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ACT ON THE PROTECTION, ETC., OF DISPATCHED WORKERS

ACT ON THE PROTECTION, ETC., OF DISPATCHED WORKERS

Act No. 5512, Feb. 20, 1998

Amended by Act No. 8076, Dec. 21, 2006

Act No. 8372, Apr. 11, 2007

Act No. 8617, Aug. 3, 2007

Act No. 8963, Mar. 21, 2008

Act No. 8964, Mar. 21, 2008

CHAPTER

General Provisions

Article 1 (Purpose)

The purpose of this Act is to enhance the flexibility of supply and demand of manpower by managing worker dispatch undertakings properly and setting up criteria such as for working conditions for dispatched workers, thereby contributing to employment security and welfare promotion for dispatched workers.

Article 2 (Definitions)

Terms used in this Act are defined as follows:

1. The term ßÖworker dispatchß×means a system in which a sending employer, while maintaining employment

relations with a worker after hiring, has the worker work for a using employer under the direction and order of the using employer in accordance with a worker dispatch contract;

2. The term ßÖworker dispatch undertakingß×means conducting worker dispatching as a business;

3. The term ßÖsending employerß×means a person who carries out a worker dispatch undertaking;

4. The term ßÖusing employerß×means a person who uses a dispatched worker under a worker dispatch contract;

5. The term ßÖdispatched workerß×means a person who is employed by a sending employer and subject to worker dispatch;

6. The term ßÖworker dispatch contractß×means an agreement prescribing worker dispatch between a sending employer - 2 -

and a using employer; and

7. The term "discriminatory treatment" means giving unfavorable treatment in terms of wages and other working conditions etc. without any justifiable reasons. Article 3 (Obligation of the Government)

In order to protect dispatched workers and make it easy for workers to find jobs and for employers to secure manpower, the government shall make efforts to ensure that workers be can be directly employed by employers, by coming up with and implementing various measures specified in the following subparagraphs:

1. Gathering and provision of employment information;

2. Research on jobs;

3. Vocational guidance; and

4. Establishment and operation of employment security organizations.

Article 4 (Surveys and Research on Worker Dispatch Undertakings) (1) The Government, if necessary, may have representatives of workers, employers, and public interest and related experts conduct surveys and research on major matters concerning the proper management of worker dispatch undertakings and the protection of dispatched workers.

(2) Other matters necessary for surveys and research stipulated in paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor.

CHAPTER

Proper Management of Worker Dispatch Undertakings Article 5 (Jobs Permitted for Worker Dispatch)

(1) Jobs permitted for worker dispatch shall be those considered suitable for that purpose given their nature and required professional knowledge, skills or experiences, and prescribed by the Presidential Decree, but excluding those directly related to production in the manufacturing industry.

(2) Notwithstanding the provisions of paragraph (1), if there is a vacancy due to child birth, illness, injury, etc., or there is a need to temporarily or intermittently secure manpower, worker dispatch may be permitted. Dec. 21, 2006>

(3) Notwithstanding the provisions of paragraphs (1) and (2), worker dispatch shall not be permitted for work described in the following subparagraphs :

1. Work performed at a construction site;

2. Job areas involving stevedoring work under subparagraph 1 of Article 3 of the Harbor Transport Business Act, Article 9 (1) 1 of the Railroad Transport Business Act, Article 40 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, and Article 2 (1) 1 of the Facilitation of Goods Distribution Act, for which worker supply services are permitted pursuant to Article 33 of the Employment Security Act;

3. Seamen's work under Article 3 of the Seaman Act;

4. Harmful and hazardous work under Article 28 of the Industrial Safety and Health Act; and

5. Other work considered not suitable for worker dispatch on grounds of worker protection, etc., and prescribed by the Presidential Decree.

(4) If an employer intends to use a dispatched worker under paragraph (2), he/she shall have sincere consultation in advance with the trade union of the business or workplace concerned if there is a trade union with a majority of workers as its members, or if there is no such trade union, with a person representing a majority of workers.

