Even though a social safety net is more important than ever for vulnerable groups due to the spread of COVID-19, the current Act defines those subject to Employment Insurance too narrowly. As such, there are many labor providers alienated from legal protections as they are considered personal business operators even though they provide labor similar to other types of workers.

To swiftly introduce the employment insurance scheme covering all working people, this Act aims to amend the Employment Insurance Act in a way that regulations on Employment Insurance eligibility and job-seeking benefits can apply to persons in special types of employment, platform workers, or other labor providers, and regulate the collection of insurance premiums accordingly.

Details

A. Special cases of Employment Insurance for labor providers (Article 48-3 newly inserted)

1) Require labor providers covered by Employment Insurance under the Employment Insurance Act and any employer in any business that signs a labor providing contract with them as the other party to become members of Employment Insurance.

2) State that the compensation of labor providers is the amount subtracting money and other valuables prescribed by Presidential Decree from business income and other income under the Income Tax Act, and allow for reflecting the type of employment and determining separately by Presidential Decree after review by the Employment Insurance Committee the Employment Insurance premiums and Employment Insurance premium rate that must be paid by any employer in any business that signs a labor providing contract with them as the other party.

B. Reporting and insurance work on behalf of labor providing platform business operators, etc. (Article 48-4 newly inserted)

1) In the event that any labor providing platform business operator under the Employment Insurance Act signs a contract with any employer in any labor providing business about the use of a labor providing platform, require the operator to report to the Korea Workers' Compensation and Welfare Service the name and address of the employer and operator and the start or end date of using the platform for the business by the employer.

2) In the event that any labor providing platform business operator signs a contract with any employer in any labor providing business subject to the Employment Insurance Act about the use of a labor providing platform, allow the operator to sign the contract that enables the employer to perform work such as reporting the insurance eligibility of the employer and operator and paying Employment Insurance premiums on his or her behalf.

Notes

This Act rests on the premise that the “Partial Amendment to the Employment Insurance Act” (Bill no. 5264), represented and proposed by National Assembly member Lee Su-jin, is passed. If the bill is not passed or is passed with modification, this Act must be adjusted accordingly.

In the event that any labor providing platform business operator signs a contract with any employer in any labor providing business about the use of a labor providing platform, require the operator to report the start or end date of using the platform and other information to the Korea Workers' Compensation and Welfare Service (Article 48-4 newly inserted).