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Laws of the Republic of Korea |
ACT ON THE EMPLOYMENT IMPROVEMENT, ETC., OF CONSTRUCTION WORKERS
Act No 5249, Dec. 31, 1996
Amended by Act No. 6848, Dec. 30, 2002
Act No. 8372, Apr. 11, 2007
Act No. 8373, Apr. 11, 2007
Act No. 8429, May 11, 2007
Act No. 8560, Jul. 27, 2007
Act No. 8694, Dec. 14, 2007
Act No. 8811, Dec. 27, 2007
CHAPTER I
General Provisions
Article 1 (Purpose)
The purpose of this Act is to improve the employment of
construction workers, to promote their welfare and to contribute
to the
development of the construction industry, by assisting and
promoting their employment security and the development and
improvement
of their vocational skills, and by conducting
welfare programs such as providing construction workers with
retirement mutual-aid
benefits.
Article 2 (Definitions)
The definition of terms used in this Act is as follows:
1. The term ßÖemployer means a person who employs
workers and carries on the construction business
(hereinafter referred to as the ßÖconstruction businessß×) as
prescribed in the Presidential Decree, and has obtained a
license,
permission, registration, etc., under related Acts
and subordinate statutes;
2. The term ßÖconstruction workerß×means a worker
referred to in Article 2 of the Labor Standards Act
and engaged in construction
business;
3. The term ßÖoriginal contractorß×means an employer who
is awarded a contract for construction work by a person
who places the
order therefor;
4. The term ßÖsubcontractorß×means an employer who is
awarded a contract for construction work by an original
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contractor or an employer who is awarded a
contract for construction work by the subcontractor;
and
5. The term ßÖretirement mutual aid schemeß×means a scheme in
which an employer with construction workers as
beneficiaries, pays mutual-aid contributions to the Mutual
Aid Association for Construction Workers, and when the
beneficiaries
retire from the construction business, the
Mutual Aid Association for Construction Workers provides
them with retirement mutual-aid
benefits.
(2) A master plan shall include the following matters:
1. Matters on employment trends of construction workers;
2. Matters on the improvement of the employment structure
of construction workers;
3. Matters on the development and improvement of construction
workersßÓvocational skills, such as the cultivation of
manpower with
construction skills;
4. Matters on welfare promotion for construction workers;
5. Matters on compliance with the provisions of the Labor
Standards Act, such as concerning wages, holidays, leave,
working hours,
etc., in the construction industry; and
6. Matters on employment security for construction workers
in winter
(3) Where the Minister of Labor desires to establish a
master plan, he/she shall consult with the head of the related
central administrative
agency and then shall undergo
deliberation at the Employment Policy Council under the
Basic Employment Policy Act. The same shall
apply in case
where he/she desires to change the important matters in a
master plan as prescribed by the Presidential Decree.
(4) Where it is deemed necessary, the Minister of Labor
may ask the head of a related central administrative agency to
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provide materials necessary for the establishment and change of
a master plan.
Where it is deemed necessary for the smooth
implementation of a master plan, the Minister of Labor may
recommend employers or employersßÓassociations, etc., necessary
matters
in relation to the followings with regard to construction
workers :
1. Improvement of employment management;
2. Employment security
3. Vocational skills development and improvement; and
4. Welfare promotion
Improvement of Employment of
Construction Workers
Article 5 (Employment Manager)
(1) An employer shall designate an employment manager for
each workplace, for the operation of the workplace in respect of
the
following matters:
1. Matters on the recruitment, employment and
assignment of construction workers:
2. Matters on education and training provided to
improve the skills of construction workers:
3. Matters on the improvement of the work environment for
construction workers;
4. Matters on administrative work related to employment
insurance such as the report of the acquisition or loss of
qualifications
for the insured;
5. Matters on the retirement mutual aid scheme such as
subscription to the retirement mutual aid scheme, the
payment of mutual-aid
contributions, application for the
issuance of welfare pocketbooks for construction workers,
etc.; and
6. Other matters on employment management for construction
workers as prescribed in the Ordinance of the Ministry of
Labor.
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(2) If an employer has designated an employment manager,
he/she shall notify the fact of the designation to the
construction workers
by, for instance, posting a notice of the name
of the employment manager and other matters prescribed by the
Ordinance of the Ministry
of Labor at the workplace concerned.
(3) When an employer reports the acquisition of
qualifications for the insured pursuant to Article 15 of
the Employment Insurance Act, he/she shall report the name of
the employment
manager under paragraph (1) and other
matters prescribed by the Ordinance of the Ministry of Labor.
(4) An employer shall make
efforts to improve an
employment manager's capability to perform his/her jobs by,
for instance, educating and training him/her.
