ACT ON THE PROTECTION, ETC., OF DISPATCHED WORKERS [See entire ACT]

CHAPTER Ⅱ Proper Operation of Worker Dispatch Undertakings

Article 5 (Jobs Permitted for Temporary Placement of Workers)

(1) Jobs permitted for temporary placement of workers shall be deemed appropriate for that purpose in consideration of professional knowledge, skills or experience or the nature of duties and prescribed by Presidential Decree, except for those directly related to production in the manufacturing industry.

(2) Notwithstanding paragraph (1), if a vacancy occurs due to child birth, an illness, injury, etc. or there is a need to temporarily or intermittently secure manpower, temporary placement of workers may be permitted.

(3) Notwithstanding paragraphs (1) and (2), no temporary workers shall be assigned to any of the following jobs:

1. Jobs performed at a construction site;

2. Harbor stevedore jobs defined in subparagraph 1 of Article 3 of the Harbor Transport Business Act; Article 9 (1) 1 of the Korea Railroad Corporation Act; Article 40 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products; and Article 2 (1) 1 of the Framework Act on Logistics Policies, which are performed in an area where worker supply service is permitted pursuant to Article 33 of the Employment Security Act;

3. Seafarers' jobs defined in subparagraph 1 of Article 2 of the Seafarers’ Act;

4. Harmful or hazardous jobs prescribed in Article 58 of the Occupational Safety and Health Act;

5. Any other job prescribed by Presidential Decree as deemed inappropriate for temporary work agency business by reason of protecting workers, etc.

(4) Where any user company intends to use a temporary agency worker pursuant to paragraph (2), the user company shall have sincere prior consultation with a trade union of the company or workplace if the trade union is comprised of a majority of workers, or with a person representing a majority of workers if no trade union exists.

(5) No person shall engage in temporary work agency business nor be provided with temporary agency services in violation of paragraphs (1) through (4).

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Enforcement Ordinance

Article 2 (Jobs Permitted for, and Prohibited of, Temporary Placement of Workers)

(1) “Jobs ... prescribed by Presidential Decree” in Article 5 (1) of the Act on the Protection, etc. of Temporary Agency Workers (hereinafter referred to as the “Act”) means jobs provided for in attached Table 1.

(2) “Any other job prescribed by Presidential Decree” in Article 5 (3) 5 of the Act means any of the following:

1. Jobs to perform dusty work defined in subparagraph 3 of Article 2 of the Act on the Prevention of Pneumoconiosis and Protection, etc. of Workers Suffering from Pneumoconiosis;

2. Jobs to issue health management cards pursuant to Article 137 of the Occupational Safety and Health Act;

3. Jobs working as medical personnel defined in Article 2 of the Medical Service Act, and as nursing assistants referred to in Article 80-2 of the same Act;

4. Jobs working as medical technicians pursuant to Article 3 of the Medical Service Technologists, etc. Act;

5. Driving jobs working for passenger transport businesses defined in subparagraph 3 of Article 2 of the Passenger Transport Service Act;

6. Driving jobs working for trucking transport businesses defined in subparagraph 3 of Article 2 of the Trucking Transport Business Act.

Article 6 (Period of Temporary Employment)

(1) The employment period of a temporary agency worker shall not exceed one year, except in cases falling under Article 5 (2).

(2) Notwithstanding paragraph (1), a period of temporary employment may be extended if agreed among the temporary work agency, the user company and the temporary agency worker. In such cases, the period so extended shall not exceed one year at a time, and the total period of temporary employment, including the extended period, shall not exceed two years.

(3) Notwithstanding the latter part of paragraph (2), with regard to aged temporary agency workers defined in subparagraph 1 of Article 2 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion, the total period of temporary employment may exceed two years.

