Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

768

House BilYNo.

Introduced by Representatives
Juan Edgardo “Sonny” M. Angara, Danilo Ramon “Dan” S, Fernandez,
Lorenzo “Erin” R. Tafiada, UL

EXPLANATORY NOTE

This bill seeks to provide an integrated, holistic, comprehensive, rights-based, gender-
responsive, culturally sensitive, and democratically crafted policy instrument to empower the
poor, marginalized, unprotected and underrepresented workers in informal employment and
bring them into the mainstream of the Philippine economy. It carries a strong bias to prioritize
and empower the poorest of the poor. It is the culmination of persistent advocacy efforts
involving informal workers’ associations, women’s groups, human rights and other civil society
organizations stretching for almost a decade. It may be recalled that the first bill for a Magna
Carta for informal workers was filed in the 12" Congress, followed by similar bills filed by
different proponents in the 13" and 14" Congress. It is hoped that this biil will finally be passed
in the current Congress, since it has undergone a rigorous process of consultations and dialogues
among its major proponents and interested stakeholders closing ranks and seeking common
ground in the interest of the working poor.

The ranks of informal workers have been increasing through the years, with estimates varying
from about half the country’s labor force to as many as 25 million or 77 percent of the country’s
total employed (ECOP, 2008, based on Labor Force Survey and Survey of Philippine Business
and Industry). Most of the working poor are in informal employment, since informality is very
much linked to poverty. The “working poor are those who are working but cannot work their
way out of poverty because of very low earnings and very high risks. In 2007, the International
Labor Organization (ILO) estimated that one out of ten workers in the Philippines lived in
extreme poverty (on less than USS1 a day), and three out of five lived below the poverty line
(then defined as less than USS2 a day). Thus, it is essential to look after the rights and interests
of informal workers, many of whom live in substandard conditions and cannot meet their basic
needs, if poverty in the country is to be effectively addressed, and if the country is to comply
with its commitments to the Millennium Development Goals, specifically the target of achieving
full and productive employment and decent work for all, including women and young people,
under Goal 1 (eliminating extreme poverty and hunger).

Estimates of informal sector contribution to GDP range from 30 percent to as much as 43
percent, figures that are insufficiently recognized but nevertheless cannot be ignored by the
country’s policy makers. The ILO, various UN agencies, the European Union and other
international agencies in fact now use the more encompassing phrase “informal economy” to
refer to the informal sector, in recognition of the fact that what used to be marginalized as the
“informal sector” did not disappear with industrial progress but instead has become a permanent
and ever expanding source of jobs, goods, and services for low-income populations all over the
world. It is connected to the formal sector, and encompasses both traditional forms of work as
well as emerging ones such as “tele-homework” for high-technology industries.


The informal economy includes a wide variety of activities, enterprises and workers under both
self-employment and wage employment, and include, among others, micro-entrepreneurs,
homebased workers, vendors, small transport operators, small and landless farmers, artisanal
fisherfolk, non-corporate construction workers waste pickers and recyclers, petty retailers, barter
traders, small-scale miners and quarry workers, , entertainers, beauticians, laundry persons,
hairdressers, on-call domestic helpers, barangay health workers and other volunteer workers,
barkers, unorganized cargo handlers, etc

Most economically active women are in the informal economy . Women in informal work are
saddled with problems of multiple burden, discrimination, abuse and harassment, etc. because
they are women. These on top of the issues, they face as workers in the informal economy.
Child labor, which is embedded in many forms of informal work not only violates children’s
tights, it robs our children of their childhood.

Most informal workers are not covered by the Labor Code and other legislation that could
protect their rights. They are often subject to exploitation by unscrupulous employers, both
formal and informal, who make them work long hours at very low wages, without benefits, and
under very poor working conditions. They suffer from the usurious rates of money lenders, as
‘well as extortion and harassment from corrupt police authorities. Their work environment is not
subject to regulation and monitoring, making them vulnerable to occupational safety and health
hazards. They have limited access to productive resources, justice, social protection, and
programs preventive of work- related diseases and risks. They are severely under-represented in
policy making bodies relevant to their issues

Thus, it is imperative that a Magna Carta for informal workers recognize, defend, protect,
promote and fulfill their rights through a continuous process of capacity-building and
empowerment. This is in consonance with the Constitutional provisions on social justice and
with the country’s adherence to the Universal Declaration of Human Rights (UDR), the
International Covenant on Economic, Social, and Cultural Rights (IESCR), the UN Convention
on the Elimination of Discrimination Against Women (CEDAW), and various ILO conventions
upholding core labor standards and decent work.

There is also an urgent need to provide informal workers access to social protection and justice,
make them visible in statistics, simplify their accreditation, provide appropriate standards and
regulations in their favor, develop and implement meaningful plans, policies, and programs that
will hamess their full potentials to become effective and productive economic actors. These will
be the mandate of participatory institutional mechanisms at both national and local levels that
will be created by this bill. As the 2002 ILO document on the informal economy emphasizes,
government has the responsibility to bring informal workers into the economic and social
mainstream, reduce their vulnerability and exclusion, ensure that they are covered by the legal
and institutional framework, and support their representational rights through their legitimate,
democratic, accessible, transparent, and accountable membership-based organizations.

Tt is in this rly passage of this measure is earnestly sought.

=<. Ferngtidez

Representative
1" District, Laguna

7?

eee rd 7
Représentative

Lone District, Aurora


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

_ 788

HOUSE BILL No.

Introduced by:
Representatives Juan Edgardo ‘Sonny’ M. Angara, Danilo Ramon ‘Dan’ S. Femandez,
and Rep. Lorenzo ‘Erin’ R. Tanada IIT

AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL EMPLOYMENT,
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR OTHER
PURPOSES

TITLEL
GENERAL PROVISIONS

Chapter I
Framework and Principles

SEC. 1. Short Title. - This Act shall be known as the “Magna Carta of Workers in Informal Employment.”
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State:

(a) To promote the total well-being of all workers in informal employment, provided, that focus will be
on the poorest and most vulnerable of these workers;

(b) To ensure their human dignity, economic advancement and access to justice by providing timely
services, including social, political, economic, and legal;

(©) To recognize, promote, protect and fulfill the right to decent work of every worker in informal
employment, including the rights to: self-organization; just and humane working conditions; access to
social protection; security of workplaces; represent their organizations in a continuing process of
consultation and dialogue towards the provision of a comprehensive package of reforms, interventions,
and services in accordance with their articulated needs and interests;

(d) To recognize the roles, give proper value to the contributions of workers in informal employment,
and make them visible in the national and local statistics;

(e) To develop and enhance their technical, entrepreneurial and other skills and capabilities necessary
towards becoming more productive and self-reliant citizens, thereby ensuring participation in
mainstream economic activities;

() To promote gender equity and equality and protect women workers in informal employment against
gender-based discrimination, exploitation and abuse; advance women’s social, economic, political, and
reproductive rights; and improve their access to social protection and participation in decision-making
bodies and processes;

(g) To protect vulnerable groups in the informal economy such as children, differently-abled persons,


indigenous peoples, and people living with HIV from discrimination, exploitation, abuse and
harassment, as well as from performing work hazardous to their occupational, physical, mental,
emotional, reproductive and spiritual health;

(h) To progressively eliminate child labor through the creation of more quality jobs for adults effective
enforcement of laws against child labor, elimination of gender-based discrimination against girl child
workers, improved access to universal education and social protection, and elimination of cultural
factors that directly or indirectly tolerate,even accept child labor;

(® to develop the local economy through maximization of the potential and contribution of informal
economy business activities and enterprises;

j) to encourage and support workers in informal employment to form self-help groups, mutual benefit
associations, unions, cooperatives, and other forms of self-organization for their mutual aid, benefit,
protection and for other legitimate purposes; and

k) to include the concems of workers in informal employment in the policies, plans, programs, projects
and activities of relevant national government agencies, government financial institutions, and local
government units.

