Industrial Accident Attorney’s Three Measures to Protect Platform Workers in South Korea

 South Korea: Labor and Employment Law

Industrial Accident Attorney’s Three Measures to Protect Platform Workers in South Korea

Industrial Accident Attorney, Labor Law Attorney, Labor and Employment Attorney | Dowoo Hwasan Attorneys & Counselors, Labor and Employment Team | Hokeun Yoon, Esq.

This is the last one of the 3-series ‘Miracle Industrial Accident Compensation. We will discuss measures to protect platform workers. 

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Miracle Industrial Accident Compensation Part 3

“Three Measures to Protect Platform Workers”

As the number of platform workers skyrockets in recent years, controversies surrounding their legal status are spreading. Platform workers who receive compensations for services directly from consumers with a platform as a medium after deducting certain fees are deemed as so-called persons with special types of employment under the current laws and are not acknowledged as workers under the Labor Standards Act. 

In fact, persons with special types of employment have constantly been an issue as labor that needs protection similar to workers in various occupations including home-school material teachers, insurance solicitors, and quick service drivers. However, the current laws apply for the industrial accident insurance in special cases of several occupations that became issues, while not acknowledging them as workers under the Labor Standards Act. The fact that platform workers do not qualify as workers under the Labor Standards Act implies that they are standing in the blind spot of the social safety net in terms of labor such as the minimum wage and the four major insurances, in addition to the absence of protection of the Labor Standards Act. 

The following three measures can protect platform workers (see 石田眞, 「Information Labor Union」, 'Labor Platform Spreading with the Development of ICT, How the Labor Law should Respond')

 

1. Expanding or More Flexible Worker Protection 

Either by expanding the traditional worker concept or making it more flexible, this method can stabilize the worker status of platform workers. This view supports the proactive protection of platform workers by expanding the scope of workers under the Labor Standards Act based on the change of the framework of the Labor Standards Act itself according to the changing times. 

2. Introducing a Third Category

This method introduces a third category between workers and sole proprietors. Platform labor is unique due to its non-exclusivity, ultra-short-term nature of the work or service performed, unspecified place and period of work, and freedom or independence in selecting work or service. Due to these characteristics, it is difficult to encompass and regulate platform work into the traditional labor under subordinate relationships. Therefore, this view argues approaching platform workers as a third type of labor provider between workers and sole proprietors as they came to existence en masse with the Fourth Industrial Revolution. 

This approach is also met with criticism despite applying a part of the labor law by introducing a third category other than workers and sole proprietors. This is due to the possible difficulties in line drawing and the weakening of workers’ rights. 

3. Necessity of Protected by Legislation

This method provides needed protection to platform workers based on special legislation. France obligates business operators to burden labor insurance premiums and vocational training expenses while guaranteeing the workers’ right to organize, collective action, and collective bargaining. It is crucial to devise ways to protect as needed according to the status of the labor platform. 

The remaining issue is how to protect platform workers who are sole proprietors and fall outside of all newly devised measures and methods. The most serious problem faced by such platform workers is low income and work instability. Sub-contracting and SME-related laws may be considered as protective measures. 

In sum, freedom in work is the core of platform labor. Thus, it would be inappropriate to apply the framework of the Labor Standards Act as is. The most convincing view is that separate legislation should be established to take a balanced approach not to diminish the development of the industry with the minimum protection level such as the so-called ‘Labor Contract Act’ of Japan, which regulates the basic contractual relationship. This is to consider measures to guarantee the right to rest, etc. by forcing written agreements although not as much as workers under the Labor Standards Act. 

‘Labor Contract Act’ of Japan

The Labor Contract Act of Japan prescribes basic principles of labor contracts executed between a worker and an employer. Following the diversification of types of employment and increase in the number of individual labor disputes, the Act was enacted and took effect in March 2008 to increase the clarity of the details of labor contracts and to protect workers in response to the gap in negotiation power and information. 

Japan has a separate Labor Standards Law as a law that prescribes standards for labor conditions to guarantee the right to live of workers. The Labor Standards Law, which is similar to the Labor Standards Act of Korea, differs from the Labor Contract Act as follows. The Labor Standards is of nature as enforcement rules, punishing and regulating, while the Labor Contract Act is non-mandatory rules, solving worker-employer disputes via worker-employer trials, not as a punishment. 

The two differ in terms of the concept of a worker and employer. When a person provides labor based on a service contract or commission, the person does not fall under ‘worker’ under the Labor Standards Law. However, the same person is treated as a worker under the Labor Contract Act. Meanwhile, a concept of the employer is deemed as a person who executes a labor contract with a worker under the Labor Contract Act, while also supervisors and managers such as the HR Chief are deemed ‘employer’ under the Labor Standards Law. 

Because persons who are not acknowledged as workers under the Labor Standards Law and those who work under service contracts can be subjects of protection under the Labor Contract Act, business operators must pay caution. 

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Should you need further inquiry or materials related to this posting, please feel free to contact us at the contact information below (call or email). The attorneys of Dowoo Hwasan Attorneys & Counselors’ Labor and Employment Team will assist you. 

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