(5) No person shall carry out a worker dispatch undertaking or receive worker dispatch service from a person who carries out a worker dispatch undertaking in violation of paragraphs (1) through (4). Article 6 (Length of Dispatch Period)

(1) The length of a dispatch period shall not exceed one year, except for when the case falls under Article 5 (2).

(2) Notwithstanding the provision of paragraph (1), if there is an agreement between the sending employer, the using employer and the dispatched worker, the period may be extended. In this case, the extended period, if extended once, shall not exceed one year, and the total dispatch period, including the extended period, shall not exceed two years.

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(3) With regard to aged dispatched workers under

subparagraph 1 of Article 2 of the Aged Employment Promotion Act, notwithstanding the latter part of the provision of paragraph (2), the dispatch period may be extended for more than two years. (4) The period of worker dispatch under Article 5 (2) are as follows:

1. A period required to resolve the cause in case where there are such clear and objective causes as childbirth, illness and injury; and

2. A period of less than three months in case where there is a need to secure manpower on a temporary and

intermittent basis : Provided that if the cause is not resolved and there is an agreement among the dispatch employer, the using employer and the dispatched worker, the period may be extended one time, not exceeding three months.

Article 6-2 (Obligation of Employment)

(1) If a using employer falls under any of the following subparagrpahs, he/she shall directly employ the dispatched worker concerned:

1. In case the using employer continues to use the dispatched worker in excess of two years in violation of Article 5 (2);

2. In case the using employer uses the dispatched worker in violation of Article 5 (3);

3. In case the using employer continues to use the dispatched worker in excess of two years in violation of Article 6 (2) or (4); or

4. In case the using employer continues to be offered service by the dispatched worker in excess of two years in violation of Article 7 (3).

(2) The provisions of paragraph (1) shall not apply, if the dispatched worker clearly expresses an objection, or there is a justifiable reason prescribed by the Presidential Decree. (3) If a using employer directly employs a dispatched worker pursuant to paragraph (1), working conditions for the dispatched worker shall be as follows :

1. If among workers employed by the using employer, there is a worker performing the same or similar kind of work the dispatched worker performs, working conditions prescribed in employment rules applicable to the worker shall apply to the dispatched worker; and

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2. If among workers employed by the using employer, there is no worker performing the same or similar kind of work the dispatched worker performs, the level of working conditions for the dispatched worker shall not be lower than the level of existing ones for the dispatched worker.

(4) If a using employer intends to directly employ a worker for a job for which a dispatched worker is already being used, he/she shall make efforts to preferentially employ the dispatched worker.

Article 7 (Permission on Worker Dispatch Undertakings) (1) A person who intends to carry out a worker dispatch undertaking shall obtain permission from the Minister of Labor pursuant to the Ordinance of the Ministry of Labor. This requirement shall also apply when any change is made to major matters prescribed by the Ordinance of the Ministry of Labor, among those permitted.

(2) If a person who has obtained permission to carry out a worker dispatch undertaking, under the first sentence part of paragraph (1) wishes to change what has been permitted, other than the major matters as stipulated in the second sentence of the same paragraph, he/she shall report such changes to the Minister of Labor pursuant to the Ordinance of the Ministry of Labor. (3) A using employer shall not be offered service by a person who carries out a worker dispatch undertaking in violation of paragraph (1).