SEC. 3. Framework and Principles ~ Article II, Section. 9 of the Philippine Constitution declares that “The
State shall promote a just and dynamic social order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.” Towards this end, the
government shall pursue a comprehensive, rights-based, participatory, gender-responsive, and culturally
sensitive framework for workers in informal employment including but not limited to:

(a) Policies and programs that will bring marginalized workers and economic units into the economic
and social mainstream, thereby reducing their vulnerability and exclusion;

(b) Structural reforms in all relevant levels of government by creating committees, special offices for
development and protection of workers in informal employment and supporting their representational
rights through their legitimate organizations;

(©) Accessible and affordable social protection, including labor market interventions, social insurance
coverage, basic health care, occupational safety and health, reproductive health services, social welfare
programs and safety nets; .

(@) Policies, programs and interventions that will ensure security of workplaces of informal workers
towards a work environment that protects their rights and enables them to become more productive.

(e) Minimum and simplified regulations to encourage the development of ingenuity and entrepreneurial
spirit among workers in informal employment;

() Mechanisms for the growth and expansion of the various business activities or enterprises in the
informal economy preferably with the cooperation and support of the private sector;

(g) Organization, establishment, strengthening and expansion of the various business activities or
enterprises in the informal economy at the barangay level, preferably to be unified under
municipality-, provincial-, regional- and national- level federations/associations;

(h) Applicable labor standards;

(i Recourse mechanisms to address violations of informal workers’ rights;

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

(k) Mechanisms that promote responsibility on the part of the workers in informal employment to
comply with their obligations, provided that the State shall put in place responsive, transparent and


accountable mechanisms and systems that ensure recognition, protection, promotion and realization of
their rights.

SEC. 4. Definition of Terms. — As used in this Act, the following terms shall mean:
(a) Informal Economy — Based on the Intemational Labor Conference (ILC) 2002a, this refers to “all

economic activities by workers and economic units that are — in law or in practice — not covered or
insufficiently covered by formal arrangements”.

The Informal Economy includes a wide variety of activities, enterprises and workers. Self-
employment consists of employers of informal enterprises who hire other workers and own-account
workers. Wage-employment includes informal employees of both formal and informal firms,
subcontracted workers, wage workers for households (domestic workers), and wage workers with no
fixed employer (casual day workers). The working conditions, opportunities and risks faced by these
different categories of informal workers are very diverse.

Informal workers often experience poor working conditions such as long working hours, high level

of health hazards or lack of social security usually accompanied with poor earnings, low
productivity, and lack of legal protection. To a large extent, women and disadvantaged groups such
as youth, persons living with HIV, persons with disabilities, indigenous people and migrant workers
are overrepresented in the informal economy.

(b) Informal Sector, as defined by NSCB Resolution No. 15, series of 2002, refers to units engaged in
the production of goods and services with the primary objective of generating employment and
incomes to the persons concerned. It consists of households unincorporated enterprises that are
market and non-market producers of goods as well as market producers of services.

These enterprises are operated by own-account workers, which may employ unpaid family workers
as well as occasional, seasonally hired workers.

‘These enterprises may also be owned and operated by employers which may employ less than ten
(10) employees on a continuous basis.

(c) Workers in Informal Employment - include but are not limited to the following:
c.1, small farmers owning land not more than three (3) hectares;
¢.2. rural and agricultural workers who are tenants or sharecroppers, laborers;

c.3. small fisherfolk/operators owning boats of three (3) gross tons or less and other fishing
equipment;

4, fisherfolk who are without fishing equipment and market their catch directly;
c.5. home-based workers who are independent producers of goods or services;

©.6. industrial homeworkers — workers involved in a system of production under which work for
an employer or contractor is carried out by a homeworker at his/her home and where materials
may or may not be furnished by the employer or contractor;

©.7. self-employed who are engaged by other enterprises through subcontracting arrangements;

¢.8. vendors, whether with stalls or without permanent workplace including street hawkers or
those plying their goods and trades in the streets and those engaged in sari-sari stores with
operating capitalization of not more than one million pesos (P1,000,000.00) excluding land and
building;

¢.9. drivers of modes of transportation on land and sea whether motorized or not, including two
(2) wheels such as calesa, three (3) wheels such as pedicabs, tricycles, four (4) wheels such as
Jeepneys and buses, and boats one (1) ton and below; ‘barkers’, fare collectors, dispatchers and


other workers who share income with self-employed or unincorporated operators;

€.10. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation whose
capitalization is not more than one million pesos (P1,000,000.00) excluding land and building;

c.l1. domestic workers which refer to persons who provide service to households such as maids,
cooks, family drivers, gardeners and baby sitters on a live-out basis and “on-call” arrangement
only;

c.12. non-corporate construction workers;

c.13. small scale miners doing their own product processing; including those involved in small
scale mining and quarrying with capitalization of below one million pesos (P1,000,000.00);

c.14, workers of Barangay Micro Business Enterprises (BMBEs);
c.15. non-corporate cargo handlers and allied workers;

.16, waste pickers and recyclers;

c.17. workers engaged in producing seasonal products;

c.18, own account workers including but not limited to those engaged in the maintenance and
repair of equipment and appliances, clothing and footwear, as well as. those providing services
such as beauticians, barbers, masseuses;

.19, “on-call” workers in the entertainment, movie, and media such as bit players, stuntmen and
women, crew, make-up artists, etc.;

¢.20. volunteer workers in government and non-government entities who only receive
allowances or honoraria, including but not limited to: barangay health workers (BHW), barangay
tanod, barangay nutrition scholars (BNS), barangay daycare workers, and volunteers in non-
government or people’s organizations;

¢.21. unpaid family members, or workers receiving allowances and seasonally hired workers
who are engaged in micro-enterprises or assist unincorporated household enterprises; and

©.22, other similar economic activities that are not illegal, criminal or life threatening in nature.

(d) Worker is a general term referring to either or both the self-employed or paid employee covered
under the provisions of this Act.

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

(®) Worker of Minor Age refers to children fifteen (15) to seventeen (17) years of age who are
engaged in productive employment under a valid contract of employment.

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

(h) Security in the Workplace refers to the right of every worker to an enabling environment that

guarantees and protects the spaces for informal workers to undertake their work, including the right to

feel safe in one’s own work space, legal security of tenure and freedom from discrimination, risk,

danger, doubt, anxiety, or fear of being removed, evicted or prevented to work. Towards this end, the

State shall take measures that will ensure legal security of tenure of workplaces, taking into account

ua incioding the physical environment, services, processes and systems that will be involved to enable
1e worl

(® Hazardous Work Condition refers to any activity or circumstance where a worker is exposed to


any risk which constitutes imminent danger to his/her health and safety.

() Working Hours refers to the period of time within which a worker is required to be on call to
perform any and all tasks that may be designated, regardless of whether there are actual tasks being
undertaken.

(&) Daily Basis refers to the per day mode of paying a worker as bilaterally agreed upon by the
employer and worker,

() Monthly Basis refers to the per month mode of paying a worker as bilaterally agreed upon by the
employer and worker.

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

(n) Social Protection refers to policies, programs, and all other interventions from public, private and
voluntary organizations and informal networks, to support communities, households and individuals,
both women and men, in their efforts to: reduce poverty; prevent, manage and overcome risks and
vulnerabilities throughout their life cycle; and realize their rights as citizens participating fully and
equally in all decision making affecting or may affect their access to and control over resources
necessary to maintain and sustain a decent and secure life.

These interventions shall: promote and sustain livelihood and employment; protect against hazards and
sudden loss of income; and include, among others, labor market interventions, social insurance, basic
health care, social welfare and safety nets.

(0) Community Contracting refers to the process of concluding an agreement between a community
and a contracting authority, whereby the community (or a section of the community) is responsible for
the implementation of the work and therefore functions as contractor.

Chapter II
Coverage, Qualifications, and Accreditation

SEC. 5. Coverage. This shall include individual workers in the informal economy (IE), as defined in Section 4
of this Act, IE businesses and enterprises, and organizations of workers in informal employment.

SEC. 6. Accreditation. There shall be a simple and standard system of accreditation in accordance with the
framework and principles of this Act. A one time accreditation fee of not more than Fifty pesos (P50.00) per
individual worker and not less than One Hundred pesos (P100.00) per IE business activity, enterprise, or
organizations shall be paid to the municipality or city where they intend to operate.

