Cracking Down on Misclassification: A Labor Expert’s Call to Action in Japan
- Japan's Act on Fair Transactions of Specific Contractors, also known as the Freelancer Act, aims to protect freelancers who often fall through the cracks of labor relations law.
- Similarly, the Korean government is promoting the Labor Weakness Support and Protection Act to support and protect non-wage workers, including those at small businesses, special employment workers, platform...
- Oh Hak-soo, a special researcher at the Japan Labor Policy Research and Training Institute, about the meaning and limitations of Japan's freelance law and the direction of improving...
Protecting Freelancers: An Interview with Dr. Oh Hak-soo
Japan’s Act on Fair Transactions of Specific Contractors, also known as the Freelancer Act, aims to protect freelancers who often fall through the cracks of labor relations law. The act, set to be implemented in November, focuses on two key areas: fair transaction conditions and improvement of employment environment. Fair transaction conditions include specifying transaction conditions in writing and paying wages on time, while improvement of employment environment includes prevention of bullying and consideration for work-life balance.
Similarly, the Korean government is promoting the Labor Weakness Support and Protection Act to support and protect non-wage workers, including those at small businesses, special employment workers, platform workers, and freelancers. The bill’s main points include support for mutual aid organizations, consultation and mediation support in case of legal disputes, preparation of standard contracts, career verification, and minimizing the risk of non-payment of wages.
I had the opportunity to speak with Dr. Oh Hak-soo, a special researcher at the Japan Labor Policy Research and Training Institute, about the meaning and limitations of Japan’s freelance law and the direction of improving laws and systems to protect non-wage workers. Dr. Oh emphasized the need to go beyond expanding the concept of workers and ensure that there is no difference in labor costs borne by employers, whether it is a freelance contract or an employment contract.
Japan’s freelance law not only includes provisions for fair trading conditions but also labor law provisions such as establishing a system to prevent harassment. Dr. Oh noted that bullying has been a major social problem in Japan, and the inclusion of bullying prevention in the Freelancer Act reflects public opinion that those who are not recognized as workers should also be protected.
While the Freelancer Act may increase predictability for freelancers, Dr. Oh pointed out that there is no mechanism to ensure equality between the parties to the transaction regarding the contents of the contract. He also expressed regret that the government does not provide a standard contract to encourage its use.

Dr. Oh also discussed the differences between Japan’s freelance law and the Korean Labor Protection Act, which aims to protect not only freelancers but also workers at businesses with less than five employees. He noted that the Labor Standards Act is fully applied to workers in workplaces with less than five employees in Japan, and that including these workers in the scope of the Labor Protection Act could create a strange legal system.
Regarding criticisms that both the Japanese Freelancer Act and the Korean Labor Protection Act do not directly address the issue of misclassification, Dr. Oh agreed that this is a problem. He emphasized the need to broaden the criteria for determining worker status and to create a system that makes employers pay the same labor costs regardless of the employment type they choose.
To protect freelancers and others who are not protected by existing labor relations laws, Dr. Oh suggested guaranteeing the minimum wage for non-wage workers. This would ensure that employers pay the same labor costs regardless of whether a delivery rider signs a consignment contract or an employment contract, reducing the incentive for companies to misclassify workers.
