Kim So-hee, Member of Parliament [Photo=Yonhap News]

Kim So-hee, a Member of Parliament for the People Power Party, proposed a new amendment to the Trade Union Act on the 30th to resolve side effects arising from the enforcement of the so-called 'Yellow Envelope Act (amendment to the Trade Union Act).

The Reality Where 'Safety Investment' Becomes a Shackle for 'Employer Status'

The current Yellow Envelope Act considers anyone who substantially controls and decides working conditions as an employer, even if they are not a party to the employment contract. The statement points out that this process leads to contradictory situations in terms of investment and punishment.

In terms of investment, if the principal contractor actively intervenes in the safety and health measures of the subcontractor's workplace, it is interpreted as 'exercising control,' which then creates an obligation to negotiate with the subcontractor's union (recognition of employer status).

Conversely, neglecting safety management results in punishment under the Serious Accidents Punishment Act. As a result, companies hesitate to invest in the safety of subcontractor employees to avoid the burden of negotiation, leading to the argument that the law is actually hindering industrial accident prevention.

The office of MP Kim stated, "Following the amendment of the Yellow Envelope Act, the current Trade Union and Labor Relations Adjustment Act recognizes the principal contractor who is in a position to substantially and concretely control and decide working conditions as an 'employer,' even if they are not a party to the conclusion of the employment contract."

It continued, "It is being pointed out that this expansion of the scope of employers can lead to the side effect of making principal contractors passively engage in safety and health measures for subcontractor employees to avoid recognition of employer status," and argued, "When a principal contractor actively intervenes in safety or health measures for a subcontractor's workplace, there is a counterproductive effect of not taking proactive measures due to concerns that such actions could be interpreted as exercising control over working conditions and thus be recognized as an employer."

"Yellow Envelope Act Hinders Corporate Investment"

The office of MP Kim stated, "While it is already insufficient to provide more incentives to encourage the principal contractor's efforts for the safety of subcontractor employees, there are strong voices from the field that the law is actually hindering corporate investment for the prevention of industrial accidents."

It explained, "The bill, proposed by MP Kim, clearly stipulates that measures taken to fulfill the obligation of safety and health measures by the contractor under Article 63 of the Occupational Safety and Health Act, or the obligation to secure safety and health in relationships such as contracting, outsourcing, and consignment under Article 5 of the Serious Accidents Punishment Act, do not constitute control or decision-making regarding working conditions."

MP Kim stated the legislative intent, saying, "Due to the side effects of the Yellow Envelope Act amendment, there is a concern that the safety of subcontractor employees may be neglected in a blind spot. Institutional improvements are urgently needed to enable principal contractors to invest more actively to effectively protect subcontractor employees from serious accidents."

Reporter Lim Yo-hee