FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
B7 
s. 'N~. _--'-_ 
r;~ • 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
The Informal Sector includes micro-entrepreneurs like ambulant vendors, fish 
vendors, small-scale farmers and fisherfolk; and the employed and self-employed 
consisting of local domestic helpers or kasambahay, barbers, manicurists, pedicurists, 
pedicab or trisikad, tricycle drivers, jeepney drivers, taxi drivers, carpenters, plumbers, 
electricians, masons, house painters, welders, and mechanics. They are indispensable 
for making many commodities and services affordable for the rest of society. 
Comprising almost half of the total workforce, the Informal Sector (IS) accounts 
for 113 of the country's non-agricultural Gross Domestic Product as shown in a ten-year 
study conducted from 1994-2003. Likewise, the IS sector share in employment at more 
than 15 million jobs is on the rise, according to the Department of Labor and 
Employment. 
Despite the large economic contribution of IS workers, the protection of their 
right!? and welfare remains largely neglected not only in the Philippines but also in many 
countries where increasing numbers of Filipinos work. It is such that the international 
Labor organization selected the Philippines to the ILO's Action Program on Decent 
Work. 
Longer hours of work, insecurity, lower incomes and hazardous working 
conditions characterize activities in the sector. According to the ILO, the sector is "highly 
heterogeneous [or diverse], encompassing production units of different features, and in 
a wide range of economic activities, as well as people (workers, producers, employers) 
working or producing under many different types of employment relations, and 
productive arrangements." 
Likewise, the National Statistical Coordination Board (NSCB) recognized that 
"Iabor relations in the IS, where they exist, are based on casual employment, kinship or 
personal and social relations rather than formal or contractual arrangements." Thus, the 
workers are vulnerable to many forms of exploitation or abuse. 
They are mostly poor who live in sordid conditions, achieve low level of education 
and lack formal certification of their marketable skills. Thus, they end up being hired to 
work for lower wages and in substandard conditions. Among them poor ventilation and 
lighting, cramped space, lack of appropriate sanitary facilities for work and personal 
hygiene, lack of protection from hazardous exposure to chemicals. 


This Magna Carta will empower the Informal Sector in the hope that they can 
escape the economic rut to which many are trapped. It also aims to promote their 
welfare through social security, protection from occupational hazards and providing 
access to mechanisms to redress their grievances. 
By instituting this Magna Carta, the State will finally recognize the real economic 
value of their labor and extend them the dignity that workers strive for. 
In view hereof, approval of this bill is earnestly requested. 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
10 J:l -i 11'1 :30 
SENATE 
S.No. 
67 
, ", 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE INFORMAL 
SECTOR, INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION 
THEREOF, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
1 
TITLE I 
2 
GENERAL PROVISIONS 
3 
Chapter I 
4 
Framework and Principles 
5 
SECTION 1. Short Title. This Act shall be known as the "Magna Carta 
6 
for Workers in the Informal Sector." 
7 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the 
8 
State: 
9 
(a) To promote and improve the total well-being of the poorest-of-the-
10 
poor and the marginalized low level income earners who engaged in economic 
11 
activities under the informal sector; 
12 
(b) To nurture and protect the interests of the informal sector by 
13 
providing with adequate and timely social, economic and legal services, as 
14 
well as mechanisms that shall protect their rights and promote benefits that 
15 
ensure their dignified existence and economic advancement; 
16 
(c) To recognize the rights of every worker in the informal sector, to 
17 
protect them, especially women and children, from abuse, economic 
18 
exploitation and from performing work that is hazardous to their phYSical, 
19 
mental and spiritual health; 


1 
Toward this end, the State shall come up with an integrated, holistic 
2 
and comprehensive policy instrument for the informal sector that will facilitate: 
3 
(1) the enhancement of their entrepreneurial skills and their capabilities 
4 
to become more productive and self-reliant thereby ensuring their protection, 
5 
assistance, support and participation in the mainstream economic activities; 
6 
and 
7 
(2) a continuing process of consultation and dialogue with said sector to 
8 
be able to maximize the provision of a systematic package of reform 
9 
intervention services. 
10 
SEC. 3. Framework and Principles. The government shall pursue a 
11 
minimum regulation and encourage the development of ingenuity and the 
12 
entrepreneurial spirit among the citizenry. In this regard, the LGUs and their 
13 
respective attached agencies shall see to it that procedural rules and 
14 
requirements for the IS are minimized in the act of registration, availment of 
15 
financing, grants and other incentives and accessing other government 
16 
services and assistance. 
17 
In order to hasten the growth and expansion of the various business 
18 
activities or enterprises under the informal sector, the private sector shall be 
19 
encouraged to assist in the effective irnplementation of this Act by participating 
20 
in government programs for the informal sector. In this regard, the DTI, in 
21 
consultation with the concerned government agencies, the LGUs and the 
22 
informal sector, may recommend simplified procedure and localized incentives 
23 
for the benefit of the informal sector. The government shall encourage the 
24 
organization, establishment, strengthening and expansion of the various 
25 
business activities or enterprises under the informal sector in the barangay 
26 
level preferably unified under a municipal/city, provincial, regional and national 
27 
federation/association. 
28 
SEC. 4. Definition of Terms. As used in this Act, the following terms 
29 
shall mean: 
30 
(a) Dai/y Basis refers to the per day mode of paying a private worker as 
31 
bilaterally agreed upon by both the employer and the worker. 
32 
(b) Employer refers to a natural person or group or partnership of 
33 
people for which a paid worker renders productive employment or service. 
34 
(c) Hazardous work or condition refers to any activity or circumstance 
35 
where a worker is exposed to any risk which constitutes an imminent danger 
36 
to his/her health and safety. 
2 


