Fair Trade Commission, Voluntary Correction of Contracts Between Delivery Agency Platform Operators and Delivery Drivers
'Exemption of Delivery Drivers from Business Liability' and Other Unfair Compensation Responsibilities Improved
Delivery Drivers' Opinions Must Be Collected Before Contract Termination
Basic Delivery Fee Per Order Must Also Be Specified in the Contract
[Sejong=Asia Economy Reporter Joo Sang-don] Delivery driver A recently slipped on an icy road while delivering food. The rush caused by a backlog of delivery orders was the cause. A paid all motorcycle repair and hospital expenses out of pocket due to a contract clause stating, "In case of a safety accident, the rider (delivery driver) shall not claim any civil or criminal liability against the company (delivery agency)." However, going forward, if an accident occurs because orders are excessively concentrated on A in situations where timely delivery is difficult, such as icy roads, the delivery agency must also bear responsibility.
On the 20th, the Fair Trade Commission announced that it had autonomously corrected unfair contract terms between three platform operators?Woowa Brothers (Baemin Riders, Baemin Connectors), Delivery Hero Korea (Yogiyo Express), and Coupang (Coupang Eats)?and delivery drivers. Until now, delivery drivers bore compensation responsibilities unilaterally, but now these responsibilities can be shared with delivery agencies. This autonomous correction plan was prepared based on an agreement between the three platform operators and two delivery driver representative organizations: the Rider Union and the Baemin Riders branch of the Korean Confederation of Trade Unions Service Federation.
The autonomous correction plan removes the obligation for delivery drivers to exempt the business operator from liability when problems occur and improves the terms so that the business operator is responsible in cases of intentional or negligent acts. Previously, contracts stipulated that delivery drivers must exempt the business operator in problem situations, meaning all responsibility fell on the delivery drivers.
Also, all responsibility for delivering alcohol to minors had previously been borne by delivery drivers due to contract clauses requiring them to exempt the delivery agency from legal liability. However, going forward, if the delivery driver has verified the recipient is an adult but issues arise due to forged identification, the legal responsibility that the delivery agency must bear will be borne by the business operator.
Unilateral contract termination by the business operator will be restricted. If the business operator judges that the delivery driver has violated contract obligations, they must notify the driver in advance and go through a procedure to hear the driver's opinion. Additionally, the basic delivery fee per delivery that the driver receives must be specified in the contract. Previously omitted, prohibitions on unfair practices such as ▲forcing work outside the contract ▲forcing specific tasks ▲shifting damages will also be reflected in the contract.
However, there remains potential for disputes between delivery agencies and delivery drivers over accident causes, as it must be determined whether "the business owner forced the original delivery time despite icy road conditions at the time of the accident." Regarding this, a Fair Trade Commission official said, "There is a possibility of disputes between companies and drivers over accident responsibility," but added, "Until now, delivery drivers could not even raise such issues with delivery agencies, but now this is possible."
The Fair Trade Commission estimates that about 6,000 delivery drivers will be directly affected by this autonomous contract correction. Part-time delivery drivers using two delivery apps, Baemin Connectors and Coupang Eats, will also benefit. The three delivery platform operators plan to improve contract terms within the first quarter of this year. The autonomous correction plan will apply to contracts signed thereafter. Existing delivery drivers can apply this correction plan upon contract renewal, which is usually done annually.
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