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FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 
AUG 11 
SENAT"!:i. 
S. No. 2;j81 
-.... -. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 18 states: "The State affirms labor as a primary social 
economic force. It shall protect the rights of workers and promote their welfare." 
The Constitution, Article 13, Section 1 provides that the Congress shaH 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 ofthe common good. 
According to the World Bank, the informal sector is a pervasive and persistent economic 
feature of most developing economies, contributing siguificantly to employment creation, 
production, and income generation. Recent estimates of the size of the informal sector in 
developing countries in terms of its share of non-agricultural employment range roughly between 
one-fifth and four-fifths. In terms of its contribution to GDP, the informal sector accounts for 
between 25% and 40% of annual output in developing countries in Asia and Africa.! 
Under National Statistical Coordination Board (NSCB) Resolution No. 15, Series of 
20022, 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 Ihttp: 
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DK:20224904-menuPK:584866-pagePK 148956-piPK2 1661 8-theSitePK390615,OO.html. 
2 Iitt-:l/www.l-scb.-ov.uh/resolutions/20021/ .laSs p. 
1 


• 
The resolution states that these units typically operate at a low level of organization, with 
little or no division between labor and capital as factors of production. It consists of household 
unincorporated enterprises that are market and non-market producers of goods as well as market 
producers of services. Labor relations in this sector are supposedly based on casual employment, 
kinship or personal and social relations rather than formal or contractual arrangements. 
The NSCB, through its Statistical Survey Review and Clearance System (SSRCS), 
granted clearance for the conduct of the 2008 Informal Sector Survey (ISS) of the National 
Statistical Office (NSO). The ISS is a one-shot survey, conducted by the NSO in April 2008, 
aimed at: (a) improving the availability of reliable and sound data on informal employment and 
informal sector and (b) providing indicators that will contribute to evidence-based policy-
making. The results of this survey can also be used for the estimation of Gross Value Added 
(GVA) ofthe informal sector.3 
This bill seeks to address the development, rights and protection of the significant 
number of poor, marginalized, unprotected and underrepresented workers in the informal sector. 4 
.li
N u://www.nscb.gov.uh/uressreleases/2008
N R
N 20080S-P1-P03NSO.as2 
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N .uh/contentlview/27/141. 
2 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAJ'~ 
S. No. 
~ i.i 81 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
O~~!CE jJ~ 
" 
" 
)n 
AUG 11 
1'2 :37 
2 
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL EMPLOYMENT, 
3 
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND 
4 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
5 
TITLE I 
6 
GENERAL PROVISIONS 
7 
Chapter I 
8 
Framework and Principles 
9 
SEC. 1. Short Title. -
This Act shall be known as the "Magna Carta of Workers in 
10 
Informal Employment." 
11 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State: 
12 
(a) To promote the total well-being of all workers in informal employment, provided, that focus 
13 
will be on the poorest and most vulnerable of these workers; 
14 
(b) To ensure their human dignity, economic advancement and access to justice by providing 
15 
timely services, including social, political, economic, and legal; 
16 
(c) To recognize, promote, protect and fulfill the right to decent work of every worker in informal 
17 
employment, including the rights to: self-organization; just and humane working conditions; 
18 
access to social protection; security of ~orkplaces; represent their organizations in a continuing 
1 


1 
process of consultation and dialogue towards the provision of a comprehensive package of 
2 
reforms, interventions, and services in accordance with their articulated needs and interests; 
3 
(d) To recognize the roles, give proper value to the contributions of workers in informal 
4 
employment, and make them visible in the national and local statistics; 
5 
(e) To develop and enhance their technical, entrepreneurial and other skills and capabilities 
6 
necessary towards becoming more productive and self-reliant citizens, thereby ensuring 
7 
participation in mainstream economic acti vities; 
8 
(f) To promote gender equity and equality and protect women workers in informal employment 
9 
against gender-based discrimination, exploitation and abuse; advance women's social, economic, 
10 
political, and reproductive rights; and improve their access to social protection and participation 
11 
in decision-making bodies and processes; 
12 
(g) To protect vulnerable groups in the informal economy such as children, differently-abled 
13 
persons, indigenous peoples, and people living with HIV from discrimination, exploitation, abuse 
14 
and harassment, as well as from performing work hazardous to their occupational, physical, 
15 
mental, emotional, reproductive and spiritual health; 
16 
(h) To progressively eliminate child labor through the creation of more quality jobs for adults 
17 
effective enforcement of laws against child labor, elimination of gender-based discrimination 
• 
18 
against girl child workers, improved access to universal education and social protection, and 
19 
elimination of cultural factors that directly or indirectly tolerate, even accept child labor; 
20 
(i) To develop the local economy through maximization of the potential and contribution of 
21 
informal economy business activities and enterprises; 
22 
j) to encourage and support workers in informal employment to form self-help groups, mutual 
23 
benefit associations, unions, cooperatives, and other forms of self-organization for their mutual 
24 
aid, benefit, protection and for other legitimate purposes; and 
25 
k) to include the concerns of workers in informal employment in the policies, plans, programs, 
26 
projects and activities 
of relevant national government agencies, government financial 
27 
institutions, and local government units. 
2 


1 
SEC. 3. Framework and Principles - Article II, Section, 9 of the Philippine Constitution 
2 
declares that "The State shaH promote a just and dynamic social order that wiII ensure the 
3 
prosperity and independence of the nation and free the people from poverty through policies that 
4 
provide adequate social services, promote full employment, a rising standard of living, and an 
5 
improved quality oflife for all." Towards this end, the government shall pursue a comprehensive, 
6 
rights-based, participatory, gender-respopsive, and culturally sensitive framework for workers in 
7 
informal employment including but not limited to: 
8 
(a) Policies and programs that wiII bring marginalized workers and economic units into 
9 
the economic and social mainstream, thereby reducing their vulnerability and exclusion; 
10 
(b) Structural reforms in all relevant levels of government by creating committees, special 
11 
offices for development and protection of workers in informal employment and supporting their 
12 
representational rights through their legitimate organizations; 
13 
(c) Accessible and affordable social protection, including labor market interventions, 
14 
social insurance coverage, basic health care, occupational safety and health, reproductive health 
15 
services, social welfare programs and safety nets; , 
16 
(d) Policies, programs and interventions that wiII ensure security of workplaces of 
17 
informal workers towards a work environment that protects their rights and enables them to 
18 
become more productive, 
19 
(e) Minimum and simplified regulations to encourage the development of ingenuity and 
20 
entrepreneurial spirit among workers in informal employment; 
21 
(f) Mechanisms for the growth 'and expansion of the various business activities or 
22 
enterprises in the informal economy preferably with the cooperation and support of the private 
23 
sector; 
24 
(g) Organization, establishment, strengthening and expansion of the various business 
25 
activities or enterprises in the informal economy at the barangay level, preferably to be unified 
26 
under municipality-, provincial-, regional- and national- level federations/associations; 
27 
(h) Applicable labor standards; 
28 
(i) Recourse mechanisms to address violations of informal workers' rights; 
3 


1 
G) Mechanisms and processes that prioritize the provision of services to the poorest and 
2 
the most vulnerable workers, 
3 
(k) Mechanisms that promote responsibility on the part of the workers in informal 
4 
employment to comply with their obligations, provided that the State shaH put in place 
5 
responsive, transparent and accountable mechanisms and systems that ensure recognition, 
6 
protection, promotion and realization of their rights. 
7 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall mean: 
8 
(a) Informal Economy - Based on the International Labor Conference (ILC) 2002a, this 
9 
refers to "all economic activities by workers and economic nnits that are - in law or in practice -
10 
not covered or insufficiently covered by formal arrangements". 
11 
The Infonnal Economy includes a wide variety of activities, enterprises and workers. 
12 
Self- employment consists of employers of informal enterprises who hire other workers and OWil-
13 
account workers. Wage-employment includes informal employees of both formal and informal 
14 
firms, subcontracted workers, wage workers for households (domestic workers), and wage 
15 
workers with no fixed employer (casual day workers). The working conditions, opportnnities and 
16 
risks faced by these different categories of informal workers are very diverse. 
17 
Informal workers often experience poor working conditions such as long working hours, 
18 
high level of health hazards or lack of social security usually accompanied with poor earnings, 
19 
low productivity, and lack of legal protection. To a large extent, women and disadvantaged 
20 
groups such as youth, persons living with HIV, persons with disabilities, indigenous people and 
21 
migrant workers are overrepresented in the informal economy. 
22 
(b) Informal Sector, as defined by NSCB Resolution No. 15, series of 2002, refers to 
23 
units engaged in the production of goods and services with the primary objective of generating 
24 
employment and incomes to the persons concerned. It consists of households unincorporated 
25 
enterprises that are market and non-market producers of goods as well as market producers of 
26 
services. 
4 