Article 8 (Disqualification for Permission)

A person who falls under any of the following

subparagraphs shall not be able to obtain permission for worker dispatch undertakings under Article 7:

1. A minor, an incompetent, a quasi-incompetent, or a person who was declared bankrupt and has not been reinstated;

2. A person who is sentenced to a punishment heavier than imprisonment without prison labor (excluding suspension of sentence), or for whom two years have not elapsed after the termination of, or exemption from such punishment

3. A person who was sentenced to a punishment heavier than imprisonment without prison labor (excluding - 6 -

suspension of sentence) for violating this Act, the Employment Security Act, Articles 7, 9, 20 through 22, 36, 43 through 46, 56 and 64 of the Labor Standards Act, Article 6 of the Minimum Wage Act, and Article 100 (3) of the Seaman Act, or for whom three years have not elapsed after the termination of, or exemption from such punishment;

4. A person who was sentenced to a punishment heavier than imprisonment without prison labor and is on

probation;

5. A person for whom three years have not elapsed since the permission for the business was cancelled under Article 12; and

6. A juristic person which among its executive, has a person falling under any of subparagraphs 1 through 5.

Article 9 (Criteria for Permission)

(1) If permission for worker dispatch undertakings is requested under Article 7, the Minister of Labor may give that permission as long as the following requirements are met:

1. The requester shall have assets and facilities, etc., which would enable him/her to carry out the worker dispatch undertaking properly; and

2. The worker dispatch undertaking concerned shall not target a specific small number of using employers. (2) Detailed criteria for permission as stipulated in paragraph (1) shall be prescribed by the Presidential Decree. Article 10 (Term of Validity of Permission, etc.) (1) The term of validity of permission for worker dispatch undertakings shall be three years.

(2) Any person who intends to continue to carry out a worker dispatch undertaking after termination of the term of validity of permission under paragraph (1) shall obtain permission for renewal pursuant to the Ordinance of the Ministry of Labor.

(3) The term of validity of permission for renewal shall be three years, counted from the day after the term of validity of permission before renewal expires.

(4) The provisions of Articles 7 through 9 shall apply mutatis mutandis to permission for renewal under paragraph (2). Article 11 (Shutdown of Business)

(1) If a sending employer discontinues his/her worker - 7 -

dispatch undertaking, he/she shall report it to the Minister of Labor pursuant to the Ordinance of the Ministry of Labor. (2) If such report under paragraph (1) is made, the permission for the worker dispatch undertaking concerned shall be invalid from the day of report.

Article 12 (Cancellation of Permission, etc.)

(1) The Minister of Labor may cancel permission for a worker dispatch undertaking or order business to be suspened for a period of less than six months if a sending employer falls under any of the following subparagraphs : Provided that the permission in question shall be cancelled if the sending employer falls under subparagraphs 1 or 2:

1. Where he/she has obtained the permission under Article 7 (1) or Article 10 (2) by false or other fraudulent means;

2. Where he/she is subject to the reasons for disqualification under Article 8;

3. Where he/she fails to meet the criteria for permission under Article 9;

4. Where he/she has carried out a worker dispatch undertaking in violation of Article 5 (5);

5. Where he/she has carried out a worker dispatch undertaking in violation of Article 6 (1), (2) and (4);

6. Where he/she has changed important matters without getting permission in violation of the latter part of Article 7 (1);

7. Where he/she has changed matters to be reported without reporting such change pursuant to Article 7 (2); 8 Where he/she fails to report discontinuation of business pursuant to Article 11 (1);

9. Where he/she fails to notify the using employer of a decision on suspension of business in violation of Article 13 (2);

10. Where he/she violates the ban on concurrent business under Article 14;

11. Where he/she has lent its name in violation of Article 15;

12. Where he/she has dispatched a worker in violation of Article 16 (1);

13. Where he/she violates the matters to be observed under Article 17;

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14. Where he/she fails to make a report pursuant to Article 18 or makes a false report;

15. Where he/she fails to make a worker dispatch contract in writing pursuant to Article 20 (1);

16. Where he/she has dispatched a worker without obtaining consent from the worker in violation of 24 (2);

17. Where he/she has made a labor contract or worker dispatch contract in violation of Article 25;

18. Where he/she fails to inform a dispatched worker of the matters referred to in subparagraphs 2 and 4 through 12 of Article 20 (1) in violation of Article 26 (1);

19. Where he/she fails to appoint a person responsible for managing dispatch undertaking pursuant to Article 28 or appoints a person disqualified therefor;

20 Where he/she fails to prepare or preserve a ledger for management of dispatch undertaking pursuant to Article 29;

21. Where he/she fails to send the results of a health examination in violation of Article 35 (5);

22. Where he/she fails to comply with an order to improve the operation of worker dispatch undertaking and

employment management for dispatched workers pursuant to Article 37; or

23. Where he/she violates an order to report pursuant to Article 38 or refuses, avoids or obstructs entry, inspection or questioning by related public servants.

