MOEL Interpretation

Non-Regular Workers Act

Act on the Protection of Dispatched Workers, etc.


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346 Records
346.Dispatch agencies appear to arbitrarily deduct from the wages paid by the user company and determine the worker’s wages accordingly. Should this practice be regulated?
345.Is it permissible for a dispatch agency to excessively deduct dispatch fees (is there a legally defined deduction rate under the 「Dispatch Act」)? Can deductions be made not only from base pay but also from performance-based bonuses? And is the dispatch agency required to disclose the total amount received for dispatch services and the amount deducted?
344.A worker is employed by Company A and dispatched to Company B. ① Is it legitimate for Company A to deduct 300,000 KRW from the dispatch fee received from Company B as commission before paying the worker’s wages? ② If the worker works from 11:30 p.m. to 8:30 a.m. the next morning and then participates in a 6-hour “homeland reserve training,” is the worker still required to report to work later that same day?
343.When a dispatch agency sends workers to a user company at the request of the user company, the transaction is conducted using a service or subcontract agreement rather than a worker dispatch contract. Can the law require that a formal worker dispatch contract be used in such cases? Additionally, since industrial accident insurance premiums for dispatched workers are being applied differently based on the type of job, can it be publicly mandated that a single insurance rate be applied to each dispatch agency based on its principal job category, even when workers are dispatched to multiple user companies with different occupations?
342.In a food manufacturing and retail chain, regular employees handle product manufacturing while subcontracted workers handle sales. The store operates until midnight, with production typically ending around 8 p.m., after which only sales occur. Subcontracted sales staff usually finish work around 10 p.m., after which regular in-house employees take over sales duties until midnight. In this case, can this arrangement still be regarded as “mixed work” in the context of distinguishing between dispatch and subcontracting?
341.In the operation and management of an outsourced (subcontracted) service business, do the following cases constitute disguised subcontracting or illegal dispatch, or are they considered lawful subcontracting? Inquiry 1) The contract stipulates, or instructions are given, for service workers to remain stationed or on standby at a designated location within the workplace. Inquiry 2) The service provider is provided free materials, equipment, office space, electricity, water, etc. Inquiry 3) Due to the nature of subway operations, the service provider is directly supplied with train and elevator maintenance parts that are difficult to purchase externally. Inquiry 4) The service provider uses cranes or mobile lifts installed at the workplace because conditions make it difficult to install such equipment independently. Inquiry 5) The contract specifies the number of service personnel, working hours, work methods, frequency, and qualifications. Inquiry 6) Even after the service contract ends and a new one is concluded with a different company, the same workers remain at the same site for over two years due to succession of employment. Inquiry 7) Service workers must check in upon arrival and submit daily work and task reports. Inquiry 8) In either mixed or separate workplaces, the client company’s employee gives direct work instructions to the service provider’s employee. Inquiry 9) The service fee is reduced if the number of dispatched workers is insufficient.
340.I have been working for four years at △△ Plant of ○○ Motors as an employee of a partner company. I belong to the direct support team, which fills in for regular ○○ Motors employees during their absences due to monthly leave, annual leave, family events, etc. My wages are paid by the partner company, but I receive work assignments and instructions from the team leader of the regular support team at ○○ Motors. Over the past four years, I have never performed work for the partner company, only covered vacant posts in the regular team. Should I still be considered a partner company employee, or should I be regarded as a dispatched worker?
339.At a single worksite consisting of four buildings, separate cleaning contractors are assigned to each building. Under the responsibility of each subcontractor’s on-site manager, all operations and decisions are made independently. The subcontractors also procure and manage all cleaning equipment and supplies without interference from the primary contractor. However, for some jointly used consumables, the primary contractor supplies them directly to prevent quality degradation, ensure efficient management, and avoid complex cost calculations. Is this practice legally permissible? Additionally, in a security services subcontract, where employees receive two meals a day, the primary contractor pays 50% of the cost for one meal by adding it separately to the contract amount. Is this also legally and appropriately handled? Lastly, the contract includes a clause stating: “Party A may request Party B to replace any personnel who are clearly unfit for the assigned duties.” Does this clause undermine the subcontractor’s independence in personnel management?
338.After the completion of product manufacturing in a continuous direct production process, is it legally permissible to subcontract only the packaging process as a separate operation? That is, if a subcontractor with employer substance and authority over attendance and supervision is selected and assigned only the packaging function, would this raise any legal issues? If it is permitted, how clearly must the separation between the production line and packaging section be defined?
