South Korea's 'Basic Law for Working People' Faces Scrutiny Over Labor Standards Act Exclusion

South Korea's Ministry of Employment and Labor has announced plans to introduce a 'Basic Law for Working People' and establish a K-Labor Welfare Chamber. These initiatives aim to bolster the social safety net by extending protections to approximately 8.69 million individuals, including special contract workers and freelancers, who are not currently recognized as laborers under the Labor Standards Act.

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The Basic Law for Working People and the presumption of employment will be legislated by December to establish a protection framework for non-wage workers.

The proposed Basic Law for Working People seeks to broaden the constitutional right to work under dignified conditions to all individuals, regardless of their legal status as laborers. However, the law outlines only eight abstract rights, such as the right to fair contracts and appropriate compensation, without providing strong enforcement mechanisms for employers. A 'presumption of employment' system is also part of the package, which would initially consider these workers as laborers in disputes like wage arrears, shifting the burden of proof to the employer.

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The Basic Law expands the right to work under dignified conditions, regardless of labor law status.

Labor unions have expressed concerns that the proposed K-Labor Welfare Chamber, envisioned as a mutual aid society for non-wage workers, could undermine their role by offering services that resemble union representation without the associated bargaining power. The ministry, however, maintains that the chamber will function solely as a support system for welfare services and not for negotiation purposes.

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Concerns exist that the K-Labor Welfare Chamber could replace unions without bargaining rights.

While the government's effort to protect workers in non-traditional employment forms is commendable, critics argue that these measures may fall short of providing substantial protection. The core issue remains that these workers are still not legally recognized as 'laborers' under existing frameworks like the Labor Standards Act. To prevent these well-intentioned policies from being perceived as mere 'tricks' to circumvent existing labor laws, parallel amendments to laws such as the Labor Standards Act, the Occupational Safety and Health Act, and the Minimum Wage Act are crucial. Additionally, support policies for small businesses must be strengthened to ensure that protecting these vulnerable workers does not lead to conflict among different groups of laborers.

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It is difficult to substantially protect 'workers outside the law' with only symbolic and abstract legislation.