The small business community urged the withdrawal of the Basic Act on the Guarantee of Rights of Working People (Basic Act on Working People), which is being discussed in political circles.
Small-business groups, including the Korea Federation of Micro Enterprise (KFME) and the Korea Foodservice Industry Central Association, held a press conference in front of the main gate of the National Assembly at 2 p.m. on the 10th, designating the Basic Act on the Guarantee of Rights of Working People (Basic Act on Working People) and the expansion of the Labor Standards Act to business sites with fewer than five employees as key contentious bills and expressing concern.
The Basic Act on Working People says that regardless of the form of contract, if a person provides labor for another's business and receives compensation, the person is defined as a "working person." It includes all working people who are not self-employed.
Korea Federation of Micro Enterprise (KFME) President Song Chi-young said, "If, with the implementation of the Basic Act on Working People, specially employed workers and freelancers are recognized as employees, small business owners will have to shoulder about 5.05 million won in additional statutory expense per person annually," adding, "If retroactive application of severance pay is also combined, most local firms will have no way to avoid bankruptcy."
The additional expense of about 5.05 million won per person per year mentioned by Song exceeds 20% of the average operating profit of small businesses (25 million won).
Some also said the bill does not reflect reality. In sectors centered on ultra-short part-time work, such as PC rooms and restaurants, disputes would expand because of "counting waiting time as working hours," and in sectors like designated-driver services and quick delivery that rely on "multihoming (using multiple platforms)," conflicts could intensify because the user's responsibility is unclear.
They also criticized the expanded application of the Labor Standards Act to business sites with fewer than five employees. The small business community said, "Imposing complex regulations such as overtime and night-shift premiums on small, family-run establishments that are barely hanging on is tantamount to urging them to give up management."
Korea Foodservice Industry Central Association President Kim Woo-seok said, "The government and political circles are rolling out a job-destroying bill that touts only justification while ignoring the desperate cries from the field," and noted, "Policy should shift to a small-business employment-friendly approach, such as abolishing weekly holiday allowances."
Small-business groups launched the "Small Business Right-to-Survival Action Headquarters" and plan to respond jointly to major pending issues, including employment policy and platform monopoly problems.