As price competition is getting fierce to be selected as a contractor with the state, it produces non-regular workers including part-time contractors and wages are slashed for employees on the condition that they can keep their job. Due to these side effects, the Act was amended in March 2020 to require the contract party to include a statement that working conditions for the contract performing employee must comply with applicable labor relations laws.

However, applicable labor relations laws are too broad and it is difficult to supervise compliance with such laws. Hence, wages are slashed for employees on the condition that they can keep their job and the cost to perform a contract is passed onto such employees who are socially vulnerable.

In this regard, this Act aims to protect employees who are socially vulnerable by allowing the inclusion in the state contract a ban on unfair treatment such as firing employees or reducing wages without reasonable cause (Article 5-4).

Article 5-4