1 
(d) Kasambahay refers to any person, whether male or female, who is 
2 
to be engaged, is engaged or has been engaged locally in a salaried capacity 
3 
under a full-time basis and paid directly by the employer, undertaking tasks 
4 
ascribed as normal household chores within a specific household. The term 
5 
includes maids, cooks, houseboys, family drivers and babysitters (yaya) who 
6 
provide daily service to a single, specific household, either on a five-in or five-
7 
out basis. In common term, kasambahay is called household helper. 
8 
(e) Worker of minor age refers to children fifteen (15) years up to 
9 
seventeen (17) years of age who are engaged in productive employment 
10 
under a valid contract of employment. 
11 
(f) Informal Sector, which is herein otherwise referred to as IS, refers to 
12 
a category of individuals or partnerships of people involved in any business 
13 
activity or enterprise whose total assets value, inclusive of the capital 
14 
investments, must not be more than Ten Thousand Pesos (Pi 0,000.00) for 
15 
single proprietorship and Twenty-five Thousand Pesos (P25,000.OO) for 
16 
partnership ventures and/or whose annual income must not exceed Thirty-five 
17 
Thousand Pesos (P35,OOO.OO) and One Hundred Fifty Thousand Pesos 
18 
(P150,OOO.OO), respectively. 
19. 
The above definition shalf be subject to review and adjustment upon the 
20 
recommendation by the Regional Wage Board (RWB), in consultation with the 
21 
National Economic Development Authority (NEDA) motu propio taking into 
22 
account inflation and other economic indicators. 
23 
(g) Month/y Basis refers to the per month mode of paying a private 
24 
worker as bilaterally agreed upon by both the employer and the worker. 
25 
(h) Pakyaw Basis refers to the pre-contracted wholesale mode of 
26 
paying a private worker as bilaterally agreed upon by both the employer and 
27 
the worker. 
28 
(i) Self-employed worker refers to any person, whether male or female, 
29 
who is to be engaged, is engaged or has been engaged locally and paid 
30 
directly by the homeowner/employer to provide services to either a single or a 
31 
number of households on a contractual or day-to-day basis. 
The term 
32 
includes gardeners, laundry women and household helpers hired on a day-to-
33 
day basis, provided that they do not report for work to a single household for 
34 
four (4) days a week or more, else they shall be classified as kasambahay. 
35 
0) Worker refers to a general term to mean either or both the self-
36 
employed or paid employee covered under the provisions of this Act. 
3 


1 
(k) Working hours refers to the period of time within which a worker is 
2 
required to be on call to perform any and all tasks that may be designated, 
3 
regardless of whether there are actual tasks being undertaken. 
4 
5 
Chapter II 
6 
Coverage, Qualifications and Accreditation 
7 
SEC. 5. Registration Payment. IS business activities or enterprises 
8 
shall, upon registration, pay Fifty pesos (P50.00) to the municipality or city 
9 
where they intend to be productively employed during their initial year of 
10 
operation. The said fee shall cover the cost of the issuance of the license to 
11 
operate. 
12 
SEC. 6. Annual Dues. IS business activities or enterprises shall pay 
13 
the fee to the municipal or city treasurer where they are registered and 
14 
accredited, starting on their second year of operations, based on the following 
15 
schedule: 
16 
(a) Those with net assets before financing amounting to not more than 
17 
P 2,000.00 .... 
P 
180.00 
18 
(b) Those with net assets before financing of more than P 100,000.00 to 
19 
P 2,000.00 to 5,000.00 .... 
P 
360.00 
20 
(c) Those with net assets before financing of more than P400,000.00 to 
21 
P 7,500.00 to 10,000.00 .... 
P 
720.00 
22 
The collected fee shall accrue exclusively to the municipality or city and 
23 
. shall be used for IS development programs approved by the municipal or city 
24 
council: 
25 
SEC. 7. Revocation of Business Authority. The authority to do 
26 
business shall, after due notice and hearing, be revoked and cancelled upon 
27 
the failure of the IS business activities or enterprises, without valid reasons, to 
28 
commence its operations within forty-five (45) days from receipt of the 
29 
authority to operate. 
30 
SEC. 8. Coverage. This Act shall cover members of the informal sector 
31 
who are operating, employed or working either as micro-entrepreneur, paid 
32 
worker or self-employed as defined herein. 
Provided, however, That the 
33 
aforesaid micro-entrepreneur, paid worker or self-employed qualifies the 
34 
minimum requirements set forth in this Act. 
4 


1 
For purposes of this Act, the term "informal sector" shall cover the 
2 
following: 
3 
(a) Micro-entrepreneurs: 
4 
(i) sidewalk vendors, fish vendors; 
5 
(ii) small scale farmers and fisherfolks; 
6 
(b) Employed/Self-Employed: 
7 
(i) local domestic helpers or kasambahay; 
8 
(ii) barbers, manicurists, pedicurists; 
9 
(iii) pedicab/tricycle drivers; 
10 
(iv) jeepney drivers; 
11 
(v) taxi drivers; 
12 
(vi) carpenters, plumbers, electrician, mason, house painters; 
13 
(vii) welders, mechanics 
14 
SEC. 9. Accreditation. Any member of the IS who meets such 
15 
eligibility, qualification and other necessary requirements as provided for under 
16 
this Act shall be accredited as member of the IS. 
17 
Accreditation for eligibility for any development program shall be 
18 
reviewed, revalidated and reassessed every two (2) years from the date of last 
19 
accreditation by the LGUs where the IS operates. Renewal of eligibility shall 
20 
be based in accordance with the merit and fitness principle. 
21 
SEC. 10. Eligibility for Benefits. The selection and appointment of 
22 
beneficiaries under this Act shall be in accordance with the merit and fitness 
23 
principle: Provided, That the applicant is an accredited member of the IS, as 
24 
prescribed herein. Only accredited member shall be eligible for assistance, 
25 
support and grants under this Act. 
26 
27 
Chapter III 
28 
Special Allocations for Development Initiatives 
29 
SEC. 11. Special Allocations for Development Initiatives. The 
30 
national government shall allocate at least ten (10%) percent of its annual 
31 
national budget to be appropriated proportionately in accordance with the 
32 
corresponding internal revenue allocation (IRA) of respective LGUs. 
Such 
33 
allocation shall be annually added to the current IRA of LGUs. 
5 


