NATIONAL ASSEMBLY RESEARCH SERVICE

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Research Report

Legislation Impact Analysis on Article 6(5) of the Minimum Wage Act (the Minimum Wage of Drivers in Taxi Transport Business)

2013.12.26

Category - Issue Brief

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Article 6(5) of the Minimum Wage Act was amended on 27 December 2007. According to the amended provision, the minimum wage of drivers in taxi transport business shall be prescribed by the Presidential Decree other than the wages calculated on the basis of the output. The purpose of amended legislation is to secure regular incomes for the drivers in taxi transport business so that the drivers can enjoy well-fixed lives, and to reasonably improve the wage system for the drivers.

The present report analyzes whether the amended provision regarding the minimum wage of taxi drivers has accomplished the initial purpose. This report also analyzes the implications of the provision, and whether the provision is constitutional, legally well-organized. Moreover, it illustrates whether the provision led to the increase in the wages of taxi drivers, or affected the wage system.

To sum up the report, firstly, the provision is not unconstitutional nor contradict in terms of the legal organization. Secondly, there was a slight increase, however there were side effects of a widened gap between fixed working hours and actual working hours. Thirdly, some adopted expedients, and overall the introduction of total management of transport revenues.

Based on the analysis, following policy tasks are suggested. Firstly, legislative and policy efforts to narrow the gap between the fixed working hours and actual working hours are required. Secondly, for a transparent management of taxi transport business, management oversight over a proper total management of transport revenue under the Minimum Wage Act should be reinforced. Thirdly, to accomplish the legislative purpose of the amended provision, the plan to set the minimum wages of taxi drivers as certain amount of the monthly earnings may be considered.

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