Any IE worker meeting the necessary accreditation requirements provided for in this Act shall be listed in the
centralized database system, and shalll be issued an identity card signifying eligibility to avail of development
programs for workers in informal employment, provided, that the poorest and the most vulnerable shall be
given priority.

Any IE business activity or enterprise, or organization of workers in informal employment, if qualified under
this Act, shall be issued a certificate of accreditation, which shall be released within thirty six (36) hours upon
submission of complete requirements and payment of accreditation fees.

The concerned LGU shalll review, revalidate and reassess such accreditation every two (2) years from the date
of last accreditation. Renewal of eligibility shall be in accordance with the merit and fitness principle, and with
the condition that no child labor shall be used and no activities harmful to the environment shall be
implemented.

A comprehensive database of accredited IE business activities and enterprises shall be developed and
maintained. Such database shall take into account the different sub-classifications in terms of geography,
premises, gender, ethnicity, vulnerability, occupation, nature of employment, and roles and functions. The
database shall also indicate informal businesses which may be categorized as livelihood enterprises and those


entrepreneurial or growth oriented informal businesses.

The aforesaid comprehensive database shall form part of the bases of the assessment and monitoring of the
growth of the informal economy.

SEC. 7. Annual Dues. — IE workers, business activities or enterprises, and organizations shall pay annual
dues which shall accrue to the municipality or city where they are accredited and shall be exclusively used for
IE development programs approved by the municipal or city council as recommended by the Workers in
Informal Employment Local Development Office (WIELDO) referred to in Chapter VII of this Act. Such dues,
which shall cover the cost of the issuance of licenses to operate, shall be paid to the municipal or city treasurer
in the area where they are accredited, starting on their second year of operations, based on the following
schedule:

(a) Those with assets amounting to not more Two Thousand Pesos
(P2,000.00) — One Hundred Pesos (P100.00)

(b) Those with assets of more than Two Thousand Pesos (P2,000.00) up
to Five Thousand Pesos (P5,000.00) - Two Hundred Pesos (P200.00)

(c) Those with assets of more than Five Thousand Pesos (P5,000.00) up
to Fifty Thousand Pesos (P50,000.00) — Three Hundred Pesos (P300.00)
(d) Those with assets of more than Fifty Thousand Pesos (P50,000.00)
up to One Hundred Fifty Thousand Pesos (P150,000.00) ~ Five Hundred Pesos ( P500.00)

(©) ‘Those with assets of more than One Hundred Fifty Thousand Pesos
(P150,000.00) up to Three Hundred Thousand Pesos (P300,000.00) — Six Hundred Pesos (P600.00)

(®)_ Those with assets of more than Three Hundred Thousand Pesos
(P300,000.00) up to Five Hundred Thousand Pesos (P500,000.00) — Seven Hundred Pesos (P700.00)

(i) Those with assets of more than Five Hundred Thousand Pesos
(P500,000.00) up to One Million Pesos (P1,000,000.00) — One Thousand Pesos (P1,000.00)

Chapter Ii
Basic Rights

SEC. 8. Workers in informal employment have the same basic rights accorded to all workers as enshrined in
the Philippine Constitution and in international instruments. These include the rights to:

a) work, which includes the right to make a living by work freely chosen or accepted, and the right to
avail of technical and vocational guidance and training programs;

b) the enjoyment of just and favorable conditions of work;

©

a living wage and equal remuneration for work of equal value without distinction of any kind, in
particular for women who shall be guaranteed conditions of work not inferior to those enjoyed by men;

4) equal opportunity for promotion to an appropriate higher level, subject to no considerations other than
those of seniority and competence;

5

safe and healthy working conditions safeguarding general, occupational and reproductive health;

1) rest, leisure and reasonable limitation of working hours, and periodic holidays with pay, as well as
remuneration for public holidays;

g)

matemity protection, including paid leave during a reasonable period before and after childbirth;


an adequate standard of living for workers and their families, primarily adequate food, clothing, and
shelter, and the continuous improvement of such standard;

education, especially of children and young persons, without any discrimination;

social protection, comprising mainly of, but not limited to labor market programs, social security,
health care and insurance, and social welfare interventions;

self-organization to, among others, collectively negotiate with other parties in the promotion of their
welfare and advancement of their interests;

substantially participate in policy- and decision-making processes, including access to information and
other necessary resources relevant to the promotion and protection of their rights and welfare;

m) be free from any form of discrimination, violence, sexual exploitation, harassment and abuse;

n)

0)

equal treatment before the law; and

equal access to justice though appropriate mechanisms, including, but not limited to, alternative dispute
resolution mechanisms and processes.

SEC. 9, Own account workers as well as marginal economic enterprises in the informal economy, being the
working poor’s primary instruments to address and overcome poverty, shall be accorded by the State the
following rights:

a)

b
°)
@d)

g)

h)

infrastructure support such as farm to market roads, common, affordable and secure workplaces and
facilities, merchandising centers, farmers’ markets or a Bagsakan_ with proper storage facilities, and
inventory bulk-buying centers;

policy support to promote and protect locally/domestically produced products;

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

access to affordable, appropriate and adequate financial services, including, among others, collateral-
free and gender-balanced credit at low interest;

access to appropriate and adequate machinery, equipment, and other technologies, with the end in view
of increasing productivity and growth;

protection from unjust dislocation from places where economic activities are conducted;

special measures against racketeering, extortion, and harassment, by both State and non-State elements;
and

fiscal relief, including among others exemption from taxes, fees and other assessments, to be put into
place by concerned national agencies and local government units 60 days after the effectivity of this
Act.

SEC 10. Organizations of workers in informal employment, including unions, cooperatives, mutual benefit
associations, etc. shall have the right to:

a)

b)

°)

freely function and act as the representatives of their members in policy- and decision-making
processes, collective negotiations, and other similar bodies and processes;

establish national federations or confederations and the right of the latter to form or join international
trade-union organizations;

be furnished by concerned government institutions and other parties, upon written request, with
information pertinent to the protection and promotion of the rights and welfare of their members;


d) own property, real or personal, for the use and benefit of their organizations and members;
€) sue and be sued under their registered names;

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

2) be accorded preferential option in the awarding of contracts for the undertaking of national and local
projects funded by either the National Government or any local government , unit including foreign-
assisted projects, the guidelines of which shall be put into place by concerned national agencies and
local government units within 60 days after the effectivity of this Act.

Further,

h) notwithstanding any provision of a general or special law to the contrary, the income and the properties
of legitimate labor organizations, including grants, endowments, gifts, donations and contributions they
may receive from fraternal and similar organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly repealing this provision.

SEC. 11. Monitoring of growth. The local government units (LGUs) in cooperation with the Workers in
Informal Employment Local Development Office shall monitor the growth of the informal employment
business activities or enterprises three (3) years after the enactment of this Act and every three (3) years
thereafter. The centralized database referred to in Section 6 shall be the basis of this monitoring.

Chapter IV
SOCIAL PROTECTION

Social protection as defined in Section 4 of this Act shall have the following components:

SEC.12. Labor Market Programs. ‘The State shall provide adequate resources to sustain labor market
programs following decent work standards, including emergency and guaranteed employment schemes, to
ensure livelihood security and prevent or mitigate the effects of sudden loss of income in the context of
sustainable development and developing local economies in both rural and urban areas.

a, The State shall ensure that these schemes shall be labor-intensive, developmental, sustainable, and
engaging both women and men, youth and older people in building infrastructure, socialized housing,
social forestry focusing on the planting of traditional trees, organic farming, and food production
programs.

b. LGUs shall encourage and provide incentives to constituents who want to engage or are engaged in
sustainable and/or organic farming. All idle private or public lands within their jurisdiction shall be
cultivated or planted with organic food crops like corn, root crops or vegetables. LGUs must allocate their
local funds for mangrove reforestation and prohibit conversion of any mangrove forest to residential,
commercial or industrial use shall be prohibited.

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

4. The State shall encourage entrepreneurship among the disadvantaged, especially women and young
people in informal employment, through the simplification and facilitation of business registration
procedures in one-stop action centers, and the provision of adequate and affordable marketing facilities
such as economic freedom parks.

¢. The State through local government units shall promote community contracting to give preference to
informal workers and their organizations in accessing employment opportunities and related benefits.

