Question 90: Are the Employees who work under LCs of less than 3 months the subjects to participate in SI?

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  1. Singing LCs of less than 3 months with Employees

Pursuant to the Labor Code, LCs of less than 3 months may be classified as seasonal LCs or specific-task LCs of less than 12 months[1]. For this type of LC, the Employer should be noted that if the task is of frequent nature and lasts for 12 months or over, the Employer must not sign seasonal or specific-task LCs of less than 12 months, except for when this is necessary to replace an Employee who must be away for military service, maternity leave, sickness, labour accidents or leaves for other temporary reasons[2]. Therefore, the Employer may sign seasonal LCs of less than 3 months with part-time Employees only when their jobs are of non-frequent nature and do not last for long.

There are actually many cases where the Employers and part-time Employees signed “freelance contracts” but when the local labour management agencies checked at their premises, it turned out that the Employees had worked “frequently” for the Employers for many years under “freelance contracts”, and the Employers were asked to sign LCs with these Employees.

2. Are part-time Employees the subjects to participate in SI?

Pursuant to the Law on SI, Employees under LCs of full 01 month to under 03 months are the subjects to participate in compulsory SI[3]. Therefore, if the Employer signs seasonal LCs of less than 3 months with part-time Employees, they must pay SI premiums for these Employees.

[1]Article 22.1 (c) Labor Code

[2]Article 22.3 Labor Code

[3]Article 2.1(b) Law on SI