Employment Insurance Rate Soars from 0.25% to 0.85% by Combining Corporate Staff at 'Independent Operation' Welfare Centers... Kwonikwi Declares It Illegal

Welfare Corporation Raises Limits... Health Insurance Collects Difference from Claimants
Administrative Appeals Commission: "Illegal to Include Corporate Employees in Independent Welfare Centers"

[Sejong=Asia Economy Reporter Moon Chaeseok] The Korea Workers' Compensation and Welfare Service and the National Health Insurance Service raised the insurance premium rate from 0.25% to 0.85% for social welfare centers operated independently from school corporations, claiming they must cover employment insurance for the corporation's employees, and collected the difference additionally, but were ruled illegal by the government.

The Central Administrative Appeals Commission under the Anti-Corruption and Civil Rights Commission announced on the 12th that it concluded the judgment by the Korea Workers' Compensation and Welfare Service and the actions of the National Health Insurance Service were illegal. Even if it is a delegated workplace of a corporation, if it operates independently in personnel, labor, and accounting, the employment insurance premium rate should not be set by combining the number of regular employees of the corporation.

The workplace of petitioner A was a welfare center installed and operated by City B. School corporation C Academy signed a consignment contract with City B, and the employment insurance premium rate applied until October 2019 was 0.25%. However, the jurisdictional Korea Workers' Compensation and Welfare Service did not recognize the independence of the welfare center and raised the employment insurance premium rate sharply to 0.85%, stating that the number of regular employees at other workplaces operated by C Academy exceeded 1,000. The National Health Insurance Service collected the difference from A.

The Administrative Appeals Commission judged that the welfare center ▲ elected executives independently and then obtained approval from the higher organization, ▲ decided on working conditions such as employee recruitment, wages, and working hours without supervision or direction from the higher organization, ▲ operated separately from the corporation's accounting, and ▲ independently acquired and disposed of assets. It was determined to be a workplace independent from the corporation.

Min Seongsim, Director of the Administrative Appeals Bureau of the Anti-Corruption and Civil Rights Commission, said, "I hope this administrative appeal will reduce the operational burden on social welfare facilities belonging to corporations and foundations that conduct their own facility-specific businesses and provide an opportunity to offer high-quality welfare services to the public."

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