CONTENTS
- 1. Industrial Accidents Involving Day Laborers | Factors Requiring Particular Employer Attention
- - Increase in Industrial Accident Insurance Premiums
- 2. Industrial Accidents Involving Day Laborers | Meaning of a Day Laborer
- - Average Wage of a Day Laborer
- - Occupations Where Wage Calculation Is Difficult
- 3. Industrial Accidents Involving Day Laborers | Definition and Criteria of an Industrial Accident
- - Principle of Application to All Businesses and Workplaces
- 4. Industrial Accidents Involving Day Laborers | Key Issues in Applying Industrial Accident Insurance to Day Laborers
- - Types of Industrial Accident Compensation Insurance Benefits and Special Provisions for Day Laborers
- 5. Industrial Accidents Involving Day Laborers | Employer Liability When One Occurs
- - Employer Defense Strategies When Sued for Industrial Accident Damages
- 6. Industrial Accidents Involving Day Laborers | Disadvantages of Violating the Duty of Care and Other Obligations
- - Management of Subcontractor and Dispatched Workers
- 7. Industrial Accidents Involving Day Laborers | Points for Preventing Disputes
- - Defensive Evidence in Day Laborer Industrial Accident Disputes
1. Industrial Accidents Involving Day Laborers | Factors Requiring Particular Employer Attention
The following explains the points an employer should pay particular attention to when processing an industrial accident and responding to an accident involving a day laborer.
A considerable portion of the industrial accidents occurring at domestic construction sites and short-term labor sites involve day laborers.
Day laborers often have short employment contract periods and frequently change worksites, so their work arrangements tend to be fluid.
For this reason, when an industrial accident occurs, employers may bear unanticipated liability, and there are repeated cases in which they also bear civil liability for damages due to inadequate safety measures and document management.
In particular, day laborers often have gaps in enrollment in employment insurance, industrial accident insurance, and similar coverage, and because attendance records and employment contracts are frequently incomplete, there is considerable room to dispute their status as a worker.
However, the Korea Workers' Compensation and Welfare Service generally recognizes the establishment of an insurance relationship when the actual provision of labor and the payment of wages are confirmed.
Therefore, from the employer's standpoint, only by thoroughly preparing proof of the employment relationship, records of the performance of safety and health measures, and evidence establishing the circumstances at the time of the accident can the employer defend against unnecessary civil and criminal liability arising from a day laborer industrial accident.
Increase in Industrial Accident Insurance Premiums
Industrial accident insurance calculates premiums by linking the frequency and scale of industrial accidents with the premium rate.
If day laborer industrial accidents occur frequently or large amounts of industrial accident compensation are paid, the industrial accident insurance premium rate for the relevant workplace rises.
Because the industrial accident record over several years is reflected in the premium, it is also important to manage accident prevention and premiums through workplace safety management and minimizing unnecessary disputes.
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2. Industrial Accidents Involving Day Laborers | Meaning of a Day Laborer
In the context of day laborer industrial accidents, a ‘day laborer’ refers to a worker who is hired on a daily basis or who is paid wages in the form of a daily wage according to the days worked (wages paid in return for working during a predetermined number of working hours in one day).
For a day laborer, continued employment is not guaranteed when the employment relationship ends.
If the employment relationship continues for 3 months or more, or if the working conditions, form of contract, and other aspects of the employment status are recognized as similar to those of an ordinary regular worker, the person is not regarded as a day laborer.
Average Wage of a Day Laborer
When applying the average wage of a day laborer, the amount calculated by multiplying the worker's daily wage by 0.73 becomes the average wage.
When calculating the average wage for a day laborer industrial accident, the Korea Workers' Compensation and Welfare Service reviews the materials related to the employment contract between the parties and investigates whether it is higher or lower than usual.
