Public sector subcontracting must undergo prior screening... Contracts of at least two years and employment succession guaranteed

[Financial News] The government is implementing guidelines that restrict subcontracting in the public sector in principle, allowing it only after a prior review when absolutely necessary. The guidelines also include measures to improve the working conditions and employment security of contract workers, such as contracts of two years or more, employment retention and succession, and the separate disclosure of labor costs. Protection standards, which were previously divided between outsourcing and private consignment, will also be unified.
The Ministry of Employment and Labor (MOEL) announced on the 8th that it has prepared and will implement the 'Guidelines for the Protection of Contract Workers in the Public Sector' containing these details. This is a follow-up measure to the 'Plan for Improving Public Sector Contracting Operations' announced jointly by relevant ministries on April 16.
The government plans to allow subcontracting in the public sector only when exceptions are stipulated in laws or ordinances, or when it is significantly difficult for the prime contractor to perform the work directly, such as with new technology, expertise, or temporary or intermittent tasks.
A prime contractor requiring subcontracting must convene an Appropriateness Review Committee (composed of at least 5 members, with at least 40% being external members) to review the appropriateness of the subcontracting by considering the necessity of the subcontracting, the appropriateness of the subcontracting conditions, and the impact on worker employment. Even if the review results determine that the subcontracting is appropriate, approval from the contracting authority must be obtained.
The guidelines also include provisions for contracts of two years or more and mechanisms for maintaining and succeeding employment.
Unless there are special circumstances, the contracting authority must guarantee a contract period of at least two years when entering into a subcontract. In addition, the subcontract period must be set to be the same as the employment contract period of the subcontracted worker.
The retention and succession of employment were made a basic condition of the bidding process. A commitment to fulfill working conditions must be submitted at the time of bidding and reflected in the contract at the time of contracting.
The management of labor costs payable to contract workers will also be strengthened. Prime contractors must clearly separate labor costs in the cost breakdown statement of the contract and disclose the details in a manner accessible to the contract workers. The contracting authority must require prime contractors to open a separate account dedicated to labor costs to ensure separate payment of these expenses.
The Ministry of Employment and Labor (MOEL) explained, "It is stipulated that labor costs must be used only for provisions for wages and retirement benefits, and cannot be used for company profits or general administrative expenses, nor can they be recovered as retained earnings."
The guidelines also specify a policy requiring that the same working environment be provided to workers when employees of the client and the prime contractor work in the same location. The explanation states that the same shift system should be applied to workers performing the same or similar tasks at the same workplace, and that there should be no discriminatory treatment among workers in the same environment regarding welfare and convenience facilities such as cafeterias and restrooms, working environments such as heating and cooling seats, workplace entry procedures, and administrative support.
The government plans to strengthen management and supervision to ensure these guidelines are implemented in practice. All public sector institutions are required to conduct self-inspections of compliance at least once a year, and central administrative agencies and local governments are also mandated to regularly inspect and guide their affiliated organizations at least once a year. The Ministry of Employment and Labor (MOEL) also plans to raise the level of implementation through workplace inspections.
Minister of Employment and Labor Kim Young-hoon stated, "The value and rights of labor are the same regardless of working methods or employment forms," adding, "We will create workplaces where contract workers are treated fairly and can work happily, starting with the public sector, and then expand this to the private sector."

[email protected] Kim Jun-hyeok Reporter