Need to Introduce the Worker Presumption System
Overview
The Worker Presumption System (노동자추정제도) is a system that legally presumes a service provider meeting specific conditions as a 'worker,' thereby granting them protection under the Labor Standards Act, Industrial Accident Compensation Insurance Act, Minimum Wage Act, and others. It is being discussed to resolve blind spots in labor law and guarantee workers' basic rights in the reality of increasing numbers of workers outside traditional employment relationships, such as platform workers, special employment workers, and freelancers. Currently, the need for its introduction is being raised in several countries, including South Korea, and it is already in effect in some nations.
Main Content
Background and Necessity of the System
Due to the spread of the digital economy and diversification of employment forms, the number of service providers difficult to cover under the traditional concept of workers is rapidly increasing. Delivery platform workers, designated drivers, domestic service workers, and freelancers are formally classified as self-employed, but in practice, they provide dependent labor under the employer's direction and supervision. Not being recognized as workers under the Labor Standards Act, they lack protections such as restrictions on dismissal, annual paid leave, minimum wage, and industrial accident insurance. The Worker Presumption System addresses this issue by presuming a service provider as a worker if certain requirements are met, unless the employer provides counter-evidence.
Core Elements of the System
The core of the Worker Presumption System lies in the requirements for 'presumption' and the scope of 'rebuttal.' Generally, a service provider is presumed to be a worker if the following conditions are met: (1) the service provider provides labor exclusively or as a primary source of income to the employer, (2) the employer exercises substantial direction and supervision over the service provider's work methods, time, location, etc., and (3) the service provider provides labor without bearing their own costs and risks. To overturn this presumption, the employer must prove that the service provider is an independent business operator, with the burden of proof on the employer.
Advantages of Introduction
First, it can guarantee the rights of vulnerable workers who are not protected by labor law. Second, it curbs employers' evasion of labor law and fosters a fair competitive environment. Third, it enables faster and more efficient remedy of rights compared to the current system of determining worker status through individual court judgments. Fourth, it resolves blind spots in social insurance, strengthening the social safety net.
Issues and Opposition to Introduction
Opponents argue that introducing the system could hinder employment flexibility and increase corporate burdens, potentially leading to job losses. Concerns are also raised about possible infringement on the independence of genuine self-employed individuals or freelancers. In particular, platform companies resist the Worker Presumption System, claiming it will impede innovation and growth. However, these concerns can be mitigated through detailed system design, such as clarifying presumption requirements and allowing exceptions for small businesses or specific industries.
International Cases
Spain introduced the 'Rider Law' in 2021, presuming delivery platform workers as employees. The UK established an intermediate category with the concept of 'dependent contractor,' and California strengthened criteria for determining worker status through the 'ABC test.' Germany extends labor law protections to some self-employed individuals through the concept of 'quasi-workers' (arbeitnehmerähnliche Personen). In South Korea, the Democratic Party of Korea proposed the 'Worker Presumption Act' in 2023, but it failed to pass due to disagreements between the ruling and opposition parties.
Latest Trends
As of 2024, bills to protect platform workers are continuously being proposed in South Korea. In February 2025, the Ministry of Employment and Labor pre-announced legislation for the 'Act on the Protection and Support of Platform Workers,' but it did not include the Worker Presumption System. Instead, a plan to create a separate category of 'platform worker' (종사자) to guarantee some rights is being pursued. Labor unions criticize this as a 'half-measure' and urge the introduction of the Worker Presumption System. Internationally, the EU recommends member states adopt the Worker Presumption System through the Platform Work Directive, and related legislation is expected to gain momentum in various countries from the second half of 2025. Additionally, the spread of AI and algorithmic management is making the determination of worker status more complex, further emphasizing the need for a presumption system.
Related Topics
- [[Platform Labor]]
- [[Criteria for Determining Worker Status]]
- [[Special Employment Workers]]
- [[Labor Law Reform]]
- [[Social Safety Net]]
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