Basic Workplace Rights Vary by Business Size... Fewer Than Five Employees Face a "Lawless Zone"

Average Labor Conditions Score at Small Businesses: 55.6 Points
Gap of Up to 16 Points Compared to Public Institutions and Large Corporations

A recent survey has revealed that workers at small businesses with fewer than five employees are unable to enjoy even the minimum working conditions legally guaranteed to them. Concerns have been raised that the overall blind spot in labor rights is deepening, ranging from the lack of workplace bullying prevention training to the inadequate guarantee of maternity and parental leave.

On September 21, the civic group Workplace Gapjil 119 announced the results of a survey on "Compliance with Basic Labor Conditions in the Workplace," conducted by the polling agency Global Research. The survey targeted 1,000 office workers nationwide and was carried out from July 1 to July 7, targeting employees aged 19 and older.

Office workers are enjoying a walk with their coats draped over their arms at Gwanghwamun Square in Seoul. Photo by Yonhap News

According to the survey, the overall average score was 64.6 out of 100. Among the respondents, those working at public institutions (82 people) recorded an average of 72.0 points, showing a relatively high score, while those at businesses with 300 or more employees (190 people) scored 69.4 points. However, respondents working at private businesses with fewer than five employees (176 people) scored only 55.6 points on average, resulting in a gap of more than 15 points compared to large-scale workplaces.

Notably, it was found that not only items excluded from legal application but also the minimum legal standards that apply to businesses with fewer than five employees are not being properly observed. Even in essential areas such as preparing employment contracts, providing wage statements, enrolling in the four major social insurances, paying the minimum wage, and giving advance notice of dismissal, these workplaces scored below average.

By category, the score for "workplace bullying and sexual harassment prevention training" was 47.0 points, 14.4 points lower than the overall average. The scores for "guarantee of maternity leave" and "guarantee of parental leave" were both 48.6 points, showing a gap of 13 and 12 points, respectively. The categories "establishment of procedures for reporting bullying and sexual harassment" (46.4 points) and "payment of weekly holiday allowance" (53.3 points) also revealed significant gaps, highlighting the poor working environment.

The survey covered a total of 20 items, including: preparation and issuance of employment contracts; issuance of wage statements; enrollment in the four major social insurances; payment of minimum wage; payment of overtime and night work allowances; weekly holiday allowance; guarantee of break time; annual leave; guarantee of maternity and parental leave; and workplace bullying prevention training and reporting procedures.

Workplace Gapjil 119 pointed out, "Major provisions of labor-related laws do not apply to businesses with fewer than five employees, creating a blind spot that is effectively outside the protection of the law," and added, "Even the minimum legal obligations that must be observed at small businesses are being ignored."

The group further emphasized, "The government must no longer delay its promise to expand the application of the Labor Standards Act to businesses with fewer than five employees, which it has set as a national policy task. Discrimination based on business size must be eliminated, and equal rights must be guaranteed to all workers."

Kim Gihong, a labor attorney at Workplace Gapjil 119, stated, "Given that businesses with fewer than five employees account for about 60% of all workplaces, excluding them from the scope of the law is clear discrimination," and added, "To resolve the blind spot in basic labor rights, the full application of the Labor Standards Act is essential."

This survey was conducted using a proportional stratified sampling method based on the distribution of the employed population nationwide and was carried out through an online questionnaire.