1 
The said allocation shall be utilized by LGUs for the implementation of 
2 
livelihood programs pursuant to the provisions of this Act. Priority shall be 
3 
given to income generating programs for the poorest-of-the-poor. The 
4 
emphasis of the programs shall be focused on micro-credit programs and 
5 
schemes through the mobilization of the IS with no assets to engage in self-
6 
employment and income generating activities. 
7 
For this purpose of this Chapter, an Informal Sector Development Fund 
8 
shall be established in every city/municipality for the their supervision and 
9 
management subject to accounting and auditing procedures by the 
10 
Commission on Audit (COA). 
11 
SEC. 12. Sourcing and' Adopting Development Initiatives. The 
12 
Small Business Guarantee and Finance Corporation (SBGFC), which is 
13 
created under Republic Act No. 8289, shall assist in the sourcing and adopting 
14 
of development initiatives for competitive enterprises in terms of finance, 
15 
technology, production, management and business linkages, and provide and 
16 
promote, develop and widen in both scope and service reach various 
17 
alternative modes of financing for IS business activities or enterprises, 
18 
including but not limited to, direct and indirect project lending, venture capital, 
19 
financial leasing, secondary mortgage and/or rediscounting of loan papers to 
20 
IS business activities or enterprises, and crop'production financing. 
21 
The Corporation shall guarantee loans obtained by qualified IS worker 
22 
or business activity or enterprise, whether single proprietorship or a 
23 
partnership venture, under such terms and conditions adopted by its Board. It 
24 
shall become liable under its guarantees upon proof that the loan has become 
25 
past due under such terms and guidelines adopted by its Board and printed on 
26 
the contract of guarantee. 
27 
All provisions stipulated under RA No. 8289 in connection with the 
28 
SBGFC shall continue to effect except those which are deliberately changed 
29 
or amended hereof. 
30 
SEC. 13. Eligibility for Government Assistance. To qualify for 
31 
assistance, incentives and grants, a worker or business activity or enterprise 
32 
shall be: 
33 
(a) duly registered and accredited with the appropriate agency in the 
34 
LGU where they are actively operating and paid the necessary fees for 
35 
registration and accreditation from the office of the municipal or city treasurer-
36 
concerned; 
6 


.' 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
(b) one hundred percent (100%) owned and capitalized by Filipino 
citizens, be it single proprietorship or a partnership venture; and 
(c) fall under the above-mentioned sub-categories of IS; 
SEC. 14. Exclusivity of Government Programs. The government 
shall ensure that programs of financing, grants and other similar incentives 
shall be exclusively extended to an accredited IS worker and business activity 
or enterprise. 
SEC. 
15. 
Entitlement of Government Procurements. The 
government shall work for a mechanism to ensure that duly accredited IS 
worker or business activity or enterprise for an entitlement of a share of at 
least ten percent (10%) of total procurement value of goods and services 
supplied to the government, its bureaus, offices and agencies annually: 
Provided, That prices and quality of goods offered by the above-mentioned 
accredited IS worker or business activity or enterprise are competitive. 
SEC. 16. Coordination with LGUs. Pursuant to the provisions of 
Republic Act No. 7160, the local chief executives in coordination with IS 
representatives and appropriate agencies shall formulate specific plans that 
will address the socia-economic needs of the IS and incorporate them in their 
respective provincial, city and municipal development plans. 
SEC. 17. Tax Exemption. A duly accredited IS worker or business 
activity or enterprise shall be exempted from all taxes, national or local, license 
and building permit fees and other business taxes, except real property and 
capital gains taxes, import duties and other taxes on imported articles. 
In 
addition, any and all income, receipts and proceeds derived from their 
business operations shall be excluded for the computation of gross income for 
purposes of computing the individual income tax of the members thereof. 
It shall be exempted from any and all government rules and regulations 
in respect of assets, income, and other activities indispensably and directly 
utilized in, proceeding from or connected with the IS business or the 
enterprise. 
SEC. 18. Forfeiture of Benefits. All the exemptions and other benefits 
herein provided shall, after due notice and hearing, be forfeited in case of any 
violation of the provisions of this Act by any IS member or partnership venture. 
SEC. 19. Inclusivity of Benefits. The exemptions and other benefits 
provided in this Act shall apply for a period not exceeding five (5) years from 
the date of the registration, provided such IS worker or business activity or 
7 


1 
enterprise is registered and accredited within five (5) years from the effectivity 
2 
of th is Act. 
3 
Chapter IV 
4 
Informal Sector Development Council 
5 
SEC. 20. Creation of an Informal Sector Development Council; 
6 
Mandate. There is hereby created an Informal Sector Development Council, 
7 
herein otherwise referred to as the Council, which shall be attached to the DTI 
8 
and shall be constituted within sixty (60) days after the approval of this Act. 
9 
The Council shall be the primary agency responsible for the promotion, 
10 
growth and development of the IS in the country by way of facilitating and 
11 
closely coordinating national efforts to promote the sector's viability and 
12 
growth, including the provision of an integrated program for skills 
13 
enhancement, literacy and education, health services, social welfare and 
14 
services, assistance in the tapping of local as well as foreign funds, and other 
15 
functions relative to the attainment of the objectives and policy of this Act. 
16 
SEC. 21. Composition. The Council shall be headed by the Secretary 
17 
of the DTI as Chairman, and may elect from among themselves a Vice-
18 
Chairman to preside over the Council meetings in the absence of the 
19 
Chairman. The members shall be the following: 
20 
(a) Director General of the NEDA; 
21 
(b) Secretary of DA; 
22 
(c) Secretary of DOLE; 
23 
(d) Secretary of DSWD; 
24 
(e) Secretary of the DOH 
25 
(f) Secretary of DOT; 
26 
(g) Administrator of the NHA; 
27 
(h) Administrator of the CDA; 
28 
(i) Chairman of Small Business Guarantee and Finance Corporation; 
29 
U) Three (3) representatives from the private sector at large, all Filipino 
30 
citizens, to represent Luzon, Visayas and Mindanao; and 
31 
(k) One (1) representative from the informal sector to be appointed by 
32 
the President. 
33 
8 


1 
An ex officio member of the Council who possesses a cabinet-rank 
2 
shall designate an undersecretary or assistant secretary as his/her permanent 
3 
alternate representative in case he/she fails to attend meetings in the exigency 
4 
of his/her official function in the department. 
5 
The private sector members of the Council shall be entitled to receive 
6 
per diem of Two Thousand Pesos (P2,OOO.OO) per meeting. The Council shall 
7 
meet once every two months or it may call for special meetings as the need 
8 
may arise: Provided, That the frequency of such special meetings shall not 
9 
exceed four (4) times annually. 
10 
The DTI shall allocate Ten million pesos (P10,000,000.00) out of its 
11 
savings for the initial operating expenses of the Council, after which the 
12 
Council's budget shall be included in the department's annual appropriation. 
13 
SEC. 22. Mandate of the Council. The Council shall have the following 
14 
mandate: 
15 
(a) Prepare and establish a System of Accreditation for the IS in 
16 
accordance with the standards and provisions of this Act; 
17 
(b) Provide guidelines for the implementation by the LGUs of a fair and 
18 
credible system of evaluation, accreditation, review and assessment, merit 
19 
promotion, rendering of grants and incentive awards and other policies relative 
20 
to the effective implementation of this Act; 
21 
(c) Prepare a program of training for human resource development, 
22 
including the specific areas of entrepreneurship and business management; 
23 
(d) Coordinate with LGUs for the development and implementation of 
24 
periodic evaluation of all accredited IS members -- taking into account their 
25 
accomplishments, capabilities and potentials -
which results of shall be used 
26 
as bases for evaluation, accreditation, the grant of awards and incentives, 
27 
training and retraining; 
28 
(e) Establish a performance appraisal system for all accredited IS 
29 
members which shall be the basis for incentives, rewards and recognition, 
30 
training and development, including adequate mechanisms that shall ensure 
31 
their active participation and involvement; and 
32 
(f) Establish the criteria and process for the accreditation and renewal 
33 
of such eligibility for development assistance, support and grants. 
34 
SEC. 23. Authority of the Council to Solicit Assistance from 
35 
Various Agencies. The Council may, from time to time, call upon the 
9 