SEC. 13. Social Security.- In the spirit of promoting social justice, the State shall endeavor to extend social


security protection to all workers and their beneficiaries against the hazards of disability, sickness, maternity,
old age, death, unemployment, and other contingencies resulting in loss of income or financial burden.

a. The Social Security System (SSS) shall cover all workers, particularly the working poor who mostly
belong to the informal economy. The SSS, in consultation with informal workers’ organizations, shall
customize products and services for them that are accessible and affordable . In the interest of equity, the
State shall cover what should have been the employers’ share for contributions of informal workers had
they been formally employed.

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

¢. To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives, women’s and
people’s organizations, trade unions and informal workers’ associations, microfinance and micro-insurance
institutions and similar groups as collecting agents of premiums and facilitators of claims with the least
burdensome conditions and with appropriate incentives. It shall develop effective partnerships with these
organizations.

4d. The SSS Commission, in the spirit of democracy, transparency, accountability, and equity, shall be
required to conduct regular consultations with and provide information and reports to its membership.
Both formal and informal workers shall be represented in the SSS Commission, where gender balance shall
also be observed.

e. The SSS in cooperation with other relevant national agencies and LGUs, shall support indigenous and
community-based social protection schemes such as damayan, tulungan, saranay, small mutual benefit
associations, and micro-finance organizations initiated or participated in by workers in informal
employment so that these can be sustained, systematized and upscaled.

f, An enabling environment for such organizations and schemes shall be developed. Toward this end, the
Insurance Commission (IC) and other relevant regulatory agencies are hereby mandated to review its
policies and framework to make them more developmental and supportive of the alternative schemes
outlined above.

SEC. 14. Social Security for Volunteers of Government Instrumentalities. Volunteer workers of government
instrumentalities as defined in Sec. 4 of this Act, shall be covered by the Government Service Insurance
System (GSIS) and be entitled to at least a minimum package of customized products, services and benefits to
be designed with their participation and with adequate government subsidy.

SEC 15. Health Care System and Financing. The State shall establish a comprehensive and integrated health
care system that guarantees provision of service by duly accredited and adequately furnished health facilities,
and appropriately educated and rationally compensated health personnel to underserved areas all the way down
to the barangay level. Provided that, such healthcare system shall include reproductive health services, and
provided finally, that priority in the delivery of such services shall be the poor and marginalized.

The State shall ensure adequate resources to finance health care for all, by, among others, progressively
increasing the budget for health care until it meets the World Health Organization recommendation of at least
four to five percent of the Gross Domestic Product.

SEC. 16. Universal Health Insurance. The Philippine Health Insurance Corporation (PhilHealth) shall
ensure and substantiate universal, actual, active, and up to date coverage of all Filipinos by 2013. To achieve
this, PhilHealth with the participation of all stakeholders shall critically review its current operations. It shall
also ensure the provision of a minimum benefit package which shall be periodically upgraded to meet the goal
of universal coverage which is affordable, accessible and appropriate to the needs of all.

a. Government subsidies for PhilHealth sponsorship programs shall be expanded to cover not only the
ultra poor but also the working poor who mostly belong to the informal economy. For the working poor,
what should have been contributed by employers if they were enrolled as formally employed shall be
covered by government subsidies in the interest of equity.

PhilHealth programs for indigents and the working poor shall be expanded and improved in order to


develop effective partnerships with organized groups, especially those composed and led by informal
workers, women, senior citizens, persons with disabilities, persons with HIV and AIDS and other
marginalized sectors, to better serve increasing numbers of those in need. Organized groups with at least
500 members shall be allowed to be collecting agents of premiums with incentives.

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.

¢. PhilHealth, in accordance with its guiding principles, shall promote maximum community participation
and shall recognize the roles and strengths of the public and private sectors in healthcare, including
people’s organizations and community-based health organizations. PhilHealth shall extend appropriate
recognition, technical assistance, and other forms of material and non-material support to mutual benefit
associations, microfinance organizations, community-based health insurance and other indigenous schemes
initiated and participated in by workers in informal employment.

4. PhilHealth, 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.

SEC.17. Social Welfare and Safety Nets. The State shall veer away from dole outs which violate the dignity
of the poor and encourage dependency. It shall instead implement programs whereby beneficiaries of social
assistance are able to exchange their labor or any other resource for the benefits received, and are assisted to
progress out of poverty through self-empowering measures.

a. Existing cash transfer programs shall be reviewed, improved, and expanded to enable the poor to work
and capacitate themselves out of poverty in an empowering and dignified manner. Such programs shall
benefit not only children of poor families, but also senior citizens, especially older women, persons with
disabilities, and other marginalized groups with little or no assets.

b. Barangay Day Care Centers shall provide 8-10 hour services to enable parents, especially mothers, to
pursue economic activities,

¢. Barangay-based, gender-responsive, and participatory disaster preparedness and management schemes
shall be established to address and mitigate the effects of climate change and other catastrophic risks.

Chapter V
Security in the Workplace of Workers in Informal Employment

Security in the workplace as defined in Sec. 4 of this Act shall involve the following:

Section 18. Designation of Workplaces. The concerned Local Government Unit (LGU), in coordination with
their respective Workers in Informal Employment Development Office (WIELDO), after consultation with
informal workers, affected communities, and other relevant groups, shall identify and designate viable
workplaces for informal workers; routes, terminals, and specific lanes for small transport workers; and design a
system of assigning these to accredited informal workers, These may include markets and vacant areas near
markets, vacant public spaces and other spaces which may be designated as allowable workplaces for informal
workers.

Should concerned informal workers prefer to conduct their economic activities within an identified private
property, the LGU shall negotiate with the owner of the property for the possible use of such property as
informal workers’ workplace..The LGU shall likewise encourage and assist the parties in forging a possible
memorandum of agreement.

The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to identify viable vacant

areas suitable for routes, terminals, lanes and workplaces for use of informal workers in their respective
localities.

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The LGUs shall, within 90 days after the survey and based on consultations with concerned informal workers,
affected inhabitants and relevant sectors as well as the recommendations of WIELDO, pass an ordinance
designating such workplaces.

Section 19. Protection of Agricultural Lands and their Occupants. The LGUs, in coordination with the
Department of Agrarian Reform (DAR) shall protect all agricultural lands from conversion or reclassification
to non-agricultural uses. Special Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not be
allowed in irrigated and irrigable lands. The LGUs shall include in their Comprehensive Land Use Plan
(CLUP) all the agricultural lands as protected zones.

‘The LGUs shall make an inventory of all agricultural lands under leasehold and shall enforce the security of
tenure of tenants, right of redemption and right of first refusal on the subject land. The LGUs shall provide
assistance and protection to tenants in agricultural lands whose landowners violate the provisions of RA 3844
or the Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral termination of the
tenancy relationship by landowners.

Section 20. Use of Municipal Waters, Beach Fronts, and Foreshores. Municipal waters shall be used
exclusively for marginalized fisherfolk and allied workers. They shall be given priority in the granting of
permits and licenses for the establishment of fish pens, fish corrals, fish traps, shellfish culture or similar
structures for culture of marine products within the municipal waters.

Beach fronts and foreshores are public domain and may be used by any person especially marginalized
fisherfolk. LGUs shall ensure that no beach within their jurisdiction is exclusive for the use of resort guests or
private persons.

LGUs in coordination with the National Housing Authority (NHA), shall establish and create fisherfolk
settlement areas on private or public lands, specifically those near the fishing grounds, for municipal fisherfolk
with security of tenure.

The consent of the affected fisherfolk shall be required before an area is declared a marine protected area or a
fish sanctuary by the national or local government unit.

Section 21. Policy on Eviction and Demolition. Informal workers shall not be evicted from their homes and
workplaces without legal ground as provided for in Republic Act 7279 or the Urban Development and Housing
Act of 1992. In cases where eviction or demolition is warranted under Section 28 of RA 7279, the same shall
be conducted upon compliance of the following:

(@) notice upon the affected persons or entities at least thirty (30) days prior to the date of eviction or
demolition;

(b) adequate consultations on the matter of resettlement with the duly designated representatives of the
families to be resettled and the affected communities in the areas where they are to be relocated;

(c) presence of local government officials or their representatives during eviction or demolition;

(d) proper identification of all persons taking part in the demolition;

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

(£) no violence or unreasonable force shall be committed against women, children, senior citizens,
persons with disabilities and other identities similarly situated in the course of eviction or
demolition.