1 
These enterprises are operated by own-account workers, which may employ unpaid family 
2 
workers as well as occasional, seasonally hired workers. 
3 
These enterprises may also be owned and operated by employers which may employ less 
4 
than ten (10) employees on a continuous basis. 
5 
(c) Workers in Informal Employment - include but are not limited to the following: 
6 
c.l. small farmers owning land not more than three (3) hectares; 
7 
c.2. rural and agricultural workers who are tenants or sharecroppers, laborers; 
8 
c.3. 
small fisherfolkloperators owning boats of three (3) gross tons or less and other fishing 
9 
equipment; 
10 
c.4. fisherfolk who are without fishing equipment and market their catch directly; 
11 
c.S. home-based workers who are independent producers of goods or services; 
12 
c.6. industrial homeworkers - workers involved in a system of production under which work for 
13 
an employer or contractor is carried out by a homeworker at hislher home and where materials 
14 
mayor may not be furnished by the employer or contractor; 
15 
c. 7. self-employed who are engaged by other enterprises through subcontracting arrangements; 
16 
c.S. 
vendors, whether with stalls or without permanent workplace including street hawkers or 
17 
those plying their goods and trades in the streets and those engaged in sari-sari stores with 
18 
operating capitalization of not more than-one million pesos (PI,OOO,OOO.OO) excluding land and 
19 
building; 
20 
c.9. drivers of modes of transportation on land and sea whether motorized or not, including two 
21 
(2) wheels such as calesa, three (3) wheels such as pedicabs, tricycles, four (4) wheels such as 
22 
jeepneys and buses, and boats one (1) ton and below; 'barkers', fare collectors, dispatchers and 
23 
other workers who share income with self-employed or unincorporated operators; 
24 
c.10. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation whose 
25 
capitalization is not more than one million pesos (PI ,000,000.00) excluding land and building; 
5 


1 
c. I I. domestic workers which refer to persons who provide service to households such as maids, 
2 
cooks, family drivers, gardeners and baby sitters on a live-out basis and "on-call" arrangement 
3 
only; 
4 
c.12. non-corporate construction workers; 
5 
c.13. small scale miners doing their own product processing; including those involved in small 
6 
scale mining and quarrying with capitalization of below one million pesos (PI ,000,000.00); 
7 
c.14. workers of Barangay Micro Business Enterprises (BMBEs); 
8 
c.IS. non-corporate cargo handlers and allied workers; 
9 
c.16. waste pickers and recyclers; 
10 
c.17. workers engaged in producing seasonal products; 
11 
c.IS. own account workers including but not limited to those engaged in the maintenance and 
• 
12 
repair of equipment and appliances, clothing and footwear, as well as those providing services 
13 
such as beauticians, barbers, masseuses; 
14 
c.19. "on-cal1" workers in the entertainment, movie, and media such as bit players, stuntmen and 
15 
women, crew, make-up artists, etc.; 
16 
c.20. volunteer workers in government and non-government entities who only receive allowances 
17 
or honoraria, including but not limited to: barangay health workers (BHW), barangay tanod, 
18 
barangay nutrition scholars (BNS), barangay daycare workers, and volunteers in non-government 
19 
or people's organizations; 
20 
c.2!. 
unpaid family members, or workers receiving allowances and seasonally hired workers 
21 
who are engaged in micro-enterprises or assist unincorporated household enterprises; and 
22 
c.22. other similar economic activities that are not illegal, criminal or life threatening in nature. 
23 
(d) Worker is a general tenn referring to either or both the self-employed or paid 
24 
employee covered under the provisions of this Act. 
25 
(e) Self-employed Worker refers to any person who has no employer and who works for 
26 
himself/herselfby producing goods or services for the market. 
6 


1 
(f) Worker of Minor Age refers to children fifteen (15) to seventeen (17) years of age 
2 
who are engaged in productive employment under a valid contract of employment. 
3 
(g) Employer refers to a natural person or group or partnership of people for whom a paid 
4 
worker renders productive employment or service. 
s 
(h) Security in the Workplace refers to the right of every worker to an enabling 
6 
environment that guarantees and protects the spaces for informal workers to undertake their work, 
7 
including the right to feel safe in one's own work space, legal security of tenure and freedom 
8 
from discrimination, risk, danger, doubt, anxiety, or fear of being removed, evicted or prevented 
9 
to work. Towards this end, the State shall take measures that will ensure legal security of tenure 
10 
of workplaces, taking into account and including the physical environment, services, processes 
11 
and systems that will be involved to enable the work. 
12 
(i) Hazardous Work Condition refers to any activity or circumstance where a worker is 
13 
exposed to any risk which constitutes imminent danger to his/her health and safety. 
14 
G) Working Hours refers to the period of time within which a worker is required to be on 
15 
call to perform any and all tasks that may be designated, regardless of whether there are actual 
16 
tasks being undertaken. 
17 
(k) Daily Basis refers to the per day mode of paying a worker as bilaterally agreed upon 
18 
by the employer and worker. 
19 
(1) Monthly Basis refers to the per month mode of paying a worker as bilaterally agreed 
20 
upon by the employer and worker. 
21 
(m) "Pakyaw" Basis refers to the pre-contracted wholesale mode of paying a worker as 
22 
bilaterally agreed upon by the employer and worker. 
23 
(n) Social Protection refers to policies, programs, and all other interventions from public, 
24 
private and voluntary organizations and informal networks, to support communities, households 
25 
and individuals, both women and men, in their efforts to: reduce poverty; prevent, manage and 
26 
overcome risks and vulnerabilities throughout their life cycle; and realize their rights as citizens 
27 
participating fully and equally in all decision making affecting or may affect their access to and 
28 
control over resources necessary to maintain and sustain a decent and secure life. 
7 


1 
These interventions shall: promote and sustain livelihood and employment; protect against 
2 
hazards and sudden loss of income; and include, among others, labor market interventions, social 
3 
insurance, basic health care, social welfare and safety nets. 
4 
(0) Community Contracting refers to the process of concluding an agreement between a 
5 
community and a contracting authority, whereby the community (or a section of the community) 
6 
is responsible for the implementation of the work and therefore functions as contractor. 
7 
Chapter II 
8 
Coverage, Qulllifications, and Accreditation 
9 
SEC. 5. Coverage. This shall include individual workers in the informal economy (IE), as 
10 
defined in Section 4 of this Act, IE businesses and enterprises, and organizations of workers in 
11 
informal employment. 
12 
SEC. 6. Accreditation. There shall be a simple and standard system of accreditation in 
13 
accordance with the framework and principles of this Act. A one time accreditation fee of not 
14 
more than Fifty pesos (PSO.OO) per individual worker and not less than One Hundred pesos 
15 
(PlOO.OO) per IE business activity, enterprise, or organizations shall be paid to the municipality or 
16 
city where they intend to operate. 
17 
Any IE worker meeting the necessary accreditation requirements provided for in this Act 
18 
shall be listed in the centralized database system, and shall be issued an identity card signifying 
19 
eligibility to avail of development programs for workers in informal employment, provided, that 
20 
the poorest and the most vulnerable shall be given priority. 
21 
Any IE business activity or enterprise, or organization of workers in informal 
22 
employment, if qualified under this Act, shall be issued a certificate of accreditation, which shall 
23 
be released within thirty six (36) hours upon submission of complete requirements and payment 
24 
of accreditation fees. 
8 


1 
The concerned LGU shall review, revalidate and reassess such accreditation every two (2) 
2 
years from the date of last accreditation. Renewal of eligibility shall be in accordance with the 
3 
merit and fitness principle, and with the condition that no child labor shaII be used and no 
4 
activities harmful to the environment shall be implemented. 
5 
A comprehensive database of accredited IE business activities and enterprises shall be 
6 
developed and maintained. Such database shaII take into account the different sub-classifications 
7 
in terms of geography, premises, gender, ethnicity, vulnerability, occupation, nature of 
8 
employment, and roles and functions. The database shall also indicate informal businesses which 
9 
may be categorized as livelihood enterprises and those entrepreneurial or growth oriented 
10 
informal businesses. 
11 
The aforesaid comprehensive database shaII form part of the bases of the assessment and 
12 
monitoring of the growth of the informal economy. 
13 
SEC. 7. Annual Dues. - IE workers, business activities or enterprises, and organizations 
14 
shall pay annual dues which shaII accrue to the municipality or city where they are accredited and 
15 
shaII be exclusively used for IE development programs approved by the municipal or city council 
16 
as recommended by the Workers in Informal Employment Local Development Office (WIELDO) 
• 
17 
referred to in Chapter VII of this Act. Such dues, which shall cover the cost of the issuance of 
18 
licenses to operate, shall be paid to the municipal or city treasurer in the area where they are 
19 
accredited, starting on their second year of operations, based on the following schedule: 
20 
(a) 
Those with assets amounting to not more Two Thousand Pesos (p2,000.00) - One 
21 
Hundred Pesos (PI 00.00) 
22 
(b) 
Those with assets of more than Two Thousand Pesos (p2,000.00) up 
to Five 
23 
Thousand Pesos (P5,000.00) - Two Hundred Pesos (P200.00) 
24 
(c) Those with assets of more than Five Thousand Pesos (P5,OOO.OO) up 
to Fifty 
25 
Thousand Pesos (P50,000.00) - Three Hundred Pesos (P300.00) 
26 
(d) Those with assets of more than Fifty Thousand Pesos (p50,000.00) 
up to One 
27 
Hundred Fifty Thousand Pesos (P150,000.00) - Five Hundred Pesos (P500.00) 
9 


1 
(e) 
Those with assets of more than One Hundred Fifty Thousand Pesos (PI50,OOO.OO) 
2 
up to Three Hundred Thousand Pesos (P300,OOO.OO) - Six Hundred Pesos (P600.00) 
3 
(f) 
Those with assets of more than Three Hundred Thousand Pesos (P300,OOO.OO) up to 
4 
Five Hundred Thousand Pesos (P500,OOO.OO) - Seven Hundred Pesos (P700.00) 
5 
(g) Those with assets of more than Five Hundred Thousand Pesos (P500,OOO.OO) up to 
6 
One Million Pesos (Pl,OOO,OOO.OO) - On,e Thousand Pesos (Pl,OOO.OO) 
7 
Chapter III 
8 
Basic Rights 
9 
SEC. 8. Workers in infonnal employment have the same basic rights accorded to all 
10 
workers as enshrined in the Philippine Constitution and in international instruments. These 
11 
include the rights to: 
12 
a) work, which includes the right to make a living by work freely chosen or accepted, and 
13 
the right to avail of technical and vocational guidance and training programs; 
14 
b) the enjoyment of just and favorable conditions of work; 
15 
c) a living wage and equal remuneration for work of equal value without distinction of any 
16 
kind, in particular for women who shall be guaranteed conditions of work not inferior to 
17 
those enjoyed by men; 
18 
d) equal opportunity for promotion to an appropriate higher level, subject to no 
19 
considerations other than those of seniority and competence; 
20 
e) safe and healthy working conditions safeguarding general, occupational and reproductive 
21 
health; 
22 
f) rest, leisure and reasonable limitation of working hours, and periodic holidays with pay, as 
23 
well as remuneration for public holidays; 
• 
24 
g) maternity protection, including paid leave during a reasonable period before and after 
25 
childbirth; 
10 