(2) If the Minister of Labor intends to cancel his/her permission as a juristic person is subject to the reason for disqualification referred to in subparagraph 6 of Article 8, he/she shall give the juristic person more than one month in advance to replace the executive concerned.

(3) If the Minister of Labor intends to cancel his/her permission pursuant to paragraph (1), he/she shall hold a hearing.

(4) Criteria for cancellation of permission or suspension of business for worker dispatch undertakings under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor. Article 13 (Worker Dispatch after Cancellation of Permission, etc.) (1) A sending employer who is subject to cancellation of permission or suspension of business under Article 12 shall have his/her duties and rights as a sending employer for the workers dispatched before such decision and for the using - 9 -

employer as a sending employer until the end of the dispatch period.

(2) In the case of paragraph (1), the sending employer shall give, without delay, a notice to the using employer on such decision.

Article 14 (Prohibition of Concurrent Business)

A person who runs a business falling under any of the following subparagraphs shall not carry out a worker dispatch undertaking:

1. Food and entertainment business under Article 21 (1) 3 of the Food Hygiene Act;

2. Lodging business under Article 2 (1) 1 A of the Public Health Act;

3. Marriage counselling or matchmaking services under Article 5 of the Family Ritual Standards Act; and

4. Other businesses prescribed by the Presidential Decree. Article 15 (Prohibition of Name Lending)

A sending employer shall not have others carry out a worker dispatch undertaking under his/her own name. Article 16 (Restrictions on Worker Dispatch)

(1) A sending employer shall not dispatch a worker to a firm where industrial action is underway to perform the work stopped due to such industrial action.

(2) No person, after dismissing a worker for managerial reasons under Article 24 of the Labor Standards Act, shall use a dispatched worker for that work before the end of the certain period prescribed by the Presidential Decree.

Article 17 (Matters to be Observed by Sending Employer, etc.) A sending employer and a person responsible for managing worker dispatch undertakings under Article 28 shall observe the matters prescribed by the Ordinance of the Ministry of Labor when carrying out worker dispatch undertakings.

Article 18 (Report on Business)

A sending employer shall prepare a business report and submit it to the Minister of Labor as prescribed by the Ordinance of the Ministry of Labor.

Article 19 (Measure for Closure, etc.)

(1) With regard to persons who carry out a worker dispatch - 10 -

undertaking without permission or continue to carry out a worker dispatch undertaking after a decision on cancellation of permission or suspension of business is rendered, the Minister of Labor may have a relevant public official take the following measures to close down the business concerned:

1. Removing or eliminating the billboard and other business signs of the business place or office concerned;

2. Posting a notice indicating that the business concerned is illegal; and

3. Sealing off from usage instruments or facilities essential for operating the business concerned.

(2) If the measures under paragraph (1) are taken, the sending employer concerned or his/her agent shall be informed in writing of this in advance : Provided that if there is an urgent need, this paragraph shall not apply.

(3) The measures referred to in paragraph (1) shall be limited to the minimum extent necessary for stopping the business concerned.

(4) A relevant public official who implements the measures under paragraph (1) shall show a certificate indicating such authority to a related person.

CHAPTER

Working Conditions of Dispatched Workers, etc.

SECTION 1

Worker Dispatch Contract

Article 20 (Contents of Contracts, etc.)

