The updated Occupational Safety and Health Act has been enacted, imposing a surcharge of up to 5% of a company’s operating profit on firms where three or more employees lose their lives within a single year due to workplace accidents. The legislation is designed to deter industrial incidents by applying financial penalties to companies with repeated fatalities.
As reported by the Ministry of Employment and Labor on the 27th, the revised law permits surcharges of up to 5% of the average operating profit over the past three years if three or more workers die in the most recent year due to employer breaches of safety and health duties. In cases where there is no operating profit, calculation is impractical, or 5% of the profit falls below 3 billion Korean won, a maximum surcharge of 3 billion won may be applied. The final amount will be assessed based on company size, number of fatalities, and prior efforts to prevent accidents. These provisions will come into effect starting April 28 next year. However, some critics argue that combining this surcharge with criminal penalties under the Serious Accidents Punishment Act results in redundant sanctions.
Workplaces experiencing repeated fatal accidents may face cancellation of their business registration. If two or more individuals die simultaneously due to violations of safety and health regulations, operations can be suspended. Should a workplace undergo such a suspension twice within three years and then face another suspension, the Minister of Labor has the authority to request revocation of its business registration.
Workers’ rights to halt operations have been broadened. Employees may now cease work and evacuate when an industrial accident risk exists or is expected. Worker representatives can also demand that employers stop operations. Subcontracted workers are allowed to directly ask the main contractor to halt work. Additionally, if an injured worker is unconscious or their survival is in doubt, the Minister of Labor may issue a mandatory work stoppage order.
On January 28 next year, the ‘Safe Workplace Committee’—a body tasked with deliberating industrial safety policies—will be established. The Minister of Labor will chair the committee, which will include labor and management representatives, government officials, and industrial safety experts, with a total membership of up to 20. A reward system for individuals reporting violations of the Occupational Safety and Health Act will also begin on the same date.
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