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Lack of Unemployment Benefits for Small Workplace Employees: Statistics and Impact

88.9% of workplaces with less than 5 employees do not receive unemployment benefits for the weak in labor, 38% of non-payment of unemployment benefits

▲ Unemployment benefit application counter at Seoul West Employment Welfare Plus Center in Mapo-gu, Seoul. It was found that 7 out of 10 office workers who experienced involuntary resignation did not receive unemployment benefits. Although the government has taken special crackdowns on fraudulent unemployment benefits and adjusted the lower limit, it is pointed out that workers with smaller workplaces or lower wages are still in the blind spot of the system.

According to the results of a survey of 1,000 office workers conducted by labor civic groups Workplace Gapjil 119 and the Beautiful Foundation on the 27th, 68.7% of those who experienced involuntary resignation over the past year did not receive unemployment benefits. The survey was conducted by Embrain Public on the 2nd to 10th, and 16.7% of the total respondents experienced involuntary resignation.

In particular, 9 out of 10 workers (90.9%) and workers at workplaces with less than 5 employees (88.9%) with less than 1.5 million won per month did not receive unemployment benefits. 80.8% of workers who worked less than 15 hours a week did not receive unemployment benefits.

The most common reason for not receiving unemployment benefits was ‘no employment insurance’. 38.0% of respondents did not receive unemployment benefits because they were not enrolled in employment insurance, and 23.9% of respondents were classified as voluntarily unemployed even though they met the eligibility for benefits.

Employers used unemployment benefits as a weapon to persuade them to leave. Mr. A said, “When I refused the president’s invitation to leave, I had to work for three more months to receive unemployment benefits, but if I worked one more month, he suggested that I work for two months.”

More than half (53.4%) of office workers thought that the social security system was not sufficient when they lost their jobs in Korea. Regarding the push to amend the law to lower or eliminate the lower limit on unemployment benefits, 65.8% of the respondents said they did not agree.

Reporter Son Ji-yeon

2023-08-27 04:48:55
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