The parties to a worker dispatch contract shall conclude the contract in writing which includes matters described in the following subparagraphs, as prescribed by the Ordinance of the Ministry of Labor:

1. Number of dispatched workers;

2. Description of activities in which a dispatched worker will be engaged;

3. Reasons for dispatching (limited to cases where the worker concerned is dispatched under the provisions of paragraph (2) of Article 5);

4. Name of the workplace, location and other working place - 11 -

in which a dispatched worker will be placed;

5. Information on a person who will directly direct and command a dispatched worker during dispatch period;

6. Matters related to dispatch period and starting date of dispatch service;

7. Matters related to start time and finish time of work, and recess hours;

8. Matters related to holidays and leave;

9. Matters related to extended, night and holiday work;

10. Matters related to safety and health;

11. Matters related to the price of worker dispatch; and

12. Other matters prescribed by the Ordinance of the Ministry of Labor.

(2) If a using employer signs a worker dispatch contract pursuant to paragraph (1), he/she shall provide necessary information to the sending employer so as to ensure compliance with the provisions of Article 21 (1). In this case, matters concerning the scope of provided information and method of provision shall be prescribed by the Presidential Decree.

Article 21 (Prohibition, Correction, etc., of Discriminatory Treatments) (1) A sending employer and a using employer shall not treat a dispatched worker in a discriminatory manner in comparison with a worker who performs the same work in the business of the using employer.

(2) If a dispatched worker is discriminated, he/she may apply for redress to the Labor Relations Commission. (3) Articles 9 through 15 and 16 of the Act on the Protection, etc., of Fixed-term and Part-time Employees (excluding subparagraphs 1 and 4 of the same Article) shall apply mutatis mutandis to application for redress prescribed in paragraph (2) and other redress procedures. In this case, "fixed-term or part-time employees" and "employer" shall be read as "dispatched workers" and "sending employer and using employer".

(4) The provisions of paragraphs (1) through (3) shall not apply in case the using employer employs four workers or less.

Article 22 (Contract Rescission, etc.)

(1) A using employer shall not rescind a worker dispatch contract on grounds of gender, religion, social status of a dispatched worker or legitimate involvement in activities of a - 12 -

trade union.

(2) A sending employer may suspend worker dispatch or rescind a worker dispatch contract if, with regard to dispatch work, the using employer violates this Act or orders under this Act, the Labor Standards Act or orders under the Labor standards Act, the Industrial Safety and Health Act or orders under the Industrial Safety and Health Act.

SECTION 2

Measures to Be Sought by Sending Employer

Article 23 (Welfare Enhancement for Dispatched Workers) A sending employer shall make efforts to enhance the welfare of dispatched workers by seeking measures necessary to secure employment and education and training opportunities suitable for their desire and abilities, improve their working conditions, and achieve their employment stability.

Article 24 (Duty of Notice for Dispatched Workers) (1) If a sending employer intends to employ a worker as a dispatched worker, he/she shall inform the worker in advance of the intent in writing. (2) If a sending employer intends to choose a person to be dispatched from among workers who are hired by the employer not as dispatched workers, he/she shall notify the worker concerned of the intent in advance in writing, and obtain his/her consent. Article 25 (Prohibition of Employment Restriction for Dispatched Workers)

(1) A sending employer shall not, without a justifiable reason, conclude a contract with a dispatched worker or a person who desires to be hired as a dispatched worker, which contains such contents prohibiting the worker from being hired by a using employer after termination of employment relationships with the sending employer concerned.

(2) A sending employer shall not, without a justifiable reason, conclude a worker dispatch contract which contains contents prohibiting a using employer from hiring the dispatched worker after termination of employment relationships with the dispatched worker concerned.

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Article 26 (Notification of Placement Conditions) (1) If a sending employer intends to dispatch a worker, he/she shall, in advance, notify in writing the worker concerned of matters described in subparagraphs of Article 20 (1) and other matters prescribed by the Ordinance of the Ministry of Labor.

(2) A dispatched worker can ask the sending employer to provide detailed information on the price of worker dispatch pursuant to Article 20 (1) 11.