1 
h) an adequate standard of living for workers and their families, primarily adequate food, 
2 
clothing, and shelter, and the continuous improvement of such standard; 
3 
i) education, especially of children and young persons, without any discrimination; 
4 
j) social protection, comprising mainly of, but not limited to labor market programs, social 
5 
security, health care and insurance, and social welfare interventions; 
6 
k) self-organization to, among others, collectively negotiate with other parties III the 
7 
promotion of their welfare and advancement of their interests; 
8 
I) substantially participate in policy- and decision-making processes, including access to 
9 
information and other necessary resources relevant to the promotion and protection of 
10 
their rights and welfare; 
11 
m) be free from any form of discrimination, violence, sexual exploitation, harassment and 
12 
abuse; 
13 
n) equal treatment before the law; and 
14 
0) equal access to justice though appropriate mechanisms, including, but not limited to, 
15 
alternative dispute resolution mechanisms and processes. 
16 
SEC. 9. Own account workers as well as marginal economic enterprises in the informal 
17 
economy, being the working poor's primary instruments to address and overcome poverty, shall 
18 
be accorded by the State the following rights: 
19 
a) infrastructure support such as farm to market roads, common, affordable and secure 
20 
workplaces and facilities, merchandising centers, farmers' markets or a Bagsakan with 
21 
proper storage facilities, and inventory bulk-buying centers; 
22 
b) policy support to promote and protect locally/domestically produced products; 
23 
c) access to markets, including capacity building to access E-marketing facilities; 
24 
d) access to affordable, appropriate and adequate financial services, including, among others, 
25 
collateral-free and gender-balanceil credit at low interest; 
11 


1 
e) access to appropriate and adequate machinery, equipment, and other technologies, with 
2 
the end in view of increasing productivity and growth; 
3 
t) protection from unjnst dislocation from places where economic activities are conducted; 
4 
g) special measures against racketeering, extortion, and harassment, by both State and non-
5 
State elements; and 
6 
h) fiscal relief, including among others exemption from taxes, fees and other assessments, to 
7 
be put into place by concerned national agencies and local government units 60 days after 
8 
the effectivity ofthis Act. 
9 
SEC. 10. Organizations of workers in informal employment, including umons, 
10 
cooperatives, mutual benefit associations, etc. shall have the right to: 
11 
a) freely function and act as the representatives of their members in policy- and decision-
12 
making processes, collective negotiations, and other similar bodies and processes; 
13 
b) establish national federations or confederations and the right of the latter to form or join 
14 
international trade-union organizations; 
15 
c) be furnished by concerned government institutions and other parties, upon written request, 
16 
with information pertinent to the protection and promotion of the rights and welfare of 
17 
their members; 
18 
d) own property, real or personal, for the use and benefit of their organizations and members; 
• 
19 
e) sue and be sued under their registered names; 
20 
t) undertake all other activities, not contrary to law, designed to benefit the organizations 
21 
and their members; and 
22 
g) be accorded preferential option in'the awarding of contracts for the undertaking of national 
23 
and local projects funded by either the National Government or any local government, 
24 
unit including foreign-assisted projects, the guidelines of which shall be put into place by 
25 
concerned national agencies and local government units within 60 days after the 
26 
effectivity ofthis Act. 
12 


1 
Further, 
2 
h) notwithstanding any provision of a general or special law to the contrary, the income and 
3 
the properties of legitimate labor organizations, including grants, endowments, gifts, 
4 
donations and contributions they may receive from fraternal and similar organizations, 
5 
local or foreign, which are actually, directly and exclusively used for their lawful 
6 
purposes, shall be free from taxes, duties and other assessments. The exemptions provided 
7 
herein may be withdrawn only by a special law expressly repealing this provision. 
8 
SEC. 11. Monitoring o/growth. The local govermnent units (LGUs) in cooperation with 
9 
the Workers in Informal Employment Local Development Office shall monitor the growth of the 
10 
informal employment business activities or enterprises three (3) years after the enactment of this 
• 
11 
Act and every three (3) years thereafter. The centralized database referred to in Section 6 shall be 
12 
the basis of this monitoring. 
13 
Chapter IV 
14 
SOCIAL PROTECTION 
15 
Social protection as defined in Section 4 of this Act shall have the following components: 
16 
SEC.12. Labor Market Programs. The State shall provide adequate resources to sustain 
17 
labor market programs following decent work standards, including emergency and guaranteed 
18 
employment schemes, to ensure livelihood security and prevent or mitigate the effects of sudden 
19 
loss of income in the context of sustainable development and developing local economies in both 
20 
rural and urban areas. 
21 
a) The State shall ensure that these schemes shall be labor-intensive, developmental, 
22 
sustainable, and engaging 
both women and men, youth and older people in building 
23 
infrastructure, socialized housing, social forestry focusing on the planting of traditional trees, 
24 
organic farming, and food production programs. 
13 


1 
b) LGUs shall encourage and provide incentives to constituents who want to engage or are 
2 
engaged in sustainable and/or organic farming. All idle private or public lands within their 
3 
jurisdiction shall be cultivated or planted with organic food crops like com, root crops or 
4 
vegetables. LGU s must allocate their local funds for mangrove reforestation and prohibit 
5 
conversIOn of any mangrove forest to residential, commercial or industrial use shall be 
6 
prohibited. 
7 
c) In pursuit of decent work, the State in all its labor market programs shall adopt a 
8 
comprehensive framework and plan on occupational safety and health that covers all workers, 
9 
formal and informal, and implemented at both national and local levels. 
10 
d) The State shall encourage entrepreneurship among the disadvantaged, especially women and 
11 
young people in informal employment, through the simplification and facilitation of business 
12 
registration procedures in one-stop' action centers, and the provision of adequate and 
13 
affordable marketing facilities such as economic freedom parks. 
14 
e) The State through local government units shall promote community contracting to give 
15 
preference to informal workers and their organizations in accessing employment 
16 
opportunities and related benefits. 
17 
SEC. 13. 
Social Security. -
In the spirit of promoting social justice, the State shall 
18 
endeavor to extend social security protection to all workers and their beneficiaries against the 
19 
hazards of disability, sickness, maternity; old age, death, unemployment, and other contingencies 
20 
resulting in loss of income or financial burden. 
21 
a) The Social Security System (SSS) shall cover all workers, particularly the working poor who 
22 
mostly belong to the informal economy. The SSS, in consultation with informal workers' 
23 
organizations, shall customize products and services for them that are accessible and 
24 
affordable . In the interest of equity, the State shall cover what should have been the 
25 
employers' share for contributions of informal workers had they been formally employed. 
14 


• 
• 
1 
b) The SSS shall also develop schemes involving government subsidies and sponsorship 
2 
programs to enable those who cannot afford to enroll and sustain their membership. 
3 
c) To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives, 
4 
women's and people's organizations, trade unions and informal workers' associations, 
5 
micro finance and micro-insurance institutions and similar groups as collecting agents of 
6 
premiums and facilitators of claims with the least burdensome conditions and with 
7 
appropriate incentives. It shall develop effective partnerships with these organizations. 
8 
d) The SSS Commission, in the spirit of democracy, transparency, accountability, and equity, 
9 
shall be required to conduct regular ~onsultations with and provide information and reports to 
10 
its membership. 
Both formal and informal workers shall be represented in the SSS 
11 
Commission, where gender balance shaH also be observed. 
12 
e) The SSS in cooperation with other relevant national agencies and LGUs, shall support 
13 
indigenous and community-based social protection schemes such as damayan, tulungan, 
14 
saranay, small mutual benefit associations, and micro-finance organizations initiated or 
15 
participated in by workers in informal employment so that these can be sustained, 
16 
systematized and upscaled. 
17 
f) An enabling environment for such organizations and schemes shaH be developed. Toward 
18 
this end, the Insurance Commission (IC) and other relevant regulatory agencies are hereby 
19 
mandated to review its policies and framework to make them more developmental and 
20 
supportive of the alternative schemes,outlined above. 
21 
SEC. 14. Social Security for Volunteers of Government Instrumentalities. Volunteer 
22 
workers of government instrumentalities as defined in Sec. 4 of this Act, shall be covered by the 
23 
Government Service Insurance System (GSIS) and be entitled to at least a minimum package of 
24 
customized products, services and benefits to be designed with their participation and with 
25 
adequate government subsidy. 
15 


