On July 31, 2018, the Employment Insurance Commission announced that “special-type workers,” which encompass various types of non-conventional types of laborers, such as insurance solicitors, golf caddies, workbook tutors, and delivery service workers, would become eligible for unemployment benefits in a gradual step based on the specific type of employment and the need for unemployment protection.  

However, details of coverage, such as the jobs that will first become eligible, the standard for calculating the amount of benefits, and the overall timeline for enforcement, have not yet been finalized. 

Key Aspects:

Under the expanded coverage of the new unemployment insurance plan, special-type workers and their employers (like any other regular-type employee and his/her employer) are required to equally bear the cost of the unemployment insurance premium.  

For instance, according to the published unemployment insurance premium rate for 2018, as the premium, an amount equivalent to 0.65% of the special type worker's annual remuneration will have to be contributed equally by each worker and his/her employer.  Further, if there is more than one layer of subcontracts for a given project, the primary contractor is anticipated to apply for and withhold the insurance premium on behalf of its subcontractors and/or the special type workers that they hire.

Significance:

Accordingly, the labor costs for the companies that use special type workers are expected to increase due to their new obligation to pay additional insurance premium.  Also, as unemployment benefits are paid to those who are unemployed against their will, legal disputes on how, and in what circumstances, the special type workers left their previous employment position are expected to increase.

This new system will most likely be implemented during the first half of 2019.  As such, companies using special type workers, such as insurance solicitors, would need to pay special attention to their human resources management.