(3) If a sending employer is asked to provided detailed information under paragraph (2), he/she shall provide it without delay. Article 27 (Notice for Using Employer)

If a sending employer dispatches a worker, he/she shall give a notice of the name of the dispatched worker and other matters prescribed by the Ordinance of the Ministry of Labor to the using employer.

Article 28 (Person in Charge of Management of Dispatch Undertakings) (1) In order to ensure proper employment management for dispatched workers, a sending employer shall select a person in charge of management of dispatch undertakings among those who do not fall under the reasons for disqualification referred to in subparagraphs 1 through 5 of Article 8.

(2) Matters necessary concerning duties, etc., of a person in charge of management of dispatch undertakings shall be prescribed by the Ordinance of the Ministry of Labor. Article 29 (Ledger for Management of Dispatch Undertakings) (1) A sending employer shall prepare and preserve a ledger for management of dispatch undertakings.

(2) The matters to be recorded on a ledger for management of dispatch undertakings, and the duration of preservation under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor.

SECTION 3

Measures to Be Sought by Using Employer

Article 30 (Measures for Worker Dispatch Contract) - 14 -

A using employer shall seek necessary measures not to violate the making of a worker dispatch contract under Article 20. Article 31 (Security on Proper Dispatch Work)

(1) If a dispatched worker files a grievance on dispatch work, the using employer shall notify the contents of the grievance to the sending employer, and handle such a grievance promptly and properly.

(2) Besides handling grievances as stipulated in

paragraph (1), a using employer shall seek necessary measures to ensure the proper carrying out of dispatch work. Article 32 (Person in Charge of Managing Use of Dispatched Workers)

(1) In order to ensure the proper carrying out of dispatch work by dispatched workers, a using employer shall appoint a person in charge of managing use of dispatched workers. (2) Matters necessary concerning duties, etc., of a person in charge of managing use of dispatched workers shall be prescribed by the Ordinance of the Ministry of Labor.

Article 33 (Ledger for Management of Use of Dispatched Workers) (1) A using employer shall prepare and preserve a ledger for management of use of dispatched workers.

(2) The matters to be recorded on a ledger for management of use of dispatched workers, and the duration of preservation under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor.

SECTION 4

Special Cases Relating to Application of the Labor Standards Act, etc.

Article 34 (Special Cases Relating to Application of the Labor Standards Act)

(1) With regard to work of a dispatched worker during a dispatch period, the sending employer and the using employer shall be deemed to be an employer under Article 2 of the Labor Standards Act and the same Act shall apply to them accordingly : Provided that in applying Articles 15 through 36, 39, 41 through 48, 56, 60, 64, 66 through 68 and 78 through 92 of the same Act, the sending employer shall be deemed to be - 15 -

an employer while in applying Articles 50 through 55, 58, 59, 62, 63 and 69 through 75 of the same Act, the using employer shall be deemed to be an employer.

(2) If a sending employer fails to pay wages to a dispatched worker due to causes attributable to the using employer as prescribed by the Presidential Decree, the using employer shall be jointly liable for that failure along with the sending employer. In this case, the sending employer and the using employer, in applying the provisions of Articles 43 and 68 of the Labor Standards Act, shall be deemed to be an employer under Article 2 of the same Act and the same Act shall apply to them accordingly. (3) If a using employer grants paid holidays or paid leave under Articles 55, 73 and 74 (1) of the Labor Standards Act, the wages during such holidays or leave shall be paid by the sending employer. (4) If a sending employer and a using employer conclude a worker dispatch contract which contains contents violating the Labor Standards Act, and violate the same Act by having a dispatched worker work in accordance with the contract, they shall be subject to relevant penal provisions on the assumption that all parties to the contract should be deemed to be an employer under Article 15 of the same Act.