(4) An employment period of a temporary agency worker under Article 5 (2) shall be according to the following classifications:

1. Where there is a clear and objective cause, such as childbirth, illness, injury, etc.: A period required to resolve the relevant cause;

2. Where there is a need to secure manpower on a temporary or intermittent basis: A period of up to three months: Provided, That where the relevant cause is not resolved and an agreement is made among the temporary work agency, the user company and the temporary agency worker, the period may be extended by up to three months only once.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 6-2 (Obligations of Employment)

(1) Where a user company falls under any of the following cases, the user company shall directly employ a temporary agency worker:

1. Where the user company uses the temporary agency worker in the jobs prohibited from temporary placement of workers prescribed in Article 5 (1) (excluding cases where temporary work agency business is conducted pursuant to Article 5 (2));

2. Where the user company uses the temporary agency worker in violation of Article 5 (3);

3. Where the user company continues to use the temporary agency worker in excess of two years in violation of Article 6 (2);

4. Where the user company uses the temporary agency worker in violation of Article 6 (4);

5. Where the user company is provided with services for temporary placement of workers in violation of Article 7 (3).

(2) Paragraph (1) shall not apply where the relevant temporary agency worker clearly expresses his/her dissenting opinion or where a justifiable ground prescribed by Presidential Decree exists.

(3) Where a user company directly employs a temporary agency worker pursuant to paragraph (1), working conditions for the temporary agency worker shall be according to the following classifications:

1. Where there is a worker performing the same or similar kind of duties as the temporary agency worker among the workers employed by the user company: The working conditions prescribed in the employment rules, etc. applicable to such worker shall apply to the temporary agency worker;

2. Where there is no worker performing the same or similar kind of duties as the temporary agency worker among the workers employed by the user company: The working conditions for the temporary agency worker shall not be worsened compared to his/her existing working conditions.

(4) Where a user company intends to directly employ a worker for a job for which a temporary agency worker is already being placed, the user company shall endeavor to give priority to employing the temporary agency worker.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Enforcement Ordinance

Article 2-2 (Exemption from Mandatory Employment)

“Where a justifiable ground prescribed by Presidential Decree exists” in Article 6-2 (2) of the Act means any of the following:

1. Cases falling under any of Article 7 (1) 1 through 3 of the Wage Claim Guarantee Act;

2. Where it is impossible to continue business due to natural disasters, war, or other unforeseen circumstances.

[This Article Newly Inserted by Presidential Decree No. 20094, Jun. 18, 2007]

Article 7 (Permission for Worker Dispatch Undertakings)

(1) Any person who intends to engage in temporary work agency business shall obtain permission from the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor. The foregoing shall also apply to any revision of important matters prescribed by Ordinance of the Ministry of Employment and Labor among permitted matters.

(2) Where a person who has obtained permission for temporary work agency business pursuant to the former part of paragraph (1) intends to revise permitted matters, other than the important matters referred to in the latter part of the same paragraph, the person shall report such revision to the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor.

(3) No user company shall be provided with temporary agency services from a person who engages in temporary work agency business in violation of paragraph (1).

(4) If The Minister of Employment and Labor receive the report as stated in Article 7(2), shall review the report and accept the reports if they are appropriate for the Act.

Enforcement Ordinance

Article 6-2 (Handling of Sensitive Information and Personally Identifiable Information)

The Minister of Employment and Labor (including persons to whom authority of the Minister of Employment and Labor is delegated pursuant to Article 6) or the Labor Relations Commission may handle criminal history records referred to in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers or alien registration numbers provided for in subparagraph 1 or 4 of Article 19 of the same Decree, if it is essential to conduct the following:

1. Affairs regarding permission, or reporting on the revision, of temporary work agencies pursuant to Article 7 of the Act;

2. Affairs regarding verification of grounds for disqualification from obtaining permission pursuant to Article 8 of the Act;

3. Affairs regarding permission for renewal of temporary work agencies pursuant to Article 10 (2) of the Act;

4. Affairs regarding reporting on the closure of temporary work agencies pursuant to Article 11 of the Act;

5. Affairs regarding business reports submitted by temporary work agencies pursuant to Article 18 of the Act;

6. Affairs regarding requests to eliminate discriminatory treatment against temporary agency workers pursuant to Article 21 of the Act.

