Special Cases Relating to the Application of the Labor Standards Act (Article 34)
Using Employer's Liability
1) In case where a using employer breaches a contract on worker dispatch without a justifiable reason; and
2) In case where a using employer fails to pay for worker dispatch, which is stipulated in the contract on worker dispatch, without a justifiable reason

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Article 34 (Special Cases Relating to Application of Labor Standards Act)

(1)With regard to services provided by a dispatched worker during his/her dispatch period, the Labor Standards Act shall be applied as the sending employer and the using employer shall be deemed an employer under Article 2 of the same Act : Provided that in applying Articles 15 through 36, Article 39, Articles 41 through 48, Articles 56, 60 and 64, Articles 66 through 68 and Articles 78 through 92 of the same Act, the sending employer shall be deemed an employer while in applying Articles 50 through 55, Article 58, 59, 62 and 63 and Articles 69 through 75 of the same Act, the using employer shall be deemed an employer.

(2)If a sending employer fails to pay wages to a dispatched worker due to causes attributable to the using employer as prescribed by the Presidential Decree, the using employer shall be jointly liable for that failure along with the sending employer. In this case, the sending employer and the using employer, in applying Articles 43 and 68 of the Labor Standards Act, shall be deemed an employer under Article 2 of the same Act and the same Act shall apply to them accordingly.

(3)If a using employer grants paid holidays or paid leave under Articles 55, 73 and 74 (1) of the Labor Standards Act, the wages during such holidays or leave shall be paid by the sending employer.

(4)If a sending employer and a using employer conclude a worker dispatch contract which contains any terms and conditions violating the Labor Standards Act, and violate the same Act by requiring a dispatched worker work to offer services in accordance with the contract, they shall be subject to the relevant penal provisions on the ground that all parties to the contract shall be deemed an employer under Article 15 of the same Act.

ENFORCEMENT DECREE

Article 5 (Causes Attributable to Using Employer)

"Causes attributable to a using employer as prescribed by the Presidential Decree” in the former part of Article 34 (2) of the Act refer to causes falling under any of the following subparagraphs:

1.Where a using employer breaches a worker dispatch contract without a justifiable reason; and

2.Where a using employer fails to pay the price of worker dispatch stipulated in a worker dispatch contract, without a justifiable reason.