(g) non-use of heavy equipment for demolition except for structures that are permanent and of concrete
materials;

(h) proper uniforms for members of the Philippine National Police (PNP) who shall occupy the first
line of law enforcement and observe proper disturbance control procedures; and

(i) adequate relocation, whether temporary or permanent; provided, however, that in cases of eviction
and demolition pursuant to a court order involving underprivileged and homeless citizens,
relocation shall be undertaken by the local government unit concerned and the National Housing
Authority (NHA) with the assistance of other government agencies within forty-five (45) days from
service of notice of final judgment by the court, after which period the said order shall be executed;
provided, further, that should relocation not be possible within the said period, financial assistance
in the amount equivalent to the prevailing minimum daily wage multiplied by sixty (60) days shall
be extended to the affected families by the local government unit concerned.


‘Section 22. Policy on Confiscation of Materials and Impounding of Vehicles. In cases where demolition or
eviction is warranted, the person who conducts the same shall issue an itemized receipt of all products, goods,
and other materials seized from the affected informal workers.

Tricycles, pedicabs, and other modes of transportation shall not be impounded for violations of license,
registration, or traffic regulations unless the said vehicle was utilized in the conduct of criminal activities. In
cases of mere violation of traffic regulations, a traffic violation ticket shall be issued to the erring driver
without impounding his/her vehicle.

Section 23 . Policy on Relocation of Vending Sites. Before any public market is closed, sold or demolished,
all market vendors shall first be relocated by the LGU to a temporary or new public market. Notice of the
intention to close, sell, or demolish any public market shall be made to all concerned vendors at least sixty (60)
days before the actual transfer or relocation to another market site. Within the sixty (60)-day period after
issuance of notice, the LGU shall conduct consultations with the affected vendors on the selection of the
relocation site and the implementation of the relocation.

Pending the designation of viable vending areas, vendors occupying public places not previously designated as
vending sites shall be provided with viable temporary sites by the LGU. Notice of temporary transfer shall be
given to the vendors at least fifteen (15) days before the actual transfer. This shall likewise apply to vendors
granted with permits but whose workplaces are withdrawn from the list of allowable vending sites. Any change
in the list of allowable vending sites shall only be done after consultations with affected vendors.

In the event that a new public market is constructed in place of an old one, market vendors with stalls displaced
from their workplaces shall be given priority in the assignment of stalls in the new market,

Section 24. Policy on Relocation of Terminals. Designated terminals for tricycles and pedicabs shall not be
arbitrarily relocated without prior notice and consultation with small transport groups, affected community
and other relevant sectors. Provided, that relocation of terminals can only be effected through an Ordinance.
Provided further, that after the enactment of such ordinance, notice of intention to relocate terminals shall be
made to all small transport groups and affected community at least sixty (60) days before the actual relocation.

Chapter VI
Special Allocations for Development Initiatives

SEC. 25. Special Allocations for Development Initiatives. - The development initiatives for workers in
informal employment shall form part of an integrated and convergent plan to address poverty and
vulnerability. The national and local government units shall work together in support of such plan to maximize
impact of meager resources.

(a) At least ten percent (10%) of the annual national budget shall be appropriated for programs and
services for workers in informal employment to be implemented by the Informal Economy
Development Authority (IEDA) and Workers in Informal Employment Local Development Office
(WIELDO) as created by Chapters VII and VIII of this Act. Support to WIELDO shall be based on the
principles of merit and equity.

(b) The Implementing Rules and Regulations (IRR) of this Act shall determine additional guidelines
‘on, among others, the use of such finances to ensure that programs and services truly benefit workers in
informal employment.

SEC. 26. Sourcing and Adopting Development Initiatives. - Other sources of funds to be used exclusively
for initiatives addressing the needs and empowerment of workers in informal employment shall be identified in
the Implementing Rules and Regulations (IRR) of this Act and may include the following:

(a) Government financial institutions and mechanisms such as the Land Bank of the Philippines (LBP),
Development Bank of the Philippines (DBP), National Livelihood Support Fund (NLSF), and Quedan
Rural Credit and Guarantee Corporation shall set aside a specific percentage of their loan portfolio to
informal economy enterprises and shall give priority to women-led informal economy enterprises by
providing loans at an interest of not more than twelve percent (12%) per annum consistent with the
spirit of R.A. 7882.


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

(©) The Small Business Guarantee and Finance Corporation (SBGFC) created under Republic Act
(R.A. No. 8289 shall assist in the sourcing and adopting of development initiatives for competitive
enterprises in terms of finance, technology, production, management and business linkages. It shall also
provide and promote, develop and widen in both scope and service reach various alternative modes of
financing for informal economy business activities or enterprises, including but not limited to: direct
and indirect project lending, venture capital, financial leasing, secondary mortgage and/or
rediscounting of loan papers to such business activities or enterprises, and crop production financing.
Further, the Corporation shall guarantee loans obtained by qualified worker or business activity or
enterprise, under such terms and conditions adopted by its Board.

(d) The Department of Trade and Industry (DTI) shall contribute to enable the development of a
business environment that shall include initiatives such as supply chain and market outlets, and
schemes to develop Special Credit Windows to upscale informal enterprises.

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

SEC. 27. Exclusivity of Government Programs. ~The government shall ensure that programs of financing,
grants and other similar incentives shall be exclusively extended to accredited workers, business activities,
enterprises or organizations in the informal economy.

SEC. 28, Tax Exemption. - A duly accredited IE worker, business activity, enterprise, or organization 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 in the computation of
gross income for purposes of computing the individual income tax of the members thereof.

SEC. 29. Inclusivity of Benefits. — The exemptions and other benefits provided in this Act shall apply for a
period of not exceeding ten (10) years from the date of accreditation of such IE worker, business activity,
enterprise, or organization.

Chapter VII
Informal Economy Development Authority (IEDA)

SEC. 30. Creation of the Informal Economy Development Authority (IEDA). ~ There is hereby created an
Informal Economy Development Authority, herein otherwise referred to as the IEDA, which shall be attached
to the Office of the President and shall be constituted within thirty (30) days after the drafting and approval of
the IRR of this Act.

‘The IEDA shall be the primary agency responsible for the promotion, growth, development and empowerment
of the workers in the informal economy as well as their enterprises and organizations in the country. It shall be
a one-stop shop that will facilitate and closely coordinate national efforts to promote the informal economy’s
viability and growth, including the provision of an integrated program for skills enhancement, literacy and
education, health services, social welfare and services and assistance in tapping of local as well as foreign
funds. It shall also perform regulatory and quasi-judicial and other functions relative to the attainment of the

objectives of this Act.
SEC. 31. Mandate and Functions of IEDA. ~ The mandate and functions of IEDA shall include the
following:
(a) Develop and ensure implementation of a simple system of accreditation for the IE workers,
enterprises, and organizations in accordance with the standards and provisions of this Act;

(b) Provide guidelines for the implementation by LGUs of a fair and credible system of evaluation,

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accreditation, review and assessment, merit promotion, rendering of grant and incentive awards and
other policies relative to the effective and efficient implementation of this Act;

(©) Develop and ensure implementation of annual, long-term and medium term plans for the informal
economy, the last of which should form part of the Medium Term Philippine Development Plans
(MTPDP) towards institutionalizing comprehensive, rights-based, gender-responsive and child-
friendly programs and policies for the IE;

(d) Develop and ensure implementation of labor standards;

(©) Develop and ensure implementation of gender-based monitoring and evaluation mechanisms,
efficient and effective programs and policies, and gender-responsiveness of interventions toward
hamessing the full potentials of women workers in informal employment;

() Coordinate with LGUs for the development and implementation of periodic evaluation of all
accredited IE members, enterprises and organizations — taking into account their accomplishments,
capabilities and potentials ~ the results of which shall be used as bases for evaluation, accreditation,
the grant of awards and incentives, training and retraining;

(g) Establish a performance appraisal system for all accredited workers, enterprises and organizations
in the informal economy which shall be the basis for granting or renewal of incentives, rewards and
recognition, training and development, including adequate mechanisms to ensure their active
participation and involvement;

(h) Ensure effective participation of the workers in informal employment and their organizations
through the establishment of regular consultative mechanisms and processes. Annual national, regional
and provincial consultations among the organizations of workers in informal employment shall be
conducted to determine specific issues and problems affecting their sector, and monitor and evaluate
implementation of programs and policies.

