Reasons for Proposal
For the State to formulate and enforce policies on employment and thereby create jobs, secure talent, and support the development of vocational abilities among workers, it is necessary to thoroughly examine the status of employment type. However, the current Act does not prescribe sanctions against employers who disclose their status of employment type in an unlawful manner, and critics point out that such acts are not appropriately controlled. Accordingly, the Amendment prescribes that any employer who fails to disclose or fraudulently discloses the status of employment type shall be punishable by an administrative fine, thereby aiming to promote job creation in enterprises and secure needed talent.
In regards to this matter, firstly, in terms of such factors as the current number of labor inspectors, limited range of labor inspections, and excessive workloads at labor offices, etc., it appears to be more efficient for private, independent professionals to determine the authenticity of disclosed information. Therefore, the Amendment stipulates that a labor management diagnosis report prepared by a private, external certified public labor attorney shall also be disclosed.
Second, the Amendment aims to reduce the burden on employers and further enhance the accuracy of disclosed information by prescribing that the correction of a violation shall be ordered before imposing an administrative fine, which shall only be imposed if the corrective order has been violated.
Third, the Amendment newly inserts provisions that prescribe “an administrative fine of up to 100 million won shall be imposed” to ensure fairness with respect to other cases that impose strong disclosure obligations in supervising large enterprises. It separates and specifies paragraphs to ensure clear system wording and prescribes that the enforcement date shall be 1 year after promulgation to allow time for enterprises to prepare, etc. (Article 41-2 newly inserted, etc.).
Major Provisions
Require the disclosure of the status of employment type together with a labor management diagnosis report on the status of employment type written by an external certified public labor attorney, and allow corrective orders to be issued in the event of non-compliance (Article 15-6).