Please find below an update on key labor law amendments for the second half of this year which employers should be mindful of.
1. Expansion of the scope of special employment type workers: effective as of July 1, 2020
Under the Industrial Accident Compensation Insurance Act (the "IACIA"), a certain scope of "special employment type workers" is entitled to workers compensation benefits. Prior to the amendment on July 1 of this year, the scope of such workers were as follows: insurance agents, private tutors, golf caddies, delivery workers, expedited/"quick" delivery workers, etc. Pursuant to the amendment, the following types of workers were added to the aforementioned scope eligible for workers compensation benefits: tutors who visit homes and use teaching tools/aids, door-to-door salespersons, rental product inspectors, home electronics installers, cargo vehicle owners, etc.
2. Grounds for exemption from vicarious liability involving an unfair labor practice: effective as of June 9, 2020
On April 11, 2019, the Constitutional Court found that the vicarious liability provision for an unfair labor practice under the Trade Union and Labor Relations Adjustment Act (the “TULRAA”), under which both the individual who committed the unfair labor practice and his/her employer are subject to punishment, is unconstitutional. As such, via an amendment to the TULRAA effective June 9 of this year, a new provision was added which provides that the employing entity may be exempt from such liability if it has exercised significant care and supervision to prevent the unfair labor practice concerned.
3. Amendment to provision regarding providing financial support for the operational expenses of a labor union: effective as of June 9, 2020
On May 31, 2018, the Constitutional Court ruled that it is unconstitutional to uniformly prohibit employers from providing financial support for the operational expenses of a labor union even if doing so may not hinder the labor union’s autonomous operation or activities. Accordingly, the TULRAA has been amended effective as of June 9 of this year to allow employers to provide financial support to a labor union for operational expenses to the extent that there is no risk of infringing upon the labor union’s autonomous operation or activities.
4. Enhanced punishment for fraudulently receiving subsidies under employment insurance, etc.: expected to be effective as of August 28, 2020
To prevent individuals from fraudulently receiving government subsidies in collusion with his/her employer, a penal provision has been added via an amendment to the Employment Insurance Act. Under this provision, if an individual colludes with the employer to receive government subsidies (such as subsidies for employment stabilization and vocational competency development programs, unemployment benefits, childcare leave benefits, benefits for reduction of working hours for childcare and/or maternity leave benefits) via falsification or otherwise fraudulent means, the individual and the employer concerned will face imprisonment of up to five years or a criminal fine of up to KRW 50 million, respectively.
5. Retroactive recognition of accidents during ordinary commute times: effective as of June 9, 2020
On September 29, 2016, the Constitutional Court found that it is unconstitutional to recognize only those accidents which occur during the employee’s commute under the employer’s control and management as industrial accidents. As such, an amendment to the IACIA was passed and thus employee accidents that occur while commuting via ordinary routes and methods have been recognized as industrial accidents since January 1, 2018. The Constitutional Court ruled that not recognizing accidents which (i) occurred while commuting via ordinary routes and methods and (ii) between the date the above decision was rendered (September 29, 2016) and the enforcement date of the amendment (January 1, 2018) was unreasonable discrimination. On such grounds, the Constitutional Court found that this was unconstitutional and as such, workers compensation benefits are now also available to employees for accidents that which occurred after September 29, 2016 during an employee’s ordinary commute.
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