Government Pushes for 'Workers Basic Act' Legislation by Year-End to Ratify ILO Platform Convention

Two months after the International Labour Organization (ILO) adopted an international convention to protect the rights of platform workers, the government held a public hearing on the 18th and officially launched efforts to revise domestic laws and institutions to ratify the convention. The core task is to legislate the "Workers Basic Act" by the end of the year, which guarantees fair pay and rest rights to platform workers, such as delivery drivers and substitute drivers.

Why the 'Workers Basic Act' Now?

Until now, platform workers—including delivery drivers, substitute drivers, and public transport connection service providers—have often not been classified as "workers" under the Labor Standards Act. This is because the criterion for recognizing workers status—"working subordinate to the user's command and supervision"—does not align with the platform labor structure where algorithms assign tasks. Consequently, there has been persistent criticism that these workers remain in a blind spot lacking basic protections such as the minimum wage, industrial accident insurance, and guaranteed rest.

In June 2026, the ILO adopted an international convention recognizing platform work as a form of labor and guaranteeing algorithm transparency, fair remuneration, and rest rights. With international standards now established, South Korea must amend domestic laws to ratify the convention. The government's public hearing serves as an initial step to bridge the gap between these international trends and domestic institutions.

Key Provisions and Scope of the Bill

The Workers Basic Act envisioned by the government aims to establish a new protective category for workers who fall outside the traditional dichotomy of "employee" and "self-employed." Delivery drivers, substitute drivers, and care platform workers are cited as priority targets. The rights to be guaranteed include fair pay, rest rights, the right to refuse assignments made by algorithms and to request explanations, and protection against industrial accidents.

Provisions regarding algorithms are particularly noteworthy. Discussions are underway on clauses that would require platforms to explain to workers how delivery volumes and unit prices are determined, and to ensure that workers refusing dangerous or unfair assignments do not suffer disadvantages. To meet the year-end legislative goal, the government is expected to proceed with legislative review by the Legislation Department and submission to the National Assembly simultaneously.

Debate: The Temperature Difference Between Labor Circle and Platform Industry

The labor circle has welcomed the move, judging that a consensus has formed on the necessity of a minimal safety net due to recurring controversies over platform worker accidents and low-price delivery orders. Conversely, the platform industry is concerned about increased financial burdens. They argue that if fair pay standards are set strictly, delivery unit prices will rise, leading to increased consumer fees. There are also warnings that this could lead to industry contraction and job losses.

Among economic experts, there is a consensus that the precision of the system design is crucial. They suggest that a phased approach to setting protection levels is realistic to strike a balance between worker protection and industrial flexibility. There are also concerns that excessively broadening the scope of the law could expand regulations into the domain of the self-employed.

Legislative Schedule and Market Impact Outlook

The government plans to draft the bill and submit it to the National Assembly by the end of the year. However, during the National Assembly process, disagreements between ruling and opposition parties and requests for industry reflection are likely to be significant variables. Since labor-related legislation typically takes a long time to coordinate interests, whether the year-end legislative goal can be met will depend on the national administrative schedule and the National Assembly's operations.

The impact on the market is also expected to be significant. The domestic delivery platform industry, already under pressure to lower commission rates, could face increased profitability pressure if labor costs rise. Conversely, improved treatment for workers could help reduce turnover in the platform labor force and enhance service quality. Ratifying the ILO convention is also expected to strengthen the country's stature as a nation that complies with labor standards in international trade relations. The speed of the legislative push by the end of the year and the results of the parliamentary review are projected to serve as a watershed moment determining the future landscape of the domestic platform labor market.