KCCI "Government's Employment Insurance Act Amendment Fails to Reflect Characteristics of Special Employment"

[Asia Economy Reporter Suyeon Woo] The Korea Employers Federation (KEF) argued that the government's amendment to the Employment Insurance Act for introducing employment insurance for workers in special types of employment failed to properly reflect the characteristics of these workers and the opinions of industry stakeholders.

On the 30th, KEF submitted an opinion letter regarding the government's partial amendment to the Employment Insurance Act, emphasizing that "workers in special types of employment have completely different characteristics from general employees, including business models, contract types, work methods, income types, and tax payments, thus requiring an employment insurance system suited to these characteristics."

KEF further evaluated that "the government’s proposal did not properly reflect the tripartite agreement to consider the characteristics of workers in special types of employment and gather opinions from labor, management, and stakeholders during the legislative process," adding, "Approaching this issue with the same framework as general employees, as in the government’s proposal, makes it impossible to design employment insurance suitable for workers in special types of employment."

Comparison of the Government's Legislative Notice on the Introduction of Employment Insurance for Special Type Workers and the Business Sector's Proposal / Data=Korea Employers Federation

On the 28th, the government announced two legislative bills for public comment to introduce employment insurance for workers in special types of employment: the partial amendment to the Employment Insurance Act and the partial amendment to the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance.

The government’s legislative proposal primarily aims to enroll workers in special types of employment in employment insurance on the same basis as employees. Specifically, it stipulates mandatory enrollment in employment insurance for these workers, establishes grounds for employers’ employment insurance premium payments, and sets conditions and levels for unemployment benefits.

KEF pointed out that considering the differences in business model characteristics between workers in special types of employment and general employees, the high degree of self-determination in employment and business closure, the management burden on industries due to mandatory employment insurance enrollment, and the potential job losses from contract termination, the system should be designed and operated differently from that for general employees.

To this end, KEF requested exceptions to mandatory employment insurance enrollment, differentiated premium contribution rates between workers in special types of employment and employers, and emphasized that premiums paid by these workers should be managed and operated through separate accounting exclusively for the relevant unemployment benefit program. KEF also stressed the need to strengthen unemployment benefit eligibility requirements and to gradually establish grounds for expanding the scope of employment insurance coverage.

This content was produced with the assistance of AI translation services.