A check by the Board of Audit reveals that many worker-dispatching firms had not paid their premiums for health insurance or for the pension scheme. Its report concluded that the unpaid premiums for both insurance schemes amounted to ¥3.4 billion.
In 1997 the Board conducted a special survey on the coverage taken out by worker-dispatching firms for social insurance. The survey was in addition to the regular audits made on provisions for old-age pensions. According to the survey, the examination of wage registers and the employment contracts of worker-dispatching firms revealed that around 1,500 firms had yet to pay their premiums for such insurance. Premiums for employees' pension and health insurance are shared by both employers and workers and are paid by the former. Those employed during the period of less than two months are not eligible for either kind of insurance. However, many of workers registered at the manpower company are dispatched to the client firm, repeat a short-term employment contract of a less than two-month duration and being actually employed long-term. The majority of these manpower firms had failed to report to the social insurance office and pay their premiums, despite the fact that dispatched workers had been hired for more than two months and were qualified for being insured.
With a rising number of worker dispatching firms, the problem of the unpaid premiums has become a major concern. The Board of Audit is asking the Social Insurance Agency to make a more concerted effort to inform the firms about their responsibilities in this regard. The Agency will also be taking steps to collect the outstanding premiums.
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