On November 1, 2024, the “Act on the Improvement of Transactions between Freelancers and Undertakings ” (commonly known as the ” Freelance Act”) will come into effect.

Freelancers refer to individuals or one-person companies that work on a contract basis. The Freelance Act aims to protect freelancers and ensure fair transactions, and it applies to companies that outsource their work to freelancers.

The obligations of the company that outsource their work to freelancers under the Freelance Act are as follows:
(1) Obligation to provide written contract terms;
(2) Payment of remuneration within sixty (60) days from the date of provision of services (or within thirty (30) days from the date of payment by the main contractor in the case of subcontracting);
(3) Prohibition of reducing remuneration, price-cutting, etc.;
(4) Obligation to provide thirty (30) days’ notice before termination of contract or non-renewal;
(5) Obligation to implement measures to prevent harassment;
(6) Obligation to consider pregnancy, childbirth, childcare, and nursing care needs; and
(7) Obligation to accurately display recruitment information in advertisements, etc.