(5) An original contractor shall make efforts, such as
providing his/her subcontractor with necessary guidance, support,
etc.,
to ensure that the subcontractor designates an employment
manager and properly manages related work.
Where an employer employs construction workers, he/she
shall give documents stating the following matters to the
construction workers
concerned under the conditions as prescribed
by the Ordinance of the Ministry of Labor:
1. Name of the employer (meaning the representative in
case of a juristic person):
2. Name and location of the workplace (including the name
and location of the juristic person if the employer is a
juristic person);
3. Working hours, wage and employment period; and
4. Specific contents of the work
5. Other matters prescribed by the Ordinance of the
Ministry of Labor.
(1) The Minister of Labor may provide such necessary
support as prescribed by the Employment Insurance Act for a
person who carries
out the following projects for employment
management improvement, employment security, vocational skills
development and improvement,
etc., for construction workers:
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1. Vocational training and educational training conducted for
the cultivation, technical improvement, etc., of manpower
with construction
skills;
2. Designation, education and training of persons in charge
of employment management; and
3. Establishment and operation of employment promotion
facilities, such as lodgings for moving construction
workers, facilities
to provide counseling about the hiring
and employment of construction workers, etc.
(2) The Minister of Labor may provide support for part of
the mutual-aid contributions an employer who has
subscribed to the retirement mutual aid scheme has to pay
under the conditions prescribed in the Employment Insurance
Act.
Mutual Aid Program
Article 8 (Execution of Mutual Aid Program)
Among the construction business-related mutual aid
associations and the employersßÓassociations as prescribed in
the Presidential
Decree, those who meet the standards as
prescribed by the Presidential Decree shall jointly execute a
mutual aid program for construction
workers, such as a
retirement mutual aid program, to stabilize the employment of
construction workers and promote their welfare.
Article 9 (Establishment of Mutual Aid Association for
Construction Workers)
(1) A person who executes a mutual aid program under
Article 8 shall set up a Mutual Aid Association for
Construction Workers (hereinafter
referred to as the ßÖMutual
Aid Associationß×) after obtaining authorization from the Minister
of Labor.
(2) The Mutual Aid Association shall be a juristic person.
(3) With regard to the establishment, operation, supervision,
etc.,
of the Mutual Aid Association, the provisions of the
Civil Act, which govern incorporated foundations, shall apply
mutatis mutandis.
1. Managing or maintaining documents on the employers
and beneficiaries who have subscribed to the retirement
mutual aid scheme;
2. Receiving mutual-aid contributions and paying retirement
mutual-aid benefits; 3. Giving reward money for a report under Article 16-2;
4. Lending money to beneficiaries;
5. Activities to increase deposited mutual-aid contributions;
6. Activities to promote construction workers' welfare
such as establishing and operating welfare facilities;
7. Activities prescribed in paragraphs (1) through (6) and
entrusted by the government; and
8. Any activity incidental to the activities prescribed in
paragraphs (1) through (7).
case, if the original contractor has a subcontractor take the
obligation to pay mutual-aid contributions and this is
approved by
the Mutual Aid Association at the request of
the original contractor, the subcontractor shall be considered
the employer.
(2) If an employer other than those who become a
subscriber to the retirement mutual aid scheme under
paragraph (1) meets the conditions prescribed by the
Presidential Decree,
he/she may subscribe to the retirement
mutual aid scheme with the approval of the Mutual Aid
Association. In this case, the subscription
shall take effect on
the date it is approved by the Mutual Aid Association.
(3) Deleted.
(4) Necessary matters concerning the method of,
procedures, etc., for subscription to the retirement mutual aid
scheme prescribed in paragraphs (1) and (2) shall be
prescribed
by the Ordinance of the Ministry of Labor.
(5) A retirement mutual-aid relationship shall terminate on
the day following the date of the closure of the employer's
construction
business or on the day following the date of the
completion of the construction work carried out by the
employer.
Article 10-3 (Calculation of Required Costs)
(1) A construction contractor who is required to subscribe to
the retirement mutual aid scheme under Article 10 (1) shall
clearly
state the costs of subscribing to the retirement mutual
aid scheme in the quantity specifications, and the calculated
specifications
of the contract amount, of the construction work:
Provided that in the case of construction work directly carried out
by the person
issuing the order, the costs of subscribing to the
retirement mutual aid scheme shall be clearly stated in the
statement of original
construction costs.
(2) In case a subcontractor subscribes to the retirement mutual
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aid scheme pursuant to the latter part of Article 10 (1), the
original contractor shall clearly state the costs of subscribing to
the retirement mutual aid scheme in the calculated specifications
of the sub-contract amount of the construction work.
