Domestic Workers Protected by Law and Hired by Certification Agencies... "Expectations for New Industries and Job Creation"

Enactment of the "Act on Employment Improvement for Domestic Workers" Approved at Cabinet Meeting
Ministry of Employment: "It Will Be the First Step to Formalize and Revitalize the Domestic Service Market"

Photo by Yonhap News

[Asia Economy Reporter Kim Bo-kyung] A new law is being promoted to bring the domestic service market into the spotlight and strengthen the protection of domestic workers' rights.

On the morning of the 7th, the government reviewed and approved the draft bill for the "Act on the Improvement of Employment of Domestic Workers" at the Cabinet meeting.

Recently, the demand for domestic services has increased due to the rise in dual-income households. However, most service users and domestic workers have only made verbal agreements, and services have been provided unofficially. As a result, domestic workers have faced limitations in rights protection, such as the non-application of the Labor Standards Act, severance pay, and employment and industrial accident insurance. Users have also demanded reliable domestic services.

Accordingly, the government has prepared a law requiring domestic service providers to bear responsibilities as employers under the Labor Standards Act, manage services, and compensate for damages. The main contents of the draft include ▲ government certification system for domestic service providers ▲ protection of domestic workers ▲ conclusion of service contracts.

First, the government will certify institutions that meet requirements such as signing labor contracts with domestic workers and preparing means for compensation, and certified institutions will bear responsibility for all domestic services they provide. Labor-related laws will apply to certified institutions and domestic workers, guaranteeing rights such as paid weekly holidays, paid annual leave, and severance pay.

In particular, unless domestic workers voluntarily wish otherwise or there are special business circumstances, they will be able to work at least 15 hours per week to prevent issues related to the exclusion of labor laws for ultra-short working hours.

Official service use contracts will be signed between certified institutions and users, and services will be provided based on these contracts. The Ministry of Employment and Labor plans to prepare a standard use contract that includes not only service type, hours, and fees but also matters related to domestic worker protection such as break times and safety.

The bill will be discussed in the National Assembly in the future. Upon approval by the National Assembly, it will be implemented after a one-year grace period. Even after implementation, services through existing job placement agencies will still be possible, ensuring the choice of domestic workers and users.

The Ministry of Employment and Labor expects that within about five years after the law is enacted, 30-50% of domestic workers will be directly employed to provide services. The estimated 46,000 to 78,000 domestic workers will have the opportunity to work as stable employees directly employed by government-certified institutions.

Domestic service users will be able to use reliable domestic services through government-certified institutions and service information disclosure. Government-certified domestic service providers are expected to enjoy benefits such as formalization and specialization of services and market expansion through economies of scale.

With the recent emergence of specialized domestic service professions such as Home Master and Home Manager, establishing an institutional foundation through the passage of the law is also expected to foster new industries and create quality jobs.

A Ministry of Employment and Labor official said, "This law is to guarantee domestic workers' rights as workers and to support reliable services for users," adding, "We will do our best to discuss the bill in the National Assembly so that the domestic service market, which has been contracted due to the novel coronavirus infection (COVID-19), can be formalized and revitalized."