1 
participation of any government agency or bureaucracy in its deliberations 
2 
especially when such agency is directly or indirectly concerned with and/or 
3 
affecting the growth and development of the IS in any particular area or 
4 
manner. 
5 
The Council, further, may create an Executive Committee of five (5) 
6 
members elected by the Council from among themselves or their duly 
7 
designated alternate representatives, with at least two (2) members 
8 
representing the private sector, and with authority to act for and on behalf of 
9 
the Council during intervals of meetings, and within the specific authority 
10 
granted by the Council. 
11 
SEC. 24. Council Secretariat. The Council, through the Chainman, 
12 
shall designate, in his capacity as secretary of the DTI, any division or bureau 
13 
within the DTI to act as the Council Secretariat and shall have the following 
14 
duties and functions: 
15 
(a) To prepare, in coordination with LGUs and other local government 
16 
agencies, and recommend annual as well as medium-term IS 
17 
Enterprise Development Plans for the approval of Council; 
18 
(b) To coordinate the preparation of position papers and background 
19 
materials for discussion or approval during Council meetings; 
20 
(c) To assist the Council in coordinating and monitoring the policies, 
21 
programs and activities of all government agencies with respect to 
22 
the implementation of this Act; 
23 
(d) To prepare, collate, integrate all inputs to the Council's yearly report 
24 
on the status of the IS business activities or enterprises in the 
25 
country; 
26 
(e) To submit periodic reports to the Council on the progress and 
27 
accomplishment of its work programs; and 
28 
(f) To perform ad hoc functions as authorized by the Council. 
29 
SEC. 25. Rationalization of Programs. The Council shall conduct 
30 
continuing review of government programs for the poorest-of-the-poor and the 
31 
IS and submit to Congress and the President a report thereon together with its 
32 
policy recommendations. 
33 
The President is hereby empowered to establish, within ninety (90) 
34 
days upon the effectivity of this Act, an informal sector enterprise promotion 
35 
body which shall be the principal government agency that will formulate, 
10 


1 
implement, coordinate and monitor all non-financing government programs, 
2 
including fee-based services, to support and promote entrepreneurial spirit 
3 
among the poorest-of-the-poor. 
The informal sector enterprise promotion 
4 
body shall be attached to the DTI and shall be under the policy, program and 
5 
administrative supervision of the Informal Sector Development Council. The 
6 
said 
office 
shall 
be 
allocated 
the 
amount 
of Ten 
million 
pesos 
7 
(P10,000,000.00) for its first year of operation which shall be appropriated 
8 
from the special fund of the Office of the President, and thereafter its annual 
9 
appropriation shall be included in the General Appropriations Act. 
10 
Heads of LGUs in the provincial, city and municipal levels are further 
11 
empowered to establish in their respective jurisdiction an Informal Sector 
12 
Division or Bureau, under the office of the Provincial Governor or 
13 
City/Municipal Mayor, whichever is applicable, to implement, coordinate and 
14 
monitor all business activities or enterprises and intervene on IS-related 
15 
problems and concerns under their respective jurisdictions. 
16 
17 
Chapter V 
18 
IS Livelihood Resource Center 
19 
SEC. 26. IS Livelihood Resource Center. The IS Livelihood Resource 
20 
Center shall be established in every city/municipality to enhance access of 
21 
assistance and support to disadvantaged members particularly in remote rural 
22 
areas. 
23 
For this purpose, the DTI, Technical Education and Skills Development 
24 
Authority (TESDA) and Technology and Livelihood Resource Center (TLRC) 
25 
shall develop livelihood programs which will harness the skills of the IS 
26 
members. 
27 
The aforesaid agencies shall conduct human resource development 
28 
program and management in the following areas: 
29 
(a) Adequate facilities and resources to render quality social service; 
30 
(b) Opportunities for IS workers to grow and develop their potentials 
31 
and experience a sense of worth and dignity in their work; 
32 
(c) Mechanisms for democratic consultations; 
33 
(d) Upgrading of working conditions; 
11 


1 
(e) Allocation of funds for the participation of IS workers in skills training 
2 
and workshops and other similar activities as part of their continuing 
3 
advancement; and 
4 
SEC. 27. Functions of IS Livelihood Resource Center. The IS 
5 
Livelihood Resource Center shall have the following functions: 
6 
(a) Conduct training program which will provide new ideas to IS players 
7 
and upgrade the technical and entrepreneurial skills of others who are already 
8 
in the field; 
9 
(b) Implement consciousness-raising capability building and leadership 
10 
training; 
11 
(c) Provide technical support and access credit to the informal sector 
12 
engaged in micro-entrepreneurship and cottage industries or other productive 
13 
work; 
14 
(d) Monitor the performance of the IS in the area 
15 
(e) Give advise and recommendations as to the strengthening and 
16 
expansion of the IS activities; and 
17 
(f) Provide services, to include but not limited to counseling, legal 
18 
assistance, credit assistance, and other services necessary for the furtherance 
19 
of this Act. 
20 
The LGUs shall allocate at least P 100,000.00 annually for the 
21 
operation and maintenance of the Center. The local chief executives shall act 
22 
as the primary overseers to the overall operation of the Center. 
23 
24 
Chapter VI 
25 
IS Comprehensive and Integrated Plan 
26 
and Inter-Agency Networking 
27 
SEC. 28. Comprehensive Plan. The NEDA shall be tasked to 
28 
formulate a Ten-Year Comprehensive and Integrated Plan on the impact of 
29 
globalization to the IS. 
It shall determine and recommend the necessary 
30 
safety nets needed by the IS to prepare them for the possible effects of 
31 
globalization. 
32 
SEC. 29. Inter-Agency Networking. The DOLE shall provide for and 
33 
lead the inter-agency networking system among the different departments and 
12 


