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National Assembly Legislation

  • [Labor] Act on Contracts to Which a Local Government is a Party
    • Competent Ministry : Ministry of the Interior and Safety
    • Advance Publication of Legislation : 2018-04-09
    • Opinion Submission Deadline : 2018-04-23
Reasons for Proposal

In 2016, a 19-year old worker was hit and killed by a train while repairing a screen door at Guyui Station without any coworker to watch out for a train approaching. In October 2017, it was found that 4 out of 5 firms under contract with the Korea Rail Network Authority had violated the minimum wage requirements. Even after these tragic accidents, many indirectly employed workers in the public sector are still working under conditions that breach the current law.

Accordingly, when entering into a contract to which a local government is a party, the bill requires the inclusion of specific working conditions for a worker employed by the other party in the terms and conditions of the contract, notification of such conditions to the worker concerned, and assumption by employers who violate the contractual terms of liability for punitive damages, thereby ensuring workers’ basic livelihood. 

Details

A. When entering into a contract with a local government, the head of a local government or a public official responsible for the contract shall incorporate the working conditions for a worker employed by the other party in the terms and conditions to fulfill the contract (Article 6-3 newly inserted).

B. The other party to a contract shall notify the worker of his/her finalized working conditions and, in case of breach, shall be subject to punishment by a fine of up to 5 million won (Article 14, paragraph 4 and Article 45 newly inserted).

C. In cases where the other party to a contract violates the working conditions and causes damage to a worker, the other party shall assume liability for damages up to three times such amount (Article 44 newly inserted).


Major Provisions
The other party to a contract shall notify a worker of his/her finalized working conditions (Article 14, paragraph 4 newly inserted).


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