Notices

Amendment to the Occupational Safety and Health Act Passes the National Assembly ? Companies with Repeated Industrial Accidents Face Fines of Up to 5% of Operating Profit ? Penalties Also Apply Where Three or More Workers Die Within One Year ? Subcontracted Workers Granted the Right to Stop Work Against Principal Contractors

The Serious Accidents Punishment Act, which took effect in 2022, defines an accident as a serious industrial accident when one or more workers die from an industrial accident or when two or more workers suffer injuries requiring at least six months of medical treatment as a result of the same accident. Where an employer, business owner, or responsible management officer violates the statutory duty to secure occupational safety and health, criminal liability may be imposed.

The recently passed amendment to the Occupational Safety and Health Act further strengthens corporate responsibility for workplace safety in addition to the existing Serious Accidents Punishment Act. In particular, companies that repeatedly experience industrial accidents may be subject to an administrative penalty calculated based on up to 5% of their operating profit.

Going forward, employers should recognize that sustainable business operations are increasingly difficult without ensuring workplace safety. Accordingly, the prevention of industrial accidents should be treated as a management priority, and employers should faithfully implement all necessary safety and health measures.