1 
SEC 15. Health Care System and Financing. The State shall establish a comprehensive 
2 
and integrated health care system that guarantees provision of service by duly accredited and 
3 
adequately furnished health facilities, and appropriately educated and rationally compensated 
4 
health personnel to underserved areas all the way down to the barangay level. Provided that, such 
5 
healthcare system shall include reproductive health services, and provided finally, that priority in 
6 
the delivery of such services shall be the poor and marginalized. 
7 
The State shall ensure adequate resources to finance health care for all, by, among others, 
8 
progressively increasing the budget for health care until it meets the World Health Organization 
9 
recommendation of at least four to five percent of the Gross Domestic Product. 
10 
SEC. 16. Universal Health Insurance. The Philippine Health Insurance Corporation 
11 
(PhilHealth) shall ensure and substantiate universal, actual, active, and up to date coverage of all 
12 
Filipinos by 2013. To achieve this, PhilHealth with the participation of all stakeholders shall 
13 
critically review its current operations. It shall also ensure the provision of a minimum benefit 
14 
package which shall be periodically upgraded to meet the goal of universal coverage which is 
15 
affordable, accessible and appropriate to the needs of all. 
16 
a) Government subsidies for PhilHealtp sponsorship programs shall be expanded to cover not 
17 
only the ultra poor but also the working poor who mostly belong to the infonnal economy. 
18 
For the working poor, what should have been contributed by employers if they were enrolled 
19 
as formally employed shall be covered by government subsidies in the interest of equity. 
20 
PhilHealth programs for indigents and the working poor shall be expanded and improved in 
21 
order to develop effective partnerships with organized groups, especially those composed and 
22 
led by infonnal workers, women, sertior citizens, persons with disabilities, persons with HIV 
23 
and AIDS and other marginalized sectors, to better serve increasing numbers of those in 
24 
need. Organized groups with at least 500 members shall be allowed to be collecting agents 
25 
of premiums with incentives. 
16 


, > 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
b) PhilHealth shall immediately extend its servICes to underserved areas by facilitating and 
accelerating accreditation of hospitals and clinics, and by ensuring that these service 
providers remain viable through immediate reimbursement. 
c) PhilHealth, in accordance with its guiding principles, shall promote maximum community 
participation and shall recognize the roles and strengths of the public and private sectors in 
healthcare, including people's organizations and community-based health organizations. 
PhiIHealth shall extend appropriate recognition, technical assistance, and other forms of 
material and non-material support to mutual benefit associations, micro finance organizations, 
community-based health insurance and other indigenous schemes initiated and participated in 
by workers in informal employment. 
d) PhiIHealth, with maximum participation of all stakeholders, shall review its benefit package 
in order to cover informal workers, senior citizens, indigenous peoples, persons with 
disabilities persons with HIV / AIDS and other marginalized groups sustainably; emphasize 
preventive measures such as annual physical and medical check-ups and other outpatient 
services; 
coverage of workplace-related injuries and illnesses affecting both formal and 
informal workers, treatment of chronic ailments such as hypertension and diabetes; and 
inclusion of hospital-based reproductive health services, commodities and supplies. 
18 
SEC.17. Social Welfare and Safety Nets. The State shall veer away from dole outs which 
19 
violate the dignity of the poor and encourage dependency. It shall instead implement programs 
20 
whereby beneficiaries of social assistance are able to exchange their labor or any other resource 
21 
for the benefits received, and are assisted to progress out of poverty through self-empowering 
22 
measures, 
23 
a) Existing cash transfer programs shall be reviewed, improved, and expanded to enable the 
24 
poor to work and capacitate themselves out of poverty in an empowering and dignified 
25 
manner. Such programs shall benefit not only children of poor families, but also senior 
26 
citizens, especially older women, persons with disabilities, and other marginalized groups 
27 
with little or no assets. 
17 


1 
b) Barangay Day Care Centers shall provide 8-10 hour services to enable parents, especially 
2 
mothers, to pursue economic activities. 
3 
c) Barangay-based, gender-responsive, and partieipatory disaster preparedness and management 
4 
schemes shall be established to address and mitigate the effects of climate change and other 
5 
catastrophic risks. 
6 
Chapter V 
7 
Security in the Workplace of Workers in Informal Employment 
8 
Security in the workplace as defined in Sec. 40fthis Act shall involve the following: 
9 
Section 18. Designation of Workplaces. The concerned Local Government Unit (LOU), 
10 
in coordination with their respective Workers in Informal Employment Development Office 
11 
(WIELDO), after consultation with informal workers, affected communities, and other relevant 
12 
groups, shall identify and designate viable workplaces for informal workers; routes, terminals, 
13 
and specific lanes for small transport workers; and design a system of assigning these to 
14 
accredited informal workers, These may include markets and vacant areas near markets, vacant 
15 
public spaces and other spaces which may be designated as allowable workplaces for infonnal 
16 
workers. 
17 
Should concerned infonnal workers prefer to conduct their economic activities within an 
18 
identified private property, the LOU shall negotiate with the owner of the property for the 
19 
possible use of such property as informal workers' workplace .. The LOU shall likewise encourage 
20 
and assist the parties in forging a possible memorandum of agreement. 
21 
The LOUs, within 60 days from the effectivity of this Act, shall conduct a survey to 
22 
identifY viable vacant areas suitable for routes, terminals, lanes and workplaces for use of 
23 
informal workers in their respective localities. 
18 


1 
The LGUs shall, within 90 days after the survey and based on consultations with 
2 
concerned infonnal workers, affected inhabitants and relevant sectors as well as the 
3 
recommendations ofWIELDO, pass an ordinance designating such workplaces . 
• 
4 
Section 19. Protection of Agricultural Lands and their Occupants. The LGUs, in 
5 
coordination with the Department of Agrarian Refonn (DAR) shall protect all agricultural lands 
6 
from conversion or reclassification to non-agricultural uses. Special Economic Zones Sites, 
7 
Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable lands. The 
8 
LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the agricultural lands as 
9 
protected zones. 
10 
The LGUs shall make an inventory of all agricultural lands under leasehold and shall 
11 
enforce the security of tenure of tenants, right of redemption and right of first refusal on the 
12 
subject land. The LGUs shall provide assistance and protection to tenants in agricultural lands 
13 
whose landowners violate the provisions of RA 3844 or the Agricultural Land Refonn Code. 
14 
Tenants shall not be evicted based on unilateral tennination of the tenancy relationship by 
15 
landowners. 
16 
Section 20. Use of Municipal Waters, Beach Fronts, and Foreshores. Municipal waters 
17 
shall be used exclusively for marginalized fisherfolk and allied workers. They shall be given 
18 
priority in the granting of pennits and licenses for the establishment of fish pens, fish corrals, fish 
19 
traps, shellfish culture or similar structures for culture of marine products within the municipal 
20 
waters. 
• 
21 
Beach fronts and foreshores are public domain and may be used by any person especially 
22 
marginalized fisherfolk. LGUs shall ensure that no beach within their jurisdiction is exclusive for 
23 
the use of resort guests or private persons. 
19 


1 
LGUs in coordination with the National Housing Authority (NHA), shall establish and 
2 
create fisherfolk settlement areas on private or public lands, specifically those near the fishing 
3 
grounds, for municipal fisherfolk with security oftenure. 
4 
The consent of the affected fisherfolk shall be required before an area is declared a marine 
5 
protected area or a fish sanctuary by the national or local government unit. 
6 
Section 21. Policy on Eviction and Demolition. Informal workers shall not be evicted 
7 
ITom their homes and workplaces without legal ground as provided for in Republic Act 7279 or 
8 
the Urban Development and Housing Act of 1992. In cases where eviction or demolition is 
9 
warranted under Section 28 of RA 7279, the same shall be conducted upon compliance of the 
10 
following: 
11 
(a) notice upon the affected persons or entities at least thirty (30) days prior to the date of eviction 
12 
or demolition; 
13 
(b) adequate consultations on the matter of resettlement with the duly designated representatives 
14 
of the families to be resettled and the affected communities in the areas where they are to be 
15 
relocated; 
16 
(c) presence of local government officials or their representatives during eviction or demolition; 
17 
(d) proper identification of all persons taking part in the demolition; 
18 
(e) execution of eviction or demolition only during regular office hours from Mondays to Fridays 
19 
and during good weather, unless the affected families consent otherwise; 
20 
(f) no violence or unreasonable force shall be committed against women, children, senior citizens, 
21 
persons with disabilities and other identities similarly situated in the course of eviction or 
22 
demolition. 
23 
(g) non-use of heavy equipment for demolition except for structures that are permanent and of 
24 
concrete materials; 
25 
(h) proper uniforms for members of the Philippine National Police (PNP) who shall occupy the 
26 
first line oflaw enforcement and observe proper disturbance control procedures; and 
20 


1 
(i) adequate relocation, whether temporary or permanent; provided, however, that in cases of 
2 
eviction and demolition pursuant to a court order involving underprivileged and homeless 
3 
citizens, relocation shall be undertaken by the local government unit concerned and the National 
4 
Housing Authority (NHA) with the assistance of other government agencies within forty-five (45) 
5 
days from service of notice of final judgment by the court, after which period the said order shall 
6 
be executed; provided, further, that should relocation not be possible within the said period, 
7 
financial assistance in the amount equivalent to the prevailing minimum daily wage multiplied by 
8 
sixty (60) days shall be extended to the affected families by the local government unit concerned. 
9 
Section 22. Policy on Confiscation of Materials and Impounding of Vehicles. In cases 
10 
where demolition or eviction is warranted, the person who conducts the same shall issue an 
11 
itemized receipt of all products, goods,' and other materials seized from the affected informal 
12 
workers. 
13 
Tricycles, pedicabs, and other modes of transportation shall not be impounded for 
14 
violations of license, registration, or traffic regulations unless the said vehicle was utilized in the 
15 
conduct of criminal activities. In cases of mere violation oftraffic regulations, a traffic violation 
16 
ticket shall be issued to the erring driver without impounding hislher vehicle. 
17 
Section 23. Policy on Relocation of Vending Sites. Before any public market is closed, 
18 
sold or demolished, all market vendors shall first be relocated by the LGU to a temporary or new 
19 
public market. Notice of the intention to close, sell, or demolish any public market shall be made 
20 
to all concerned vendors at least sixty (60) days before the actual transfer or relocation to another 
21 
market site. Within the sixty (60)-day period after issuance of notice, the LGU shall conduct 
22 
consultations with the affected vendors on the selection of the relocation site and the 
23 
implementation ofthe relocation. 
24. 
Pending the designation of viable vending areas, vendors occupying public places not 
25 
previously designated as vending sites shall be provided with viable temporary sites by the LGU. 
26 
Notice of temporary transfer shall be given to the vendors at least fifteen (15) days before the 
21 