Article 35 (Special Cases Relating to Application of the Industrial Safety and Health Act)

(1) With regard to work of a dispatched worker during a dispatch period, the using employer shall be deemed to be an employer under subparagraph 3 of Article 2 of the Industrial Safety and Health Act in applying the same Act. In this case, in applying Article 31 (2) of the Industrial Safety and Health Act, ßÖwhen hiring a workerß×in the same paragraph shall be regraded to be ßÖwhen worker dispatch service is offered". (2) Notwithstanding the provisions of paragraph (1), in applying Articles 5, 43 (5) (limited to the cases of a change of workplace, work reassignment and working hour reduction), the proviso of Article 43 (6) and Article 52 (2) of the Industrial Safety and Health Act, a sending employer and a using employer shall be deemed to be an employer under

subparagraph 3 of Article 2 of the same Act.

(3) If a using employer has conducted a health

examination for a worker during a dispatch period pursuant to - 16 -

Article 43 of the Industrial Safety and Health Act, he/she shall explain and send without delay the results of such health examination to the sending employer pursuant to Article 43 (6) of the same Act.

(4) Notwithstanding the provisions of paragraphs (1) and (3), with regard to health examinations designated by the Ordinance of the Ministry of Labor, among those which should be regularly conducted by an employer pursuant to Article 43 (1) of the Industrial Safety and Health Act, a sending employer shall be deemed to be an employer under subparagraph 3 of Article 2 of the same Act. (5) If a sending employer has conducted a health examination pursuant to paragraph (4), he/she shall explain and send without delay the results of such health examination to the using employer pursuant to Article 43 (6) of the Industrial Safety and Health Act.

(6) If a sending employer and a using employer conclude a worker dispatch contract which contains contents violating the Industrial Safety and Health Act, and violate the same Act by having a dispatched worker work in accordance with the contract, they shall be subject to relevant penal provisions on the assumption that all parties to the contract should be deemed to be an employer under subparagraph 3 of Article 2 of the same Act.

CHAPTER

Supplementary Provisions

Article 36 (Guidance, Advice, etc.)

The Minister of Labor may, if deemed necessary for the enforcement of this Act, offer a sending employer and a using employer guidance and advice necessary for properly operating worker dispatch undertakings and ensuring proper dispatch work.

Article 37 (Improvement Order)

The Minister of Labor may, if deemed necessary for ensuring proper dispatch work, order a sending employer to improve the operation of worker dispatch undertakings and employment management for dispatched workers.

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Article 38 (Report and Inspection)

(1) The Minister of Labor may, if deemed necessary for the enforcement of this Act, order a sending employer and a using employer to report necessary matters under the conditions prescribed by the Ordinance of the Ministry of Labor. (2) The Minister of Labor may, if deemed necessary, have a related public official enter the workplace and other facilities of a sending employer and a using employer, inspect books, documents and other materials, or ask questions to a related person.

(3) A public official who enter a place and inspect pursuant to paragraph (2) shall show a certificate indicating such authority to a related person.

Article 39 (Request for Materials)

(1) The Minister of Labor may request a related administrative organization and other public bodies, etc., to submit materials necessary for the enforcement of this Act.

(2) A person who is asked to submit materials under paragraph (1) shall comply with the request as long as there is no justifiable reason.

Article 40 (Fees)

A person who intends to obtain permission under Articles 7 and 10 shall pay fees as prescribed by the Ordinance of Ministry of Labor.

Article 41 (Delegation of Authority)

Parts of the authority of the Minister of Labor may be delegated to the head of a local labor office under the conditions prescribed by the Presidential Decree. CHAPTER

Penal Provisions

Article 42 (Penal Provisions)

(1) A person who dispatches a worker to be employed for work harmful to public health or public morality shall be punished by imprisonment for less than five years or a fine not exceeding 30 million won.

(2) A person who attempts to commit the act referred in - 18 -

paragraph (1) shall be punished.

