does not provide any r~w 
25 
materials, inputs, or other forms of investment in the enterprise, does not have any control over the work 
' 
26 
process, but merely supplies labor to a principal, making it appear that the contracting party is the 
27 
employer and not the principal, 
28 
29 
SEC. 48. Prohibition Against Recruitment and Finder's Fees. Regardless of whether the worker was 
30 
sourced either through an employment agency or third party, the worker shall neither be changed nor 
31 
levied a share in the recruitment fees or finder's fees by the employment agency or third party. 
32 
33 
SEC. 49. Prohibition Against Hazardous Work and Conditions. Any worker shall neither be employed 
34 
in any hazardous work, activity, or undertaking, nor shall he/she be exposed to hazardous working 
35 
conditions. 
36 
37 
For purposes of this Section, hazardous work or conditions shall include, but not be limited to the 
38 
following: 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
(a) Any work which requires workers to render services beyond ten (10) hours; 
(b) Any work, employment, or activity which exposes the worker to physical, emotional, or sexual 
I 
abuse; 
• 
(c) Any work which involves manual handling or transport of heavy loads; 
(d) Any work in an unhealthy environment which exposes workers to hazardous substances, 
agents, or processes, or to temperature, noise levels, or vibrations damaging to their health; 
(e) Any work which requires workers to continuously render services during late nights; 
(f) Any or 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; 
20 


1 
2 
3 
4 
5 
6 
(g) Any use, procuring or offering of the worker for prostitution or pornography; 
(h) Any use, procuring or offering of the worker for the commission of any offense or crime, 
particularly for the production and trafficking of narcotic drugs and substances as defined in the 
Dangerous Drugs Act; 
7 
(i) Any other type of work or activity which, by its nature or the circumstances in which it is carried 
8 
out, is likely to jeopardize the health, safety, or morals of the worker; and 
9 
10 
U) Any other type of work, activity, condition, or undertaking that maybe hereinafter be defined as 
11 
hazardous by the DOLE. 
12 
13 
SEC. 50. Prohibition Against Interference and Coercion. Any person is prohibited from committing any 
14 
of the following as acts of interference and coercion: 
15 
16 
(a) Prevent a worker from upholding or exercising his/her rights; 
17 
18 
(b) Prevent workers from joining or assisting organizations or unions for purposes not contrary to 
19 
law, in order to protect and defend their mutual interests and to obtain redress of grievances 
20 
through peaceful concerted efforts; 
21 
22 
(c) Prevent a worker from carrying out his/her duties or functions in an organization or union, or to 
23 
penalize the same for any lawful action performed in that capacity; 
24 
25 
(d) Harass, interfere, intimidate or prevent the worker from performing his/her duties and functions; 
26 
27 
28 
29 
30 
31 
32 
(e) Harass, transfer, penalize, or terminate the services of a worker who is carrying out his/her 
function or role for and in behalf of his/her employer; and 
(f) Perform acts to diminish the independence and freedom of workers' union or organization to 
direct its own affairs. 
33 
Chapter IV 
34 
Rights and Benefits of Employed Workers in Informal Economy 
35 
36 
SEC. 51. Right to Wages Earned. The employer shall directly pay the workers on time, based on 
37 
agreement any and all wages, remuneration or compensation earned by him/her during the period of 
38 
his/her employment. 
39 
. 
40 
No parent, guardian, relative or any other person shall be allowed to take a loan against the ' 
41 
compensation of his/her relative-worker of minor age without the express written consent of the concerned 
42 
relative-worker. Neither shall the worker of minor age be mandated to work in payment of loan or liability 
43 
by a parent, guardian, relative, or any other person. 
44 
45 
SEC. 52. The Right to Privacy and Confidentiality. The employer shall respect the privacy of workers 
46 
during the laUer's rest periods. This right to privacy shall extend to any and all forms of personal 
47 
communication, including letters or other forms of correspondence issued or received. The worker shall be 
48 . allowed communications coursed through the private telephone of the employer; provided that any 
49 
additional expense incurred due to such communication shall be borne by the worker and shall be 
50 
deducted after the employer's due notice to the worker of the amount incurred .. 
51 
21 


I 
1 
The State, further guarantees the protection of the right of workers to communicate with relatives 
2 
and other persons and to receive visitors subject to reasonable limits prescribed in the employment 
3 
contract agreed and entered into by both the employer and the worker. 
4 
5 
SEC. 53. Access to Education and Training. A worker shall not be deprived of formal or non-formal 
6 
education. In cases where he/she is productively employed, he/she shall be allowed to attend or pursue 
7 
any kind of educational program during free time or any other time as agreed by the employer and the 
8 
worker. 
9 
10 
The Department of Education (DepEd), Commission on Higher Education (CHED) and other 
11 
appropriate agencies, shall extend services such as Study Now, Pay Later Program to the workers in the 
12 
IE and their dependents. 
13 
14 
SEC. 54. Access to Lawful Third Party Mediation. The LGUs shall provide workers and their employers 
15 
the names, addresses and telephone numbers of the designated liaison officers of the following: 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
(a) DTI; 
(b) DOLE; 
(c) The Barangay Office where work is done; and 
(d) Duly registered NGOs accredited to mediate the disputes of their sector. 
(e) IEDA 
27 
The employer guarantees the worker the access to all available means of communication for the 
28 
purpose of contacting any of the above-enumerated institutions. 
29 
30 
SEC. 55. Normal Hours of Work. The normal hours of work is eight,(8) hours per day, exclusive of one 
31 
(1) hour breaks each for breakfast, lunch, and dinner. The worker shall be allowed at least eight (8) hours 
32 
of continuous rest per day. Otherwise, any work done by him/her beyond the normal hours of work per 
33 
day shall be duly compensated. 
34 
35 
SEC. 56. Regular Working Days. No worker shall render work for more than six (6) days per week. 
36 
37 
38 
SEC. 57. Clothing and Personal or Protection Equipment Allowance. A worker shall be entitled to a 
39 
minimum of One Thousand pesos (P1,000.00) clothing and personal or protection equipment (PPE) 
40 
allowance annually. Provided, that the worker has rendered at least one (1) year of continuous service in 
41 
the employment he/she is currently in. 
42 
43 
SEC. 58. Service Incentive Leave. A worker who has been employed for one (1) year shall be entitled to 
44 
a five (5)-day service incentive leave with pay, in addition to the one (1) day per week designated as rest 
45 
day. Said leave may only commence at the end of the first year of employment and shall not cumulate 
46 
from year to year. 
47 
48 
SEC. 59. Maternity Benefits. A female worker who has been employed for one (1) year shall be entitled 
49 
to maternity benefits as provided for by the law. 
50 