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

il, Sex-disaggregated statistical profile of various informal economy workers based on age,
location, type of work, average monthly incomes, work hours, and other relevant statistical
information;

i.2. Sex-disaggregated data on informal enterprises, including capitalization and sources of
capital, number and status of workers, average incomes;

i.3. List and contact information of government and non-government organizations (NGOs)
that provide educational, socio-economic and legal services to workers in informal
‘employment;

i4. Inventory of resolved and pending cases involving activities of workers in informal
economy;

i.5. Database on the needs and problems of women and children in the informal economy
nationwide aimed at strengthening policies and programs against child labor; and

i.6. Compilation of international instruments, existing laws and programs affecting the interest
and welfare of informal economy workers and information on how these workers may use or
avail of such instruments, laws and programs.

@ Develop and ensure implementation of a communication plan including massive information
dissemination activities targeting workers in informal employment, their enterprisess and organizations,
in the various regions towards a better understanding and appreciation of the benefits this Act may
bring them;

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(k) Consistent with letter h Section 2 of the Declaration of Policy, to develop and ensure
implementation of a comprehensive plan to eliminate child labor;

() Monitor and coordinate implementation of policies and programs through the Regional EDA
officers;

(m) Coordinate and harmonize all informal economy-related policies, programs, projects and activities
of various government agencies towards greater efficiency and effectiveness;

(n) Monitor the LGU-generated incomes from informal employment through the LGUs’ periodic report
submitted to the Council;

(0) After consultations with WIE organizations, develop and ensure implementation of policies and

programs that will address specific needs and ensure rights of workers in informal employment

subsectors including but not limited to: vendors, small transport, non-corporate construction workers,

home-based workers; and

(p) Develop and ensure implementation of accessible and just conflict resolution and adjudication

systems and mechanisms to promote dialogue, conciliation, mediation and redress of grievances to

protect the rights of workers in informal employment.
SEC. 32. Composition. — The Chair of the IEDA shall be appointed by the President of the Philippines based
‘on recommendations of IEDA members and shall have the rank of a Secretary. IEDA members may elect from
among themselves a Vice-Chair to preside over meetings in the absence of the Chair. The members shall be
the following:

(a) Secretary of Department of Labor and Employment (DOLE);

(b) Secretary of the Department of Trade and Industry (DTI);

(©) Director General of the National Economic and Development Authority (NEDA);

(d) Secretary of Department of Agriculture (DA);

() Secretary of Department of Agrarian Reform (DAR);

(f) Secretary of Department of Social Welfare and Development (DSWD);

(g) Secretary of Department of Health (DOH);

(h) Secretary of Department of Transportation and Communication (DOTC);

(i) Secretary of Department of Public Works and Highways (DPWH);

(j) Secretary of the Department of Interior and Local Government (DILG);

(k) Secretary of the Department of Finance (DOF);

(1) Secretary of the Department of Justice (DOJ);

(m) Chair of the Commission on Human Rights (CHR);

(a) Lead Convenor of the National Anti-Poverty Commission (NAPC);

(0) Director General of Technical Education and Skills Development Authority (TESDA);

(p) Director General of National Statistics Office (NSO);

(@) President of Development Bank of the Philippines (DBP);


(® President of Land Bank of the Philippines (LBP);

(s) Chair of the Social Security System (SSS);

() Chair of PhilHealth;

(u) Chair of the Philippine Commission on Women (PCW);

(¥) Head of the Housing and Urban Development Coordinating Council (HUDCC);

(w) Three (3) representatives from the private sector at large, all Filipino citizens , proven to have been
active in assisting informal economy workers, to represent Luzon, Visayas and Mindanao; provided.
‘that at least one (1) is a woman;

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

(y) Fifteen (15) representatives from People’s Organizations (POs) of workers in informal employment,
five (5) each from Luzon, Visayas and Mindanao to be elected in a National Assembly of these
organizations duly called for that purpose. Provided that, one (1) shall be the incumbent Sectoral
Representative of the National Anti-Poverty Commission (NAPC)-Workers in the Informal
Employment. Provided further, that at least 50% of the remaining 14 represent subsectors of informal
workers that may include vendors, small transport, marginalized farmers, marginalized fisherfolk,
home-based workers or non-corporate construction workers; and the rest shall come from Non-
Government, women’s and other organizations actively working with and for the rights of informal
workers. Provided finally, that at least 40% of the remaining 14 representatives are women. The
guidelines for the nomination and election, including processes and mechanics shall be determined by
the IRR of this Act.

Representatives from the private sector, NGOs and IE organizations shall serve as IEDA members for a
term of three (3) years without re-election and shall be subject to terms and conditions provided for by
the IRR.

The private sector, workers in informal employment and women’s organizations’ representatives to the
IEDA shall be entitled to receive per diem of at least Two Thousand Five Hundred Pesos (P2, 500.00)
per meeting.

The IEDA members shall meet once every two (2) months and may call for special meetings as the
need arises; provided, that the frequency of such special meetings shall not exceed four (4) times
annually.

Ten million pesos (P10, 000,000.00) shall be allocated from the Presidential discretionary fund for the
initial operating expenses of the IEDA.

SEC. 33, Executive Committee of the IEDA - An Executive Committee of seven (7) members shall be
convened. Besides the Chair and Vice-Chair, the following shall be elected by the IEDA members from among
themselves or their duly designated alternate representatives: two (2) representatives of organizations of
workers in informal employment, one (1) from the different leagues of local officials, one (1) from the private
sector, and one (1) from a national government agency, provided, that at least two (2) members of the
Executive Committee are women.

‘The Executive Committee shall have the authority to act for and in behalf of IEDA during intervals of
meetings, and within the specific authority granted by the IEDA.

SEC. 34. IEDA Secretariat. - The Executive Committee shall create a secretariat that will have the following
duties and functions:

(a) Prepare and recommend, in coordination with LGUs and other government agencies, annual,
medium-term, and long-term Informal Economy Development Plans for approval of the EDA;

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(b) Coordinate the preparation of position papers and background materials for discussion or approval
during IEDA meetings;

(©) Assist in coordinating and monitoring policies, programs and activities of all government agencies
with respect to the implementation of this Act;

(@) Prepare, collate, and integrate all inputs to the IEDA’s yearly report on the status of informal
economy workers, business activities or enterprises in the country;

(© Submit periodic reports to IEDA on the progress and accomplishments of its work programs; and
(f) Perform other functions as authorized by the IEDA.

SEC. 35. Authority of the IEDA to Solicit Assistance from Various Agencies. ~ The IEDA may, from time
to time, call for the participation of any government agency or bureaucracy in its deliberations especially when
such agency is directly or indirectly concerned with and/or affecting the growth and development of the IE in
any particular area or manner.

SEC 36. Regional IEDA Officer — Regional EDA Officers shall be appointed and shall have functions that
include: monitoring and coordinating of IEDA initiatives in the regions; evaluation of policies programs for
workers in informal employment; providing technical assistance in the development of local plans and
programs; as well as other administrative functions necessary for the success of IEDA initiatives in their
jurisdiction.

IEDA Regional Officers shall have automatic seats in all Regional Development Councils (RDCs).

SEC. 37. Rationalization of Programs. EDA shall conduct continuing review of government programs for
the poorest of the poor and the workers in informal employment and submit to Congress and the President a
report thereon together with its policy recommendations.

