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National Assembly Legislation

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  • Minimum Wage Act
    • Competent Ministry : Ministry of Employment and Labor
    • Advance Publication of Legislation : 2020-12-30
    • Opinion Submission Deadline : 2021-01-13
Reasons for Proposal

The current Act prescribes that, in cases of performing a project on a piecework basis, when a contractor pays wages that are below the minimum wage amount due to any reason for which a contractee is liable, both the relevant contractee and contractor shall be jointly and severally liable therefor.

However, some claim that the current provisions are unreasonable because the Act does not prescribe the case where the minimum wage is raised after the contract is entered into and the labor costs determined at the time of the contract conclusion fall short of the new minimum wage as a cause for the contractee to remain responsible, and thus, the contractor has to pay the entire increase in labor costs according to the increased minimum wage. 

Meanwhile, it is pointed out that workers' right to know is not properly protected as there is no provision allowing the disclosure of the list of employers or contractors who violate the current Act.

Therefore, the Amendment aims to add any failure to adjust the labor cost of each individual to reach the new minimum wage despite the fact that the minimum wage is raised during the term of the contract as one of the causes for the contractee to be held responsible, and newly establish grounds for disclosing the list of employers who have paid less than the minimum wage or lowered the previous wage due to the minimum wage, and contractees who have failed to perform their joint responsibility with contractors, thereby protecting the right to know of employees on the violation status of the minimum wage (Articles 6 (8) 3 and 23-2 newly inserted).


Major Provisions

Allow the disclosure of a list of users who pay less than the minimum wage or who lower previous wages for the reason of the minimum wage, and contractees who fail to fulfill their joint responsibility with the contractors (Article 23-2).

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