, 
1 
instrumentalities of government, should the same be required in the continuing 
2 
efforts to protect the interests, rights and privileges of IS workers. 
3 
The Council, in coordination with the DepEd and CHED, shall design a 
4 
comprehensive and integrated program for IS members to give them 
5 
opportunity to pursue free education. 
6 
The cooperatives through the help of the DTI, TESDA and TLRC shall 
7 
inform IS in the rural of opportunities for market and technology access and 
8 
the availability of livelihood training and seminars to respond to IS needs and 
9 
potentials. 
10 
The DSWD shall, within a period of one (1) year from the date of 
11 
effectivity of this Act, institute a program designed specifically to provide 
12 
emergency services specifically to women and the minor-aged IS workers who 
13 
are in need of custody, shelter, healing, or medical, psychological, legal and 
14 
rehabilitative services. 
15 
The DSWD shall, upon the recommendation of the DOLE, effect the 
16 
repatriation of minor-aged IS workers who either voluntarily seek government 
17 
protection against abuse and exploitation or upon report or discovery of the 
18 
same. The cost of such repatriation shall be borne by the DSWD. The DOLE 
19 
shall formulate the rules and regulations governing the emergency repatriation 
20 
of the same. 
21 
For this purpose, a Repatriation Fund is hereby created and established 
22 
under the administration and control of the DSWD in the amount of Five million 
23 
pesos (P5,OOO,OOO.OO) to be taken from the President's Social Fund. 
24 
25 
Chapter VII 
26 
General Rights 
27 
SEC. 30. Basic Rights. Every member of the IS have the right to: 
28 
a) Participate in all spheres of society including the decision-making 
29 
processes to fully realize their role as agents and beneficiaries of people-
30 
centered development; 
31 
b) Be treated equally before the law; 
32 
c) Be provided with safe and healthful conditions in the workplace; 
33 
d) Be given equal access to education, skills training, and economic 
34 
resources to develop their self-reliance; 
13 


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e) Be properly informed of the issues and concerns affecting the 
2 
welfare and interests of their sector; 
3 
f) 8e protected from any form of discrimination, violence, sexual 
4 
exploitation and abuse. 
5 
SEC. 31. Right to Medical Care and Humane Treatment. Every 
6 
worker has a right to good quality health care, without any discrimination and 
7 
within the limits of the resources available for health and medical care. In the 
8 
course of such care, his human dignity, culture, convictions and integrity shall 
9 
be respected. 
10 
The employer or any member of the household or institution shall, at all 
11 
times, treat his/her worker in a just and humane manner. In no instance shall 
12 
abusive language, physical violence or any act which debases, degrades or 
13 
demeans the intrinsic worth and dignity of the worker as a human being be 
14 
used upon the latter. 
15 
SEC. 32. Right to Organize. The State recognizes the right of IS 
16 
workers to organize themselves to promote their welfare and advance or 
17 
safeguard their interests. Towards this end, the government shall assist IS 
18 
especially in the rural areas in establishing self-help organizations. 
19 
IS engaged in agricultural, manufacturing and service sector are 
20 
encouraged to form women's cooperatives in every city/municipality to enable 
21 
members to avail of credit assistance and skills training which will help 
22 
improve their quality of life. 
23 
24 
Chapter VIII 
25 
Benefits and Incentives 
26 
SEC. 33. Medical/Health Insurance. A worker, regardless of age and 
27 
compensation levels, shall be covered by a free medical/health insurance 
28 
under the Philippine Health Insurance Corporation (PHILHEAL TH), and be 
29 
entitled to all the benefits provided for under the law: Provided, however, That 
30 
the worker has rendered at least one (1) year of continuous service in the 
31 
employment he/she is currently in: Provided, further, That if the worker intends 
32 
to have a medical/health insurance during his/her the initial months of his/her 
33 
employment, he/she shall shoulder all the necessary premiums due him/her 
34 
until the seventh (7th) month when the employer shares fifty (50%) percent of 
35 
the monthly required premiums. 
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For purposes of this Section, The PHILHEAL TH shall, within ninety (90) 
2 
days from the effectivity of this Act, promulgate guidelines for the mechanism 
3 
of collecting the aforesaid contributions especially for those contracted 
4 
workers who are employed on daily, monthly or pacquiao basis. 
The 
5 
PHILHEAL TH is hereby mandated to implement an outreach program that will 
6 
facilitate the remittance of premiums by either the employer or the worker by 
7 
whatever means deemed feasible. 
8 
Pending the promulgation of pertinent implementing rules and 
9 
regulations to this effect, the employee shall receive the employers' share or 
10 
counterpart contribution and may remit said amount together with his/her own 
11 
share to the SSS. 
12 
SEC. 34. Social Security Coverage. A worker, regardless of age and 
13 
compensation levels, shall be covered by social security and be entitled to all 
14 
the benefits provided under Republic Act No. 8282: Provided, however, That 
15 
the worker has rendered at least one (1) year of continuous service in the 
16 
employment he/she is currently in: Provided, further, That if the worker intends 
17 
to become a member of the SSS or intends to continue his/her social security 
18 
contribution during his/her the initial months of his/her employment, he/she 
19 
shall shoulder all the necessary premiums due him/her until the seventh (7th) 
20 
month when the employer shares fifty (50%) percent of the monthly required 
21 
contribution. 
22 
For purposes of this Section, The SSS shall, within ninety (90) days 
23 
from the effectivity of this Act, promulgate guidelines for the mechanism of 
24 
collecting the aforesaid premiums especially for those contracted workers who 
25 
are employed on daily, monthly or pacquiao basis. 
The SSS is hereby 
26 
mandated to implement an outreach program that will facilitate the remittance 
27 
of premiums by either the employer or the worker by whatever means deemed 
28 
feasible. 
29 
Pending the promulgation of pertinent implementing rules and 
30 
regulations to this effect, the employee shall receive the employers' share or 
31 
counterpart contribution and may remit said amount together with his/her own 
32 
share to the SSS. 
15 


