Article 1 (Purpose) The purpose of this Ordinance is to contribute to the protection of basic life of workers by preventing overdue wage, etc. providing for matters concerning wage of workers and payment of rent for various materials and equipment, in performing construction and service above a certain scale ordered by Seoul Metropolitan Government.

Article 2 (Definitions) The terms used in this Ordinance shall be defined as follows:
1. The term "worker" means a person who provides his/her labor for business or business place with the purpose of wage regardless of the type of job (including construction machinery workers)
2. The term "construction machinery worker" means a worker who provides his/her labor together with various materials and equipment.
3. The term "wage, etc." means wage (including the rent for materials and equipment), allowance for retirement and compensation for suspension under Articles 2, 34 and 46 of the Labor Standards Act.
4. The term "rent" means fees for various materials and equipment used in the construction and service.
5. The term "overdue wage" means wage, etc. related to the government ordered construction ordered by Seoul Metropolitan Government (hereinafter referred to as "City") among the wages, etc. not liquidated and unpaid in spite of being liquidated and paid under Articles 36 and 43 of the Labor Standards Act.
6. The term "government ordered construction" means the construction and service ordered by the City. In this case, it includes the construction and service ordered by the City-affiliated, invested or funded institutions.
7. The term "order placer" means a chief of the relevant institution who contracts with a business owner for the construction and services in whole or in part.
8. The term "business owner" means a person who works for the government ordered construction by employing workers or leasing materials and equipment.
9. The term "construction supervisor" means a supervisor under subparagraph 12 of Article 2 of the Construction Technology Management Act and an official in charge who performs business under Article 36 of the same Act or an equivalent one.
10. The term "original contractor" means a person who has contracted with the person who placed an order for construction and service.
11. The term "subcontractor" means a person who has contracted with the original contractor for construction or service.

Article 3 (Scope of Applicable Subject) The scope of applicable subject for the government ordered construction shall be as follows.
1. General construction exceeding estimated price of two hundred million won
2. Professional construction exceeding estimated price of one hundred million won
3. Other construction exceeding estimated price of eighty million won.
4. Service exceeding estimated price of fifty million won (excluding academic service).
5. Business having high possibility of overdue wage, determined by the Seoul Metropolitan Mayor (hereinafter referred to as "Mayor"), in the construction or service except subjects pursuant to subparagraphs 1 though 4.

Article 4 (Responsibilities of Mayor) (1) The Mayor shall regularly conduct instruction and inspection more than twice a year in order to avoid overdue wage of the government ordered construction, and frequently take precautions to prevent the occurrence of overdue wage in business place.
(2) The Mayor shall make public the results of instruction and inspection using information communication network, etc. after giving opportunities of explanation to the interested party, etc. of business place in which overdue wage has occurred more than once according to the results of instruction and inspection under subparagraph 1.

Article 5 (Duties of Business Owner) (1) Every business owner shall endeavor to ensure the basic life of workers in accomplishing the government ordered construction.
(2) Every business owner shall make labor contracts with workers under Article 17 of the Labor Standards Act and lease contracts with materials and equipment companies under Article 22 of the Construction Machinery Management Act in writing.
(3) Every business owner shall submit documents to the order placer or let the order placer peruse those which are classified as follows at the time of claiming the price:
1. Where workers are employed: the labor contracts, the list of workers, the copies of bank account
2. Where materials and equipment are leased : the lease contracts of materials and equipment, the list of lessors, and the copies of bank account.
(4) Every business owner shall preferentially pay the wage, disaster compensation and other claims caused by labor relations except otherwise referred in the related regulations.

Article 6 (Affirmation of the Details of Employment of Workers and Use of Materials and Equipment, etc.) (1) Construction supervisor, if necessary to prevent overdue wage, shall notify the details of employment of actually employed workers and use of materials and equipment, being submitted by the contract partner (including subcontractor when the subcontract price is directly paid to him/her) or perusing, actually committed to the contractor in charge when the relevant government ordered construction is established and completed after having inspected and affirmed those.
(2) The contractor in charger, being notified of Article paragraph (1), shall continuously manage the contact partner to prevent occurrence of overdue wage with the cooperation of the construction supervisor.

Article 7 (Prior Notice of Price Payment) (1) Order placer shall give the contract partner prior notice for matters related to price payment before he/she pays the price of the government ordered construction using cable or wireless network.
(2) Contract partner, given the prior notice for matters related to price payment, shall immediately notify the prior notice for matters related to price payment to the relevant person classified as follows using cable or wireless network:
1. Where matters fall under subparagraph 1 of Article 5 (3) : the worker himself/herself
2. Where matters fall under subparagraph 2 of Article 5 (3) : the lesser of materials and equipment

Article 8 (Direct Payment of the Price) (1) Order placer may directly pay the part of the price which shall be paid to the original contractor to the subcontractor or worker, ect. in accordance with special conditions of the contract.
(2) The special conditions of the contract under paragraph (1) shall include the following matters:
1. Matters on instructions for dissolution of overdue wage to the original contractor or subcontractor
2. Matter on direct payment of overdue wage deducted from the price of the government ordered construction to the subcontractor or worker when the instructions of subparagraph 1 are not fulfilled
3. Matters on direct payment of overdue wage, deducted from the price of the government ordered construction, to the subcontractor or worker by the order placer when he/she cannot be paid wages, etc. due to the payment suspension or bankruptcy, other reasons similar thereto, or cancellation of permission, authorization, license and registration of business, etc. of the original contractor or subcontractor.
4. Matters on the certificate of reasons when the subcontractor or worker shall not be paid directly pursuant to subparagraphs 2 and 3.

Article 9 (Restriction on the Contract, etc.) Order placer may restrict the original contractor or subcontractor from private contract or give him/her demerit mark when he/she has violated the timely payment of wage or obedience to the minimum wage within recent 3 years

Article 10 (Installation of Report Center) (1) The Mayor may install and operate the report center to promptly manage civil affairs related to the overdue wage.
(2) The Mayor shall separately determine the necessary matters for installation and operation oth the report center pursuant to paragraph (1)

Article 11 (Request of Material Submission) (1) The Mayor may request the necessary material such as status of wage payment, etc. from the business owner to conduct this Ordinance.
(2) Business owner, requested to submit the materials, shall faithfully submit that.

Article 12 (Reflection of Special Conditions of the Contract) Matters prescribed by this Ordinance shall be reflected in the special conditions of the contract when concluding the contract of the government ordered construction.