With the worker presumption bill a month away, concerns are growing among small business owners that management burdens could increase as the effects of high inflation and high oil prices persist. A sense of crisis is spreading not only in delivery and plastic manufacturing but also in the restaurant industry. Among workers, opinions are sharply divided depending on their position, fueling calls for a more precise law.
According to small business groups and political circles on the 2nd, the government and the ruling party plan to complete legislation of an amendment to the Labor Standards Act that includes a worker presumption system on May 1, Labor Day. Small business groups held a protest the previous day against a "package legislative meeting to protect labor outside of rights." They believe that if wage costs and various expense burdens expand at the same time, management pressure at small business sites could intensify.
Under the worker presumption system, if it is confirmed that labor was provided for another person's business, the individual is presumed to be a worker, and the employer must prove that the person is not a worker. Previously, workers had to prove their worker status, but once the law is enacted, the burden of proof will rest with the employer.
Platform-based service industries such as the delivery sector will be directly affected. If a worker presumption system is introduced, delivery agencies could face increased wage costs, the four major social insurance contributions, and various allowances as riders are recognized as workers. If riders are classified as workers, there could be changes to work-hour management and dispatch methods. Some worry that with higher oil prices due to escalating tensions in the Middle East boosting fuel costs, reduced working hours could lead to lower income.
One delivery rider said, "Right now, I can work on the days I want and work longer if I want to earn more, but we often talk about whether the current environment can be maintained if a worker presumption system is introduced," adding, "With gas prices already up a lot, if even working hours are cut, income could fall further."
The packaging and plastic manufacturing sectors are also feeling overlapping burdens. With a prolonged closure of the Strait of Hormuz driving up crude prices and destabilizing raw material supplies, cost increase pressures are mounting across plastic manufacturing small and midsize companies and the broader packaging industry. On top of that, the worker presumption system could further add to costs through higher logistics and transportation wage expenses and changes in outsourced workforce structures. The cost pressure is passed on to small business owners who purchase packaging.
Korea Federation of Micro Enterprise (KFME) President Song Chi-young noted, "The saying 'you wake up and packaging prices have gone up, it's scary' captures the outcry from small business sites these days," adding, "Packaging container prices have jumped more than 40%, and even hoarding can't secure supply, pushing the situation beyond what small business owners can withstand on their own."
Some also argue that introducing a worker presumption system is necessary to guarantee basic labor rights. However, with small business burdens growing due to external factors such as high inflation and high oil prices, and with workers' positions differing depending on practical benefits, others say the timing and method of introducing the system need adjustment.
An official at the Korea Platform Freelancer Labor Mutual Aid Association said, "Some 8.5 million people remain outside the Labor Standards Act, so the legislation itself is significant," adding, "Specificity must be reinforced, and measures for small business owners should be prepared together."