Gyeonggi Province Inspects Unfair Contracts Between Delivery Platforms and Couriers...Collaborating with Fair Trade Commission

[Suwon Ilbo=Park No-hoon] Gyeonggi Province is moving to inspect contracts between local delivery platform companies and delivery couriers to eliminate unfair contract practices in the delivery platform industry.

Some local delivery platform companies have been pointed out for failing to prepare written contracts when contracting with delivery couriers or presenting unilaterally unfavorable contract terms.

On the 30th at 3 p.m., the province discussed a joint investigation plan with the Fair Trade Commission, Ministry of Land, Infrastructure and Transport, and Seoul City through a video conference.

Based on this meeting, from April to July, the province plans to secure and inspect contracts from approximately 70 delivery platform companies (with 50 or more delivery couriers) using major delivery platforms in the region (Saenggak Daero, Baro Go, Broon) through the 'Gyeonggi Province Fair Trade Continuous Monitoring Unit'. Seoul City will handle approximately 80 companies in Seoul.

However, since local delivery platform companies and delivery couriers have a 'subordinate-to-subordinate' relationship compared to large platform companies, the province plans to induce fair contract practices through incentive provisions rather than punishment.

Specifically, the Ministry of Land, Infrastructure and Transport will implement tax benefits, cooperative union membership, and administrative and financial support under the Daily Necessities Logistics Act scheduled to take effect in July for businesses that adopt standard contracts and receive business certification under the act scheduled for implementation in July.

Meanwhile, the province plans to actively proceed with proactive adoption of standard contracts by companies, autonomous correction guidance on unfair contract clauses, promotion of government incentives, encouragement of certification system introduction, and inducement of establishment of fair contract practices.

Kim Ji-ye, Director of the Fair Trade Bureau, said, "While the delivery industry is experiencing unprecedented prosperity due to COVID-19, unfair contract practices continue among delivery couriers and other platform workers at the bottom of the chain. Local governments and the central government will collaborate and actively work to protect them."