Domestic Workers to Enjoy the Four Major Insurance Benefits and Receive Guarantee of Minimum Wage

2021.11.19 17:17
Goh Hee-jin

A worker engaging in housekeeping work she found through a platform. Kyunghyang Shinmun Archives

A worker engaging in housekeeping work she found through a platform. Kyunghyang Shinmun Archives

From now on, domestic workers who provide housekeeping services, such as cleaning, doing the laundry, and babysitting in the home, will enjoy the four major insurance benefits and be guaranteed the minimum wage. An estimated 150,000 domestic workers in South Korea are expected to benefit from the new bill when it is enforced.

On November 18, the Ministry of Employment and Labor announced its plan to enact a draft enforcement decree and enforcement regulations concerning a bill on improvements in the employment of domestic workers including these details and announced that the ministry would be receiving opinions until December 28.

The draft decree and regulations will stipulate the details necessary to enforce the domestic workers bill, when the bill is enforced on June 16, 2022. Domestic workers who were called dispatched home help or maids will now be officially recognized as workers (legal status) thanks to this bill.

The labor ministry stipulated that for agencies to be certified as a housekeeping service provider, they must guarantee the minimum wage and provide the four major insurance benefits for their workers. Such firms must also have at least 50 million won in capital and have an office that is no smaller than 10m2 (approximately 3 pyeong). To prevent a jumble of small firms and to ensure service quality. the bill stipulates that such firms must also employ at least five workers.

The agency must have one managing staff aside from the CEO, but if there are fewer than 50 employees, the CEO can hold the managing job concurrently. Contracts must state the date, time and area where the workers can provide their labor. The minimum working hours will be fifteen hours a week, but when the firm’s management conditions make it inevitable, the firm can follow the Employment Insurance Act. When workers show up and provide services for all the hours in a week notified by the agency, they are guaranteed at least an average of one paid leave a week. National holidays and substitute holidays will be provided in accordance with the Labor Standards Act.

Workers who have worked for more than 80% of the yearly service hours stipulated in the contract can get fifteen days of paid leave. The agency must disclose information including the area where it provides services, its procedures in reporting and handling complaints, its compensation limit, and whether or not it also engages in job placement services. For more details on the draft bill, visit the labor ministry website (www.moel.go.kr).

Min Kil-soo, director of the Employment Support Policy Bureau explained, “The firm establishment of the domestic worker bill is very important to create quality jobs related to housekeeping services and to promote stable employment and better working conditions for domestic workers.” He also said, “We will listen to various views during the period notified for the enforcement decree and regulations and thoroughly prepare for the enforcement of the domestic workers act.”

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