Delivery and Substitute Drivers Also Protected Like 'Regular Workers'... Expanding Legal Framework

Abolition of Exclusivity Criteria... Expansion of Industrial Accident and Employment Insurance
Freedom to Establish Labor Unions Increased, Corporate Responsibility Strengthened
Expansion of Welfare Including Retirement Mutual Aid Associations and Low-Interest Loans

Asia Economy DB=Photo by Moon Honam munonoam@

[Asia Economy Reporter Kim Bo-kyung] The government's recently announced protection measures for platform workers such as delivery and substitute drivers aim to keep pace with the rapidly changing labor environment. The government plans to bring platform workers, whose employment and income are unstable, under the protection of laws and institutional frameworks, and to collect industrial accident and employment insurance premiums just like regular employees. From the perspective of platform workers, this means they can enjoy the benefits of having their basic rights protected as workers and breaking unfair contract practices.

◆Domestic platform workers, broadly estimated at 1.79 million= Platform workers are simply those who find jobs or tasks through platforms. Approximately 1.79 million workers provide labor through platforms in fields such as IT and translation, and among them, about 220,000 provide labor through platforms that influence job assignments, such as delivery services.

As the employment environment rapidly changes, the number of platform workers, also called gig workers, who work freely across various platforms, is increasing worldwide. Especially with the spread of COVID-19 accelerating the shift to a digital economy, the number of platform workers is expected to surge in the future.

In South Korea, the increase in delivery volume due to social distancing measures has raised concerns about safety accidents and unfair contracts involving 'delivery riders,' leading to growing calls for improving labor conditions.

◆Government to establish platform worker protection law= First, the government will abolish the exclusivity requirement to expand industrial accident insurance coverage for platform workers such as delivery and substitute drivers. The Industrial Accident Compensation Insurance Act, which currently requires workers to provide labor mainly to one business operator to be eligible for industrial accident insurance, will be amended in the first quarter of next year. The plan is to allow special-type workers (special employment types) and platform workers who provide labor to other people's businesses to enroll in industrial accident insurance regardless of exclusivity.

Lee Jae-gap, Minister of Employment and Labor / Photo by Moon Ho-nam munonam@

From July next year, applications for exemption from industrial accident insurance will be limited to unavoidable cases such as illness and infancy. Minister of Employment and Labor Lee Jae-gap stated at a briefing on the 21st, "We will lay the foundation for nationwide industrial accident insurance and nationwide employment insurance, and reform the welfare system centered on workers so that it can also be applied to platform workers."

In the first quarter of next year, a new "Platform Worker Protection and Support Act" will be established. This law will determine the worker status of platform workers and apply labor laws such as the 52-hour workweek and minimum wage to those classified as workers. Through the development and distribution of standard contracts, it will regulate to help platform workers, who are close to solo self-employed individuals, establish fair contractual relationships with companies. The intention is to reform the current system to be "people-centered" and support industrial and employment structures.

Originally, the government planned to introduce the bill as a special law in January next year, but revised the plan to prepare it within the first quarter after opposition from labor groups. Labor groups argue that instead of a special law, the concept of workers under labor law should be expanded to recognize the labor rights of platform workers.

◆Protecting workers' rights, strengthening corporate responsibility= The responsibilities of online platform companies will be strengthened. The platform worker protection law will stipulate providing key information such as platform usage contract periods, renewal, modification, termination procedures, and usage fees; obligations to make efforts to resolve customer disputes amicably; and basic compliance requirements for platform companies.

The law will also include provisions related to establishing a retirement mutual aid association to promote the welfare of platform workers. Platform companies will pay a certain amount of platform usage fees as mutual aid contributions, and retirement mutual aid funds will be paid to workers upon retirement. The Ministry of Employment and Labor will finalize the contents regarding corporate responsibilities and worker protection to be included in the law through consultations with labor-management organizations and experts.

[Image source=Yonhap News]

The government also plans to introduce a system certifying delivery-related companies by the government by processing the Living Logistics Service Industry Act (Saengmul Act) currently pending in the National Assembly. The Saengmul Act will also provide a legal basis for business mutual aid associations to compensate for damages in case of delivery worker accidents.

Platform workers, who are effectively recognized as workers, are expected to gain freedom in establishing and operating labor unions. Minister Lee said, "Legally established unions can exercise their rights under the Labor Union Act," and added, "Even those who are not workers under the Labor Union Act will be guaranteed the right to freely establish organizations and request negotiations on major matters such as wages."

Measures will also be prepared to address the low subscription rate of motorcycle insurance despite the increased risk of accidents due to the surge in delivery volume. A public-private joint "Motorcycle Insurance Council" will be formed to devise ways to reduce the burden of motorcycle insurance premiums by the first half of next year. A safety and health survey of platform workers will be conducted, and customized industrial accident prevention measures will be established by the end of next year.

Meanwhile, with the recent amendment to the Basic Labor Welfare Act, platform workers have become eligible for the living stabilization fund loan program. They can receive loans of up to 20 million KRW per person at an annual interest rate of 1.5% for living expenses, funeral costs, and other needs.

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