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2 
Chapter IX 
3 
Institutional Mechanisms 
4 
SEC. 35. Consultations with IS Organizations. The Informal Sector 
5 
Development (ISO) Council, in coordination with other concerned agencies 
6 
and LGUs, shall conduct annual national, regional and provincial conSUltations 
7 
among the IS organizations to determine the specific issues and problems 
8 
affecting the their sector. 
The Council shall channel IS concerns to the 
9 
appropriate agencies and provide the necessary recommendations .to the 
10 
executive and legislative departments. 
11 
SEC. 36. Establishment of IS Database. The Council shall establish 
12 
and develop a centralized database system to effectively work policy 
13 
formulation and policy concerns relative to the IS. The databank shall include 
14 
but not limited to the following: 
15 
a) List of government and non-governmental organizations which 
16 
provide educational, socio-economic and legal services to the IS; 
17 
b) Inventory of upheld and pending cases involving the IS activities; 
18 
c) Statistical profile of the various IS classified according to activities, 
19 
involvement and other statistical information; 
20 
d) Database of the needs and problems of women and children in the 
21 
IS nationwide; and 
22 
e) Compilation of existing laws and programs affecting the interest and 
23 
welfare of the IS. 
24 
. The public shall be allowed to have access to the said data provided 
25 
that they shall abide with the regulations that will be set by the inter-agency 
26 
committee. 
27 
28 
Chapter X 
29 
Benefits to Participating Private Sector 
30 
SEC. 37. Incentives to Private Sector. The national government shall 
31 
implement a mechanism which shall give incentives and benefits to private 
32 
sector organizations participating in a national effort to advance the interest 
33 
and welfare of the IS. 
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The Department of Finance in coordination with the Bureau of Internal 
Revenue shall promulgate guidelines for the effective implementation of this 
Section. 
TITLE II 
INFORMAL SECTOR WORKERS 
ENTERING INTO CONTRACTED EMPLOYMENT 
Chapter I 
Requisites for Contracting Employment 
SEC. 38. Employment Contract. All working arrangements entered 
into by IS workers shall be covered by a written employment contract, in a 
language or dialect understood by both employer and worker, duly signed by 
both the employer and the worker. 
Under this Act, the employer and the 
worker may enter into either one of the following three (3) working 
arrangements: Daily Basis, Monthly Basis, or Pakyawan Basis. 
In every contract entered into each contracting party shall be provided 
with a full set of the duly signed employment contract, the basic provisions of 
which shall include the following: 
(a) working arrangement/mode; 
(b) period/duration of employment; 
(c) compensation and mode of payment; 
(d) computation of contributions for social security and medical 
insurance; 
(e) computation of leave deductions; 
(f) duties and responsibilities; 
(g) working hours and day-off schedule; 
(h) living quarters or sleeping arrangements (for live-in workers) 
In cases wherein employment of a worker of minor age are allowed, the 
said employment contract shall be signed on his/her behalf by either parent or 
legal guardian, with the expressed written consent of said minor. 
In cases wherein employment of illiterate worker are allowed, the said 
employment contract shall be explained to the worker concerned and attested 
to by a representative from the LGU or an elected Barangay official in the city 
or municipality where the worker is designated to work. 
17 


1 
SEC. 39. Medical Certificate as Pre-requisite for Employment. A 
2 
medical certificate attesting to the physical and mental fitness of an applicant 
3 
for work must be secured from a licensed physician as a pre-requisite for 
4 
employment, the cost of which shall be for the account of the employer. 
5 
6 
Chapter II 
7 
IS Workers of Minor Age 
8 
SEC. 40. Allowable Employment of Worker of Minor Age. Children 
9 
below sixteen (16) years of age may be employed: Provided, That a parental 
10 
consent be presented and attested by any representative from the LGU or duly 
11 
elected barangay official where the productive employment is to be done: 
12 
Provided, further, That the provisions of the UN Convention on the Worst 
13 
Forms of Child Labor be taken into consideration in the course of employing 
14 
such children. 
15 
In no instance, however, shall children below fifteen (15) years of age 
16 
be engaged in whatever form of productive service. 
17 
Unless expressly employed as kasambahay with duly executed contract 
18 
of employment, children who live with their parents at the employer's 
19 
residence or those whose sustenance or education is being provided for by 
20 
the homeowner, shall not be considered as kasambahay. 
~ 
21 
Workers of minor age shall not be allowed to render work for more than 
22 
ten (10) hours a day, five (5) days per week, exclusive of one (1) hour breaks 
23 
each for breakfast, lunch and dinner. 
24 
SEC. 41. Custody over Minor-aged individual. Should a minor-aged 
25 
worker refuse to be repatriated against the recommendation of the DSWD, 
26 
said individual may be placed under the custody and care of the DSWD or that 
27 
of a duly recognized and accredited non-government organization, or placed in 
28 
a suitable employment. 
29 
Chapter III 
30 
Standardized Wage Rate 
31 
SEC. 42. Standardized Wage Rate. Pursuant to the provisions of this 
32 
Act, a standardized wage rate is hereby set forth: 
33 
For Kasambahay 
34 
(a) 4th _ 6th class municipalities 
Below Pi ,000.00 
18 


1 
2 
3 
(b) 1st - 3rd class municipalities & _ 
Chartered & Component Cities 
(c) National Capital Region 
P 1,001.00 - P 1,800.00 
Pi, 801.00 - P 2,500.00 
4 
For Emp/oyed Worker 
5 
(a) 4th - 6th class municipalities 
6 
Skilled: 
P 90.00 - P 120.00 
7 
Unskilled: 
P 60.00 - P 80.00 
8 
(b) 1st - 3rd class municipalities & Chartered & Component Cities 
9 
10 
Skilled: 
P 130.00 - P 180.00 
Unskilled: 
P 90.00 - P 120.00 
11 
(c) National Capital Region 
12 
Skilled: 
P 230.00 - P 260.00 
13 
Unskilled: 
P 190.00 - P 220.00 
14 
Provided, That a worker who has been contracted work in other 
15 
city/municipality other than the place of residency shall be entitled for the daily 
16 
wage rate of the city/municipality where he/she actually works: Provided, 
17 
further, That a worker who has contracted employment outside the 
18 
city/municipality of residency shall be afforded free assistance and support in 
19 
the form of housing and food by the contractor/employer. 
20 
In the case of a worker who works on monthly or pakyaw basis, the 
21 
wage rate to be applied shall be based in the wage rate of the city/municipality 
22 
where he/she actually works. He/she shall also be afforded free housing and 
23 
support during the tenure of the contract. 
24 
In no instance, however, shall workers of minor age be deprived of the 
25 
above standardized wage rate system set forth in this Act. 
26 
SEC. 43. Payment of Wages. Payment of wages shall be made 
27 
directly to the worker, at least once every two (2) weeks or twice a month. No 
28 
deductions from said wages shall be made by the employer except those 
29 
provided by law. The expressed written consent of the worker shall first be 
30 
secured before any deduction is made. 
19 


