A day laborer drinks water amid the heat at a construction site in Hwaseong, Gyeonggi on Aug. 3.NEWS1
Day laborers continue to struggle with unpaid wages even as Chuseok holiday looms despite a government push to clear wage arrears. Gaps in employment reporting make it harder for some workers to claim not only overdue pay but unemployment benefits and industrial accident compensation.
The problem can persist even when workers have signed employment contracts. Employers may fail to properly report work records, leaving day laborers who frequently move between construction sites with the burden of proving where and for whom they worked when they later seek compensation or other benefits.
Union workers and Ministry of Employment and Labor officials are seen saluting the flag during a meeting at the government complex in Jongno District, central Seoul on Sept. 18.NEWS1
A construction worker who worked for about six weeks at a construction site run by a major conglomerate in Seoul claims he is owed around 6 million won ($4,400) in wages and unemployment benefits.
The worker was not paid part of the daily wages stipulated in his employment contract based on his working hours, nor did he receive allowances for days when work was suspended due to circumstances on the company's side, according to the worker.
“There are more things to spend money on during Chuseok, but I'm in a tight spot because my wages haven't been paid on time,” he said.
On Sept. 8, the worker filed a complaint over the unpaid wages against the company with the Seoul Southern District Office of Employment and Labor.
Another day laborer faces a similar problem, with around 10 million won in unpaid wages. Despite signing an employment contract, this second worker claims his wages were not paid on time and his employer failed to properly report his employment insurance and retirement mutual aid records.
“I spent millions of won just on expenses like meals and accommodation so I could work at the site, but I did the work and still haven't been paid,” the worker said. “It's a heavy burden not to receive my daily wages with Chuseok approaching.”
The cases come as the government operates a special enforcement period through Oct. 31 to address wage arrears in time for Chuseok.
The Ministry of Employment and Labor and Korea Workers' Compensation and Welfare Service announced Sept. 1 that the government would provide substitute payments — wages paid by the state on behalf of employers within certain limits — to help workers receive overdue wages before the holiday.
Around 75,000 workers received 470 billion won in substitute payments from the Korea Workers' Compensation and Welfare Service (Kcomwel) through the end of July this year.
But workers and labor experts say paying overdue wages after the fact does not resolve another problem facing day laborers: Missing employment records can make it difficult to access other protections long after the wage dispute itself begins.
Because day laborers frequently move between construction sites, an employer's failure to report their work at the time can leave workers struggling to prove their employment retroactively.
Labor Minister Kim Young-hoon, center, speaks during a ministry briefing at the government complex in Jongno District, central Seoul on Sept. 15.NEWS1
Two day laborers who worked at a construction site, for example, attempted to apply for industrial accident medical benefits on Aug. 27 for knee and wrist conditions, respectively, only to discover that the Kcomwel office with jurisdiction over their last workplace could not find records showing that they had worked there.
The workers claim they faced further difficulties proving their industrial accident claims because their employer had failed to provide wage statements, report them to the retirement mutual aid system or enroll them in the four major social insurance programs.
Obtaining relief can become even more complicated at construction sites with multilayered subcontracting structures. Determining a worker's actual employer and employment relationship can take considerable time, while decisions on employment status and investigations into illegal subcontracting fall under different government authorities.
“When there is a long holiday like Chuseok, day laborers go for a longer period without work, making the burden of unpaid wages even greater,” said Lee Mi-so, a certified labor attorney at HRS Labor Law Firm. “Since determining employment status falls under the Ministry of Employment and Labor while investigations into illegal subcontracting fall under the Ministry of Land, Infrastructure and Transport, the relevant investigation procedures need to be improved to shorten the time it takes workers to obtain relief.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
