[Korea] Insurance industry opposes labour law revisions

In Korea, the insurance industry and insurance agents have opposed the government’s intention to revise labour laws to incorporate special employment workers and freelancers into the formal employment framework, The Korea Times reports.

The proposed system would see approximately 650,000 insurance agents in Korea classified as statutory employees and becoming subject to mandatory provisions of the Labor Standards Act, including severance pay. 

The financial burden placed on insurers is reportedly expected to be several trillion won.

Insurance agents have traditionally been treated as special employment workers (or self-employed contractors) in Korea. They have expressed concern that reclassification as employees could ultimately reduce their take-home earnings.

The government and the ruling Democratic Party of Korea are advancing a legislative package which includes the “worker presumption rule” and a basic act governing working people’s rights. The related bills are set to clear the legislative process on Labor Day (May 1).

The proposed measure of most concern to the insurance sector is the worker presumption rule, which would reportedly assume a person is classified as a worker once it has been established that they provided labour, unless the employer can present evidence to the contrary. It would effectively reverse the current system, which currently demands that individuals prove they qualify as employees

Source: The Korea Times

In Korea, the insurance industry and insurance agents have opposed the government’s intention to revise labour laws to incorporate special employment workers and freelancers into the formal employment framework, The Korea Times reports.

The proposed system would see approximately 650,000 insurance agents in Korea classified as statutory employees and becoming subject to mandatory provisions of the Labor Standards Act, including severance pay. 

The financial burden placed on insurers is reportedly expected to be several trillion won.

Insurance agents have traditionally been treated as special employment workers (or self-employed contractors) in Korea. They have expressed concern that reclassification as employees could ultimately reduce their take-home earnings.

The government and the ruling Democratic Party of Korea are advancing a legislative package which includes the “worker presumption rule” and a basic act governing working people’s rights. The related bills are set to clear the legislative process on Labor Day (May 1).

The proposed measure of most concern to the insurance sector is the worker presumption rule, which would reportedly assume a person is classified as a worker once it has been established that they provided labour, unless the employer can present evidence to the contrary. It would effectively reverse the current system, which currently demands that individuals prove they qualify as employees

Source: The Korea Times