Chapter VIII
Workers in Informal Employment Local Development Office (WIELDO)

SEC. 38. Workers in Informal Employment Local Development Office (WIELDO) - The Workers in
Informal Employment Local Development Office (WIELDO) shall be established in every province, city or
municipality to perform functions that shall include but not be limited to the following:

(a) Prepare an overall development plan and work program that will address the needs of the workers in
informal employment, prioritizing the poorest and most vulnerable, and incorporate them in their
respective provincial, regional, city, municipal and barangay development plans;

(b) In consultation with organizations of workers in informal employment in the area, identify specific
needs of various subsectors of the IE and recommend appropriate measures to be taken;

(c) Ensure accreditation of workers in informal employment, especially those with assets P150,000 and
below, to facilitate their immediate access to benefits and services;

(@) Monitor, assess and evaluate implementation of the plans and programs as well as the performance
of informal workers, their economic activities and their organizations in the areas;

(©) lead in the local implementation of Chapter V (Security in the Workplace of Workers in Informal
Employment) of this Act;

(£) Coordinate with other local offices, private sector and other organizations with existing programs
for the workers in informal employment towards integration and convergence;

(g) Conduct training programs which will provide new ideas to the IE workers, especially those with

the least assets and formal education, and upgrade the technical and entrepreneurial skills of others who
are already in the field;

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(h) Implement consciousness-raising and capability building activities which include information on
workers’, women’s and children’s rights and leadership training;

(i) Provide technical support and access to credit, market, technology, social protection schemes, and
training for micro-entrepreneurs and those in service industry, small transport, non-corporate
construction workers, etc.;

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

(k) Support organizing activities among workers in informal employment;

(1) Establish sex-disaggregated databank on human resources and skills registry to be used as tools for
LGU planning and budgeting;

(m) Provide offices and other necessary resources to support organizing, advocacy, training and other
activities of local organizations of workers in informal employment;

(n) Train workers in informal employment on negotiation skills and on the conduct of time and motion
studies to determine proper wages; and

(0) Provide services, which shall include but not be limited to counseling, conciliation, mediation, and
legal assistance for the furtherance of this Act, prioritizing those with the least access to justice.

In the performance of WIELDO’s functions, the principle of preferential treatment to the poorest and
most vulnerable shall be observed.

In addition to fund allocations specified in this Act, the LGUs shall annually allocate at least One
Hundred Thousand Pesos (P100, 000.00) or at least 5% of the twenty percent (20%) Development Fund of
their respective IRA whichever is higher for the establishment and initial operations of WIELDO.

Following the principle of merit and equity, LGUs that fulfill such allocations may receive additional
assistance from the national government as recommended by IEDA; provided, that they have formulated their
local development plan for workers in informal employment.

SEC. 39. Composition. The Local Chief Executives (LCEs) shall be the primary overseers of WIELDO’s
operations. The IRR of this Act shall provide for WIELDO’s composition provided that, informal workers?
representatives shall form at least fifty percent (50%) of WIELDO’s membership. Provided further, that IE
representatives shall not be less than five (5), and provided finally, that at least forty percent (40%) of all
members are women. Other relevant guidelines on WIELDO’s operations shall be included in the IRR of this
Act.

TITLE
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY

Chapter I
Requisites for Employment Agreement

SEC. 40. Minimum Standards — All working arrangements entered into by workers in inform: employment
shall be in accordance with the minimum applicable labor and social standards as contained in Title II of this
Act.

‘These standards shall be strictly enforced in informal economic enterprises supplying or doing outsourcing
work for exporters, investors-locators in export processing zones or industrial parks licensed by the Export
Processing Zone, and domestic formal sector manufacturers and retailers-distributors.

For workers engaged by independent informal economic enterprises, DOLE, in coordination with IEDA shall

audit the capacity of these enterprises to comply with these standards. Those incapable of meeting the
standards shall be assisted to upgrade their capacity to improve their businesses, as well as the capacity comply

18


with relevant labor and social standards.

SEC. 41. Provisions of Employment Agreement. The employment contract shall be in written form.
However, the absence of a written agreement does not mean the absence of an employment relationship. As a
matter of right, informal workers can insist on a written agreement based on minimum standards.

In cases wherein minors are contracted with, the said negotiated contract shall be signed on his/her
behalf by either parent or legal guardian, with the expressed written consent of the said minor.

In cases wherein illiterate workers are contracted with, the said contract shall be explained to the
worker concerned and attested to by a representative from the LGU or an elected Barangay official in the city
or municipality where the worker is designated to work.

Each of the contracting parties shall be provided with a full set of the duly signed agreement which
shall include the following basic provisions:

(a) working arrangement/mode;
(b) period/duration of employment;
(©) compensation, which shall not be below the minimum standard, and mode of payment;

(d) computation of contributions for social security and medical insurance including for those who fall
under DOLE Department Order No. 5;

(©) duties and responsibilities;
( working hours and day-off schedules;

(g) living quarters or sleeping arrangements (for live-in workers);

(h) the date, term and mode of delivery or date of completion;

(i) minimum of twenty percent (20%) down payment for labor cost and services and minimum of 50%

for inventory of raw materials used in the production for homeworkers per DOLE Order No.5.

Minimum standard compensation referred to above shall be determined by the Regional Wage Boards per
subsector of IE workers. In the case of piece rates, this shall be based on the conduct of time and motion
studies facilitated by the DOLE Bureau of Working Conditions. While there are no standardized rates for
workers in informal economy jobs, the basis of computation shall not be below the applicable minimum wage
of the region where they are covered.

Enforcement of the standard compensation rates shall be in accordance with the capability to comply as
explained in Section 40 of this Act.

SEC. 42. Payment of Wages — Payment derived from negotiated agreement shall be made directly to the
workers. No deductions from such payments shall be made by the employer except those provided by law. The
expressed written consent of the worker shall be first secured before deductions are made.

Chapter II
IE Workers of Minor Age
SEC. 43. Allowable Employment of Workers of Minor Age ~ Children fifteen (15) years up to seventeen (17)
years of age may be employed; provided, that parental or legal guardian consent be presented and attested by
any representative of the LGU or duly elected Barangay official where the work is to be done. In no instance
however, shall children below fifteen (15) years old be engaged in whatever form of productive services.

Workers of minor age shall not be allowed to render work for more than four (4) hours, five (5) days a week,

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exclusive of one (1) hour break for breakfast or lunch whichever is applicable.

Chapter II
Prohibited Acts

SEC. 44. Prohibition Against Forced Night Work — It is unlawful to force, threaten, intimidate or otherwise
harass workers in informal employment to engage in night work. Moreover, workers of minor age shall not be
allowed to render work between eight o’clock in the evening and six o’clock in the morning of the following
day.

SEC. 45. Prohibition Against Work to be Undertaken — Workers of minor age shall not be allowed to render
work beyond their physical and mental capabilities.

SEC. 46. Prohibition Against Bonded Labor - A worker shall not be allowed to use his/her future services as
collateral for any loan or advances made to or to be made by said worker with the employer. Likewise, no
employer shall be allowed to bind the worker to his/her continued employ as a form of payment for any loan or
advances which he/she may have made with the employer. Should there be an outstanding loan incurred and
he/she decides to unilaterally terminate the contract of employment, said loan or advance shall be paid by
hinv/her to the employer under terms and conditions specified in a duly executed promissory note between
parties.

SEC. 47. Prohibition Against Labor-Only Contracting — In no instance shall the employer sub-contract the
services of a worker to any third party, unless such activity falls within the purview of an employment
arrangement for which the necessary permits and licenses have been priory secured.

Labor only contracting means that the contracting agency or party does not provide any raw materials,
inputs, or other forms of investment in the enterprise, , does not have any control over the work process,
merely supplies labor to a principal, and yet makes the false claim that the contracting party is the employer.
SEC. 48. Prohibition Against Recruitment and Finders Fees - Regardless whether the worker was sourced
either through an employment agency or a third party, said worker shall neither be charged nor levied a share
in the recruitment fees or finder’s fees by the aforementioned employment agency or third party.

SEC. 49. Prohibition Against Hazardous Work and Conditions - Any worker shall not be employed in any
hazardous work, activity or undertaking, and neither shall he/she be exposed to hazardous working conditions.