1 
actual transfer. This shall likewise apply to vendors granted with pennits but whose workplaces 
2 
are withdrawn from the list of allowable vending sites. Any change in the list of allowable 
3 
vending sites shall only be done after consultations with affected vendors. 
4 
In the event that a new public market is constructed in place of an old one, market vendors 
5 
with stalls displaced from their workplaces shall be given priority in the assignment of stalls in 
6 
the new market. 
7 
Section 24. Policy on Relocation of Terminals. Designated tenninals for tricycles and 
8 
pedicabs shall not be arbitrarily relocated without prior notice and consultation with small 
9 
transport groups, affected community and other relevant sectors. Provided, that relocation of 
10 
tenninals can only be effected through an Ordinance. Provided further, that after the enactment of 
11 
such ordinance, notice of intention to relocate tenninals shall be made to all small transport 
12 
groups and affected community at least sixty (60) days before the actual relocation. 
13 
Chapter VI 
14 
Special Allocations for Development Initiatives 
15 
SEC. 25. Special Allocations for Development Initiatives. - The development initiatives 
16 
for workers in infonnal employment shall fonn part of an integrated and convergent plan to 
17 
address poverty and vulnerability. The national and local government units shall work together in 
18 
support of such plan to maximize impact of meager resources. 
19 
(a) At least ten percent (10%) of the annual national budget shall be appropriated for 
20 
programs and services for workers in infonnal employment to be implemented by the fufonnal 
21 
Economy Development Authority (IEDA) and Workers in Infonnal Employment Local 
22 
Development Office (WIELDO) as created by Chapters VII and VIII of this Act. Support to 
23 
WIELDO shall be based on the principles of merit and equity. 
22 


1 
(b) The Implementing Rules and Regulations (IRR) of this Act shall detennine additional 
2 
guidelines on, among others, the use of such finances to ensure that programs and services truly 
3 
benefit workers in informal employment. 
4 
SEC. 26. Sourcing and Adopting Development Initiatives. - Other sources of funds to 
5 
be used exclusively for initiatives addressing the needs and empowennent of workers in infonnal 
6 
employment shall be identified in the Implementing Rules and Regulations (IRR) of this Act and 
7 
may include the following: 
8 
(a) Government financial institutions and mechanisms such as the Land Bank of the 
9 
Philippines (LBP), Development Bank of the Philippines (DBP), National Livelihood Support 
10 
Fund (NLSF), and Quedan Rural Credit and Guarantee Corporation shall set aside a specific 
11 
percentage of their loan portfolio to informal economy enterprises and shall give priority to 
12 
women-led informal economy enterprises by providing loans at an interest of not more than 
13 
twelve percent (12%) per annum consistent with the spirit ofR.A. 7882. 
14 
(b) The Department of Social Welfare and Development (DSWD) shan strengthen its 
15 
Self-Employment Assistance Program (SEAK) to uplift and empower women in poverty, 
16 
particularly those in informal employment, by adopting an integrated, credit-plus approach to 
17 
micro-finance. 
18 
(c) The Small Business Guarantee and Finance Corporation (SBGFC) created under 
19 
Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting of development initiatives 
20 
for competitive enterprises in terms of finance, technology, production, management and business 
21 
linkages. It shall also provide and promote, develop and widen in both scope and service reach 
22 
various alternative modes of financing for informal economy business activities or enterprises, 
23 
including but not limited to: direct and indirect project lending, venture capital, financial leasing, 
24 
secondary mortgage and/or rediscounting ofJoan papers to such business activities or enterprises, 
25 
and crop production financing. Further, the Corporation shall guarantee loans obtained by 
26 
qualified worker or business activity or enterprise, under such terms and conditions adopted by its 
27 
Board. 
23 


1 
(d) The Department of Trade . and Industry (DT!) shall contribute to enable the 
2 
development of a business environment that shall include initiatives such as supply chain and 
3 
market outlets, and schemes to develop Special Credit Windows to upscale informal enterprises. 
4 
(e) The Department of Science and Technology (DOST) shall support technology-related 
5 
initiatives of workers and enterprises in the informal economy. 
6 
SEC. 27. Exclusivity of Government Programs. - The govermnent shall ensure that 
7 
programs of financing, grants and other similar incentives shall be exclusively extended to 
8 
accredited workers, business activities, enterprises or organizations in the informal economy. 
9 
SEC. 28. Tax Exemption. - A duly accredited IE worker, business activity, enterprise, or 
10 
organization shall be exempted from all taxes, national or local, license and building permit fees 
11 
and other business taxes except real property and capital gains taxes, import duties and other taxes 
12 
on imported articles. In addition, any and all income, receipts and proceeds derived from their 
13 
business operations shall be excluded in the computation of gross income for purposes of 
14 
computing the individual income tax ofthe members thereof. 
15 
SEC. 29. Inclusivity of Benefits. - The exemptions and other benefits provided in this 
16 
Act shall apply for a period of not exceeding ten (10) years from the date of accreditation of such 
17 
IE worker, business activity, enterprise, or organization. 
18 
Chapter VII 
19 
Informal Economy Development Authority (IEDA) 
20 
SEC. 30. Creation of the Informal Economy Development Authority (lEDA). - There 
21 
is hereby created an Informal Economy Development Authority, herein otherwise referred to as 
22 
the IEDA, which shall be attached to the Office of the President and shall be constituted within 
23 
thirty (30) days after the drafting and approval of the IRR ofthis Act. 
24 


1 
The IEDA shall be the pnmary agency responsible for the promotion, growth, 
2 
development and empowennent of the workers in the infonnal economy as well as their 
3 
enterprises and organizations in the country. It shall be a one-stop shop that will facilitate and 
4 
closely coordinate national efforts to promote the infonnal economy's viability and growth, 
5 
including the provision of an integrated program for skills enhancement, literacy and education, 
6 
health services, social welfare and serviqes and assistance in tapping of local as well as foreign 
7 
funds. It shall also perfonn regulatory and quasi-judicial and other functions relative to the 
8 
attainment of the objectives of this Act. 
9 
SEC. 31. Mandate and Functions ofIEDA. - The mandate and functions ofIEDA shall 
10 
include the following: 
11 
(a) Develop and ensure implementation of a simple system of accreditation for the IE 
12 
workers, enterprises, and organizations in accordance with the standards and provisions of this 
13 
Act; 
14 
(b) Provide guidelines for the implementation by LGUs of a fair and credible system of 
15 
evaluation, accreditation, review and assessment, merit promotion, rendering of grant and 
16 
incentive awards and other policies relative to the effective and efficient implementation of this 
17 
Act; 
18 
(c) Develop and ensure implementation of annual, long-tenn and medium tenn plans for 
19 
the infonnal economy, the last of which should fonn part of the Medium Tenn Philippine 
20 
Development Plans (MTPDP) towards institutionalizing comprehensive, rights-based, gender-
21 
responsive and child-friendly programs and policies for the IE; 
22 
(d) Develop and ensure implementation oflabor standards; 
23 
(e) Develop and ensure implementation of gender-based monitoring and evaluation 
24 
mechanisms, efficient and effective 
programs and policies, and gender-responsiveness of 
25 
interventions toward harnessing the full potentials of women workers in informal employment; 
25 


1 
(f) Coordinate with LGUs for the development and implementation of periodic evaluation 
2 
of all accredited IE members, enterprises and organizations 
-
taking into account their 
3 
accomplishments, capabilities and potel).tials - the results of which shall be used as bases for 
4 
evaluation, accreditation, the grant of awards and incentives, training and retraining; 
5 
(g) Establish a performance appraisal system for all accredited workers, enterprises and 
6 
organizations in the informal economy which shall be the basis for granting or renewal of 
7 
incentives, rewards and recognition, training and development, including adequate mechanisms to 
8 
ensure their active participation and involvement; 
9 
(h) Ensure effective participation of the workers in informal employment and their 
10 
organizations through the establishment of regular consultative mechanisms and processes. 
11 
Annual national, regional and provincial consultations among the organizations of workers in 
12 
informal employment shall be conducted to determine specific issues and problems affecting their 
13 
sector, and monitor and evaluate implementation of programs and policies. 
14 
(i) Establish and develop a centralized and sex-disaggregated database system to 
15 
effectively guide policy formulation and implementation relative to the workers in informal 
16 
employment. The databank shall be available for public use and shall include but not be limited to 
17 
the following: 
18 
i.l. Sex-dis aggregated statistical' profile of various informal economy workers based on 
19 
age, location, type of work, average monthly incomes, work hours, and other relevant statistical 
20 
information; 
21 
i.2. 
Sex-disaggregated data on informal enterprises, including capitalization and sources 
22· 
of capital, number and status of workers, average incomes; 
23 
i.3. 
List and contact information of government and non-government organizations 
24 
(NGOs) that provide educational, socio-economic and legal services to workers in informal 
25 
employment; 
26 
i.4. 
Inventory of resolved and pending cases involving activities of workers in informal 
27 
economy; 
26 


