South Korea Considers Curbs on 'Split Contracts' Amid Widespread Job Insecurity

The Hankyoreh reports on the pervasive issue of 'split contracts' in South Korea, where employers repeatedly use short-term contracts to circumvent laws requiring the conversion of workers to permanent status after two years. This practice disproportionately affects older workers and young people, leaving them in precarious employment situations with constant job insecurity and vulnerability to exploitation.

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The contract ends and I have to move schools. My employment is unstable, and I'm always under pressure.

The article highlights the experiences of individuals like 'A', a 44-year-old administrative assistant who has been subjected to three separate six-month to one-year contracts for the same role, and 'B', a 27-year-old who worked under three- to six-month contracts at a spa clothing brand. These personal accounts underscore the human cost of these exploitative practices, where workers are forced to move jobs frequently and live under the constant pressure of unstable employment.

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Even full-time workers who work 40 hours a week have one-year contracts. Part-time workers work in three- to six-month increments.

While the government is exploring solutions such as limiting contract renewal times and introducing 'cooling-off periods' between contracts, labor unions argue that these measures alone are insufficient. They advocate for a more comprehensive reform of the temporary employment system, including restrictions on the reasons for using temporary contracts and the provision of instability allowances for those on contracts shorter than a year. The business community, represented by the Korea Employers Federation, acknowledges the need to address abuses in 'split contracts' for continuous work but maintains that short-term contracts are sometimes unavoidable due to the nature of the work.

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Limiting the number of renewals, as well as setting a minimum contract period, could be a way to regulate the abuse of 'split contracts'.

This issue strikes at the heart of labor rights and economic fairness in South Korea. The 'split contract' system, while perhaps offering short-term flexibility for employers, creates a deeply insecure workforce, hindering individual economic stability and contributing to broader societal inequalities. The debate over how to effectively regulate these practices reflects a larger struggle between employer interests and the need for robust worker protections in a rapidly evolving labor market.

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If only the limit on renewals is introduced, the total working hours might actually decrease. We need to discuss limiting the reasons for using temporary contracts and providing instability allowances for contracts under one year together.