Employers to Have Compulsory Insurance for Overseas Workers

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Jun. 29 – From August 1, 2011 all South Korean companies hiring overseas labor-intensive workers will be required from later this year to give to the departure expiration insurance to pay their retirement benefits.

In a statement issued by India’s Labor Ministry, the revised enforcement ordinance to the law on the employment of foreign workers is set to go into effect on August 1 as no parliamentary consent is necessary.

Presently, SMEs employing at least five foreigners with E-9 or H-2 visas are mandatory to subscribe to the departure expiration insurance to ensure that retirement benefits are paid before the departure of a worker.

Those visas are given to overseas labor-intensive workers hired under the country’s “employment permit system.” The Cabinet accepted a bill increasing the coverage of mandatory subscription to companies with four or less alien workers.

Dezan Shira & Associates is boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in India. To contact the firm, please email india@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.

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