(1) Reasons for Proposal

As the Act on the Employment Improvement, etc. of Construction Workers (Act No. 16620, promulgated on Nov. 26, 2018) has been revised to say that those who contract construction work ordered by the state, local governments, etc., shall pay wages to their subcontractors monthly distinguished from other construction expenses, and that if a business owner fails to report or misreport the number of working days, the beneficiaries may report it directly, this amendment aims to prepare and improve regulations on matters delegated by the Act, such as distinguished wage payment, procedures for the confirmation system, and procedures for directly reporting the number of working days by beneficiaries, and also to remedy operational shortcomings such as the simplification of forms.

(2) Major Provisions

A. Regulate Distinguished Wage Payment and Confirmation Procedures (Article 4-2, attached Form 17 newly inserted)

A subcontractor shall submit the bill of wages to be paid to the construction workers along with the previous month's wage payment history every month in compliance with the wage due date decided in consultation with its original contractor. Then, if unpaid wages are found when the previous payment history is compared to the claim details for the same month, the original contractor shall notify the fact to the Minister of Employment and Labor. Also, the contractor shall check the wage claim details on the worker list, etc., and shall pay to the beneficiaries’ accounts specified for wage within five days of receiving the claim, and then the subcontractors shall pay wages to construction workers within five days of receiving wages.

B. Regulate Direct Reporting of Working Days by Beneficiaries (Article 16-2, attached Form 12-2 through 12-4 newly inserted)

A beneficiary who intends to directly report the number of working days shall submit a copy, etc., of the documents confirming the number of working days, attached to attached Form 12-2.

C. Regulate Direct Payment of Mutual-Aid Installments by Original Contractors (Article 16-3, attached Form 12-5 through 12-7 newly inserted)

If an original contractor wants to pay mutual-aid installments on behalf of subcontractors, he/she shall submit attached Form 12-5 to the Mutual-Aid Association, attaching documents confirming the facts to pay, and the Mutual-Aid Association shall notify the original contractor of the fact incurring an obligation to pay the mutual-aid installments in attached Form 12-6. If the original contractor's obligation to pay directly is changed due to the business owner’s discontinuation of a bankruptcy declaration, etc., the original contractor shall submit documents supporting the relevant fact, attached to attached Form 12-7, to the Mutual-Aid Association.

D. Improve Regulations Due to Easing Requirements for Retirement Mutual-Aid Money (Articles 17, 18 and 24, revision of attached Form 14)

As the applicable requirements for retirement mutual-aid money have been eased under the revised Act, this amendment provides the basis for telephone claims in the case of small amounts for the convenience of claiming retirement mutual-aid money for beneficiaries and improves operational shortcomings such as by simplifying the documents to be submitted.