'Chopped-up' contracts raise concerns following death of London Bagel Museum worker

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'Chopped-up' contracts raise concerns following death of London Bagel Museum worker

Green Party members hold placards during a party address on the death of a London Bagel Museum worker outside the chain’s Anguk branch in Jongno District, central Seoul, on Nov. 3. [YONHAP]

Green Party members hold placards during a party address on the death of a London Bagel Museum worker outside the chain’s Anguk branch in Jongno District, central Seoul, on Nov. 3. [YONHAP]

 
When working for a single company, one doesn't expect to constantly be signing employment contracts. That, however, was the reality for one 30-year-old worker — four contracts in 18 months. Financial difficulties meant the worker was desperate for a renewal each time. The looming end of each contract, every three to six months, was the most nerve-wracking aspect of the job.
 

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When asked by a more senior colleague to cover peak shifts on Friday evenings or Saturday afternoons, the worker found it difficult to say no, despite feeling the requests were unfair. The employee often worked an extra hour or two after clocking out during busy periods — without receiving additional pay.
 
“Every time it was the month to sign a new contract, I had nightmares that I wouldn’t be rehired and would have to scramble to find a new job,” the worker said. “It felt like my blood was drying up.”
 
Cases like this have put a spotlight on the widespread practice of repeatedly signing ultra-short-term contracts — dubbed “chopped-up” contracts — especially for nonregular workers.
 
The issue gained national attention after a 20-something worker surnamed Jeong, who had been employed at popular bakery chain London Bagel Museum, was suspected to have died from overwork. Critics have pointed to the chain’s reliance on short-term contracts as a contributing factor.
 
Jeong’s family said the employee signed contracts for three, four and seven months, rotating between three store locations over 14 months. London Bagel Museum said the contract terms were based on salary increases linked to promotions and the transfers between stores.
 
Workers load cargo at a Coupang logistics center in Songpa District, southern Seoul. [YONHAP]

Workers load cargo at a Coupang logistics center in Songpa District, southern Seoul. [YONHAP]



Not illegal, but ‘a legal loophole’
 
Social democratic Justice Party leader Kwon Young-guk issued a statement criticizing the practice. “Chopped-up contracts may not be illegal, but they’re a legal loophole that contributes to chronic job insecurity, fostering environments ripe for long working hours and exploitation,” Kwon said.
 
“Coupang’s logistics centers also use a similar model — contracts split into three-, nine- or 12-month terms — which creates a constant fear of job loss,” said Kwon. “Workers say they feel like disposable parts.”
 
For workers repeatedly subjected to short-term contracts, job insecurity isn’t the only concern. They are also more exposed to power abuse and workplace bullying.
 
“It’s common for workers to endure mistreatment in hopes of renewing their contracts,” said Kim Ki-hong, a labor attorney at labor law firm Dolbloom. “Many tolerate verbal abuse from superiors or work unpaid overtime.”
 
From an employer’s perspective, however, short-term contracts are attractive because they offer greater flexibility. The shorter the term, the easier it is to avoid labor obligations tied to longer employment.
 
Under the Labor Standards Act, workers employed for fewer than three months are not entitled to a 30-day dismissal notice or equivalent pay, meaning employers can terminate them freely.  
 
From one year of employment, employers must pay severance and annual leave; after two years, under the Act on the Protection of Fixed-term and Part-time Employees, workers must be converted to permanent status unless the contract is for temporary work.
 
Social democratic Justice Party members hold placards during a press conference outside the Seoul regional office for employment and labor in Jung District, central Seoul, on Nov. 6, calling for measures to prevent another death like the one at London Bagel Museum. [YONHAP]

Social democratic Justice Party members hold placards during a press conference outside the Seoul regional office for employment and labor in Jung District, central Seoul, on Nov. 6, calling for measures to prevent another death like the one at London Bagel Museum. [YONHAP]

 
Even public institutions use 'chopped-up' contracts
 
The practice isn’t limited to private companies. Public institutions have also come under scrutiny for using short-term contracts.
 
During a city audit in Gwangju on Thursday, city council member Chae Eun-ji revealed that 171 public sector employees in Gwangju were hired on nine-month contracts and 132 on 11-month contracts.
 
“A nine-month term is a tactic to hire irregular workers for permanent jobs, and 11 months is just a way to dodge obligations toward severance pay,” Chae said. “It’s disheartening to see this kind of contract trickery in taxpayer-funded public institutions.”
 
The rate at which public corporations converted fixed-term workers to permanent positions dropped from 21.7 percent in 2009 to 14.3 percent in 2021, according to a report by the Korea Labor Institute.
 
Civic groups and lawmakers are increasingly calling for reform. The Justice Party held a press conference on Thursday proposing a new law to prevent ultra-short-term contracts, as well as revisions to the Labor Standards Act to require permanent employment for regular, ongoing tasks.
 
The proposed act would enshrine the right of workers to request contract renewal and prohibit employers from terminating contracts arbitrarily.
 
“What’s needed in reality is stronger administrative oversight,” said labor attorney Ok Dong-jin. “The Labor Ministry needs to supervise and determine whether a job truly requires short-term hiring or if it should be a regular position.”


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JUN YUL [[email protected]]
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