Question 12: Which type of LC may Employers sign with part-time handy workers? Upon signing LCs with part-time Employees, how are Employers required to implement compulsory insurance regimes for Employees?

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  1. LCs signed with handy workers

Under the labour laws, Employers may agree with Employees to apply full-time or part-time employment regimes. Accordingly, the part-time working regime is defined as the mode where Employees have shorter working time than the normal working day by the day or by the week as stipulated in the labour law (normal working hours must not exceed 08 hours/day and 48 hours/week.)[1]

Also pursuant to the labour law, part-time Employees will have the same rights as full-time Employees[2]. As such, the type of LC that Employers will have to sign with handy workers who are subject to application of the part-time working regime will be applied in accordance with the regulations on the type of LC of the full-time working regime. Pursuant to Article 22 of the Labor Code, LCs between Employers and Employees may only be entered into in one of the following three types: 

  • Indefinite term LCs;
  • Definite LC with a term from 12 months to 36 months; and
  • LCs which are based on seasons or specific tasks with under 12-month term.

If Employers sign the type of seasonal or specific job-based LC with a term of less than 12 months as aforesaid, Employers should note the following two issues:

  • For the type of definite LC, the parties may only sign up to 2 times more upon its expiry. After that, if Employees continues to work, the parties must sign indefinite LCs[3]. Although this regulation does not refer to the type of seasonal or specific job-based LC with a term of less than 12 months, of which the number of additional signings are limited in the same manner as definite LCs, it actually will equally apply to the type of seasonal or specific job-based LC with a term of less than 12 months in order to protect Employees’ interests. Otherwise, Employers will continue to renew LCs with handy workers in the form of a seasonal or specific job-based LC with a term of less than 12 months, thereby affecting Employees’ benefits.
  • On the other hand, if Employers intend to recruit these handy workers for a long term by signing seasonal or specific job-based LCs with a term of less than 12 months, the subsequent repeated renewing of the same LC may turn such seasonal or specific jobs into a regular job for 12 months or more because renewing an LC is allowed only up to 2 times by law. At that point, Employers may be deemed to be in violation of the principle of “banning the signing of seasonal or specific job-based LCs with a term of less than 12 months for regular employment of 12 months or more, except for the temporary replacement of Employees on military service, maternity leave, due to sickness, labour accidents or other temporary leave.”[4] Employers should also note that the law has not currently yet provided guidance as to “a regular job of 12 months or more”. However, in the view of the labour management authorities, they often consider regular job of 12 months or more to be a job done day in and day out without interruption regardless of the position and qualification of such job.
  • Compulsory insurance regimes for part-time Employees

Pursuant to the Law on SI, Employees under LCs of a full 01 month to under 03 months are subject to participate in compulsory SI[5]. Thus, when part-time handy workers enter into LCs with Employers, whether seasonal LC or specific job-based LC with a term of from a month to less than three months, they shall be subject to compulsory social insurance and Employers are obliged to pay compulsory social insurance for them.

[1]Article 34.3 Labor Code

[2]Article 34.3 Labor Code

[3] Article 22.2 Labor Code

[4]Article 22.3 Labor Code

[5]Article 2.1 (b) Law on SI