Small Workplaces in South Korea

A Call for Stronger Labor Protections

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In South Korea, teachers seeking employment should be wary of signing contracts with schools employing fewer than five individuals. A recent study has highlighted the vulnerabilities faced by workers in these smaller establishments, as many provisions of the Labor Standards Act (LSA) don’t apply to them.

Key Findings:

  • A report by the ‘Special Committee on Businesses with Fewer Than 5 Employees’ under Workplace Bullying 119 has termed these businesses as ‘lawless zones’ due to rampant labor law violations.
  • Of 216 tips received from workers in these businesses from January 2020 to June 2023, 20.3% reported violations such as non-enrollment in mandatory insurances and failure to issue employment contracts.
  • The most frequent complaints were related to dismissals and wages (68%), followed by workplace harassment (46.2%).
  • Current labor laws, including those addressing unfair dismissals, working hour restrictions, and workplace harassment, exclude businesses with less than five employees. This leaves a significant 17% of the total workforce, or approximately 3.13 million workers, without full protection.
  • Despite the LSA’s exemptions, all businesses, regardless of size, are required to enroll employees in the four major insurances and issue employment contracts. Yet, a survey found that 33.9% of workers in these small businesses had not received an employment contract, and only 46.1% were enrolled in employment insurance.

Shin Hana, chairperson of the Special Committee, has called on the government to urgently amend the Labor Standards Act to address the challenges faced by workers in small businesses.

Recommendations for Teachers:

Teachers are advised to exercise caution before signing employment contracts. To ensure their rights are protected, they can consider adding a clause that ensures the comprehensive application of the Labor Standards Act. Given the current job market dynamics favoring teachers, they have the leverage to negotiate for such clauses.

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