South Korea has introduced its first standard contract for hypermarket delivery workers, aimed at ending practices that forced drivers to cover the cost of replacement vehicles or haul excessively heavy loads.
The Ministry of Employment and Labor announced Wednesday it had developed a standard contract template and usage guide for independent delivery workers who sign agreements with transport companies to carry out hypermarket deliveries.
Standard contracts are recommended contract forms that set out essential terms and the rights and obligations of each party to support fair agreements between independent workers and businesses. The government has now produced standard contracts covering 30 occupations in total, including parcel couriers and broadcast production staff.
Unlike other delivery occupations such as parcel and freight drivers, hypermarket delivery workers had no dedicated standard contract. The absence left the scope of drivers' duties unclear and allowed contracts to be drawn up on terms unfavorable to one side, fueling persistent disputes.
The ministry developed the contract after 13 rounds of consultations with hypermarket delivery drivers, transport companies and hypermarket operators.
The template requires the specific scope of contracted work and fee payment arrangements to be clearly stated. It also includes provisions to protect drivers' rights, including a ban on unfair trade practices and requirements covering social insurance enrollment.
To prevent drivers from being assigned excessively heavy loads, the contract allows order volumes to be capped by item type. When a driver cannot work due to unavoidable circumstances, the cost of a replacement vehicle does not fall on the driver. Protections covering social insurance and workplace safety are also written into the contract.
The ministry said clearly defined contract terms should help prevent disputes between drivers and transport companies. However, because the standard contract is a recommended form rather than a mandatory one, how widely it is actually adopted will be the key question going forward.
"The newly developed standard contract is a first step toward guaranteeing hypermarket delivery workers their basic right to a fair contract," Minister of Employment and Labor Kim Young-hoon said. "Once the Basic Act on the Rights of Working People is enacted, we expect fair contracting practices to spread further through written contract support and on-site dispute resolution."
The standard contract and usage guide are available on the websites of the Ministry of Employment and Labor, the Korea Labor Foundation and the Workers' Connection Center.
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