Platform Workers Also Form Unions and Negotiate Compensation... Application of Industrial Accident and Employment Insurance (Comprehensive)

Abolishing Exclusive Employment in Industrial Accident Insurance
Breaking the Chain of Unfair Contract Practices
Strengthening Responsibility of Online Platform Companies
Legislation Delayed from January to First Quarter Due to Labor Opposition

[Asia Economy Reporter Kim Bo-kyung] The government’s protection measures for platform workers such as delivery and substitute drivers, announced on the 21st, 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 to safeguard their rights, while also collecting industrial accident and employment insurance premiums like regular employees. From the platform workers’ perspective, this will allow them to break free from unfair contract practices.

◆Government to Establish Platform Worker Protection Act= The core of the protection measures is the enactment of related legislation. The government intends to create a new “Platform Worker Protection and Support Act” by the first quarter of next year to determine the employee status of workers in these industries. This law aims to reorganize the current system into a “people-centered” approach to support industrial and employment structures.

If classified as employees, platform workers will be subject to labor laws such as the 52-hour workweek and minimum wage. The bill also regulates the establishment of fair contractual relationships between platform workers, who are close to solo self-employed individuals, and companies through the development and distribution of standard contracts. The standard contract stipulates prohibitions on unfair trade, worker safety management, and dispute resolution procedures, and is prepared for 16 occupations including delivery and substitute drivers.

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

However, it is expected to be difficult for the legislation to proceed as the government anticipates. The labor sector argues that instead of a special law, the concept of workers under labor law should be expanded to recognize the labor rights of platform workers. The labor sector’s view is that creating a separate law for platform workers could weaken the application of labor laws.

[Image source=Yonhap News]

Alongside this, the government plans to abolish the exclusivity requirement for platform workers. Exclusivity means “primarily providing labor to one business operator.” Currently, exclusivity must be secured to enroll in industrial accident insurance, but it has been cited as an obstacle to enrollment. The government plans to revise the Industrial Accident Compensation Insurance Act by the first quarter of next year to allow all special-type workers (special employment types) and platform workers who provide labor to “another person’s business” to enroll in industrial accident insurance. From July next year, applications for exemption from industrial accident insurance will be limited to unavoidable cases such as illness and infancy.

At a briefing on the day, Minister of Employment and Labor Lee Jae-gap said, “We will lay the foundation for universal industrial accident insurance and universal employment insurance, and reorganize the welfare system centered on workers so that it can also be applied to platform workers.”

◆Protecting Workers’ Rights, Strengthening Corporate Responsibility= The responsibilities of platform companies will also be strengthened. The Platform Worker Protection Act plans to stipulate that platform companies must provide key information such as the duration of platform usage contracts, procedures for renewal, changes, and termination, and usage fees; make efforts to amicably resolve customer disputes; and comply with basic obligations. The law will also include provisions related to the establishment of mutual aid associations to promote the welfare of platform workers. Platform companies will pay a certain amount of platform usage fees as mutual aid contributions and provide retirement mutual aid payments when workers retire. The Ministry of Employment and Labor will finalize the responsibilities of platform companies and protection measures for workers to be included in the law through consultations with labor and management organizations and experts.

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), which is 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.

Measures will be taken to address the low insurance subscription rate for two-wheeled vehicles despite the increased risk of accidents due to the recent surge in delivery volumes. A public-private joint “Two-Wheeled Vehicle Insurance Council” will be formed to devise ways to reduce 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. Following recent amendments to the Basic Labor Welfare Act, platform workers have become eligible for livelihood stabilization loan programs. 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.