Article 43 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for up to three years or a fine not exceeding 20 million won:

1. A person who carries out worker dispatch undertakings in violation of Article 5 (5), Article 6 (1), (2) and (4) or Article 7 (1);

1-2. A person who receives worker dispatch services in violation of Article 5 (5), Article 6 (1), (2) and (4) or Article 7 (3);

2. A person who has obtained permission under Article 7 (1) or permission for renewal under Article 10 (2) by false or fraudulent means; and

3. A person who violates the provisions of Article 15 or Article 34 (2).

Article 43-2 (Penal Provisions)

A person who violates Article 16 (excluding subparagraphs 1 and 4 of the same Article) of the Act on the Protection, etc., of Fixed-term and Part-time Employees that apply mutatis mutandis pursuant to Article 21 (3) shall be punished by imprisonment of up to two years or a fine not exceeding ten million won.

Article 44 (Penal Provisions)

A person who falls under any of the following

subparagraphs shall be punished by imprisonment for up to one year or a fine not exceeding 10 million won:

1. Deleted.

2. A person who continues to carry out worker dispatch undertakings in violation of a business suspension order under Article 12 (1); and

3. A person who violates the provisions of Article 16 or 26 (1). Article 45 (Joint Penal Provisions)

If the representative of a juristic person, or an agent, a servant or any other employee of a juristic person or an individual commits an offence in violation of Articles 42 through 44 in connection with the juristic personßÓs or individualßÓs affairs, the juristic person and individual, in addition to the offender, shall be punished by a fine referred to - 19 -

in the corresponding respective Articles.

Article 46 (Fine for Negligence)

(1) A person who, without any justifiable reason, fails to comply with a confirmed redress order under Article 14 (2) or (3) of the Act on the Protection, etc., of Fixed-term and Part-time Employees that apply mutatis mutandis pursuant to Article 21 (3) shall be punished by a fine for negligence not exceeding 100 million won.

(2) A person who fails to directly employ a dispatched worker in violation of Article 6-2 (1) shall be punished by a fine for negligence not exceeding 30 million won.

(3) A person who, without any justifiable reason, fails to comply with the demand of the Minister of Labor to submit a status report on compliance with a redress order under Article 15 (1) of the Act on the Protection, etc., of Fixed-term and Part-time Employees that apply mutatis mutandis pursuant to Article 21 (3) shall be punished by a fine for negligence not exceeding five million won.

(4) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding three million won:

1. A person who fails to make a report under Article 11 (1) or makes a false report;

2. A person who fails to make a report under Article 18 or 38 (1) or makes a false report;

2-2 A person who violates the provisions of Article 26 (3);

3. A person who violates the provisions of Articles 27, 29 or 33;

4. A person who fails to send the results of a health examination in violation of Article 35 (3) or (5);

5. A person who violates an improvement order under Article 37; and

6. A person who refuses, interferes with, or evades the inspection under Article 38 (2) without any

justifiable reason.

(5) A fine for negligence under paragraphs (1) through (4) shall be imposed and collected by the Minister of Labor under the conditions prescribed by the Presidential Decree.

(6) A person who is dissatisfied with the imposition of a - 20 -

fine for negligence under paragraph (5) may raise an objection with the Minister of Labor within 30 days after he/she is notified of the imposition.

(7) If a person who is subject to the imposition of a fine for negligence under paragraph (5) raises an objection under paragraph (3), the Minister of Labor shall, without delay, notify such a complaint to the competent court, and the court so notified shall try the case of a fine for negligence in accordance with the Non-Contentious Case Procedure Act. (8) If neither objection is made nor is a fine for negligence paid within the period as referred to in paragraph (6), the fine shall be collected according to the process of recovery of national taxes in arrears.

Addenda

(1) (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

1 through 3 Omitted.

(2) (Revision of Other Laws)

Parts of the Act on the Protection, etc., of Dispatched Workers shall be revised as follows :

"Article 6 of the Minimum Wage Act" in subparagraph 3 of Article 8 shall be changed to "Article 6 of the Minimum Wage Act".