1 
SEC. 60. 13'" Month Pay. A worker shall be entitled ,to the 13th month pay equivalent to one month's basic 
2 
salary; provided, that the worker has reached the required minimum residency. Otherwise, the worker 
3 
shall be entitled to receive a 13th month pay on a pro,rated ba~is. 
4 
5 
SEC. 61. Allowing Subcontracting. A worker may enter into sub-contractual employment or may accept 
6 
sub-contractual jobs from any other enterprise or firm joining or may join productive employment through a 
7 
cooperative consortium; provided, that the enterprise, firm, cooperative, or consortium meets the 
8 
requirements of Articles 106-109 of the Labor Code and its Implementif)g R~les, including registration 
9 
requirements under DO 18-02. 
. 
10 
11 
SEC. 62. Pre, Termination of Contract. The employer may, at his/her own discretion, terminate the 
12 
services of the worker; provided however, that the said employer provides the worker with at least fifteen 
13 
(15) day notice of termination, and termination pay equivalent to at least one-half (%) month's salary. In 
14 
lieu of the fifteen (15) day notice of termination, the employer may immediately terminate the services 'of 
15 
the worker, provided that the said employer provided the worker termination pay equivalent to one (1) 
16 
month's salary. 
17 
18 
The employer may, for valid or just cause of loss of confidence, terminate the services of the 
19 
worker prior to the expiration of the contract without inde'mnifying the latter with termination pay, 
20 
21 
Should the worker decide, on his/her own volition, to unilaterally leave the workplace prior to the 
22 
expiration of the contract period, said worker shall forfeit any separation pay that may be due him/her. 
23 
24 
SEC. 63. Extent of Duty. The employer shall not require a worker to perform any task or work outside the 
25 
scope of their agreement. 
26 
27 
SEC. 64. Deployment Expenses. Deployment expenses of the worker, including transportation and 
28 
agency fees, shall be shouldered by the employer, 
29 
30 
31 
32 
33 
34 
SEC. 65. Penal Provisions. 
TITLE III 
FINAL PROVISIONS 
~ 
. 
36 
(a) Any person who shall willfully interfere with, restrain, or coerce a worker in the exercise of his/her 
37 
rights or shall in any manner commit any act in violation of any of the provisions of this Act shall, 
38 
upon conviction, be punished by a fine not less than Twenty Thousand Pesos (P20,00Q,QQ) or 
39 
imprisonment of one (1) year to six (6) years or both fine and imprisonment at the discretion of the 
40 
Court, 
41 
42 
(b) If the offender is a public official, the Court, in addition to the penalties provided in the preceding 
43 
paragraph, may impose the additional penalty of disqualification from public office, 
44 
45 
(c) Any person or officer who violates Section 22 of this Act shall be, administratively liable, Nothing 
46 
herein shall prohibit the aggrieved informal worker from initiating a criminal or civil action against 
47 
the responsible person or office whenever such action is applicable, 
48 
49 
(d) Violations of Sections 23 and 24 of this Act shall render the responsible official/s administratively 
50 
liable pursuant to Republic Act 7160 and other pertinent laws and criminally liable whenever 
51 
applicable, 
52 


1 
(e) In the case of a private institution/company found to be violating any provision of the Act, it shall be 
2 
subject to a penalty ranging from suspension of license or revocation of such at the discretion of 
3 
the Court. 
4 
5 
SEC. 66. Implementing Rules and Regulations (IRR). The Implementing Rules and Regulations of this 
6 
Act shall be formulated by a drafting committee composed of representatives of offices that will be 
7 
members of IEDA. Provided that, at least thirty percent (30%) of the drafting committee members shall 
8 
come from organizations working on informal workers' concerns. The committee will start work on the IRR 
9 
within ninety (90) days after the effectivity of this Act. 
10 
11 
SEC. 67. Separability Cause. If any provision of this Act is declared unconstitutional or invalid, the 
12 
provisions not affected shall continue to be in full force and effect. 
13 
14 
SEC. 68. Repealing Clause. All laws, decrees, orders, rules, and regulations or other issuances , 
15 
inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly. 
16 
17 
SEC. 69. Effectivity. This Act shall take effect fifteen (15) days after its publication in at least two (2) 
18 
newspapers of general circulation or the Official Gaz~tte, whichever comes first. 
Approved,