(2) The employer referred to in paragraph (1) may make a
report for the entire business run by him/her or separately for
his/her
each workplace.
Article 11 (Scope of Beneficiaries)
Any construction worker employed in a business or
workplace, excluding those falling under any of the
following subparagraphs,
shall be a beneficiary of the
retirement mutual aid scheme.
1. A person whose working hours fall short of the standard
prescribed by the Ordinance of the Ministry of Labor;
and
2. Such a person as prescribed by the Presidential
Decree in consideration of employment type, employment
period, occupational categories,
etc.
(2) An employer who has applied for the issuance of
welfare pocketbooks to the Mutual Aid Association and then
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received them pursuant to paragraph (1) shall give the welfare
pocketbooks to the beneficiaries without delay.
(3) If an employer fails to apply for the issuance of
welfare pocketbooks as prescribed in paragraph (1), his/her
construction
workers may directly apply for the issuance of
welfare pocketbooks to the Mutual Aid Association.
(4) Necessary matters concerning
the entries, issuance,
delivery, etc., of welfare pocketbooks prescribed in paragraphs
(1) through (3) shall be prescribed by the
Ordinance of the
Ministry of Labor.
(5) No person shall discriminate against or unfavorably treat
construction workers on the grounds that they have applied for
the
issuance and have a welfare pocketbook.
(1) An employer who has subscribed to the retirement mutual
aid scheme shall pay his/her beneficiary the amount of
mutual-aid contributions
corresponding to the number of
his/her working days to the Mutual Aid Association whenever
he/she pays wages to the beneficiary.
(2) Necessary matters concerning the amount, payment, etc.,
of mutual-aid contributions shall be prescribed by the
Presidential
Decree.
(2) With respect to the scope and order of priority of
bereaved family members entitled to receive retirement
mutual-aid benefits
pursuant to paragraph (1), Articles 44 and
46 of the Industrial Accident Compensation Insurance Act shall
apply mutatis mutandis.
(3) The number of months of contribution as referred to in
paragraph (1) shall be calculated on the basis of the number of
days
worked for the employer who has subscribed to the
retirement mutual aid scheme : Provided that if the
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beneficiary has worked for two or more employers who have
subscribed to the retirement mutual aid scheme, the number of
months
of contribution shall be calculated on the basis of the
sum of all days worked for each of the employers.
(4) Necessary matters
concerning the calculation of the
number of months of contribution and the method of, procedures
etc., for the payment of retirement
mutual-aid benefits under
paragraphs (1) through (3) shall be prescribed by the Ordinance
of the Ministry of Labor.
(1) A person who intends to receive retirement
mutual-aid benefits shall present documents certifying the fact
of retirement and other documents prescribed by the Ordinance
of
the Ministry of Labor.
(2) If a beneficiary requests certification necessary to
receive retirement mutual-aid benefits, the employer shall
comply with
it.
(1) The Mutual Aid Association may request a person who
has received retirement mutual-aid benefits in a false or other
fraudulent
ways to return an amount equivalent to twice as
much as the retirement mutual-aid benefits paid : Provided that
if a person voluntarily
reports the fact that he/she has received
retirement mutual-aid benefits in a false or other fraudulent
ways, he/she shall be requested
to return only the amount of
retirement mutual-aid benefits paid.
(2) If the retirement mutual-aid benefits referred to in
paragraph (1) are paid due to false reporting or false
certification by
the employer, the employer shall be hold
responsible jointly with the person who has received the
retirement mutual-aid benefits.
(3) If no payment is made notwithstanding a request for
return made under paragraph (1), the Mutual Aid Association
shall set a
deadline and urge the person responsible to pay to
make that payment before the deadline and if the person so
urged fails to comply
until the deadline, the Mutual Aid
Association shall collect it in accordance with the process of
recovery of national taxes in
arrears.
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If a person reports a person falling under any of the
following subparagraphs, the Mutual Aid Association may give
him/her reward
money as prescribed by the Ordinance of the
Ministry of Labor :
1. A person who has received retirement mutual-aid benefits
in a false or other fraudulent ways; and
2. A person who has enabled retirement mutual-aid benefits
to be paid through false reporting or false certification.
Article 17 Deleted. 1. Where the employer has obtained the consent of three
fourths or more of beneficiaries; and
2. Where the employer has difficulties paying mutual-aid
contributions any longer and has the reasons prescribed
by the Ordinance
of the Ministry of Labor.
(1) An employer who has subscribed to the retirement mutual
aid scheme shall post the contents of the mutual aid scheme at
places
easy for his/her construction workers to see.
(2) An employer who has withdrawn from the retirement
mutual aid scheme shall notify
his/her construction workers of
the fact that the beneficiaries have lost their qualifications as
beneficiaries by means of putting
up a notice of the withdrawal
at places easy for the construction workers to see.