- The day laborer's work record reported to employment insurance prior to the accident
- Where the person worked as a day laborer at the workplace prior to the accident, the workplace's daily wage
- Earned income reported under tax law prior to the accident
- Whether the day laborer holds qualifications related to the occupation
- The wage ledger of wages actually paid
- Records of deposits into a financial institution account
- The daily wage of other day laborers at the same workplace
Occupations Where Wage Calculation Is Difficult
Where objective evidence confirming the daily wage for a day laborer industrial accident is difficult to obtain, the daily wage may be determined based on the labor unit prices in the Construction Industry Wage Survey Report, the Korea Forest Service labor unit prices, and similar sources.
In addition, the wage levels of day laborers with similar industry type, scale, the same gender, and similar occupation, career, and skills in the region where the relevant workplace is located may also be considered.
[Labor Unit Prices in the Construction Industry Wage Survey Report]
According to the Construction Industry Wage Survey Report published in 2025, the labor unit prices for representative construction day laborers are as follows.
- General laborer 169,804
- Formwork carpenter 272,831
- Rebar worker 264,104
- Welder 278,326
- Plasterer 272,354
- Scaffolder 279.433
3. Industrial Accidents Involving Day Laborers | Definition and Criteria of an Industrial Accident
The Occupational Safety and Health Act and related laws define an ‘occupational accident’ as ‘a worker's injury, illness, disability, or death resulting from an occupational cause.’
Here, an occupational cause includes an accident that occurs in the course of a worker performing the duties under the employment contract under the employer's direction and supervision, or an illness with a substantial causal relationship to the performance of duties, among others.
In addition, disability is defined as a state in which, even after the injury or illness has healed, labor capacity is lost or reduced due to mental or physical impairment.
Therefore, even where a day laborer is left with a residual disability due to an accident during short-term work, it may be recognized as an industrial accident.
Principle of Application to All Businesses and Workplaces
The scale at which businesses and workplaces are subject to coverage does not change merely because an industrial accident involves a day laborer.
Industrial accident compensation insurance applies to all businesses or workplaces that employ workers.
In particular, the construction industry is not excluded from the statutory scope of coverage even for small-scale sites.
However, exceptions apply to businesses for which disaster compensation is provided under the Seafarers' Act or the Fishers' and Fishing Vessels' Accident Compensation Insurance Act, as well as to household employment activities, and to individually operated businesses in agriculture, forestry, fishing, or hunting with fewer than 5 regular workers.
Therefore, for most day laborer industrial accidents occurring at construction sites, industrial accident insurance is likely to apply.
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4. Industrial Accidents Involving Day Laborers | Key Issues in Applying Industrial Accident Insurance to Day Laborers
Because construction day laborers are repeatedly hired and dismissed, employers must be sure to keep day laborers' attendance records and employment contracts.
If the records are incomplete or the employer has not enrolled in industrial accident insurance, liability for the corresponding administrative fine may also be added on top.
Under the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance, where an employer has not enrolled day laborers in industrial accident insurance, the employer is subject to an administrative fine of up to 3 million won.
Types of Industrial Accident Compensation Insurance Benefits and Special Provisions for Day Laborers
When an occupational accident occurs, a worker may receive medical care benefits (treatment costs), temporary disability benefits (compensation for losses during the period of work suspension), disability benefits (paid when a disability arises), nursing benefits, survivor benefits (in the event of death), injury and disease compensation annuity, funeral expenses, and vocational rehabilitation benefits, among others.
If a worker dies due to an industrial accident in the course of work, the survivors may choose to receive either a survivors' compensation annuity or a lump-sum survivors' compensation, and funeral expenses equivalent to 120 days of the average wage are also paid separately.
5. Industrial Accidents Involving Day Laborers | Employer Liability When One Occurs
Industrial accident compensation insurance is a social insurance system that allows workers to receive prompt treatment and to be covered for the costs necessary for their livelihood.
However, where the employer is grossly negligent (such as through inadequate safety measures), the worker may claim civil damages for matters such as lost earnings and consolation money in addition to the insurance benefits.
However, if medical care benefits and the like have already been received for a day laborer industrial accident, that amount is deducted when civil damages are claimed.