· . 
1 
i.5. 
Database on the needs and problems of women and children in the informal 
2 
economy nationwide aimed at strengthening policies and programs against child labor; and 
3 
i.6. 
Compilation of international instruments, existing laws and programs affecting the 
4 
interest and welfare of informal economy workers and information on how these workers may use 
5 
or avail of such instruments, laws and programs. 
6 
U) Develop and ensure implementation of a communication plan including massive 
7 
information dissemination activities targeting workers in informal employment, their enterprisess 
8 
and organizations, in the various regions towards a better understanding and appreciation of the 
9 
benefits this Act may bring them; 
10 
(k) Consistent with letter h Section 2 of the Declaration of Policy, to develop and ensure 
11 
implementation of a comprehensive plan to eliminate child labor; 
12 
(I) Monitor and coordinate implelnentation of policies and programs through the Regional 
13 
IEDA officers; 
14 
(m) Coordinate and harmonize all informal economy-related policies, programs, projects 
15 
and activities of various government agencies towards greater efficiency and effectiveness; 
16 
(n) Monitor the LGU-generated incomes from informal employment through the LGUs' 
17 
periodic report submitted to the Council; 
18 
(0) After consultations with WIE organizations, develop and ensure implementation of 
19 
policies and programs that will address specific needs and ensure rights of workers in informal 
20 
emp loyment subsectors including but not limited to: vendors, small transport, non-corporate 
21 
construction workers, home-based workers; and 
22 
(p) Develop and ensure implementation of accessible and just conflict resolution and 
23 
adjudication systems and mechanisms to promote dialogue, conciliation, mediation and redress of 
24 
grievances to protect the rights of workers in informal employment. 
25 
SEC. 32. Composition. - The Chair of the IEDA shall be appointed by the President of 
26 
the Philippines based on recommendations of IEDA members and shall have the rank of a 
27 


. 
1 
• 
Secretary. IEDA members may elect from among themselves a Vice-Chair to preside over 
2 
meetings in the absence of the Chair. The members shall be the following: 
3 
(a) Secretary of Department of Labor and Employment (DOLE); 
4 
(b) Secretary of the Department of Trade and Industry (DTI); 
5 
(c) Director General of the National Economic and Development Authority (NEDA); 
6 
(d) Secretary of Department of Agriculture (DA); 
7 
(e) Secretary of Department of Agrarian Reform (DAR); 
8 
(f) Secretary of Department of Social Welfare and Development (DSWD); 
9 
(g) Secretary of Department of Health (DOH); 
10 
(h) Secretary of Department of Transportation and Communication (DOTe); 
11 
(i) Secretary of Department of Public Works and Highways (DPWH); 
12 
(j) Secretary of the Department of Interior and Local Govermnent (DILG); 
13 
(k) Secretary of the Department of Finance (DOF); 
14 
(1) Secretary of the Department of Justice (DOJ); 
15 
(m) Chair of the Commission on Human Rights (CHR); 
16 
(n) Lead Convenor ofthe National Anti-Poverty Commission (NAPC); 
17 
(0) Director General of Technical Education and Skills Development Authority (TESDA); 
18 
(p) Director General of National Statistics Office (NSO); 
19 
(q) President of Development Bank of the Philippines (DBP); 
20 
(r) President of Land Bank ofthe'philippines (LBP); 
21 
(s) Chair of the Social Security System (SSS); 
22 
(t) Chair ofPhilHealth; 
23 
(u) Chair of the Philippine Commission on Women (PCW); 
24 
(v) Head of the Housing and Urban Development Coordinating Council (HUDCC); 
25 
(w) Three (3) representatives from the private sector at large, all Filipino citizens, proven 
26 
to have been active in assisting informal economy workers, to represent Luzon, Visayas and 
27 
Mindanao; provided that at least one (1) is a woman; 
28 


1 
(x) One (1) representative each 'from the League of Cities, League of Municipalities, 
2 
League of Provinces and League of Councilors; 
3 
(y) Fifteen (15) representatives from People's Organizations (POs) of workers in infonnal 
4 
employment, five (5) each from Luzon, Visayas and Mindanao to be elected in a National 
5 
Assembly of these organizations duly called for that purpose. Provided that, one (i) shall be the 
6 
incumbent Sectoral Representative of the National Anti-Poverty Commission (NAPC)-Workers in 
7 
the Infonnal Employment. Provided further, that at least 50% of the remaining 14 represent 
8 
subsectors of infonnal workers that may include vendors, small transport, marginalized fanners, 
9 
marginalized fisherfolk, home-based wo.kers or non-corporate construction workers; and the rest 
10 
shall come from Non-Government, women's and other organizations actively working with and 
11 
for the rights of infonnal workers. Provided finally, that at least 40% of the remaining 14 
12 
representatives are women. The guidelines for the nomination and election, including processes 
13 
and mechanics shall be detennined by the IRR of this Act. 
14 
Representatives from the private sector, NGOs and IE organizations shall serve as IEDA 
15 
members for a tenn of three (3) years without re-election and shall be subject to tenns and 
16 
conditions provided for by the IRR. 
17 
The private sector, workers III infonnal employment and women's organizations' 
18 
representatives to the IEDA shall be entitled to receive per diem of at least Two Thousand Five 
19 
Hundred Pesos (P2, 500.00) per meeting. 
20 
The IEDA members shall meet once every two (2) months and may call for special 
21 
meetings as the need arises; provided, that the frequency of such special meetings shall not 
22 
exceed four (4) times annually. 
23 
Ten million pesos (PIO, 000,000.00) shall be allocated from the Presidential discretionary 
24 
fund for the initial operating expenses ofthe IEDA. 
25 
SEC. 33. Executive Committee of the IEDA - An Executive Committee of seven (7) 
26 
members shall be convened. Besides the Chair and Vice-Chair, the following shall be elected by 
27 
the IEDA members from among themselves or their duly designated alternate representatives: two 
29 


1 
(2) representatives of organizations of workers in informal employment, one (1) from the 
2 
different leagues of local officials, one (I) from the private sector, and one (1) from a national 
3 
govermnent agency, provided, that at least two (2) members of the Executive Committee are 
4 
women. 
5 
The Executive Committee shall have the authority to act for and in behalf of IEDA during 
6 
intervals of meetings, and within the specific authority granted by the IEDA. 
7 
SEC. 34. IEDA Secretariat. - The Executive Committee shall create a secretariat that 
8 
will have the following duties and functi(,ms: 
9 
(a) Prepare and recommend, in coordination with LGUs and other goverurnent agencies, 
10 
annual, medium-term, and long-term Informal Economy Development Plans for approval of the 
11 
IEDA; 
12 
(b) Coordinate the preparation of position papers and background materials for discussion 
13 
or approval during IEDA meetings; 
14 
(c) Assist in coordinating and monitoring policies, programs and activities of aU 
15 
government agencies with respect to the implementation of this Act; 
16 
(d) Prepare, coUate, and integrate aU inputs to the IEDA's yearly report on the status of 
17 
informal economy workers, business activities or enterprises in the country; 
18 
(e) Submit periodic reports to IEDA on the progress and accomplishments of its work 
19 
programs; and 
20 
(f) Perform other functions as authorized by the IEDA. 
21 
SEC. 35. Authority of the IEDA to Solicit Assistance from Various Agencies. - The 
22 
rEDA may, from time to time, call for the participation of any government agency or bureaucracy 
23 
in its deliberations especiaUy when such agency is directly or indirectly concerned with and/or 
24 
affecting the growth and development ofthe IE in any particular area or manner. 
30 


1 
SEC 36. RegionalIEDA Officer - Regional IEDA Officers shall be appointed and shall 
2 
have functions that include: monitoring and coordinating of IEDA initiatives in the regions; 
3 
evaluation of policies programs for workers in informal employment; providing technical 
4 
assistance in the development of local plans and programs; as well as other administrative 
5 
functions necessary for the success ofIEDA initiatives in their jurisdiction. 
6 
IEDA Regional Officers shall have automatic seats in all Regional Development Councils 
• 
7 
(RDCs). 
8 
SEC. 37. Rationalization of Programs. IEDA shall conduct continuing revIew of 
9 
government programs for the poorest of the poor and the workers in informal employment and 
10 
submit to Congress and the President a report thereon together with its policy recommendations. 
11 
Chapter VIII 
12 
Workers in Informal Employment Local Development Office (WIELDO) 
13 
SEC. 38. Workers in Informal Employment Local Developmeltt Office (WIELDO) - The 
14 
Workers in Informal Employment Local Development Office (WIELDO) shall be established in 
15 
every province, city or municipality to perform functions that shall include but not be limited to 
16 
the following: 
17 
(a) Prepare an overall development plan and work program that will address the needs of 
18 
the workers in informal employment,· prioritizing the poorest and most vulnerable, and 
19 
incorporate them in their respective provincial, regional, city, municipal and barangay 
20 
development plans; 
21 
(b) In consultation with organizations of workers in informal employment in the area, 
Z2 
identify specific needs of various subsectors of the IE and recommend appropriate measures to be 
23 
taken; 
24 
(c) Ensure accreditation of workers in informal employment, especially those with assets 
25 
PI50,OOO and below, to facilitate their immediate access to benefits and services; 
31 


