To close the wage differentials between the employees of the big business and the small business at controversial issue in Korea, the Act on Fair Subcontract Transactions should be amended in the direction to guarantee the appropriate wage levels to s...
To close the wage differentials between the employees of the big business and the small business at controversial issue in Korea, the Act on Fair Subcontract Transactions should be amended in the direction to guarantee the appropriate wage levels to subcontractor's employees. The details of the amended example may be summarized as follows;
Firstly, the application of the Act on Fair Subcontract Transactions should be extended farther to the contractors who its annual sales is lower than the applied contractor currently.
Second, the regulation of contract between the contractor and the subcontractor should be imposed more strictly than the regulations now in force. For example, the principles of contract should be expressly provided for in the law; drawing up a written contract and using a standard contract form should be are required by law. And it should be demanded that the items, calculation basis, and reduction reasons of the subcontracting cost must be listed on the contract form.
Third, the determination of the subcontracting cost should be regulated more strictly than the regulations now in force. For example, the principles on the determination of subcontracting cost should be expressly provided for in the law; the subcontracting information or data should be obligatorily disclosed.
Fourthly, the prohibition against the unjust reduction of subcontracting cost should be expressly provided for in the law. And the reason of reduction should be strictly restricted.
Lastly, the administrative control of subcontracting trade should be exercised more strictly than now, such as investigation and monitoring of the actual conditions of the subcontracting trade.