The UN also noted that broad definitions open to abuse and misinterpretation some provisions of laws on sex work.
Article 201 of the Revised Penal Code, which covers immoral doctrines, obscene publications and exhibitions and indecent shows "may be used by police to lay charges as a result of raiding entertainment establishments," the report said.
"Establishment-based sex workers are at risk of arrest as a result of police raids conducted under the antitrafficking law," it added.
Most of these workers are also not given health insurance, with the UN saying that "employers take advantage of a loophole in relevant employment laws by claiming that sex workers are not regular employees..."
Sex workers operating independently, however, are still "more vulnerable to arrest and police abuses," the report said.
"Street-based sex workers are commonly charged with vagrancy offences," it noted.
Laws also remain inadequate in addressing issues of discrimination against sex workers, especially for those infected with HIV or other STIs.
The AIDS Prevention and Control Act of 1998, for instance, provides "no specific provisions to protect sex workers from discrimination," the report said.
Sex workers who are sexually assaulted are also unlikely to "successfully bring a charge of rape against an offender" despite the Anti-Rape Law, the UN added.
"Police confiscation of condoms for use as evidence remains a controversial issue," the report noted.
Although noting that the government has backed efforts to promote condom use among sex workers over the last decade, UN said the presence of condoms in establishments raided by police is still used as evidence in criminal complaints.
UN stressed, however, that "significant progress has been achieved through sex workers educating their peers about their rights, organizing legal representation and securing changes to law enforcement practices..."
"At the local level, this approach has shifted the power balance in favour of the vulnerable, and has been associated with positive HIV prevention outcomes such as increased condom use rates and reduced stigma," the report said.
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