(1) The right to receive retirement mutual-aid benefits
shall not be transferred or offered as collateral: Provided
that in case
money is borrowed from the Mutual Aid
Association, the right may be offered as collateral.
(2) The receipt of retirement mutual-aid
benefits may be
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delegated under the conditions as prescribed by the
Presidential Decree.
(3) Beneficiaries who are minors may claim retirement
mutual-aid benefits independently.
(1) The right to receive retirement mutual-aid benefits and
the right to collect returned money shall be extinguished by
prescription
unless they are exercised for three years.
(2) Except as provided for in this Act, the provisions of the
Civil Act shall apply
mutatis mutandis to extinctive prescription
prescribed in paragraph (1).
Supplementary Provisions
Article 22 (Preferential Treatment)
The government may provide preferential treatment to
employers who have subscribed to the retirement mutual aid
scheme in appraising
construction abilities or in implementing
other construction policies as prescribed by construction
related Acts and subordinate
statutes.
The Mutual Aid Association shall calculate the reserves
and separately account for them at the end of every
accounting period to
finance the retirement mutual-aid benefits
to be paid in the future.
(1) The Minister of Labor may, if he/she deems it
necessary, ask an employer and a Mutual Aid Association to
report and present
related documents, and give them a correction
order and other necessary instructions, which is necessary for
enforcing this Act,
under the conditions prescribed by the
Presidential Decree.
(2) A Mutual Aid Association may ask the employer who
employs or employed beneficiaries, and beneficiaries to report or
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present related documents, which are necessary for the mutual
aid program.
Penal Provisions
Article 24 (Penal Provisions)
A person who receives retirement mutual-aid benefits in
a false or other fraudulent ways or a person who allows
a beneficiary to
receive retirement mutual-aid benefits by means
of false reporting or false certification shall be punished by
imprisonment of
up to one year or a fine not exceeding three
million won.
(1) If the representative, an agent, a servant or any other
employee of a corporation or an organization commits such an
offense
as referred to in Article 24 in relation to the business
of the corporation or organization, the corporation or
organization, in
addition to the offender, shall be punished by a
fine under the provision concerned.
(2) If an agent, a servant or any other employee of an
individual commits such an offense as referred to in Article 24
in relation
to the business of the individual, the individual, in
addition to the offender, shall be punished by a fine under the
provision
concerned.
(1) If a person who is required to install restrooms, dining
rooms, dressing rooms, etc., or make them available pursuant to
Article
7-2 fails to install or make them available, he/she shall
be published by a fine for negligence not exceeding five million
won.
(2) A person who fails to report pursuant to Article 10-4 (1)
shall be punished by a fine for negligence not exceeding two
million
won.
(3) A person who falls under any of the following
subparagraphs shall be punished by a fine for negligence not
exceeding one million
won:
1. A person who fails to make a report regarding persons
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in charge of employment management under Article 5
(3);
2. A person who fails to apply for the issuance of a
welfare pocketbook under Article 12 (1);
3. A person who fails to give a welfare pocketbook under
Article 12 (2);
4. A person who fails to pay mutual-aid contributions
under Article 13 (1);
5. A person who fails to comply with a request for
certification under Article 15 (2); and
6. A person who fails to make a report or makes a false
report, who fails to present related documents or presents
false documents,
and who fails to comply with an
correction order, in violation of Article 23 (1).
(4) A fine for negligence as referred to in paragraphs (1) ,(2)
and (3) shall
be imposed and collected by the Minister of Labor
under the conditions as prescribed by the Presidential Decree.
(5) A person who
is not satisfied with the imposition of a fine
for negligence under paragraph (4) may raise an objection
against the Minister of
Labor within 30 days from the date on
which he/she is notified of the imposition.
(6) If the person subject to a fine for negligence as
referred to in paragraph (4) makes an objection pursuant to
paragraph (5),
the Minister of Labor shall notify the competent
court of this without delay, and the competent court so notified
shall try the
case in accordance with the Non-Contentious Case
Litigation Procedure Act.
(7) If an objection is not made nor is a fine for negligence
paid within the period as referred to in paragraph (5), the fine
for
negligence shall be collected following the process of
recovery of national taxes in arrears.
Addenda
This Act shall enter into force on the date of its
promulgation : Provided that the amended provisions of
subparagraphs 5 and 6
of Article 3 (2), Article 7-2,
subparagraphs 3, 7 and 8 of Article 9-2, Article 10 (1), (2), (4)
and (5), Article 10-4, Article
16 (1), Article 16-2 and Article 26
shall enter into force on January 28, 2008.
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