Trends in Politics and Government


1. New labor bills being discussed at National Assembly

On April 22, the legislative subcommittee of the Environment & Labor Committee held a meeting to discuss the legislation of new labor bills. The legislative subcommittee had a lively discussion regarding the Act on In-house Subcontract Workers, Act on Protection, etc. of Fixed-term and Part-time Employees and the Act on Prohibition of Age Discrimination in Employment & Employment Promotion for Aged Workers.

The Act on In-house Subcontract Workers is to be discussed further, while the politicians were successful in reaching agreement to extend the retirement age to 60. The politicians decided to hold off on the Act on Protection, etc. of Fixed-term and Part-time Employees due to differing viewpoints regarding penal provisions.


<Table 1> New Major Labor Bills Currently Discussed at the National Assembly

    –   Public Holiday Bill
    –   Act on Prohibition of Age Discrimination in Employment & Employment
        Promotion for Aged Workers
    –   Special Act for the Promotion of Youth Employment
    –   Act on Protection, etc. of Fixed-term and Part-time Employees

※ Please refer to the ‘Focus of the Month’ for details business standpoint on the above labor bills.

 

2. MOEL plans to induce private firms to increase regular employment

On April 8, the Ministry of Employment and Labor (MOEL) announced its ‘Plans on improving non-regular employment in the public sector’ which includes a plan to turn 40,000 non-regular employees responsible for constant and continuous work into regular employees by 2015. As of 2012, the number of fixed-term and part-time workers numbered 249,614 and dispatched and in-house subcontract workers totaled 110,641.



<Table 2 >  Major features of MOEL ‘Plan on improving non-regular employment in the public sector’

① Expand regular employment

* Granting of regular employment to employees who were hired after the announcement of the ‘2011 Employment Plan’ and conversion of all non-regular employees in the public sector, who carry out constant and continuous work to regular employee status by 2015.

② Prepare measures to improve treatment and employment stability of non-regular school faculty.
③ Grant ‘indefinite-term contract’ to workers who have an ‘indirect employment contract’ to carry out constant and continuous work.
② Prepare measures to improve treatment and employment stability of non-regular school faculty.
③ Grant ‘indefinite-term contract’ to workers who have an ‘indirect employment contract’ to carry out constant and continuous work.

 
The MOEL has been working to grant regular employment status to non-regular workers in the public sector since 2011 and has developed concrete measures following pledges made by the new government. In particular, an election pledge of President Geun Hye Park regarding non-regular workers includes: ▲inducing large companies to grant regular employment to personnel carrying out constant and continuous work; ▲providing more support of social insurances for non-regular workers; ▲allowing trade unions to request correction of discriminatory treatment; and ▲introducing punitive damages.

Furthermore, the MOEL seeks to induce the private sector to convert non-regular workers to regular workers by conducting labor inspections on discrimination against non-regular workers and obligating companies to post employment categories. This posting of employment categories is scheduled to be implemented in June of this year, beginning with workplaces of more than 300 employees.

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