News and developments
Key Details and Implications of the Serious Accident Reduction Roadmap
The Roadmap has been underway as a part of the new administration’s national priorities. In it, the MOEL announced its plan to reduce the mortality rate/10,000 of full-time employees from 0.43‱ (reported in 2021) to the OECD’s average level of 0.299‱ by 2026. According to the MOEL, the Roadmap moves the government’s focus from post-enforcement/sanctions to prevention of serious accidents. Further, the Roadmap highlights the transition to a “self-regulatory prevention system” with a focus on risk assessment, similar to cases observed in other developed countries (e.g., UK).
- Key Details of the Roadmap:
- Risk Assessment as Key Component of “Self-Regulatory Prevention System”
- Definition of “self-regulatory prevention system”
- Mandatory implementation of “risk assessment system”
- Expansion of workers’ participation in the risk assessment process
- Amendments to OSHA and Serious Accidents Punishment Act (the “SAPA”)
- Direction of amendments to the OSHA
- Realign the Rules on Occupational Safety and Health Standards (currently 679 provisions) by classifying them into penal provisions (grounds for criminal punishment) and preventive provisions (setting forth detailed matters in the form of technical guidelines to ensure a flexible response).
- Expand the scope of businesses that are required to establish an Occupational Safety and Health Committee (from a business with at least 100 employees to one with at least 30 employees) (scheduled for 2023).
- Expand the scope of businesses that are required to prepare safety and health management regulations (from a business with at least 100 employees to one with at least 10 employees) (scheduled for 2023).
- Establish guidelines to clarify the scope of the safety and health-related roles and responsibilities of a main contractor and a subcontractor (scheduled for 2023).
- Clarify the legal liabilities of intermediary subcontractors in multi-layered subcontracting contracts (amendment to the law scheduled for 2024).
- Stipulate workers’ obligation to comply with safety rules (scheduled for after 2023).
- Establish and disseminate “standard health and safety management regulations” that specify the grounds and procedures for sanctions against workers who repeatedly fail to comply with safety rules (scheduled for 2023).
- Expand the scope of businesses that are required to appoint a safety officer dedicated to safety management (from a business with at least 300 employees to one with at least 50 employees) (by 2026).
- Direction of amendments to the SAPA
- Clarify the penalty requirements based on key factors such as a violation of the obligation to conduct risk assessment and establish and implement recurrence prevention measures, etc. (i.e., ensure criminal penalties for habitual/repeated violations, accidents resulting in multiple deaths, etc.).
- Improve the method and system of imposing penalties by referring to previous cases in other developed countries (e.g., economic sanctions, imposition of fines on companies, etc.).
- Establishment and operation of a “Task Force for the Improvement of Occupational Safety and Health Laws/Regulations” to amend the applicable laws and regulations (scheduled for the first half of 2023)
- Occupational Safety Supervision and Sanctions in Case of Serious Accidents
- Replacement of regular supervision with “risk assessment inspection”
- Severe punishment/sanctions in cases of serious accidents, while taking into account internal efforts such as risk assessment
- Implications and Considerations:
- Need to Establish a Risk Assessment System and Strengthen its Implementation
- Need to Strengthen Communication with Workers
- Expand the scope of businesses that are required to establish an Occupational Safety and Health Committee (from a business with at least 100 employees to one with at least 30 employees).
- Grant subcontracted workers the right to submit their opinions to the Safety and Health Council of the main contractor and the subcontractor (under review).
- Need to Monitor Amendments to Laws and RegulationsAs applicable laws and regulations, including the OSHA and the SAPA, are likely to be amended in line with the Roadmap, it is necessary for companies to be prepared for such amendments by monitoring new developments.