• 
1 
(d) Monitor, assess and evaluate implementation of the plans and programs as well as the 
2 
performance of informal workers, their economic activities and their organizations in the areas; 
3 
(e) lead in the local implementation of Chapter V (Security in the Workplace of Workers 
4 
in Informal Employment) of this Act; 
5 
(f) Coordinate with other local offices, private sector and other organizations with existing 
6 
programs for the workers in informal employment towards integration and convergence; 
7 
(g) Conduct training programs which will provide new ideas to the IE workers, especially 
8 
those with the least assets and formal education, and upgrade the technical and entrepreneurial 
9 
skills of others who are already in the field; 
10 
(h) Implement consciousness-raising and capability building activities which include 
11 
information on workers', women's and children's rights and leadership training; 
12 
(i) Provide technical support and access to credit, market, technology, social protection 
13 
schemes, and training for micro-entrepreneurs and those in service industry, small transport, non-
14 
corporate construction workers, etc.; 
15 
U) Train pools of community trainers in business counseling and awareness-raising on 
16 
occupational safety and health hazards, risks and social protection; 
17 
(k) Support organizing activities among workers in informal employment; 
18 
(I) Establish sex-dis aggregated databank on human resources and skills registry to be used 
19 
as tools for LGU planning and budgeting; 
20 
(m) Provide offices and other necessary resources to support organizing, advocacy, 
21 
training and other activities oflocal organizations of workers in informal employment; 
22 
(n) Train workers in informal employment on negotiation skills and on the conduct of time 
23 
and motion studies to determine proper wages; and 
24 
(0) Provide services, which shall include but not be limited to counseling, conciliation, 
25 
mediation, and legal assistance for the furtherance of this Act, prioritizing those with the least 
26 
access to justice. 
32 


1 
In the performance of WIELDO's functions, the principle of preferential treatment to the 
2 
poorest and most vulnerable shall be observed. 
3 
In addition to fund allocations specified in this Act, the LGUs shall annually allocate at 
4 
least One Hundred Thousand Pesos (PIOO, 000.00) or at least 5% of the twenty percent (20%) 
5 
Development Fund of their respective IRA whichever is higher for the establislnnent and initial 
6 
operations ofWIELDO. 
7 
Following the principle of merit and equity, LGUs that fulfill such allocations may receive 
8 
additional assistance from the national government as recommended by IEDA; provided, that they 
9 
have formulated their local development plan for workers in informal employment. 
10 
SEC. 39. 
Composition. The Local Chief Executives (LCEs) shall be the primary 
11 
overseers of WIELDO's operations. The IRR of this Act shall provide for WIELDO's 
12 
composition provided that, informal workers' representatives shall form at least fifty percent 
13 
(50%) of WIELDO's membership. Provided further, that IE representatives shall not be less than 
14 
five (5), and provided finally, that at lea~t forty percent (40%) of all members are women. Other 
15 
relevant guidelines on WIELDO's operations shall be included in the IRR of this Act. 
16 
TITLE II 
17 
EMPLOYMENT OF WORKERS IN INFORMAL EMPLOYMENT 
18 
Chapter I 
19 
Requisites for Employment Agreement 
20 ' 
SEC. 40. Minimum Standards - All working arrangements entered into by workers in 
21 
informal employment shall be in accordance with the minimum applicable labor and social 
22 
standards as contained in Title II of this Act. 
23 
These standards shall be strictly enforced in informal economic enterprises supplying or 
24 
doing outsourcing work for exporters, investors-locators in export processing zones or industrial 
33 


1 
parks licensed by the Export Processing Zone, and domestic formal sector manufacturers and 
2 
retailers-distributors. 
3 
For workers engaged by independent informal economic enterprises, DOLE, in 
4 
coordination with IEDA shall audit the capacity of these enterprises to comply with these 
5 
standards. Those incapable of meeting the standards shall be assisted to upgrade their capacity to 
6 
improve their businesses, as well as the capacity comply with relevant labor and social standards. 
7 
SEC. 41. Provisions of Employment Agreement. The employment contract shall be in 
8 
written form. However, the absence of a written agreement does not mean the absence of an 
9 
employment relationship. As a matter of right, informal workers can insist on a written agreement 
10 
based on minimum standards. 
11 
In cases wherein minors are contracted with, the said negotiated contract shall be signed 
12 
on his/her behalf by either parent or legal guardian, with the expressed written consent of the said 
13 
minor. 
14 
In cases wherein illiterate workers are contracted with, the said contract shaH be explained 
15 
to the worker concerned and attested to by a representative from the LOU or an elected Barangay 
16 
official in the city or municipality where the worker is designated to work. 
17 
Each of the contracting parties shan be provided with a full set of the duly signed 
18 
agreement which shall include the following basic provisions: 
19 
(a) working arrangement/mode; 
20 
(b) period/duration of employment; 
21 
(c) compensation, which shall not be below the minimum standard, and mode of payment; 
22 
(d) computation of contributions for social security and medical insurance including for 
23 
those who fan under DOLE Department Order No.5; 
24 
(e) duties and responsibilities; 
25 
(f) working hours and day-off schedules; 
26 
(g) living quarters or sleeping arrangements (for live-in workers); 
27 
(h) the date, term and mode of delivery or date of completion; 
34 


1 
(i) minimum of twenty percent (20%) down payment for labor cost and services and 
2 
minimum of 50% for inventory of raw materials used in the production for homeworkers per 
3 
DOLE Order No.5. 
4 
Minimum standard compensation referred to above shall be detennined by the Regional 
5 
Wage Boards per subsector of IE workers. In the case of piece rates, this shall be based on the 
6 
conduct of time and motion studies facilitated by the DOLE Bureau of Working Conditions. 
7 
While there are no standardized rates for workers in informal economy jobs, the basis of 
8 
computation shall not be below the applicable minimum wage of the region where they are 
9 
covered. 
10 
Enforcement ofthe standard compensation rates shall be in accordance with the capability 
11 
to comply as explained in Section 40 of this Act. 
12 
SEC. 42. Payment of Wages - Payment derived from negotiated agreement shall be made 
13 
directly to the workers. No deductions from such payments shall be made by the employer except 
14 
those provided by law. The expressed written consent of the worker shall be first secured before 
15 
deductions are made. 
16 
Chapter II 
17 
IE Workers of Minor Age 
18 
SEC. 43. Allowable Employment of Workers of Minor Age - Children fifteen (15) years 
19 
up to seventeen (17) years of age may be employed; provided, that parental or legal guardian 
20 
consent be presented and attested by any representative of the LGU or duly elected Barangay 
21 
official where the work is to be done. In no instance however, shall children below fifteen (15) 
22 
years old be engaged in whatever fonn of productive services. 
23 
Workers of minor age shall not be allowed to render work for more than four (4) hours, 
24 
five (5) days a week, exclusive of one (1) hour break for breakfast or lunch whichever is 
25 
applicable. 
35 


• 
1 
' Chapter III 
2 
Prohibited Acts 
3 
SEC. 44. Prohibition Against Forced Night Work - It is unlawful to force, threaten, 
4 
intimidate or otherwise harass workers in informal employment to engage in night work. 
5 
Moreover, workers of minor age shall not be allowed to render work between eight o'clock in the 
6 
evening and six o'clock in the morning of the following day. 
7 
SEC. 45. Prohibition Against W.ork to be Undertaken - Workers of minor age shall not 
8 
be allowed to render work beyond their physical and mental capabilities. 
9 
SEC. 46. Prohibition Against Bonded Labor - A worker shall not be allowed to use 
10 
his/her future services as collateral for any loan or advances made to or to be made by said worker 
11 
with the employer. Likewise, no employer shall be allowed to bind the worker to his/her 
12 
continued employ as a form of payment for any loan or advances which he/she may have made 
13 
with the employer. ShoUld there be an outstanding loan incurred and he/she decides to unilaterally 
14 
terminate the contract of employment, said loan or advance shall be paid by himlher to the 
15 
employer under terms and conditions specified in a duly executed promissory note between 
16 
parties. 
17 
SEC. 47. Prohibition Against Labor-Only Contracting -
In no instance shall the 
18 
employer sub-contract the services of a worker to any third party, unless such activity falls within 
19 
the purview of an employment arrangement for which the necessary permits and licenses have 
20 
been priory secured. 
21 
Labor only contracting means that the contracting agency or party does not provide any 
22 
raw materials, inputs, or other forms of investment in the enterprise, , does not have any control 
23 
over the work process, merely supplies labor to a principal, and yet makes the false claim that 
24 
the contracting party is the employer. 
36 


1 
SEC. 48. Prohibition Against Recruitment and Finders Fees - Regardless whether the 
2 
worker was sourced either through an employment agency or a third party, said worker shall 
3 
neither be charged nor levied a share in the recruitment fees or finder's fees by the 
4 
aforementioned employment agency or third party. 
5 
SEC. 49. Prohibition Against Hazardous Work and Conditions - Any worker shall not 
6 
be employed in any hazardous work, activity or undertaking, and neither shall he/she be exposed 
7 
to hazardous working conditions. 
8 
For purposes of this Section, h~zardous work or conditions shall include, but not be 
9 
limited to the following: 
10 
(a) Any work which requires workers to render services beyond ten (10) hours; 
11 
(b) Any work, employment or activity which exposes the worker to physical, emotional or 
12 
sexual abuse; 
13 
(c) Any work which involves manual handling or transport of heavy loads; 
14 
(d) Any work in an unhealthy environment which exposes workers to hazardous 
15 
substances, agents or processes, or to temperature, noise levels, or vibrations damaging to their 
16 
health; 
17 
(e) Any work which requires workers to continuously render service during late nights; 
18 
(f) Any or all forms of slavery or practices similar to slavery, such as the sale and 
19 
trafficking of persons, forced or compulsory labor, debt bondage and serfdom; 
20 
(g) Any use, procuring or offering of the worker for prostitution or pornography; 
21 
(h) Any use, procuring or offering of the worker for the commission of any offense or 
22 
crime, particularly for the production and trafficking of narcotic drugs and substances as defined 
23 
in the Dangerous Drugs Act; 
24 
(i) Any other type of work or activity which, by its nature or the circumstances in which it 
25 
is carried out, is likely to jeopardize the health, safety, or morals ofthe worker; and 
26 
(j) Any other type of work, activity, condition or undertaking that maybe hereinafter be 
27 
defined as hazardous by the DOLE. 
37 