1 
Chapter IV 
2 
Prohibited Acts 
3 
SEC. 44. Prohibition Against Night Work. Worker of minor age shall 
4 
not be allowed to render work between ten o'clock in the evening and six 
5 
o'clock in the morning of the following day. 
6 
SEC. 45. Prohibition Against Work to be Undertaken. Worker of 
7 
minor age shall not be allowed to render work beyond their mental and 
8 
physical capabilities. 
9 
SEC. 46. Prohibition Against Bonded Labor. A worker shall not be 
10 
allowed to use his/her future services as collateral for any loan or advances 
11 
made or to be made by said worker with the employer. Likewise, no employer 
12 
shall be allowed to bind the worker to his/her continued employ as a form of 
13 
payment for any loan or advances which he/she may have made with the 
14 
employer. Should there be an outstanding loan incur and he/she decides to 
15 
unilaterally terminate the contract of employment, said loan or advance shall 
16 
be paid by him/her to the employer under terms and conditions specified in a 
17 
duly executed promissory note between parties. 
18 
SEC. 47. Prohibition Against Labor Sub-Contracting. In no instance 
19 
shall the employer sub-contract the services of a worker to any third party, 
20 
unless such activity falls within the purview of an employment arrangement for 
21 
which the necessary permits and licenses had been priorly secured. 
22 
SEC. 48. Prohibition Against Recruitment and Finders Fees. 
23 
Regardless of whether the worker was sourced either through an employment 
24 
agency or a third party, said worker shall neither be charged nor levied a share 
25 
in the recruitment fees or finder's fees by the aforementioned employment 
26 
agency or third party. 
27 
SEC. 49. Prohibition Against Hazardous Work and Conditions. 
28 
Worker of minor age shall not be employed in any hazardous work, activity or 
29 
undertaking, and neither shall he/she be exposed to hazardous working 
30 
conditions. 
31 
For purposes of this Section, hazardous work. or conditions shall 
32 
include, but not limited to the following: 
33 
(a) any work, employment or activity which exposes the worker to 
34 
physical, emotional or sexual abuse; 
20 


1 
(b) any work which involves manual handling or transport of heavy 
2 
loads; 
3 
(c) any work in an unhealthy environment which exposes household 
4 
helpers to hazardous substances, agents or processes, or to temperatures, 
5 
noise levels, or vibrations damaging to their health; 
6 
(d) any work which requires the household helper to render services for 
7 
long periods of time or during late nights; 
8 
(e) any or all forms of slavery or practices similar to slavery, such as the 
9 
sale and trafficking of household helpers, forced or compulsory labor, debt 
10 
bondage and serfdom; 
11 
(f) any use, procuring or offering of the household helper for prostitution 
12 
or pornography; 
13 
(g) any use, procuring or offering of the household helper for the 
14 
commission of any offense or crime, particularly for the production and 
15 
trafficking of narcotic drugs and substances as defined in the Dangerous 
16 
Drugs Act; 
17 
(h) any other type of work or activity which, by its nature or the 
18 
circumstances in which it is carried out, is likely to jeopardize the health, safety 
19 
or morals of the household helper; and 
20 
(i) any other type of work; activity, condition or undertaking that may be 
21 
hereinafter be defined as hazardous by the Department of Labor and 
22 
Employment. 
23 
SEC. 50. Prohibition Against Interference and Coercion. Any person 
24 
is prohibited from committing any of the following acts of interference and 
25 
coercion: 
26 
(a) To prevent a worker from upholding his/her other basic rights; 
27 
(b) To prevent workers from joining or assisting organizations or unions 
28 
for purposes not contrary to law, in order to defend and protect their mutual 
29 
interest and to obtain redress of grievances through peaceful concerted 
30 
efforts; 
31 
(c) To prevent a worker from carrying out his/her duties and functions in 
32 
an organization or union, or to penalize the same for any lawful action 
33 
performed in that capacity; 
21 


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(d) To make calculated harassment and interference with the intention 
of intimidating or preventing the social worker from performing his/her duties 
and functions; 
(e) To make calculated harassment against, or to 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 
(g) To perform acts calculated to diminish the independence and 
freedom of a social worker's union or organization to direct its own affairs. 
Chapter V 
Rights and Benefits of Employed IS Workers 
SEC. 51. Right to Wages Earned. The employer shall pay directly to 
the worker of minor age, any and all wages, remuneration or compensation 
earned by him/her during the period of his/her employment. 
No parent, guardian or relative shall be allowed to borrow against the 
compensation of the his/her relative-worker of minor age without the express 
written consent of the concerned relative-worker. Neither shall the worker of 
minor age be mandated to work in payment of a loan or liability incurred by a 
parent, guardian or relative. 
SEC. 52. Right to Privacy and Confidentiality. The employer shall 
respect the privacy of his/her worker during the course of the latter's rest 
periods. This right to privacy shall extend to any and all forms of personal 
communications, including letters of correspondence issued or received, and 
be allowed communications coursed through the private telephone of the 
employer: Provided, That any additional expense incurred in the course of 
communication shall be borne by the worker and shall be deducted, after the 
employer's due notice to the worker of the amount incurred due to specific 
reason/s, from the receivable wage of the worker. 
The State, further, guarantees the protection of the right of the worker 
to communicate with relatives and other persons and to receive visitors 
subject to reasonable limits prescribed in the employment contract agreed and 
entered into by both the employer and the worker. 
The employer shall allow the worker access to outside communication, 
both though letter or the private telephone of the household, especially in 
22 


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33 
instances of personal or family emergencies: Provided, that costs incurred in 
making the telephone call shall be for the account of the worker. 
SEC. 53. Access to Education and Training. A worker shall not be 
deprived of formal or non-formal education. 
In cases where he/she is 
productively employed, he/she shall be allowed to attend or pursue literacy 
programs during day-off or in any other time with the consent of the employer. 
The Oeped or CHEO, whichever office is applicable, shall extend its 
services of Study-Now, Pay-Later Program to the worker in the informal 
sector. 
The employer may also extend scholarship programs to a worker and 
be reimbursed out of deductions from the worker's monthly compensation 
which shall, at all times, be no greater than fifty (50.0%) percent of the 
worker's monthly compensation. 
The time spent by a worker during the 
conduct of the said education or training, including the time spent going to and 
coming from the training shall be counted as part of the worker's hours of 
work. 
SEC. 54. Access to Lawful Third-Party Mediation. The employer 
shall provide all worker the names, addresses and telephone numbers of the 
designated liaison offices of the following: 
(a) OTI; 
(b) DOLE; 
(c) the Barangay office where he/she is productively working; and, 
(d) duly registered non-government organizations accredited to mediate 
in disputes of their sector. 
The employer shall further guarantee the worker access to all means of 
communication for the purpose of contacting any of the above-enumerated 
institutions. 
SEC. 55. Provision of Basic Necessities. The employer shall provide 
for the basic necessities of a live-in worker which shall include: 
(a) A minimum of three (3) full meals per day; 
(b) Humane, private and safe sleeping quarter; 
(c) Emergency medical support and assistance; 
(d) A safe and non-health hazard workplace; 
23 


