The current act prescribes that the head of each central government agency or public officials in charge of contracts may let contract parties stipulate the observance of labor-related act and subordinate statutes with regard to the working conditions of laborers to execute the contracts when making contracts and restricts unfair businessmen making unfair contracts or consultation from participating in bidding for two (2) years.

Where, although non-fulfillment of the minimum working conditions prescribed in labor-related acts and subordinate statutes by employers is a violation of rights of laborers as prescribed in the Constitution and working conditions established by the country, observance is prescribed in the current act as a matter of discretion rather than liability and is not stated in detail in the conditions for restriction of bidding participation qualification.

Therefore, it is intended to strengthen the liability of employers to observe related acts and subordinate statutes by stipulating the liability for observance of labor-related acts and subordinate statutes in contracts when making contracts to which the people of the Republic of Korea are a party and by restricting the bidding participation qualification of unfair businessmen who were punished by imprisonment or fine not less than the amount prescribed by the Presidential Decree due to violation of the Labor Standards Act, Act on the Protection, etc. of Fixed-Term and Part-Time Workers, or Act on the Protection, etc. of Temporary Agency Workers (new establishment of Article 5-4 and Article 27.1.8-2).

Draft Article 27