• 
1 
SEC. 50. Prohibition Against Interference and Coercion - Any person is prohibited 
2 
from committing any ofthe following acts of interference and coercion: 
3 
(a) Prevent a worker from upholding or exercising his/her rights; 
4 
(b) prevent workers from joining or assisting organizations or unions for purposes not 
5 
contrary to law, in order to protect and defend their mutnal interests and to obtain redress of 
6 
grievances through peaceful concerted efforts; 
• 
7 
(c) prevent a worker from carrying out hislher duties or functions in an organization or 
8 
union, or to penalize the same for any lawful action performed in that capacity; 
9 
(d) harass, interfere, intimidate or prevent the worker from performing his/her duties and 
10 
functions; 
11 
(e) harass, transfer, penalize or terminate the services of a worker who is carrying out 
12 
his/her function or role for and in behalf ofhislher employer; and 
13 
(f) 
perform acts to diminish the independence and freedom of workers' union or 
14 
organization to direct its own affairs. 
15 
Chapter IV 
16 
Rights and Benefits of Employed Workers in Informal Economy 
17 
SEC. 51. Rights to Wages Earned - The employer shall directly pay the workers on time, 
18 
based on agreement any and all wages, remuneration or compensation earned by himlher during 
19 
the period of his/her employment. 
20 
No parent, guardian, relative or any other person shall be allowed to take a loan against 
21 
the compensation of his/her relative-worker of minor age without the express written consent of 
22 
the concerned relative-worker. Neither shall the worker of minor age be mandated to work in 
23 
payment ofloan or liability by a parent, guardian, relative, or any other person. 
24 
SEC. 52. The Right to Privacy and Confidentiality - The employer shall respect the 
25 
privacy of workers during the latter's rest periods. This right to privacy shall extend to any and all 
38 


1 
forms of personal communication, including letters or other forms of correspondence issued or 
2 
received. The worker shall be allowed communications coursed through the private telephone of 
3 
the employer; provided that any additional expense incurred due to such communication shall be 
4 
borne by the worker and shall be deducted after the employer's due notice to the worker of the 
5 
amount incurred. 
6 
The State, further guarantees the protection of the right of workers to communicate with 
7 
relatives and other persons and to receive visitors subject to reasonable limits prescribed in the 
8 
employment contract agreed and entered into by both the employer and the worker. 
9 
SEC. 53. Access to Education and Training - A worker shall not be deprived of formal 
10 
or non-formal education. In cases where he/she is productively employed, he/she shall be allowed 
11 
to attend or pursue any kind of educational program during free time or any other time as agreed 
12 
by the employer and the worker. 
13 
The Department of Education (DEP ED), Commission on Higher Education (CHED) and 
14 
other appropriate agencies, shall extend services such as the Study Now, Pay Later Program to the 
15 
workers in the IE and their dependents. 
16 
SEC. 54. Access to Lawful Third Party Mediation - The LGUs shall provide workers 
17 
and their employers the names, addresses and telephone numbers of the designated liaison 
18 
officers of the following: 
19 
(a) DTI; 
20 
(b) DOLE; 
21 
(c) The Barangay office where he/she is productively working; and 
22 
(d) Duly registered NGOs accredited to mediate the disputes of their sector. 
23 
(e) IEDA 
24 
The employer guarantees the worker the access to all available means of communication 
25 
for the purpose of contacting any of the above-enumerated institutions. 
39 


1 
SEC. 55. Normal Hours of Work - The nonnal hours of work is eight (8) hours per day, 
2 
exclusive of one (1) hour breaks each for breakfast, lunch and dinner. The worker shall be 
3 
allowed at least eight (8) hours of continuous rest per day. Otherwise, any work done by himlher 
4 
beyond the nonnal hours of work per day shall be duly compensated. 
5 
SEC. 56. Regular Working Pays - No worker shall render work for more than six (6) 
6 
days per week. 
7 
SEC. 57. Longevity Pay - A longevity pay equivalent to five percent (5%) of hislher 
8 
latest monthly basic pay shall be paid to a worker for every two (2) years of continuous and 
9 
satisfactory service rendered. 
10 
SEC. 58. Clothing and Personal or Protection Equipment Allowance - A worker shall 
11 
be entitled to a minimum of One Thousand (Pl,OOO.OO) pesos clothing and personal or protection 
12 
equipment (PPE) allowance annually. Provided, that the worker has rendered at least one (1) year 
13 
of continuous service in the employment helshe is currently in. 
14 
SEC. 59. Service Incentive Leave - A worker who has been employed for one (1) year 
15 
shall be entitled to a five (5)-day service incentive leave with pay, in addition to the one (1) day 
16 
per week designated as rest day. Said leave may only commence at the end of the first year of 
17 
employment and shall not cumulate from year to year. 
18 
SEC. 60. Maternity Benefits. - • A female worker who has been employed for one (1) year 
19 
shall be entitled to maternity benefits as provided for by law. 
20 
SEC. 61. 13th Month Pay - A worker shall be entitled to 13th month pay equivalent to 
21 
one month's basic salary provided, that the worker has reached the required minimum residency. 
40 


A 
1 
Otherwise, the worker shall be entitled to receive a 13th month pay on a pro-rated basis as 
2 
provided for in DOLE D.O. No.5. 
3 
SEC. 62. Allowing Subcontracting -
A worker may enter into sub contractual 
4 
employment or may accept sub contractual jobs from any other enterprise or firm joining or may 
5 
join productive employment through a cooperative consortium; provided, that the enterprise, firm, 
6 
cooperative, or consortium meets the requirements of Articles 106-109 of the Labor Code and 
7 
their Implementing Rules (DO 18-02), including registration requirements under the said DO 18-
8 
02. 
9 
SEC. 63. Pre-Termination of Contract - The employer may, at his/her own discretion, 
10 
terminate the services of the worker; provided however, that the said employer provides the 
11 
worker with at least fifteen (15) day notice of termination, and termination pay equivalent to at 
12 
least one half (Yz) month's salary. In lieu of the fifteen (15) day notice of termination, the 
13 
employer may immediately terminate the services of the worker, provided that said employer 
14 
provides the worker termination pay equivalent to one (1) month's salary. 
15 
The employer may, for valid or just cause of loss of confidence, terminate the services of 
16 
the worker prior to the expiration of the contract without indemnifYing the latter with termination 
17 
pay. 
18 
Should the worker decide, on his/her own volition, to unilaterally leave the workplace 
19 
prior to the expiration of the contract period, said worker shall forfeit any separation pay that may 
20 
be due him/her. 
21 
SEC. 64. Extent of Duty - The employer shall not require a worker to perform any task or 
22 
work outside what is stipulated in the agreement. 
23 
SEC. 65. 
Deployment Expenses - Deployment expenses of the worker, including 
24 
transportation and agency fees, shall be shouldered by the employer 
41 


1 
TITLE III 
2 
FINAL PROVISIONS 
3 
SEC. 66. Penal Provisions 
4 
(a) 
Any person who shall willfully interfere with, restrain or coerce a worker in the 
5 
exercise of his/her rights or shall in any manner commit any act in violation of any of the 
6 
provisions of this Act shall, upon conviction, be punished by a fine of not less than Twenty 
7 
Thousand Pesos (P20,000.00) or imprisonment of one (1) year to six (6) years or both fine and 
8 
imprisonment at the discretion of the Court. 
9 
(b) If the offender is a public official, the Court, in addition to the penalties provided in 
10 
the preceding paragraph, may impose the additional penalty of disqualification from public office. 
11 
(c) Any person or officer who violates Section 22 of this Act shaH be administratively 
12 
liable. Nothing herein shaH prohibit the aggrieved informal worker from initiating a criminal or 
13 
civil action against the responsible person or officer whenever such action is applicable. 
14 
(d) Failure to implement Sections 23 and 24 of this Act shall render the responsible 
15 
officialls administratively liable pursuant to Republic Act 7160 and other pertinent laws and 
16 
criminally liable whenever applicable. 
17 
(e) In the case of a private institution/company found to be violating any provision ofthis 
18 
Act, it shall be subject to a penalty ranging from suspension of license or revocation of such at the 
19 
discretion of the Court. 
20 
SEC. 67. Implementing Rules and Regulations (IRR) - The Implementing Rules and 
21 
Regulations of this Act shall be formulated by a drafting committee composed of representatives 
22 
of offices that will be members of IEDA. Provided that, at least 30% of the drafting committee 
23 
members shall come from organizations working on informal workers' concerns. Said committee 
24 
will start work on the IRR within three (3) months after the effectivity oftbis Act. 
42 


• 
1 
SEC. 68. Separability Clause - If any provision of this Act is declared unconstitutional 
2 
or invalid, the provisions not affected shall continue to be in full force and effect. 
3 
SEC. 69. Repealing Clause -
Alllaws, decrees, orders, rules and regulations or other 
4 
issuances inconsistent with the provisions of this Act are hereby repealed, amended or modified 
5 
accordingly. 
6 
SEC. 70. Effectivity - This Act shall take effect fifteen (15) days after its publication in at 
7 
least two (2) newspapers of general circulation or the Official Gazette, whichever comes first. 
8 
Approved, 
43