Subordinate Labor Under Work Instructions and Control of Working Hours
"Labor Supervision Should Be Strengthened and National Tax Service Data Shared"
A significant number of freelancers, workers in special types of employment, and platform workers are reportedly "fake freelancers" who, in reality, work under the direction and control of employers.
According to a survey conducted by the civic group Workplace Gapjil 119 and commissioned to the polling agency Global Research, which polled 328 freelancers, special type workers, and platform workers aged 19 and over nationwide in September, 76.5% of respondents answered that "the content of their work is determined by the company or they work according to a manual provided by the company." Additionally, 55.2% said they "receive a predetermined base salary or fixed wage," and 49.7% stated that "they needed company approval or had to report when adjusting working hours or taking leave." Furthermore, 34.1% reported that they had received work instructions, been required to submit reports, or had experienced criticism or disadvantages.
Although most of these individuals are classified in contracts as "freelancers," "sole proprietors," or "3.3% business income earners," in practice, they are closer to dependent workers due to directions regarding their work, control over their working hours, and the form of their wages. However, because they do not have an employment contract, they are not recognized as employees under the Labor Standards Act and are excluded from basic rights such as leave, severance pay, and protection against unfair dismissal.
In fact, Workplace Gapjil 119 has received 28 counseling cases related to "fake freelancers" so far this year alone. The issues included workplace harassment, wage disputes, and dismissals-conflicts similar to those faced by regular employees. One respondent, who was forced to sign a freelance contract, said, "I ended up being dismissed after being assigned work that was not included in the contract."
Such "disguised freelancer" workplaces have been rapidly increasing, in part due to inadequate institutional oversight. According to data from the National Tax Service, as of 2022, 99% of the 8.47 million people subject to withholding on business income were reported as business operators without a business registration certificate. Additionally, the number of workplaces suspected of disguising themselves as having fewer than five employees has more than doubled over the past five years.
Workplace Gapjil 119 stated, "Until now, the National Tax Service has refused to provide tax data, citing a lack of legal grounds," and emphasized, "It is time for them to stop shifting responsibility and take an active role in management and supervision."
Revised Article 102-2 of the Labor Standards Act, which will take effect on the 23rd, stipulates that the Minister of Employment and Labor may request tax data from the National Tax Service and other agencies to protect working conditions. Based on this, the government plans to begin monitoring "fake freelancer" workplaces.
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