Korea Railroad Expands Direct Wage Payment System to Protect Workers' Rights
Expansion of Target to All Construction Works Including Electrical and Communication for Projects Over 30 Million Won
‘Electronic Card System’ Application Criteria Relaxed from 10 Billion Won to Projects Over 5 Billion Won
[Asia Economy Reporter Kangwook Cho] Korea Railroad Corporation (KORAIL) announced on the 16th that it will expand the application targets of the public client wage direct payment system and the electronic card system for workers to strengthen the protection of workers' rights.
KORAIL will expand the wage direct payment system, which currently applies to construction projects worth 30 million won or more, to all projects including electrical, telecommunications, and firefighting works worth 30 million won or more to eradicate wage arrears. The "wage direct payment system" is a system that mandates payment of construction fees through the electronic payment system (Subcontractor Guardian) to prevent non-payment of fees and wage misappropriation in public construction projects and to stabilize the management of small and medium-sized enterprises due to subcontracting.
In addition, to prevent omission of working days and increase transparency in workforce management, the target of the "electronic card system for construction workers" will be expanded. Currently, the electronic card system applies to construction sites in the public sector with a scheduled construction amount of 10 billion won or more; the standard will be lowered to include construction sites with 5 billion won or more. The "electronic card system" is a system where workers record their attendance by swiping an electronic card on a terminal, and employers report working days and pay retirement reserve funds based on this data.
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Kim Jonghyun, Director of Financial Management at KORAIL, said, "We will strive harder to create a transparent and fair subcontracting culture and protect workers' rights."
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