Violations of the Industrial Safety and Health Act and Labor Standards Act Uncovered
Direct Employment Orders Issued and Billions in Fines Imposed
The Busan Northern Employment and Labor Office (headed by Min Gwangje) conducted a comprehensive labor inspection of Company A, a cable manufacturer in Gangseo-gu, Busan, and its subcontractor Company B, following the fatal workplace accident involving a subcontracted worker at Company A in April. The inspection uncovered multiple violations, including breaches of the Industrial Safety and Health Act and illegal dispatch of workers.
On April 19, a worker employed by subcontractor Company B died after falling while boarding a freight elevator. The accident occurred as the worker was moving from Company A's Plant 2 to Plant 1 to retrieve a mold frame.
The labor office determined that the accident was linked to an unlawful in-house subcontracting employment structure. Accordingly, from May to July, the office conducted a comprehensive inspection covering not only industrial safety but also the Act on the Protection, Etc. of Dispatched Workers and the Labor Standards Act.
As a result of the inspection, 26 violations of the Industrial Safety and Health Act were found at Company A, including failure to prevent cable rolling and failure to install covers on pinch points. The person responsible for safety and health management has been referred to the prosecution, and fines totaling 172 million won were imposed for 28 violations, including failure to submit a hazardous risk prevention plan.
Additionally, Company A was found to have deployed dispatched workers in its core manufacturing processes and was ordered to directly employ 349 subcontracted workers. Failure to comply will result in charges for violating the dispatch law, with expected fines reaching 3.49 billion won.
Company B was also found to have failed to pay overtime wages (amounting to 32 million won), engaged in unauthorized dispatch, and violated permitted dispatch sectors. The CEO has been referred to the prosecution, and corrective orders were issued for violations of the Labor Standards Act.
The labor office will also deploy an expert support team to provide "employment structure improvement consulting," analyze the causes of illegal dispatch at Company A, and propose improvement measures such as direct employment and conversion to lawful subcontracting.
Min Gwangje, head of the office, stated, "Serious industrial accidents on site are not merely safety issues but are also closely linked to multi-layered employment structures between contractors and subcontractors and issues of long working hours. Going forward, we will address not only safety supervision but also employment structures and working hours to fundamentally prevent industrial accidents."
Busan Northern Employment and Labor Office
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