337.In managing subway station facilities through subcontracting, would it constitute a violation of the 「Act on the Protection, Etc. of Temporary Agency Workers」 if the principal company designates team leaders from each group of the subcontractor as acting supervisors to give work instructions, and if the subcontractor’s work logs (e.g., monthly work records, periodic inspection logs) include a confirmation section for the principal company?
336.Regarding the work conditions at the parts logistics worksites of ○○ Motor Company (Incheon Logistics in the Incheon area, Yeongi Logistics in Chungnam, and Changwon Logistics in the Changwon area), does this constitute “mixed work,” and is there a possibility of it being deemed an illegal dispatch?
335.If the principal contractor provides job training such as customer service (CS) education to contract workers, would this be considered disguised contracting (i.e., illegal dispatch) in the following cases? ① When the training is provided at the expense of the principal contractor, ② When the training costs are borne by the subcontractor, ③ When the training is conducted by the user company and attended by the contract workers.
334.If ○○ Engineering Co., Ltd. signs a contract with ○○ Heavy Industries Co., Ltd., trains 100 foreign workers in welding and other skills, and deploys them to overseas construction sites such as in Qatar operated by ○○ Heavy Industries Co., Ltd., does the 「Act on the Protection, Etc. of Temporary Agency Workers」 apply?
333.What are the respective scopes of worker dispatch business and job placement business, the differences between contracting, commissioning, and dispatch, and in the case of a resort company entering into a human resource management contract, which type of contract—contracting, commissioning, or worker dispatch—should be used?
332.In entering into a security service contract for off-track betting offices, the aim is to prevent unjust wage exploitation by subcontractors and to ensure the livelihood stability of service personnel. ① Would it constitute a violation of the 「Act on the Protection, etc. of Dispatched Workers」 (hereinafter “Dispatched Workers Act”) to include in the service contract a clause stating, “The subcontractor must pay in full the direct labor cost portion (₩1,110,172 per service worker per month) to the service workers”? ② Additionally, would it violate the Dispatched Workers Act to restrict eligibility for limited competitive bidding for security service providers only to those who accept the condition that a certain portion of the contract amount must be paid to service workers as wages?
331.① If a contract is concluded as a subcontract and the client makes decisions on the hiring and dismissal of the subcontractor’s employees, is this illegal and what is the level of punishment? ② Can the client request to be notified in writing of any changes in personnel, such as hiring or dismissal, even if such decisions are made solely by the subcontractor? ③ Is it permissible for direct employees, subcontracted, and dispatched employees to use the same attendance management system (e.g., fingerprint scanners)? ④ Can subcontracted and dispatched employees submit monthly records of attendance to the client and claim night shift pay, overtime pay, and transportation costs?
330.I was hired by a logistics company located within a parent company five years ago and have since been dispatched to the parent company’s Materials Division under the Business Management Office. I receive all work instructions — including reporting to and leaving work, as well as overtime — directly from the parent company. I perform tasks such as inbound and outbound logistics using a forklift. In this case, do I fall under the category of a dispatched worker? Additionally, does my work qualify as permissible dispatch work?
329.Our organization is an institution established under the 「Local Public Enterprises Act」 and operated with budget support from ○○ City. A department within our corporation, the “○○ Youth Center,” is being transferred to a newly established “○○ Youth Development Foundation (Foundation A)” by ○○ City. Of the 65 employees working at the Youth Center, 40 will be specially hired (succeeded employment) by Foundation A, while the remaining 25 will continue to be employed by our corporation but work under the direction and supervision of Foundation A until retirement, based on a delegation agreement. Salaries will be paid by our corporation using funds received from Foundation A. Under these circumstances, would this arrangement constitute a violation of the 「Act on the Protection, etc. of Dispatched Workers」 (hereinafter “Dispatched Workers Act”)?
328.In the course of a city development project, a consortium composed of a public enterprise and a private company jointly established a nominal company as the project developer and then founded an asset management company to which the development project would be delegated. The personnel of the asset management company were to be recruited through new employment (transfer) of employees from the public enterprise and the main private company in the consortium, ‘A Private Company’ (a construction firm with development expertise). However, employees of A Private Company refused new employment (transfer), so the plan is to have them work through inter-affiliate “external dispatch” (transfer) instead. The compensation to A Private Company would be based on the actual employment costs for the personnel, without any additional profit margin. Under these circumstances, would this arrangement constitute “worker dispatch” under the 「Act on the Protection, etc. of Dispatched Workers」 (hereinafter “Dispatched Workers Act”)?
327.A planning company enters into a service (outsourcing) contract with the three major broadcasting companies to supply and manage extras required for drama production. The company selects extras, deploys them to filming sites, provides necessary transportation, and exercises direction and supervision over waiting, gathering, and performing on set. The company deducts management fees from the commissions paid by the broadcasters and pays the extras their daily wages. Under these circumstances, does this constitute the operation of a worker dispatch business?
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