[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]

Article 8 (Grounds for Disqualification from Obtaining Permission)

Any of the following persons is disqualified from obtaining permission for temporary work agency business referred to in Article 7:

1. A minor, a person under adult guardianship, a person under limited guardianship, or a person who was declared bankrupt and has not yet reinstated;

2. A person in whose case two years have not passed since his/her imprisonment without labor or a heavier punishment (excluding a suspended sentence thereof) as declared by a court was completely executed or exempted;

3. A person who was sentenced to a fine or a heavier punishment (excluding a suspended sentence thereof) for violating this Act; the Employment Security Act; Articles 7, 9, 20 through 22, 36, 43, 44, 44-2, 46, 56 and 64 of the Labor Standards Act; Article 6 of the Minimum Wage Act; and Article 110 of the Seafarers’ Act, and in whose case three years have not passed since the punishment was completely executed or exempted;

4. A person under the suspended sentence of imprisonment without labor or a heavier punishment as declared by a court;

5. A person in whose case three years have not passed since permission for the relevant business was revoked under Article 12;

6. A corporation which has an executive falling under any of subparagraphs 1 through 5.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 9 (Criteria for Granting Permission)

(1) Where any application for permission of temporary work agency business is filed pursuant to Article 7, the Minister of Employment and Labor may grant permission only when all of the following requirements are met:

1. An applicant shall have assets, facilities, etc. which enable him/her to properly conduct temporary work agency business;

2. The relevant temporary work agency business shall not target a small number of particular user companies.

(2) Detailed criteria for granting permission under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Enforcement Ordinance

Article 3 (Detailed Criteria for Granting Permission)

Criteria for assets, facilities, etc. of a temporary work agency pursuant to Article 9 (2) of the Act shall be as follows:

1. The temporary work agency shall be a business or workplace employing at least five full-time workers (excluding temporary agency workers) covered by employment insurance, national pension, industrial accident compensation insurance, and national health insurance;

2. The temporary work agency shall have capital of at least 100 million won (in cases of individuals, referring to the their appraised asset value);

3. The temporary work agency shall have an office with an area exceeding 20 square meters for exclusive use.

Article 10 (Period of Validity of Permission)

(1) The period of validity of permission for temporary work agency business shall be three years.

(2) Any person who intends to continue to conduct the temporary work agency business after expiration of the period of validity of permission prescribed in paragraph (1) shall obtain permission for renewal, as prescribed by Ordinance of the Ministry of Employment and Labor.

(3) The period of validity of any renewed permission prescribed in paragraph (2) shall be three years counting from the date following the date on which the period of validity of permission expires.

(4) Articles 7 through 9 shall apply mutatis mutandis to permission for renewal prescribed in paragraph (2).

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 11 (Closure of Business)

(1) Where a temporary work agency closes temporary work agency business, it shall report such closure to the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor.

(2) Where a report is filed under paragraph (1), permission for temporary work agency business shall become void from the date of reporting.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 12 (Revocation of Permission)

(1) Where a temporary work agency falls under any of the following cases, the Minister of Employment and Labor may revoke permission for temporary work agency business or order such temporary work agency to suspend its business for a prescribed period of up to six months: Provided, That if it falls under subparagraph 1 or 2, permission for temporary work agency business shall be revoked:

1. Where it obtains permission referred to in Article 7 (1) or 10 (2) by false or other fraudulent means;

2. Where it is disqualified due to any ground prescribed in Article 8;

3. Where it engages in temporary work agency business in violation of Article 5 (5);

4. Where it engages in temporary work agency business in violation of Article 6 (1), (2) or (4);

5. Where it revises any of the important matters without obtaining permission in violation of the latter part of Article 7 (1);

6. Where it revises any of the reported matters without reporting such revision as required under Article 7 (2);

7. Where it ceases to meet the criteria for permission prescribed in Article 9;

8. Where it fails to report business closure prescribed in Article 11 (1);

9. Where it fails to notify a user company of the details of a disposition of business suspension in violation of Article 13 (2);

10. Where it violates the ban on concurrent business prescribed in Article 14;

11. Where it lends its trade name in violation of Article 15;

12. Where it temporarily places workers in violation of Article 16 (1);

13. Where it violates matters to be observed under Article 17;

14. Where it fails to file a report as prescribed in Article 18 or files a false report;

15. Where it fails to conclude a written contract on temporary placement of workers pursuant to Article 20 (1);

16. Where it temporarily places workers without obtaining consent from such workers in violation of Article 24 (2);

17. Where it concludes an employment contract or a contract on temporary placement of workers in violation of Article 25;