1 
In no instance shall the employer be allowed to withdraw or hold in 
2 
abeyance the provision of these basic necessities as punishment or 
3 
disciplinary action to be meted out to the worker. 
4 
SEC. 56. Normal Hours of Work. Cognizant of the peculiarities of the 
5 
relationship between the employer and the IS worker, the normal hours of 
6 
work shall be set at ten (10) hours per day, exclusive of one (1) hour breaks 
7 
each for breakfast, lunch and dinner. The worker shall be allowed at least 
8 
eight (8) hours of continuous rest per day otherwise any work done by him/her 
9 
beyond the normal hours of work per day shall be duly compensated. 
10 
SEC. 57. Regular Working Days. No worker shall render work for 
11 
more than six (6) days per week. While the specific day of the week set aside 
12 
as rest day for the worker may be stipulated in the employment contract, the 
13 
same may be changed for another day of the week upon the mutual 
14 
agreement of the employer and the worker as the exigencies of the work may 
15 
dictate. 
16 
SEC. 58. LongeVity pay. A longeVity pay equivalent to five per centum 
17 
(5%) of his/her latest monthly basic pay shall be paid to a worker for every two 
18 
(2) years of continuous and satisfactory service rendered. 
19 
SEC. 59. Clothing Allowance. A worker shall be entitled to a minimum 
20 
of One Thousand pesos (P1,000.00) clothing allowance annually: Provided, 
21 
That the worker has rendered at least one (1) year of continuously service in 
22 
the employment he/she is currently in. 
23 
SEC. 60. Vacation Leaves. A worker who is employed for one (1) year 
24 
shall be entitled to a fourteen (14) day vacation leave with pay, in addition to 
25 
the one (1) day per week deSignated as the rest day. Said leave may only 
26 
commence at the end of the first year of employment, and shall not cumUlate 
27 
from year to year. 
28 
SEC. 61. Maternity Benefits. A female worker who is employed for 
29 
one (1) year shall be entitled to maternity benefits. 
30 
SEC. 62. 1ih Month Pay. A worker shall be entitled to a 13th month 
31 
pay equivalent to one (1) month's basic salary which shall be paid to the 
32 
worker not later than the 16th of December of every year: Provided, however, 
33 
That the worker has reached the required minimum residency. Otherwise, the 
34 
worker shall be entitled to receive a 13th Month Pay on pro-rated basis. 
35 
SEC. 63. Allowing subcontracting. A worker may enter into 
36 
subcontractual employment or may accept subcontractual jobs from any other 
24 


1 
enterprise or firm joining or may join productive employment through a 
2 
cooperative or consortium: Provided, however, That the enterprise or firm or 
3 
cooperative or consortium shall be mandated to implement the specific 
4 
provisions of this Act in regard to worker's benefits: Provided, further, That 
5 
where a worker subcontracts jobs between and among other worker providing 
6 
for the benefits due him/her shall not be obligated upon the party who 
7 
contracted the job. 
S 
SEC. 64. Pre-Termination of Contract. The employer may, at his/her 
9 
own discretion, terminate the services of the worker: Provided, however, That 
10 
said employer provides the worker with at least fifteen (15) days notice of 
11 
termination and termination pay equivalent to at least one half (1/2) month's 
12 
salary. In lieu of the fifteen (15) day notice of termination, the employer may 
l3 
immediately terminate the services of the worker: Provided, That said 
14 
employer provides the worker termination pay equivalent to one (1) month's 
15 
salary 
16 
The employer may, for valid or just cause of loss of confidence, 
17 
terminate the services of the worker prior to the expiration of the contract 
18 
without indemnifying the latter with termination pay. 
19 
Should the worker decide, on his/her own volition, to unilaterally leave 
20 
the workplace prior to the expiration of the contract period, said worker shall 
21 
forfeit any separation pay that may be due him/her. 
22 
SEC. 65. Extent of Duty. The employer shall not require a worker to 
23 
perform any task or work outside the assigned workplace for the service or 
24 
benefit of another without the latter's consent and payment of just 
25 
compensation. 
26 
SEC. 66. Automatic Salary Increases. The contract of employment 
27 
executed by and between the employer and the worker shall provide for an 
28 
annual salary increase, the amount of which shall be determined by mutual 
29 
agreement of the parties. 
30 
SEC. 67. Deployment Expenses. Deployment expenses of a worker, 
31 
including transportation and agency fees, shall be shouldered by the 
32 
employer. 
33 
25 


1 
TITLE III 
2 
FINAL PROVISIONS 
3 
SEC. 68. Penal Provision. Any person who shall willfully 
4 
interfere with, restrain or coerce a social worker in the exercise of his/her 
5 
rights or shall in any manner commit any act in violation of any of the provision 
6 
of this Act shall, upon conviction, be punished by a fine of not less than Ten 
7 
thousand pesos (P10,OOO.OO) but not more than Twenty thousand pesos 
8 
(P20,OOO.OO) or imprisonment of one (1) year to six (6) years or both fine and 
9 
imprisonment at the discretion of the court. 
10 
If the offender is a public official, the court in addition to the penalties 
11 
provided in the preceding paragraph, may impose the additional penalty of 
12 
disqualification from public office. 
13 
In the case of a private institution/company found to be violating any 
14 
provision of this Act, it shall be subject to a penalty ranging from suspension of 
15 
license to revocation of such, at the discretion of the court. 
16 
SEC. 69. Separability Clause. If any provision of this Act is declared 
17 
unconstitutional or invalid, the provisions not affected shall continue to be in 
18 
full force and effect. 
19 
SEC. 70. Repealing Clause. All laws, decrees, orders, rules and 
20 
regulations or other issuances inconsistent with the provisions of this Act are 
21 
hereby repealed, amended or modified accordingly. 
22 
SEC. 71. Effectivity. This Act shall take effect fifteen (15) days after its 
23 
publication in at least two (2) newspapers of general circulation or the Official 
24 
Gazette, whichever comes first. 
25 
Approved, 
26