For purposes of this Section, hazardous work or conditions shall include, but not be limited to the following:
(@) Any work which requires workers to render services beyond ten (10) hours;

(b) Any work, employment or activity which exposes the worker to physical, emotional or sexual
abuse;

(c) Any work which involves manual handling or transport of heavy loads;

(d) Any work in an unhealthy environment which exposes workers to hazardous substances, agents or
processes, or to temperature, noise levels, or vibrations damaging to their health;

(©) Any work which requires workers to continuously render service during late nights;

(Any or all forms of slavery ot practices similar to slavery, such as the sale and trafficking of
persons, forced or compulsory labor, debt bondage and serfdom;

(g) Any use, procuring or offering of the worker for prostitution or pornography;

(h) Any use, procuring or offering of the worker for the commission of any offense or crime,
particularly for the production and trafficking of narcotic drugs and substances as defined in the
Dangerous Drugs Act;

(® Any other type of work or activity which, by its nature or the circumstances in which it is carried

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out, is likely to jeopardize the health, safety, or morals of the worker; and

(i) Any other type of work, activity, condition or undertaking that maybe hereinafter be defined as
hazardous by the DOLE.

SEC. 50. Prohibition Against Interference and Coercion ~ Any person is prohibited from committing any of
the following acts of interference and coercion:

(a) Prevent a worker from upholding or exercising his/her rights;

(b) prevent workers from joining or assisting organizations or unions for purposes not contrary to law,
in order to protect and defend their mutual interests and to obtain redress of grievances through
peaceful concerted efforts;

(©) prevent a worker from carrying out his/her duties or functions in an organization or union, or to
penalize the same for any lawful action performed in that capacity;

(d) harass, interference, inti

date or prevent the worker from performing his/her duties and functions;

(© harass, transfer, penalize or terminate the services of a worker who is carrying out his/her function
or role for and in behalf of his/her employer; and

(f) perform acts to diminish the independence and freedom of workers’ union or organization to direct
its own affairs.

Chapter IV
Rights and Benefits of Employed Workers in Informal Economy

SEC. 51. Rights to Wages Earned — The employer shall directly pay the workers on time, based on agreement
any and all wages, remuneration or compensation earned by hinvher during the period of his/her employment.

No parent, guardian, relative or any other person shall be allowed to take a loan against the
compensation of 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 loan or liability by a
parent, guardian, relative, or any other person.

SEC. 52. The Right to Privacy and Confidentiality — The employer shall respect the privacy of workers
during the latter’s rest periods. This right to privacy shall extend to any and all forms of personal
communication, including letters or other forms of correspondence issued or received. The worker shall be
allowed communications coursed through the private telephone of the employer; provided that any additional
expense incurred due to such communication shall be borne by the worker and shall be deducted after the
employer's due notice to the worker of the amount incurred.

The State, further guarantees the protection of the right of workers 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.

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 any kind of educational program during free time or any other time as agreed by the employer and
the worker.

‘The Department of Education (DEP ED), Commission on Higher Education (CHED) and other
appropriate agencies, shall extend services such as the Study Now, Pay Later Program to the workers in the IE
and their dependents.

SEC. 54. Access to Lawful Third Party Mediation - The LGUs shall provide workers and their employers
the names, addresses and telephone numbers of the designated liaison officers of the following:

(@) DT;

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(b) DOLE;

(© The Barangay office where he/she is productively working; and

(@) Duly registered NGOs accredited to mediate the disputes of their sector.
(EDA

The employer guarantees the worker the access to all available means of communication for the
purpose of contacting any of the above-enumerated institutions.

SEC. 55. Normal Hours of Work - The normal hours of work is eight (8) hours per day, exclusive of one (1)
hour breaks each for breakfast, lunch and dinner. The worker shall be allowed at least eight (8) hours of
continuous rest per day. Otherwise, any work done by him/her beyond the normal hours of work per day shall
be duly compensated.

SEC. 56. Regular Working Days — No worker shall render work for more than six (6) days per week.

SEC. 57. Longevity Pay - A longevity pay equivalent to five percent (5%) of his/her latest monthly basic pay
shall be paid to a worker for every two (2) years of continuous and satisfactory service rendered.

SEC. 58. Clothing and Personal or Protection Equipment Allowance — A worker shall be entitled to a
minimum of One Thousand (P1,000.00) pesos clothing and personal or protection equipment (PPE) allowance
annually. Provided, that the worker has rendered at least one (1) year of continuous service in the employment
he/she is currently in.

SEC. 59. Service Incentive Leave - A worker who has been employed for one (1) year shall be entitled to a
five (5)-day service incentive leave with pay, in addition to the one (1) day per week designated as rest day.
Said leave may only commence at the end of the first year of employment and shall not cumulate from year to
year.

SEC. 60. Maternity Benefits. - A female worker who has been employed for one (1) year shall be entitled to
maternity benefits as provided for by law.

SEC. 61. 13th Month Pay — A worker shall be entitled to 13th month pay equivalent to one month’s basic
salary provided, that the worker has reached the required minimum residency. Otherwise, the worker shall be
entitled to receive a 13th month pay on a pro-rated basis as provided for in DOLE D.O. No. 5.

SEC. 62. Allowing Subcontracting - A worker may enter into sub contractual employment or may accept sub
contractual jobs from any other enterprise or firm joining or may join productive employment through a
cooperative consortium; provided, that the enterprise, firm, cooperative, or consortium meets the requirements
of Articles 106-109 of the Labor Code and their Implementing Rules (DO 18-02), including registration
requirements under the said DO 18-02.

SEC. 63. Pre-Termination of Contract — The employer may, at his/her own discretion, terminate the services
of the worker; provided however, that the said employer provides the worker with at least fifteen (15) day
notice of termination, and termination pay equivalent to at least one half (4) month’s salary. In lieu of the
fifteen (15) day notice of termination, the employer may immediately terminate the services of the worker,
provided that said employer provides the worker termination pay equivalent to one (1) month’s salary.

The employer may, for valid or just cause of loss of confidence, terminate the services of the worker
prior to the expiration of the contract without indemnifying the latter with termination pay.

Should the worker decide, on his/her own volition, to unilaterally leave the workplace prior to the
expiration of the contract period, said worker shall forfeit any separation pay that may be due him/her.

SEC. 64. Extent of Duty - The employer shall not require a worker to perform any task or work outside what
is stipulated in the agreement.

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SEC. 65. Deployment Expenses ~ Deployment expenses of the worker, including transportation and agency
fees, shall be shouldered by the employer

TITLE
FINAL PROVISIONS

SEC. 66. Penal Provisions

(a) Any person who shall willfully interfere with, restrain or coerce a worker in the exercise of his/her rights
or shall in any manner commit any act in violation of any of the provisions of this Act shall, upon conviction,
be punished by a fine of not less than Twenty Thousand Pesos (P20,000.00) or imprisonment of one (1) year to
six (6) years or both fine and imprisonment at the discretion of the Court.

(b) If the offender is a public official, the Court, in addition to the penalties provided in the preceding
paragraph, may impose the additional penalty of disqualification from public office.

(c) Any person or officer who violates Section 22 of this Act shall be administratively liable. Nothing herein
shall prohibit the aggrieved informal worker from initiating a criminal or civil action against the responsible
person or officer whenever such action is applicable.

(d) Failure to implement Sections 23 and 24 of this Act shall render the responsible official/s
administratively liable pursuant to Republic Act 7160 and other pertinent laws and criminally liable whenever
applicable.

(©)_In the case of a private institution/company found to be violating any provision of this Act, it shall be
subject to a penalty ranging from suspension of license or revocation of such at the discretion of the Court.

SEC. 67. Implementing Rules and Regulations (IRR) — The Implementing Rules and Regulations of this Act
shall be formulated by a drafting committee composed of representatives of offices that will be members of
IEDA. Provided that, at least 30% of the drafting committee members shall come from organizations working
on informal workers’ concerns. Said committee will start work on the IRR within three (3) months afier the
effectivity of this Act.

SEC. 68. Separability Clause - If any provision of this Act is declared unconstitutional or invalid, the
provisions not affected shall continue to be in full force and effect.

SEC. 69. Repealing Clause - All laws, decrees, orders, rules and regulations or other issuances inconsistent
with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 70. Effectivity - This Act shall take effect fifteen (15) days after its publication in at least two (2)
newspapers of general circulation or the Official Gazette, whichever comes first.

Approved,

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