[Exclusive] Ruling Party Pushes for Labor Standards Act Amendment to Apply to Workplaces with Fewer Than 5 Employees

Justice Party followed by Democratic Party's Lee Su-jin proposes... People Power Party's Environment and Labor Committee also 'supports'
Estimated minimum 4.5 million workers targeted

On the 6th, a joint press conference of the Korean Federation of Trade Unions and the Democratic Party of Korea's Labor Respect Practice Parliamentary Group was held in front of the National Assembly in Yeouido, Seoul. Lee Sujin, a member of the Democratic Party of Korea, is speaking. Participants urged the enactment of legislation to eliminate discrimination against public officials and improve their treatment. Photo by Moon Honam munonam@

[Asia Economy Reporter Park Cheol-eung] A ruling party lawmaker has introduced a bill to extend the application of the Labor Standards Act to workplaces with fewer than five employees. This is one of the 'Jeon Tae-il 3 Laws' that the Justice Party and labor groups have been prioritizing, with the target population reaching at least 4.5 million people. Earlier this month, lawmakers from the People Power Party also expressed support, so discussions to eliminate the exception that has lasted for over 30 years are expected to gain momentum.

According to the National Assembly on the 24th, Lee Su-jin, a proportional representative lawmaker from the Democratic Party of Korea, proposed an amendment bill the day before to apply the Labor Standards Act provisions?including 'working hours, restrictions on overtime work, restrictions on dismissal, restrictions on dismissal for business reasons, priority reemployment, written notice of reasons for dismissal, applications for relief from unfair dismissal, and prohibition of workplace harassment'?to workplaces with fewer than five employees.

Lawmaker Lee explained, "There have been criticisms that applying the law differently based on the size of the workplace may not align with the purpose of the law and the principle of equality. In 2018, the Employment and Labor Administration Reform Committee recommended expanding the application to workplaces with fewer than five employees."

The Labor Standards Act has remained at applying to workplaces with 10 or more employees since 1987 and 5 or more employees since 1989, and there have been continuous calls to minimize legal blind spots.

In the Justice Party, floor leader Kang Eun-mi proposed a bill in September to completely remove the clause distinguishing the scope of application based on the number of employees. In contrast, Lawmaker Lee excluded provisions that add wages for additional work and decided to set a one-year grace period, considering the burden on small-scale business owners.

Lawmaker Lee's bill was co-sponsored not only by Democratic Party members including Song Ok-joo, chair of the Environment and Labor Committee, but also by Justice Party lawmakers Sim Sang-jung, Kang Eun-mi, and Bae Jin-kyo. This is interpreted as a suggestion to discuss the bill together with the Justice Party's proposal.

Earlier, on the 8th, People Power Party lawmakers on the Environment and Labor Committee issued a statement criticizing the Democratic Party for legislative dominance, stating, "We must establish a labor law order that aligns with constitutional values, and in this regard, we support applying the Labor Standards Act to workplaces with fewer than five employees." However, they added, "Small business owners are also vulnerable, so protective measures for them are necessary. We urge the government and ruling party to make efforts."

According to an analysis by the Korea Labor Institute last year based on data from the Ministry of Employment and Labor, as of 2018, the number of workers in workplaces with fewer than five employees was about 4.55 million, accounting for 28% of all workers. Labor groups estimate that the actual number of target workers is much higher, reaching 6 million.