As of February 2026, the number of non-wage workers classified as ‘workers without rights’ in the Republic of Korea reaches approximately 8.7 million — an increase of roughly 80,000 from 2023. Their numbers are continuously growing due to the expansion of the platform economy and the diversification of employment forms. Against this backdrop, let us examine the ‘Workers Without Rights Protection Package Legislation’ that the government is pursuing with a target of the upcoming Labor Day on May 1.
Workers Without Rights and Changes in Corporate Governance
From insurance salespeople, home-school teachers, and delivery riders to IT freelancers and broadcast writers, workers without rights form a substantial pillar of our economy, yet they stand in a legal blind spot. Although they effectively exhibit forms of labor similar to wage workers, under the name of ‘sole proprietors,’ they have been excluded from basic social safety nets such as severance pay, minimum wage protection, and the four major social insurances. The blind spots in the law not only threaten the lives of individual workers but can also bring back legal risks to companies in the form of massive claims for unpaid allowances and severance pay. This is also the backdrop for the government’s push for the ‘Workers Without Rights Protection Package Legislation.’
[Workers Without Rights image © ChatGPT]
The core of this legislation is the introduction of the ‘Worker Presumption System.’ Previously, workers had to prove their own worker status themselves, but under the amendment, as long as the fact that they directly provided labor for another person’s business is confirmed, they are first presumed to be a worker. If an employer wishes to claim that the person is not a worker, the employer must now find that evidence themselves. In addition, the authority of labor inspectors to directly verify data from the National Tax Service is strengthened. The intent is that the state, on behalf of workers who lack informational resources, will secure substantive labor data such as income reporting records to prove their dependency. A mediation procedure that can swiftly resolve worker status disputes at the stage before court litigation is also being established.
In the ESG Era, a Shift in Corporate Perception of Labor Is Needed
However, because this legislation does not expand the coverage by changing the definition of ‘worker’ itself under the Labor Standards Act, tasks remain to be resolved. At this point, labor circles have raised questions about the effectiveness, criticizing that ‘merely shifting the burden of proof while leaving the scope of workers unchanged is protection in name only.’ In particular, there is also criticism that if the provisions for improving treatment are limited to non-binding ‘duty to endeavor,’ companies could evade them under the logic of having done their best under the circumstances, making it difficult to bring about substantive change on the ground.
[Framework Act on the Rights of Working People © Ministry of Employment and Labor]
Although this legislative push is controversial in terms of its effectiveness, companies should not dismiss this change as something to merely observe. The discussion of institutionally protecting various forms of labor providers ultimately demonstrates that social inclusion is settling in as a key indicator of ESG evaluation. Companies must now accept this not as mere regulatory tightening but as a process in which the governance of labor practices itself is fundamentally changing. This is because legal risk management related to human resources is no longer a matter of choice but an issue directly tied to corporate survival.
Until now, companies have drawn the line with the logic that ‘if they are not directly employed affiliates, there is no responsibility.’ But they must break away from such practices and recognize all human resources that support the substantive pillar of their business as ‘partners within the system.’ They must bring previously unclear risks within the institutional framework to manage them transparently and design a win-win structure with these partners.
by Editor L