Employer Defense Strategies When Sued for Industrial Accident Damages
In a claim for damages arising from a day laborer industrial accident, the court reduces the compensation amount by reflecting the worker's negligence (comparative negligence), and the temporary disability benefits, disability benefits, survivors' compensation benefits, funeral expenses, and the like already paid by the Service are subject to set-off for profit and loss.
This prevents double recovery, but consolation money and similar amounts may have to be paid separately, so employers must accurately understand the relevant issues.
6. Industrial Accidents Involving Day Laborers | Disadvantages of Violating the Duty of Care and Other Obligations
The courts interpret an employer's occupational safety and health obligations strictly.
If the provision of protective equipment, the carrying out of safety training, workplace risk assessment, and the allocation of responsibility within the subcontracting structure are not thoroughly performed, aggravated liability may be imposed for ‘violation of the duty of care.’
Employer obligation | Punishment for violation |
Occurrence of a fatal industrial accident | Imprisonment of up to 7 years or a fine of up to 100 million won |
Confirmation of a risk of an industrial accident - Immediate suspension of work - Evacuation of workers from the worksite | Imprisonment of up to 5 years or a fine of up to 50 million won |
Concealment of the occurrence of an industrial accident | Imprisonment of up to 1 year or a fine of up to 10 million won |
Carrying out accident prevention measures arising from a contract | Fine of up to 5 million won |
Failure to report or false reporting of a serious accident | Administrative fine of up to 30 million won |
Carrying out safety and health training for workers | Administrative fine of up to 5 million won |
Management of Subcontractor and Dispatched Workers
In a prime contractor–subcontractor structure, even where the worker belongs to the subcontractor, if the worker was in substance under the direction and supervision of the prime contractor, responsibility falls on the prime contractor.
Therefore, the subcontract agreement, the division-of-work chart, and evidence of the chain of command and direction must be maintained.
Where a worker of a related subcontractor works at the contractor's workplace, the contractor must carry out the following safety and health measures.
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In the event of a major industrial accident, the level of punishment and response measures for business owners
The first ruling that found the main contractor not guilty and the subcontractor guilty, with separate responsibilities.
The Supreme Court ruled that construction project owners are also responsible for industrial accident deaths.
7. Industrial Accidents Involving Day Laborers | Points for Preventing Disputes
Because day laborers have short employment contracts, contracts are often not drawn up.
However, when a dispute arises, the employment contract and the daily attendance status and work logs maintained through attendance management serve as very important defensive evidence for the employer.
In addition, pay statements, records of bank account payments, the payment ledger, and the basis for calculating the daily wage should be organized and kept.
In particular, because day laborer industrial accident premiums are calculated on the basis of the daily wage, a false report becomes unfavorable evidence in any later dispute.
Safety training logs, risk assessment results, and the like must also be managed on an ongoing basis.
If the site manager conducted safety training orally but did not record it in writing, the likelihood that the employer's liability will be aggravated when an accident occurs is high.
Defensive Evidence in Day Laborer Industrial Accident Disputes
Category | Content |
Proof of employment relationship | Employment contract, attendance management record, payment statement |
Wage materials | Bank account payment records, payroll ledger |
Safety and health management | Safety training log, risk assessment report |
Site management | CCTV, work instruction sheets, photographs of the work environment |
Response immediately after the accident | Accident report, witness statements, preservation of the scene |
Insurance relationship | Proof of industrial accident insurance enrollment, filing records |
Subcontracting relationship | Subcontract agreement, documentation of the chain of command |
In a day laborer industrial accident dispute, management may become lax due to the nature of day laborers' work arrangements, but when an accident occurs, the employer's legal and financial liability can grow beyond expectation.
Through thorough safety management and securing supporting evidence, it is advisable to prevent unnecessary civil and criminal disputes.
For matters such as day laborer industrial accidents, our firm forms a task force of attorneys experienced in serious accidents and labor attorneys to analyze the matter quickly and present a tailored strategy.
To help establish a prompt response strategy when an industrial accident occurs, the firm keeps a consultation channel open at all times, so you may leave a consultation request whenever you wish.