18. Where it fails to inform a temporary agency worker of the matters referred to in Article 20 (1) 2 and 4 through 12 in violation of Article 26 (1);

19. Where it fails to appoint a manager responsible for temporary agency services referred to in Article 28 or appoints a disqualified person for that position;

20. Where it fails to prepare or preserve a ledger for the management of temporary agency services pursuant to Article 29;

21. Where it fails to send the results of a health examination to a user company in violation of Article 35 (5);

22. Where it fails to comply with an order to improve the operation of temporary work agency business and employment management of temporary agency workers pursuant to Article 37;

23. Where it violates an order to report prescribed in Article 38 or refuses, interferes with or evades visit, inspections or questioning by related public officials.

(2) Where the Minister of Employment and Labor intends to revoke permission for a corporation disqualified due to any ground prescribed in subparagraph 6 of Article 8, the Minister shall give in advance such corporation at least one month to replace the relevant executive.

(3) Where the Minister of Employment and Labor intends to revoke permission granted pursuant to paragraph (1), the Minister shall hold a hearing.

(4) Criteria for revoking permission for temporary work agency business or suspension of business under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 13 (Temporary Placement of Workers after Revocation of Permission)

(1) A temporary work agency for which permission is revoked or of which business is suspended under Article 12 shall have duties and rights as a temporary work agency for any temporary agency worker placed before such disposition as well as for the user company until the end of the employment period of the relevant temporary agency worker.

(2) In cases under paragraph (1), a temporary work agency shall notify a user company of such disposition without delay.
[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 14 (Prohibition of Concurrent Business)

A person who conducts any of the following business shall not engage in temporary work agency business:

1. Food services business prescribed in Article 36 (1) 3 of the Food Sanitation Act;

2. Accommodation business prescribed in Article 2 (1) 2 of the Public Health Control Act;

3. Marriage brokers business defined in subparagraph 2 of Article 2 of the Marriage Brokers Business Management Act;

4. Any other business prescribed by Presidential Decree.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 15 (Prohibition of Lending Trade Name)

No temporary work agency shall allow a third person to conduct temporary work agency business by using its trade name.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 16 (Restrictions on Temporary Placement of Workers)

(1) No temporary work agency shall place workers to any workplace where industrial action is underway to perform business affairs interrupted by such industrial action.

(2) No person who dismisses a worker for management reasons prescribed in Article 24 of the Labor Standards Act shall use a temporary agency worker for the same work before the end of a period prescribed by Presidential Decree.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Enforcement Ordinance

Article 4 (Limitation on Use of Temporary Agency Workers)

“Period prescribed by Presidential Decree” in Article 16 (2) of the Act means two years: Provided, That where the relevant business or workplace has a union comprised of a majority of workers, and obtains consent of the union (referring to a person representing a majority of workers if no trade union is comprised of a majority of workers), such period shall be six months.

Article 17 (Matters to be Observed by Temporary Work Agencies)

Each temporary work agency and manager responsible for temporary agency services prescribed in Article 28 shall observe matters prescribed by Ordinance of the Ministry of Employment and Labor to conduct temporary work agency business.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 18 (Reporting on Business)

Each temporary work agency shall prepare a business report and submit it to the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

Article 19 (Measures for Closure)

(1) Where any person conducts temporary work agency business without permission or continues to conduct temporary work agency business after being subject to a disposition of business suspension or revocation of permission, the Minister of Employment and Labor may authorize related public officials to take the following measures to close business of such person:

1. Removing signboards or eliminating other business signs of the relevant place of business or office;

2. Posting notices indicating that the relevant business is illegal;

3. Sealing to make equipment or facilities indispensable for the operation of the relevant business unavailable.

(2) Where measures prescribed in paragraph (1) are to be taken, the relevant temporary work agency or its agent shall be notified in advance in writing: Provided, That the foregoing shall not apply in cases of emergency.

(3) The measures referred to in paragraph (1) shall be taken to the minimum extent necessary for closing the relevant business.

(4) Any relevant public official who takes measures prescribed in paragraph (1) shall produce a document certifying his/her authority to relevant persons.

[This Article Wholly Amended by Act No. 16413, Apr. 30, 2019]

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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